IDT Expo 2008 Innovation in Watch amp Clock Industry

High Value Transformation

鐘表業創意增值的策略

Chung Nin KO (高松年)ACGI DIC PhD

Materials Technology DivisionDecember 11 2008

Why Are We Here bull Provide an overview of Watch amp Clock Industrybull Discuss key opportunities and challenges

IntroductionHong Kong Watch amp Clock Business Now and ThenUpcoming challengesInnovations ndash World TrendApplications of new materials to innovative productsApplications of new processing technologiesHow can Hong Kong Productivity Council help the industry meet the challengesHKPC help industry connect to the worldSuccessful stories and casesLESSONSThe Future

bull Answer your questions

Hong Kong Watch and Clock Business Now and Then

For the past decades a great deal of continuous efforts have been out in the watch and clock industry This concerted contributions have formed a concrete foundation for the watch amp clock industry

Hong Kong is now the worldrsquos second largest exporter of Watches and Clocks According to the latest released statistics record

In 2007 the total export amounted to HK$ 50 billion indicating a slightly growth compared to that of the year in 2006

In 2008 total export was over HK$ 25 billion for the first 2 quarters this shows an encouraging increase of approximately 17 comparing to that of the same period last year The export to South America has been boomingly increased while one should not forget the strong potential of the Indian market

Global Watch Business Situation in the past 12 months

With exports growing 16 last year to almost CHF 16 billion (HK$ 100 billion) and a further 23 in January 2008 the Swiss watch industry has been really booming

For Fine Watches the market goes from hot to boiling-point gaining 253 in value terms over the twelve months of 2007 to reach CHF 783 billion (HK$ 50 bill) (up 167 in volume terms) and almost 40 for the first month of 2008 (+45 in volume) according to statistics published by the Federation of the Swiss Watch Industry

With such an accelerated rate of growth over the last two years what were viable criteria when organizing production ten years ago are now quite simply out of the question for one obvious reason the entire value-creation chain is set to burst the biggest problems being serious bottlenecks in production leading to ever-longer delivery times a shortage of skilled labour and major shortfalls in the quality of parts

We need to bring the situation under control which means shorter waiting times commented Luigi Macaluso Chairman of the Sowind group (Girard-Perregaux and JeanRichard) recently

More suppliers to be trained and trainedhellip

The watch groups that sailed through the 2007 financial year with figures shown at- Swatch (2007 sales up 176)- LVMH (organic revenues growth of 19 for Watches amp Jewelry)- PPR (results for its luxury division up 29)- Richemont (third-quarter sales up 14 at constant exchange rates)

this mad surge in sales raises a number of questions mostly concerning production

In the 1990s these multinationals went shopping for prestigious brands sparking an unprecedented wave of mergers and acquisitions in the branch Since the brand is a unique gateway to the customer the products still have to meet expectations

Business Growth of Global Brands from 2003-2007

Suppliers - Vertical integrationWatchmakers have started to look for reliable suppliers with the intention to sharpen their industrial resources as part of sweeping vertical integration While these buy-outs of small and medium firms may not have made headline news in the same way the take-over of Jaeger-LeCoultre Breguet or Zenith once did they still caused a subtle but important shiftin the watch making landscape

Since the early 2000s numerous suppliers of dials hands cases and movement parts have changed owners which are of particular interest for those who make movements

Clearly we havenrsquot seen the last of these takeovers of highly-specialised small and medium enterprises as illustrated these past six months by the acquisition of Elinor a manufacturer of precious metal cases by FP Journe of Donzeacute-Baume a specialist in cases and bracelets by Richemont of Indexor a manufacturer of hour markers by Swatch via MOM Le Preacutelet and the alliance between Bulgari and Leschot another case-maker

Still companies realised quite some time ago that vertical integration alone was no longer sufficienthellip

A generation of new workshopsExpertise is one thing production capacity is another Some companies are so cruelly lacking capacity that delivery times for certain new products can stretch to as much as three years

One remedy has been to form an alliance with one of the watchmakers working behind-the-scenes making high-end movements for third parties

This was the route chosen recently by Hermegraves when it acquired a 25 stake in Vaucher Manufacture Fleurier

Richemont had the same goal in mind when it took over Minerva and production facilities at Roger Dubuis As for Bovet by reviving Dimier it has simply given a prestigious new name to STT Holding a recent acquisition comprising three specialised manufacturers of tourbillons balance-springs and calibres

Production production production

This shuffles the deck but does not add any new cards to a sector which overall needs to extend its production facilities Companies have got the message and are busy composing the architectural masterpieces that will give them more production space The same phenomenon is at work among suppliers too In the valley of Saint-Imier in the Franches-Montagnes district as elsewhere over the past fewyears every village has seen one or more buildingsspring up and new workshops and machines move in What will become of these investments when the cycle enters a downturn

Existing situation of Hong Kong Watch amp Clock Industry

Challenges ahead of small and medium enterprises (SMEs) 中小企面對國內政策改變

Mid-Low Market segments of Hong Kong Watches香港鐘表中下價

Technologies of Hong Kong have yet to catch up Switzerland and Japan科技緊次於瑞士及日本

Certain components made by Hong Kong have a leading role to play某些零部件市場有領導地位

The quality of watches manufactured by Hong Kong has a large variation 香港鐘表行業技術品質參差不齊

Understanding Impacts of Financial Tsunami

How big (small) are we talking about

Any opportunitiesOur skillsOur production capacitiesOur quality systemOur raw materialsOur vertical integrationYOur Decision to move forwardFrom Basic Quantity to Luxurious few

Upcoming challengesFree trade barriers and protection of interests保護主意 外國公司排斥

Tightening of quality standards and requirements瑞士之所以成功是由於不停增加新規格及提升舊規格

Continuous improvements and Exceeding customersrsquo expectation滿足客戶無微不至於客戶未提出之前以為客戶預備

Leading and flowing with the market帶領市場

Upgrade the Hong Kong Watch and Clock Industry as a whole香港鐘表行業應提升功能形象建立品牌

Listen to the customers and improve on the basis of Voice of Customers (VOC )香港鐘表行業應提升功能形象

Brand building learning from our Swiss and Japan counterparts建立品牌 向瑞士學習一步步跟進

Innovations World Trend

Application of various new materials innovative products

synthetic diamondsingle crystal diamondcarbon fibrenew alloy

Carbon Fibre for watches

Carbon Fibre for watches

A 6 μm diameter carbon filament (running from bottom left to top right) compared to a human hair

Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre

A unique concept watch with

- A lubricant-free watch - Resistance to extreme temperatures - 40deg

+ 60deg

C

- Innovative character rewarded by six patents - Movement entirely redesigned and created by

2 years of intense development - High-tech design carbon and titanium case- Automatic tourbillon with a large variable inertiabalance (115mg x cm2) oscillating at a highfrequency of 28800 vibrationshour (4 hertz)

This watch will only be delivered andsold in limited quantities

Jaeger - Lecoultre

Traditional mechanical movements use oils or greases to ensure smooth operations

These take the form of oils in varying degrees of fineness for parts with high translation or rotation speeds or grease for parts subject to large pressures or stresses

The properties of such oils and grease deteriorates over time and the performances of the movement decline if these lubricants are not replaced in due time

Testing conducted during the 1970s on plastic movements had already shown the way towards doing without some of the oils and grease However these watches did not stand the test of time which resulted in wear on the parts that in turn rapidly diminished their chronometric and functional performances

In its ongoing search to enhance the reliability of mechanical movements Jaeger-LeCoultre had already renounced the use of lubrication in the ball-bearing mechanisms of automatic winding systems by introducing ceramic ball-bearings as early as 2002

Today the research team at the Manufacture in Le Sentier has innovated a mechanical movement run without any lubricant This research has culminated in the brand-new Jaeger-LeCoultre Calibre 988C

Innovative mechanical movements without oils amp greases

A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is

Inspired by the unshakeable conviction in the smallest details the watchmakers and designers of the Manufacture have raised the game of precision and functions to unprecedented levels of refinement

The aesthetics of the Master Compressor Extreme Lab reflect the technology within Its transparent dial reveals the heart of the horological mechanism featuring a particularly attractive graphic design characterised by subtle contrasts between the black aluminum of the open-worked centre bridge and the flange the white colour of the applied hanging numerals and hour-markers and the grey of the tourbillon bridge

The centre bridge is made from an aluminum alloy reinforced with particles of titanium carbide Ticaliumreg The mechanical hardness and resistance of this alloy are thus improved by 20 without increasing the density The casevisually reflects the movement with its association of carbon silicon carbonitrideand grade 5 titanium

The first feature covers its original structure featuring an interior carbon fibre case fitted inside a titanium ring The obvious advantage is a gain in weight but the resulting aesthetic effect is doubtless even more remarkable The case as a whole is topped by a bezel in silicon carbonitride a material that is lighter and more resistant than traditional ceramics

Watch suspension mounting

The second feature relates to the suspension mounting of the movement The silent-block made from a supple red polyurethane material not only serves to avoid any risk of water seeping into the crown tube but also mechanically isolates the movement and its Compressor crown

The calibre and winding-stem are thus mounted in a ldquofree-floatingrdquomanner and there is thus no metal to metal link between the movement and the case which means the watch mechanism is protected fromviolent shocks or vibrations

The red aluminum crown echoes the red elements on the dial the silent-block shock absorber and the strap

Jaeger-LeCoultre has also devoted special attention to the strap of this watch Its double-layered construction enhances both its robustness and its appearance The unusual combination of materials such as leather cordura canvasand alcantara reinforced by a composite strip lends this strap a three-dimensional appearance on a par with the case to which it is attached

Mechanical automatic movement Jaeger-LeCoultre Calibre 988C

307 parts

28800 vibrations per hour 4 hertzA barrelTourbillon with magnesium carriageTwo time zonesAMPM indication with local timeCentral pointer-type calendar displays that jumps over the tourbillon carriageMovement diameter 300 mmMovement thickness 705 mmCase diameter 450 mmCase thickness 1480 mmOperational between -40deg and +60degCNo oil no greaseIridium platinum oscillating weight with carbon baseBlack diamond pallet-stonesEasium jewels48-hour power reserveWater-resistant to 100 metresCrafted in carbon and titaniumExclusive limited annual productionReference Q179T470

New materials new solutionsMany watch brands are experimenting with new materials to enhance the technical aspects of their watches

Some companies like Patek Philippe and Rolex are working on new materials for springs and other parts

In 2005 Patek Philippe filed a patent for the first silicon escape wheel for a Swiss lever escapement

Rolex created its new blue Parachrom hairspring made from a new alloy to resist magnetism and increase shock absorbance

Jaeger-LeCoultre are experimenting with new materials to reduce the need for lubrication ndash last year the Extreme Lab introduced the first watch ever that doesnt need any lubrication

Ultra light alloy ndash Mg and AlSome watches are already using new materials such as the Mag Bang with the AG5 alloy which is an ultra light alloy of magnesium and aluminium

Audemars Piguet has for years been a leader in the search for new and advanced materials The latest is the companys minute repeater programme where they are working with laboratories professors and students at the best universities to come up with new metals and designs that will enhance the sound of their minute repeaters

Ulysse Nardin recently unveiled its new Innovision watch a concept watch that combines the companys most daring innovations -from the silicon escapement first used in the Freak to new silicon parts (wheels bridges pinions etc) Ulysse Nardin is part owner of Sigatec SA the company responsible for the development of silicon technology in watch making

Ultra light alloy ndash Mg and Al

The Freak is one example of the way Ulysse Nardin makes things happen When Schneider made the first Freak it did not work because the mixture of materials was not right

Schneider was ready to abandon the new escapement but was talked into trying it another way We failed with the Freak with traditional materials he admits

When we failed with the Freak I wanted to go back to the anchor escapement Ludwig Oechslin our Chief Designer wanted to use the new escapement because he thought it was better So we decided to go forward in two different directions one with the anchor escapement and the other with the new escapement We met someone who had done work with silicon so we decided to try itrdquo

C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin

Ulysse Nardin is concentrating on manufacturing movement parts in silicon

One of the advantages of making parts from silicon is that the process allows complete freedom of design - just about any shape visualized can be realized

The use of silicon could very well change the way movements are designed because it removes some of the old limitations that were in place before In addition working in silicon means higher precision lighter weight and the material in its final form is very hard

New materials unique watchesSome watch companies are using new materials for aesthetic reasons like Gerald Gentas new Gefica which uses bronze in a striking way The use of innovative materials is a major factor in the creation of our watches particularly for Gerald Genta says Gerald Roden Chief Executive Officer of Daniel Roth and Gerald Genta We have long been investigating creative uses for innovative more so for aesthetics than for technical reasons

For quite some time we have experimented with combinations of materials such as carbon fibre aluminium and wood with rubber and even fish skinIn 2003 Gerald Genta was among the first to use unique metals such as palladium and tantalum for cases

We have developed a patent to use liquid ceramic for the Octo line and are currently working with metallurgists to develop other new and innovative metals for Gerald Genta We are also in the final test phases of creating an exciting new treatment for steel

Non Magnetic materials for movement components

Another movement design

Traditional mechanical movements use oils or grease to ensure smooth operations

These take the form of oils in varying degrees of fineness for parts with high translation or rotation speeds or grease for parts subject to high pressures or stresses

The properties of such oils and grease deteriorates over time and the performances of the movement likewise decline if these lubricants are not replaced in due time

Testing conducted during the 1970s on plastic movements had already shown the way towards doing without some of the oils and grease However these watches did not stand the test of time which resulted in wear on the parts that in turn rapidly diminished their chronometric and functional performances

In its ongoing search to enhance the reliability of mechanical movements Jaeger-LeCoultre had already renounced the use of lubrication in the ball-bearing mechanisms of automatic winding systems by introducing ceramic ball-bearings as early as 2002

Today the research team at the Manufacture in Le Sentier has innovated a mechanical movement run without any lubricant whatsoever This research has culminated in the brand-new Jaeger-LeCoultre Calibre 988C

Innovative mechanical movement without any lubricant

New materials in mechanical movements

The engineers and watchmakers have resorted to new materials and new combinations of materials for demanding challenge

The Easiumtrade carbonitride thus makes its way onto the watch making stage This extremely hard material features extraordinary tribological properties and is therefore particularly suited to the making bearings able to operate without lubricants

In Jaeger-LeCoultre Calibre 988C Easium replaces the traditional jewels lubricated with a fine oil The burnished steel pivots of the balance-staff are coated with a special surface treatment and turn inside an Easium bearing The endstone is also made from Easium This is also a material used to make the two bearings allowing the carriage to turn in the bridges without any need to add jewels that would require lubrication

Watchmakers are considering the black crystalline diamond a synthetic material as hard as natural diamonds but with considerably enhanced operational properties for replacing the red pallet-stones Its friction on the silicon teeth of the escape-wheel does not require any oil to improve its operation live All the burnished steel pivots of the wheels and pinions are coated with a surface treatment that obviates any need to oil the jewels

Mainspring barrel in mechanical movement grease replaced by graphite powder

On the other end of the movement the barrel grease has also disappeared Instead a graphite powder helps the bride to slide smoothly inside the drum when the mainspring has been wound beyond the maximum powerreserve by the automatic winding mechanism The molecular structure of graphite consists in a stack of micro-platelets contrary to grease it retains its lubricating properties over time whatever the temperature and the hygrometry level

As for the ball-bearing mechanism of the oscillating weight in addition to the use of ceramic ball bearings mentioned earlier friction has been reduced by optimising the rotor which features carbon fibre arms and a distinctly lighter and more rigid base

Finally the oscillating weight segment is surprising in itself with its iridium platinum alloy the densest non-toxic physical body currently machinableThe entire windingtime-setting mechanism is coated with Nickel-PTFEin order to eliminate the customary greasing points The date jumper-spring features a frictional surface that also operates in ldquodryrdquo mode

Balanced wheel design in mechanical movement

Arenrsquot the most efficient balances circular The latest research by Jaeger-LeCoultre proves the exact opposite

Lengthy testing has revealed the importance of the total surface of the balance on its aerodynamic performances The larger the surface the greater the aerodynamic friction and the more energy it takes to maintain the oscillations of the balance and spring ndash which is in turn detrimental to precision

The geometry devised by Jaeger-LeCoultre coupled with the use of an extremely dense material ndash in this case iridium platinum ndash minimises the surface in friction Thus given a constant level of inertia this balance requires less energy to oscillate than a traditional balance

Balance wheel design in an optimized mechanical movement

The geometry of the balance has also been designed to reduce the ratio between the mass and the inertia of the balance

High inertia ensures a stable regulator that is fairly insensitive to the vibrations and daily shocks to which a watch is subjected and which disturb its precision Nonetheless high inertia implies a higher balance mass leading to larger losses due to mechanical fiction and thus increased energy consumption to maintain the oscillations ndash as well as a larger difference in amplitude between horizontal and vertical positions

The balance of the Jaeger-LeCoultre Calibre 988C has been optimised in order to reduce total mass without modifying the determined inertia The shape of the arms the openings and the geometry enable a several-point gain in the massinertia ratio

This factor directly influences the variations in rate between different positions that are well-known to watchmakers due to the difference in amplitude between the ldquodial-uprdquo and ldquopendant-uprdquo positions The lower the massinertia ratio the smaller the differences between the various positions thus enabling the watchmaker to perform a more precise adjustment of the watch

Contribution to accuracy by the balance spring in a mechanical movement

The balance-spring beats in a perfectly concentric manner in order to guarantee ideal isochronism Not only does it feature the carefully calculated form of a Phillips terminal curve but the watchmakers have also created something they call a ldquobendrdquo in the centre The ldquobendrdquo is a distortion of the balance-spring at aspecific place close to the collet pinning-point and which at given moments modifies the rigidity of the spring and corrects the natural tendency of any spring to ldquobreatherdquo in an off-centred manner Only this winning combination of an outer Phillips terminal curve and a central ldquobendrdquo makes it possible to create a balance-spring that develops in a perfectly concentric way (meaning with symmetrical expansions and contractions in respect to the centre)

Precise adjustment of this movement is of course performed using screws placed on the balance This process now used on all the Jaeger-LeCoultre automatic calibres has replaced the traditional index assembly and ensures peerless initial reliability of the rate that thereby remains unperturbed over time even if the watch is accidentally jarred

To perfect the exceptional efficiency of this regulating organ the aerodynamic properties of the balance have been fine-tuned by bevelling the arms by streamlining the shape of the weights and by integrating adjustment screws inside the weights The escape-wheel is made from silicon which is considerably lighter than steel and thus also favourably influences efficiency

Tourbillon made from light alloys

A one-minute tourbillon houses this literally extraordinary regulator The tourbillon carriage is machined from blocks of a magnesium alloy that is two and a half times lighter than titanium and contributes to reducing energy losses due to friction and thus further improves the exceptional efficiency of the regulator

The cadence of 28800 vibrations per hour the high (115 mgcm2) inertia of the balance and the tourbillon together help guarantee theaccuracy of the watch

Application of various new processing technologies

physical vapour deposition (pvd)chemical vapour deposition (cvd)LIthographie Galvanoformung Adformung (LIGA)electroformingphotochemcial machining (pcm)etchellip

Current development worldwide Mimotec SA (Sion Switzerland)

MEMS Technology ndash DRIE Process

MEMS Technology ndash LIGA Process

LIGA = Lithographie Galvanoformung Adformung

LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre

a German acronym for rdquoLithographie Galvanoformung Abformungldquoin English (X-ray) Lithography Electroplating and Molding

one of the first major techniques to allow on-demand manufacturing of high-aspect-ratio structures (structures that are much taller than wide) with lateral precision below one micrometre This capability is important in the fabrication of MEMS devices Because of the high collimation of X-rays needed the source must be synchrotron light

There are today three different types of LIGA technologies differing in the radiation and preform usedi) X-Ray LIGA the first LIGA technology developed using X-Rays

produced by a synchrotron ii) UV-LIGA using ultraviolet light typically from a mercury lamp and

special resists like SU-8 and iii) Silicon-LIGA using deep reactive ion etched silicon as preform

Why Are We Here bull Provide an overview of Watch amp Clock Industrybull Discuss key opportunities and challenges

IntroductionHong Kong Watch amp Clock Business Now and ThenUpcoming challengesInnovations ndash World TrendApplications of new materials to innovative productsApplications of new processing technologiesHow can Hong Kong Productivity Council help the industry meet the challengesHKPC help industry connect to the worldSuccessful stories and casesLESSONSThe Future

bull Answer your questions

Hong Kong Watch and Clock Business Now and Then

For the past decades a great deal of continuous efforts have been out in the watch and clock industry This concerted contributions have formed a concrete foundation for the watch amp clock industry

Hong Kong is now the worldrsquos second largest exporter of Watches and Clocks According to the latest released statistics record

In 2007 the total export amounted to HK$ 50 billion indicating a slightly growth compared to that of the year in 2006

In 2008 total export was over HK$ 25 billion for the first 2 quarters this shows an encouraging increase of approximately 17 comparing to that of the same period last year The export to South America has been boomingly increased while one should not forget the strong potential of the Indian market

Global Watch Business Situation in the past 12 months

With exports growing 16 last year to almost CHF 16 billion (HK$ 100 billion) and a further 23 in January 2008 the Swiss watch industry has been really booming

For Fine Watches the market goes from hot to boiling-point gaining 253 in value terms over the twelve months of 2007 to reach CHF 783 billion (HK$ 50 bill) (up 167 in volume terms) and almost 40 for the first month of 2008 (+45 in volume) according to statistics published by the Federation of the Swiss Watch Industry

With such an accelerated rate of growth over the last two years what were viable criteria when organizing production ten years ago are now quite simply out of the question for one obvious reason the entire value-creation chain is set to burst the biggest problems being serious bottlenecks in production leading to ever-longer delivery times a shortage of skilled labour and major shortfalls in the quality of parts

We need to bring the situation under control which means shorter waiting times commented Luigi Macaluso Chairman of the Sowind group (Girard-Perregaux and JeanRichard) recently

More suppliers to be trained and trainedhellip

The watch groups that sailed through the 2007 financial year with figures shown at- Swatch (2007 sales up 176)- LVMH (organic revenues growth of 19 for Watches amp Jewelry)- PPR (results for its luxury division up 29)- Richemont (third-quarter sales up 14 at constant exchange rates)

this mad surge in sales raises a number of questions mostly concerning production

In the 1990s these multinationals went shopping for prestigious brands sparking an unprecedented wave of mergers and acquisitions in the branch Since the brand is a unique gateway to the customer the products still have to meet expectations

Business Growth of Global Brands from 2003-2007

Suppliers - Vertical integrationWatchmakers have started to look for reliable suppliers with the intention to sharpen their industrial resources as part of sweeping vertical integration While these buy-outs of small and medium firms may not have made headline news in the same way the take-over of Jaeger-LeCoultre Breguet or Zenith once did they still caused a subtle but important shiftin the watch making landscape

Since the early 2000s numerous suppliers of dials hands cases and movement parts have changed owners which are of particular interest for those who make movements

Clearly we havenrsquot seen the last of these takeovers of highly-specialised small and medium enterprises as illustrated these past six months by the acquisition of Elinor a manufacturer of precious metal cases by FP Journe of Donzeacute-Baume a specialist in cases and bracelets by Richemont of Indexor a manufacturer of hour markers by Swatch via MOM Le Preacutelet and the alliance between Bulgari and Leschot another case-maker

Still companies realised quite some time ago that vertical integration alone was no longer sufficienthellip

A generation of new workshopsExpertise is one thing production capacity is another Some companies are so cruelly lacking capacity that delivery times for certain new products can stretch to as much as three years

One remedy has been to form an alliance with one of the watchmakers working behind-the-scenes making high-end movements for third parties

This was the route chosen recently by Hermegraves when it acquired a 25 stake in Vaucher Manufacture Fleurier

Richemont had the same goal in mind when it took over Minerva and production facilities at Roger Dubuis As for Bovet by reviving Dimier it has simply given a prestigious new name to STT Holding a recent acquisition comprising three specialised manufacturers of tourbillons balance-springs and calibres

Production production production

This shuffles the deck but does not add any new cards to a sector which overall needs to extend its production facilities Companies have got the message and are busy composing the architectural masterpieces that will give them more production space The same phenomenon is at work among suppliers too In the valley of Saint-Imier in the Franches-Montagnes district as elsewhere over the past fewyears every village has seen one or more buildingsspring up and new workshops and machines move in What will become of these investments when the cycle enters a downturn

Existing situation of Hong Kong Watch amp Clock Industry

Challenges ahead of small and medium enterprises (SMEs) 中小企面對國內政策改變

Mid-Low Market segments of Hong Kong Watches香港鐘表中下價

Technologies of Hong Kong have yet to catch up Switzerland and Japan科技緊次於瑞士及日本

Certain components made by Hong Kong have a leading role to play某些零部件市場有領導地位

The quality of watches manufactured by Hong Kong has a large variation 香港鐘表行業技術品質參差不齊

Understanding Impacts of Financial Tsunami

How big (small) are we talking about

Any opportunitiesOur skillsOur production capacitiesOur quality systemOur raw materialsOur vertical integrationYOur Decision to move forwardFrom Basic Quantity to Luxurious few

Upcoming challengesFree trade barriers and protection of interests保護主意 外國公司排斥

Tightening of quality standards and requirements瑞士之所以成功是由於不停增加新規格及提升舊規格

Continuous improvements and Exceeding customersrsquo expectation滿足客戶無微不至於客戶未提出之前以為客戶預備

Leading and flowing with the market帶領市場

Upgrade the Hong Kong Watch and Clock Industry as a whole香港鐘表行業應提升功能形象建立品牌

Listen to the customers and improve on the basis of Voice of Customers (VOC )香港鐘表行業應提升功能形象

Brand building learning from our Swiss and Japan counterparts建立品牌 向瑞士學習一步步跟進

Innovations World Trend

Application of various new materials innovative products

synthetic diamondsingle crystal diamondcarbon fibrenew alloy

Carbon Fibre for watches

Carbon Fibre for watches

A 6 μm diameter carbon filament (running from bottom left to top right) compared to a human hair

Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre

A unique concept watch with

- A lubricant-free watch - Resistance to extreme temperatures - 40deg

+ 60deg

C

- Innovative character rewarded by six patents - Movement entirely redesigned and created by

2 years of intense development - High-tech design carbon and titanium case- Automatic tourbillon with a large variable inertiabalance (115mg x cm2) oscillating at a highfrequency of 28800 vibrationshour (4 hertz)

This watch will only be delivered andsold in limited quantities

Jaeger - Lecoultre

Traditional mechanical movements use oils or greases to ensure smooth operations

These take the form of oils in varying degrees of fineness for parts with high translation or rotation speeds or grease for parts subject to large pressures or stresses

The properties of such oils and grease deteriorates over time and the performances of the movement decline if these lubricants are not replaced in due time

Testing conducted during the 1970s on plastic movements had already shown the way towards doing without some of the oils and grease However these watches did not stand the test of time which resulted in wear on the parts that in turn rapidly diminished their chronometric and functional performances

In its ongoing search to enhance the reliability of mechanical movements Jaeger-LeCoultre had already renounced the use of lubrication in the ball-bearing mechanisms of automatic winding systems by introducing ceramic ball-bearings as early as 2002

Today the research team at the Manufacture in Le Sentier has innovated a mechanical movement run without any lubricant This research has culminated in the brand-new Jaeger-LeCoultre Calibre 988C

Innovative mechanical movements without oils amp greases

A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is

Inspired by the unshakeable conviction in the smallest details the watchmakers and designers of the Manufacture have raised the game of precision and functions to unprecedented levels of refinement

The aesthetics of the Master Compressor Extreme Lab reflect the technology within Its transparent dial reveals the heart of the horological mechanism featuring a particularly attractive graphic design characterised by subtle contrasts between the black aluminum of the open-worked centre bridge and the flange the white colour of the applied hanging numerals and hour-markers and the grey of the tourbillon bridge

The centre bridge is made from an aluminum alloy reinforced with particles of titanium carbide Ticaliumreg The mechanical hardness and resistance of this alloy are thus improved by 20 without increasing the density The casevisually reflects the movement with its association of carbon silicon carbonitrideand grade 5 titanium

The first feature covers its original structure featuring an interior carbon fibre case fitted inside a titanium ring The obvious advantage is a gain in weight but the resulting aesthetic effect is doubtless even more remarkable The case as a whole is topped by a bezel in silicon carbonitride a material that is lighter and more resistant than traditional ceramics

Watch suspension mounting

The second feature relates to the suspension mounting of the movement The silent-block made from a supple red polyurethane material not only serves to avoid any risk of water seeping into the crown tube but also mechanically isolates the movement and its Compressor crown

The calibre and winding-stem are thus mounted in a ldquofree-floatingrdquomanner and there is thus no metal to metal link between the movement and the case which means the watch mechanism is protected fromviolent shocks or vibrations

The red aluminum crown echoes the red elements on the dial the silent-block shock absorber and the strap

Jaeger-LeCoultre has also devoted special attention to the strap of this watch Its double-layered construction enhances both its robustness and its appearance The unusual combination of materials such as leather cordura canvasand alcantara reinforced by a composite strip lends this strap a three-dimensional appearance on a par with the case to which it is attached

Mechanical automatic movement Jaeger-LeCoultre Calibre 988C

307 parts

28800 vibrations per hour 4 hertzA barrelTourbillon with magnesium carriageTwo time zonesAMPM indication with local timeCentral pointer-type calendar displays that jumps over the tourbillon carriageMovement diameter 300 mmMovement thickness 705 mmCase diameter 450 mmCase thickness 1480 mmOperational between -40deg and +60degCNo oil no greaseIridium platinum oscillating weight with carbon baseBlack diamond pallet-stonesEasium jewels48-hour power reserveWater-resistant to 100 metresCrafted in carbon and titaniumExclusive limited annual productionReference Q179T470

New materials new solutionsMany watch brands are experimenting with new materials to enhance the technical aspects of their watches

Some companies like Patek Philippe and Rolex are working on new materials for springs and other parts

In 2005 Patek Philippe filed a patent for the first silicon escape wheel for a Swiss lever escapement

Rolex created its new blue Parachrom hairspring made from a new alloy to resist magnetism and increase shock absorbance

Jaeger-LeCoultre are experimenting with new materials to reduce the need for lubrication ndash last year the Extreme Lab introduced the first watch ever that doesnt need any lubrication

Ultra light alloy ndash Mg and AlSome watches are already using new materials such as the Mag Bang with the AG5 alloy which is an ultra light alloy of magnesium and aluminium

Audemars Piguet has for years been a leader in the search for new and advanced materials The latest is the companys minute repeater programme where they are working with laboratories professors and students at the best universities to come up with new metals and designs that will enhance the sound of their minute repeaters

Ulysse Nardin recently unveiled its new Innovision watch a concept watch that combines the companys most daring innovations -from the silicon escapement first used in the Freak to new silicon parts (wheels bridges pinions etc) Ulysse Nardin is part owner of Sigatec SA the company responsible for the development of silicon technology in watch making

Ultra light alloy ndash Mg and Al

The Freak is one example of the way Ulysse Nardin makes things happen When Schneider made the first Freak it did not work because the mixture of materials was not right

Schneider was ready to abandon the new escapement but was talked into trying it another way We failed with the Freak with traditional materials he admits

When we failed with the Freak I wanted to go back to the anchor escapement Ludwig Oechslin our Chief Designer wanted to use the new escapement because he thought it was better So we decided to go forward in two different directions one with the anchor escapement and the other with the new escapement We met someone who had done work with silicon so we decided to try itrdquo

C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin

Ulysse Nardin is concentrating on manufacturing movement parts in silicon

One of the advantages of making parts from silicon is that the process allows complete freedom of design - just about any shape visualized can be realized

The use of silicon could very well change the way movements are designed because it removes some of the old limitations that were in place before In addition working in silicon means higher precision lighter weight and the material in its final form is very hard

New materials unique watchesSome watch companies are using new materials for aesthetic reasons like Gerald Gentas new Gefica which uses bronze in a striking way The use of innovative materials is a major factor in the creation of our watches particularly for Gerald Genta says Gerald Roden Chief Executive Officer of Daniel Roth and Gerald Genta We have long been investigating creative uses for innovative more so for aesthetics than for technical reasons

For quite some time we have experimented with combinations of materials such as carbon fibre aluminium and wood with rubber and even fish skinIn 2003 Gerald Genta was among the first to use unique metals such as palladium and tantalum for cases

We have developed a patent to use liquid ceramic for the Octo line and are currently working with metallurgists to develop other new and innovative metals for Gerald Genta We are also in the final test phases of creating an exciting new treatment for steel

Non Magnetic materials for movement components

Another movement design

Traditional mechanical movements use oils or grease to ensure smooth operations

These take the form of oils in varying degrees of fineness for parts with high translation or rotation speeds or grease for parts subject to high pressures or stresses

The properties of such oils and grease deteriorates over time and the performances of the movement likewise decline if these lubricants are not replaced in due time

Testing conducted during the 1970s on plastic movements had already shown the way towards doing without some of the oils and grease However these watches did not stand the test of time which resulted in wear on the parts that in turn rapidly diminished their chronometric and functional performances

In its ongoing search to enhance the reliability of mechanical movements Jaeger-LeCoultre had already renounced the use of lubrication in the ball-bearing mechanisms of automatic winding systems by introducing ceramic ball-bearings as early as 2002

Today the research team at the Manufacture in Le Sentier has innovated a mechanical movement run without any lubricant whatsoever This research has culminated in the brand-new Jaeger-LeCoultre Calibre 988C

Innovative mechanical movement without any lubricant

New materials in mechanical movements

The engineers and watchmakers have resorted to new materials and new combinations of materials for demanding challenge

The Easiumtrade carbonitride thus makes its way onto the watch making stage This extremely hard material features extraordinary tribological properties and is therefore particularly suited to the making bearings able to operate without lubricants

In Jaeger-LeCoultre Calibre 988C Easium replaces the traditional jewels lubricated with a fine oil The burnished steel pivots of the balance-staff are coated with a special surface treatment and turn inside an Easium bearing The endstone is also made from Easium This is also a material used to make the two bearings allowing the carriage to turn in the bridges without any need to add jewels that would require lubrication

Watchmakers are considering the black crystalline diamond a synthetic material as hard as natural diamonds but with considerably enhanced operational properties for replacing the red pallet-stones Its friction on the silicon teeth of the escape-wheel does not require any oil to improve its operation live All the burnished steel pivots of the wheels and pinions are coated with a surface treatment that obviates any need to oil the jewels

Mainspring barrel in mechanical movement grease replaced by graphite powder

On the other end of the movement the barrel grease has also disappeared Instead a graphite powder helps the bride to slide smoothly inside the drum when the mainspring has been wound beyond the maximum powerreserve by the automatic winding mechanism The molecular structure of graphite consists in a stack of micro-platelets contrary to grease it retains its lubricating properties over time whatever the temperature and the hygrometry level

As for the ball-bearing mechanism of the oscillating weight in addition to the use of ceramic ball bearings mentioned earlier friction has been reduced by optimising the rotor which features carbon fibre arms and a distinctly lighter and more rigid base

Finally the oscillating weight segment is surprising in itself with its iridium platinum alloy the densest non-toxic physical body currently machinableThe entire windingtime-setting mechanism is coated with Nickel-PTFEin order to eliminate the customary greasing points The date jumper-spring features a frictional surface that also operates in ldquodryrdquo mode

Balanced wheel design in mechanical movement

Arenrsquot the most efficient balances circular The latest research by Jaeger-LeCoultre proves the exact opposite

Lengthy testing has revealed the importance of the total surface of the balance on its aerodynamic performances The larger the surface the greater the aerodynamic friction and the more energy it takes to maintain the oscillations of the balance and spring ndash which is in turn detrimental to precision

The geometry devised by Jaeger-LeCoultre coupled with the use of an extremely dense material ndash in this case iridium platinum ndash minimises the surface in friction Thus given a constant level of inertia this balance requires less energy to oscillate than a traditional balance

Balance wheel design in an optimized mechanical movement

The geometry of the balance has also been designed to reduce the ratio between the mass and the inertia of the balance

High inertia ensures a stable regulator that is fairly insensitive to the vibrations and daily shocks to which a watch is subjected and which disturb its precision Nonetheless high inertia implies a higher balance mass leading to larger losses due to mechanical fiction and thus increased energy consumption to maintain the oscillations ndash as well as a larger difference in amplitude between horizontal and vertical positions

The balance of the Jaeger-LeCoultre Calibre 988C has been optimised in order to reduce total mass without modifying the determined inertia The shape of the arms the openings and the geometry enable a several-point gain in the massinertia ratio

This factor directly influences the variations in rate between different positions that are well-known to watchmakers due to the difference in amplitude between the ldquodial-uprdquo and ldquopendant-uprdquo positions The lower the massinertia ratio the smaller the differences between the various positions thus enabling the watchmaker to perform a more precise adjustment of the watch

Contribution to accuracy by the balance spring in a mechanical movement

The balance-spring beats in a perfectly concentric manner in order to guarantee ideal isochronism Not only does it feature the carefully calculated form of a Phillips terminal curve but the watchmakers have also created something they call a ldquobendrdquo in the centre The ldquobendrdquo is a distortion of the balance-spring at aspecific place close to the collet pinning-point and which at given moments modifies the rigidity of the spring and corrects the natural tendency of any spring to ldquobreatherdquo in an off-centred manner Only this winning combination of an outer Phillips terminal curve and a central ldquobendrdquo makes it possible to create a balance-spring that develops in a perfectly concentric way (meaning with symmetrical expansions and contractions in respect to the centre)

Precise adjustment of this movement is of course performed using screws placed on the balance This process now used on all the Jaeger-LeCoultre automatic calibres has replaced the traditional index assembly and ensures peerless initial reliability of the rate that thereby remains unperturbed over time even if the watch is accidentally jarred

To perfect the exceptional efficiency of this regulating organ the aerodynamic properties of the balance have been fine-tuned by bevelling the arms by streamlining the shape of the weights and by integrating adjustment screws inside the weights The escape-wheel is made from silicon which is considerably lighter than steel and thus also favourably influences efficiency

Tourbillon made from light alloys

A one-minute tourbillon houses this literally extraordinary regulator The tourbillon carriage is machined from blocks of a magnesium alloy that is two and a half times lighter than titanium and contributes to reducing energy losses due to friction and thus further improves the exceptional efficiency of the regulator

The cadence of 28800 vibrations per hour the high (115 mgcm2) inertia of the balance and the tourbillon together help guarantee theaccuracy of the watch

Application of various new processing technologies

physical vapour deposition (pvd)chemical vapour deposition (cvd)LIthographie Galvanoformung Adformung (LIGA)electroformingphotochemcial machining (pcm)etchellip

Current development worldwide Mimotec SA (Sion Switzerland)

MEMS Technology ndash DRIE Process

MEMS Technology ndash LIGA Process

LIGA = Lithographie Galvanoformung Adformung

LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre

a German acronym for rdquoLithographie Galvanoformung Abformungldquoin English (X-ray) Lithography Electroplating and Molding

one of the first major techniques to allow on-demand manufacturing of high-aspect-ratio structures (structures that are much taller than wide) with lateral precision below one micrometre This capability is important in the fabrication of MEMS devices Because of the high collimation of X-rays needed the source must be synchrotron light

There are today three different types of LIGA technologies differing in the radiation and preform usedi) X-Ray LIGA the first LIGA technology developed using X-Rays

produced by a synchrotron ii) UV-LIGA using ultraviolet light typically from a mercury lamp and

special resists like SU-8 and iii) Silicon-LIGA using deep reactive ion etched silicon as preform

Hong Kong Watch and Clock Business Now and Then

For the past decades a great deal of continuous efforts have been out in the watch and clock industry This concerted contributions have formed a concrete foundation for the watch amp clock industry

Hong Kong is now the worldrsquos second largest exporter of Watches and Clocks According to the latest released statistics record

In 2007 the total export amounted to HK$ 50 billion indicating a slightly growth compared to that of the year in 2006

In 2008 total export was over HK$ 25 billion for the first 2 quarters this shows an encouraging increase of approximately 17 comparing to that of the same period last year The export to South America has been boomingly increased while one should not forget the strong potential of the Indian market

Global Watch Business Situation in the past 12 months

With exports growing 16 last year to almost CHF 16 billion (HK$ 100 billion) and a further 23 in January 2008 the Swiss watch industry has been really booming

For Fine Watches the market goes from hot to boiling-point gaining 253 in value terms over the twelve months of 2007 to reach CHF 783 billion (HK$ 50 bill) (up 167 in volume terms) and almost 40 for the first month of 2008 (+45 in volume) according to statistics published by the Federation of the Swiss Watch Industry

With such an accelerated rate of growth over the last two years what were viable criteria when organizing production ten years ago are now quite simply out of the question for one obvious reason the entire value-creation chain is set to burst the biggest problems being serious bottlenecks in production leading to ever-longer delivery times a shortage of skilled labour and major shortfalls in the quality of parts

We need to bring the situation under control which means shorter waiting times commented Luigi Macaluso Chairman of the Sowind group (Girard-Perregaux and JeanRichard) recently

More suppliers to be trained and trainedhellip

The watch groups that sailed through the 2007 financial year with figures shown at- Swatch (2007 sales up 176)- LVMH (organic revenues growth of 19 for Watches amp Jewelry)- PPR (results for its luxury division up 29)- Richemont (third-quarter sales up 14 at constant exchange rates)

this mad surge in sales raises a number of questions mostly concerning production

In the 1990s these multinationals went shopping for prestigious brands sparking an unprecedented wave of mergers and acquisitions in the branch Since the brand is a unique gateway to the customer the products still have to meet expectations

Business Growth of Global Brands from 2003-2007

Suppliers - Vertical integrationWatchmakers have started to look for reliable suppliers with the intention to sharpen their industrial resources as part of sweeping vertical integration While these buy-outs of small and medium firms may not have made headline news in the same way the take-over of Jaeger-LeCoultre Breguet or Zenith once did they still caused a subtle but important shiftin the watch making landscape

Since the early 2000s numerous suppliers of dials hands cases and movement parts have changed owners which are of particular interest for those who make movements

Clearly we havenrsquot seen the last of these takeovers of highly-specialised small and medium enterprises as illustrated these past six months by the acquisition of Elinor a manufacturer of precious metal cases by FP Journe of Donzeacute-Baume a specialist in cases and bracelets by Richemont of Indexor a manufacturer of hour markers by Swatch via MOM Le Preacutelet and the alliance between Bulgari and Leschot another case-maker

Still companies realised quite some time ago that vertical integration alone was no longer sufficienthellip

A generation of new workshopsExpertise is one thing production capacity is another Some companies are so cruelly lacking capacity that delivery times for certain new products can stretch to as much as three years

One remedy has been to form an alliance with one of the watchmakers working behind-the-scenes making high-end movements for third parties

This was the route chosen recently by Hermegraves when it acquired a 25 stake in Vaucher Manufacture Fleurier

Richemont had the same goal in mind when it took over Minerva and production facilities at Roger Dubuis As for Bovet by reviving Dimier it has simply given a prestigious new name to STT Holding a recent acquisition comprising three specialised manufacturers of tourbillons balance-springs and calibres

Production production production

This shuffles the deck but does not add any new cards to a sector which overall needs to extend its production facilities Companies have got the message and are busy composing the architectural masterpieces that will give them more production space The same phenomenon is at work among suppliers too In the valley of Saint-Imier in the Franches-Montagnes district as elsewhere over the past fewyears every village has seen one or more buildingsspring up and new workshops and machines move in What will become of these investments when the cycle enters a downturn

Existing situation of Hong Kong Watch amp Clock Industry

Challenges ahead of small and medium enterprises (SMEs) 中小企面對國內政策改變

Mid-Low Market segments of Hong Kong Watches香港鐘表中下價

Technologies of Hong Kong have yet to catch up Switzerland and Japan科技緊次於瑞士及日本

Certain components made by Hong Kong have a leading role to play某些零部件市場有領導地位

The quality of watches manufactured by Hong Kong has a large variation 香港鐘表行業技術品質參差不齊

Understanding Impacts of Financial Tsunami

How big (small) are we talking about

Any opportunitiesOur skillsOur production capacitiesOur quality systemOur raw materialsOur vertical integrationYOur Decision to move forwardFrom Basic Quantity to Luxurious few

Upcoming challengesFree trade barriers and protection of interests保護主意 外國公司排斥

Tightening of quality standards and requirements瑞士之所以成功是由於不停增加新規格及提升舊規格

Continuous improvements and Exceeding customersrsquo expectation滿足客戶無微不至於客戶未提出之前以為客戶預備

Leading and flowing with the market帶領市場

Upgrade the Hong Kong Watch and Clock Industry as a whole香港鐘表行業應提升功能形象建立品牌

Listen to the customers and improve on the basis of Voice of Customers (VOC )香港鐘表行業應提升功能形象

Brand building learning from our Swiss and Japan counterparts建立品牌 向瑞士學習一步步跟進

Innovations World Trend

Application of various new materials innovative products

synthetic diamondsingle crystal diamondcarbon fibrenew alloy

Carbon Fibre for watches

Carbon Fibre for watches

A 6 μm diameter carbon filament (running from bottom left to top right) compared to a human hair

Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre

A unique concept watch with

- A lubricant-free watch - Resistance to extreme temperatures - 40deg

+ 60deg

C

- Innovative character rewarded by six patents - Movement entirely redesigned and created by

2 years of intense development - High-tech design carbon and titanium case- Automatic tourbillon with a large variable inertiabalance (115mg x cm2) oscillating at a highfrequency of 28800 vibrationshour (4 hertz)

This watch will only be delivered andsold in limited quantities

Jaeger - Lecoultre

Traditional mechanical movements use oils or greases to ensure smooth operations

These take the form of oils in varying degrees of fineness for parts with high translation or rotation speeds or grease for parts subject to large pressures or stresses

The properties of such oils and grease deteriorates over time and the performances of the movement decline if these lubricants are not replaced in due time

Testing conducted during the 1970s on plastic movements had already shown the way towards doing without some of the oils and grease However these watches did not stand the test of time which resulted in wear on the parts that in turn rapidly diminished their chronometric and functional performances

In its ongoing search to enhance the reliability of mechanical movements Jaeger-LeCoultre had already renounced the use of lubrication in the ball-bearing mechanisms of automatic winding systems by introducing ceramic ball-bearings as early as 2002

Today the research team at the Manufacture in Le Sentier has innovated a mechanical movement run without any lubricant This research has culminated in the brand-new Jaeger-LeCoultre Calibre 988C

Innovative mechanical movements without oils amp greases

A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is

Inspired by the unshakeable conviction in the smallest details the watchmakers and designers of the Manufacture have raised the game of precision and functions to unprecedented levels of refinement

The aesthetics of the Master Compressor Extreme Lab reflect the technology within Its transparent dial reveals the heart of the horological mechanism featuring a particularly attractive graphic design characterised by subtle contrasts between the black aluminum of the open-worked centre bridge and the flange the white colour of the applied hanging numerals and hour-markers and the grey of the tourbillon bridge

The centre bridge is made from an aluminum alloy reinforced with particles of titanium carbide Ticaliumreg The mechanical hardness and resistance of this alloy are thus improved by 20 without increasing the density The casevisually reflects the movement with its association of carbon silicon carbonitrideand grade 5 titanium

The first feature covers its original structure featuring an interior carbon fibre case fitted inside a titanium ring The obvious advantage is a gain in weight but the resulting aesthetic effect is doubtless even more remarkable The case as a whole is topped by a bezel in silicon carbonitride a material that is lighter and more resistant than traditional ceramics

Watch suspension mounting

The second feature relates to the suspension mounting of the movement The silent-block made from a supple red polyurethane material not only serves to avoid any risk of water seeping into the crown tube but also mechanically isolates the movement and its Compressor crown

The calibre and winding-stem are thus mounted in a ldquofree-floatingrdquomanner and there is thus no metal to metal link between the movement and the case which means the watch mechanism is protected fromviolent shocks or vibrations

The red aluminum crown echoes the red elements on the dial the silent-block shock absorber and the strap

Jaeger-LeCoultre has also devoted special attention to the strap of this watch Its double-layered construction enhances both its robustness and its appearance The unusual combination of materials such as leather cordura canvasand alcantara reinforced by a composite strip lends this strap a three-dimensional appearance on a par with the case to which it is attached

Mechanical automatic movement Jaeger-LeCoultre Calibre 988C

307 parts

28800 vibrations per hour 4 hertzA barrelTourbillon with magnesium carriageTwo time zonesAMPM indication with local timeCentral pointer-type calendar displays that jumps over the tourbillon carriageMovement diameter 300 mmMovement thickness 705 mmCase diameter 450 mmCase thickness 1480 mmOperational between -40deg and +60degCNo oil no greaseIridium platinum oscillating weight with carbon baseBlack diamond pallet-stonesEasium jewels48-hour power reserveWater-resistant to 100 metresCrafted in carbon and titaniumExclusive limited annual productionReference Q179T470

New materials new solutionsMany watch brands are experimenting with new materials to enhance the technical aspects of their watches

Some companies like Patek Philippe and Rolex are working on new materials for springs and other parts

In 2005 Patek Philippe filed a patent for the first silicon escape wheel for a Swiss lever escapement

Rolex created its new blue Parachrom hairspring made from a new alloy to resist magnetism and increase shock absorbance

Jaeger-LeCoultre are experimenting with new materials to reduce the need for lubrication ndash last year the Extreme Lab introduced the first watch ever that doesnt need any lubrication

Ultra light alloy ndash Mg and AlSome watches are already using new materials such as the Mag Bang with the AG5 alloy which is an ultra light alloy of magnesium and aluminium

Audemars Piguet has for years been a leader in the search for new and advanced materials The latest is the companys minute repeater programme where they are working with laboratories professors and students at the best universities to come up with new metals and designs that will enhance the sound of their minute repeaters

Ulysse Nardin recently unveiled its new Innovision watch a concept watch that combines the companys most daring innovations -from the silicon escapement first used in the Freak to new silicon parts (wheels bridges pinions etc) Ulysse Nardin is part owner of Sigatec SA the company responsible for the development of silicon technology in watch making

Ultra light alloy ndash Mg and Al

The Freak is one example of the way Ulysse Nardin makes things happen When Schneider made the first Freak it did not work because the mixture of materials was not right

Schneider was ready to abandon the new escapement but was talked into trying it another way We failed with the Freak with traditional materials he admits

When we failed with the Freak I wanted to go back to the anchor escapement Ludwig Oechslin our Chief Designer wanted to use the new escapement because he thought it was better So we decided to go forward in two different directions one with the anchor escapement and the other with the new escapement We met someone who had done work with silicon so we decided to try itrdquo

C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin

Ulysse Nardin is concentrating on manufacturing movement parts in silicon

One of the advantages of making parts from silicon is that the process allows complete freedom of design - just about any shape visualized can be realized

The use of silicon could very well change the way movements are designed because it removes some of the old limitations that were in place before In addition working in silicon means higher precision lighter weight and the material in its final form is very hard

New materials unique watchesSome watch companies are using new materials for aesthetic reasons like Gerald Gentas new Gefica which uses bronze in a striking way The use of innovative materials is a major factor in the creation of our watches particularly for Gerald Genta says Gerald Roden Chief Executive Officer of Daniel Roth and Gerald Genta We have long been investigating creative uses for innovative more so for aesthetics than for technical reasons

For quite some time we have experimented with combinations of materials such as carbon fibre aluminium and wood with rubber and even fish skinIn 2003 Gerald Genta was among the first to use unique metals such as palladium and tantalum for cases

We have developed a patent to use liquid ceramic for the Octo line and are currently working with metallurgists to develop other new and innovative metals for Gerald Genta We are also in the final test phases of creating an exciting new treatment for steel

Non Magnetic materials for movement components

Another movement design

Traditional mechanical movements use oils or grease to ensure smooth operations

These take the form of oils in varying degrees of fineness for parts with high translation or rotation speeds or grease for parts subject to high pressures or stresses

The properties of such oils and grease deteriorates over time and the performances of the movement likewise decline if these lubricants are not replaced in due time

Testing conducted during the 1970s on plastic movements had already shown the way towards doing without some of the oils and grease However these watches did not stand the test of time which resulted in wear on the parts that in turn rapidly diminished their chronometric and functional performances

In its ongoing search to enhance the reliability of mechanical movements Jaeger-LeCoultre had already renounced the use of lubrication in the ball-bearing mechanisms of automatic winding systems by introducing ceramic ball-bearings as early as 2002

Today the research team at the Manufacture in Le Sentier has innovated a mechanical movement run without any lubricant whatsoever This research has culminated in the brand-new Jaeger-LeCoultre Calibre 988C

Innovative mechanical movement without any lubricant

New materials in mechanical movements

The engineers and watchmakers have resorted to new materials and new combinations of materials for demanding challenge

The Easiumtrade carbonitride thus makes its way onto the watch making stage This extremely hard material features extraordinary tribological properties and is therefore particularly suited to the making bearings able to operate without lubricants

In Jaeger-LeCoultre Calibre 988C Easium replaces the traditional jewels lubricated with a fine oil The burnished steel pivots of the balance-staff are coated with a special surface treatment and turn inside an Easium bearing The endstone is also made from Easium This is also a material used to make the two bearings allowing the carriage to turn in the bridges without any need to add jewels that would require lubrication

Watchmakers are considering the black crystalline diamond a synthetic material as hard as natural diamonds but with considerably enhanced operational properties for replacing the red pallet-stones Its friction on the silicon teeth of the escape-wheel does not require any oil to improve its operation live All the burnished steel pivots of the wheels and pinions are coated with a surface treatment that obviates any need to oil the jewels

Mainspring barrel in mechanical movement grease replaced by graphite powder

On the other end of the movement the barrel grease has also disappeared Instead a graphite powder helps the bride to slide smoothly inside the drum when the mainspring has been wound beyond the maximum powerreserve by the automatic winding mechanism The molecular structure of graphite consists in a stack of micro-platelets contrary to grease it retains its lubricating properties over time whatever the temperature and the hygrometry level

As for the ball-bearing mechanism of the oscillating weight in addition to the use of ceramic ball bearings mentioned earlier friction has been reduced by optimising the rotor which features carbon fibre arms and a distinctly lighter and more rigid base

Finally the oscillating weight segment is surprising in itself with its iridium platinum alloy the densest non-toxic physical body currently machinableThe entire windingtime-setting mechanism is coated with Nickel-PTFEin order to eliminate the customary greasing points The date jumper-spring features a frictional surface that also operates in ldquodryrdquo mode

Balanced wheel design in mechanical movement

Arenrsquot the most efficient balances circular The latest research by Jaeger-LeCoultre proves the exact opposite

Lengthy testing has revealed the importance of the total surface of the balance on its aerodynamic performances The larger the surface the greater the aerodynamic friction and the more energy it takes to maintain the oscillations of the balance and spring ndash which is in turn detrimental to precision

The geometry devised by Jaeger-LeCoultre coupled with the use of an extremely dense material ndash in this case iridium platinum ndash minimises the surface in friction Thus given a constant level of inertia this balance requires less energy to oscillate than a traditional balance

Balance wheel design in an optimized mechanical movement

The geometry of the balance has also been designed to reduce the ratio between the mass and the inertia of the balance

High inertia ensures a stable regulator that is fairly insensitive to the vibrations and daily shocks to which a watch is subjected and which disturb its precision Nonetheless high inertia implies a higher balance mass leading to larger losses due to mechanical fiction and thus increased energy consumption to maintain the oscillations ndash as well as a larger difference in amplitude between horizontal and vertical positions

The balance of the Jaeger-LeCoultre Calibre 988C has been optimised in order to reduce total mass without modifying the determined inertia The shape of the arms the openings and the geometry enable a several-point gain in the massinertia ratio

This factor directly influences the variations in rate between different positions that are well-known to watchmakers due to the difference in amplitude between the ldquodial-uprdquo and ldquopendant-uprdquo positions The lower the massinertia ratio the smaller the differences between the various positions thus enabling the watchmaker to perform a more precise adjustment of the watch

Contribution to accuracy by the balance spring in a mechanical movement

The balance-spring beats in a perfectly concentric manner in order to guarantee ideal isochronism Not only does it feature the carefully calculated form of a Phillips terminal curve but the watchmakers have also created something they call a ldquobendrdquo in the centre The ldquobendrdquo is a distortion of the balance-spring at aspecific place close to the collet pinning-point and which at given moments modifies the rigidity of the spring and corrects the natural tendency of any spring to ldquobreatherdquo in an off-centred manner Only this winning combination of an outer Phillips terminal curve and a central ldquobendrdquo makes it possible to create a balance-spring that develops in a perfectly concentric way (meaning with symmetrical expansions and contractions in respect to the centre)

Precise adjustment of this movement is of course performed using screws placed on the balance This process now used on all the Jaeger-LeCoultre automatic calibres has replaced the traditional index assembly and ensures peerless initial reliability of the rate that thereby remains unperturbed over time even if the watch is accidentally jarred

To perfect the exceptional efficiency of this regulating organ the aerodynamic properties of the balance have been fine-tuned by bevelling the arms by streamlining the shape of the weights and by integrating adjustment screws inside the weights The escape-wheel is made from silicon which is considerably lighter than steel and thus also favourably influences efficiency

Tourbillon made from light alloys

A one-minute tourbillon houses this literally extraordinary regulator The tourbillon carriage is machined from blocks of a magnesium alloy that is two and a half times lighter than titanium and contributes to reducing energy losses due to friction and thus further improves the exceptional efficiency of the regulator

The cadence of 28800 vibrations per hour the high (115 mgcm2) inertia of the balance and the tourbillon together help guarantee theaccuracy of the watch

Application of various new processing technologies

physical vapour deposition (pvd)chemical vapour deposition (cvd)LIthographie Galvanoformung Adformung (LIGA)electroformingphotochemcial machining (pcm)etchellip

Current development worldwide Mimotec SA (Sion Switzerland)

MEMS Technology ndash DRIE Process

MEMS Technology ndash LIGA Process

LIGA = Lithographie Galvanoformung Adformung

LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre

a German acronym for rdquoLithographie Galvanoformung Abformungldquoin English (X-ray) Lithography Electroplating and Molding

one of the first major techniques to allow on-demand manufacturing of high-aspect-ratio structures (structures that are much taller than wide) with lateral precision below one micrometre This capability is important in the fabrication of MEMS devices Because of the high collimation of X-rays needed the source must be synchrotron light

There are today three different types of LIGA technologies differing in the radiation and preform usedi) X-Ray LIGA the first LIGA technology developed using X-Rays

produced by a synchrotron ii) UV-LIGA using ultraviolet light typically from a mercury lamp and

special resists like SU-8 and iii) Silicon-LIGA using deep reactive ion etched silicon as preform

Global Watch Business Situation in the past 12 months

With exports growing 16 last year to almost CHF 16 billion (HK$ 100 billion) and a further 23 in January 2008 the Swiss watch industry has been really booming

For Fine Watches the market goes from hot to boiling-point gaining 253 in value terms over the twelve months of 2007 to reach CHF 783 billion (HK$ 50 bill) (up 167 in volume terms) and almost 40 for the first month of 2008 (+45 in volume) according to statistics published by the Federation of the Swiss Watch Industry

With such an accelerated rate of growth over the last two years what were viable criteria when organizing production ten years ago are now quite simply out of the question for one obvious reason the entire value-creation chain is set to burst the biggest problems being serious bottlenecks in production leading to ever-longer delivery times a shortage of skilled labour and major shortfalls in the quality of parts

We need to bring the situation under control which means shorter waiting times commented Luigi Macaluso Chairman of the Sowind group (Girard-Perregaux and JeanRichard) recently

More suppliers to be trained and trainedhellip

The watch groups that sailed through the 2007 financial year with figures shown at- Swatch (2007 sales up 176)- LVMH (organic revenues growth of 19 for Watches amp Jewelry)- PPR (results for its luxury division up 29)- Richemont (third-quarter sales up 14 at constant exchange rates)

this mad surge in sales raises a number of questions mostly concerning production

In the 1990s these multinationals went shopping for prestigious brands sparking an unprecedented wave of mergers and acquisitions in the branch Since the brand is a unique gateway to the customer the products still have to meet expectations

Business Growth of Global Brands from 2003-2007

Suppliers - Vertical integrationWatchmakers have started to look for reliable suppliers with the intention to sharpen their industrial resources as part of sweeping vertical integration While these buy-outs of small and medium firms may not have made headline news in the same way the take-over of Jaeger-LeCoultre Breguet or Zenith once did they still caused a subtle but important shiftin the watch making landscape

Since the early 2000s numerous suppliers of dials hands cases and movement parts have changed owners which are of particular interest for those who make movements

Clearly we havenrsquot seen the last of these takeovers of highly-specialised small and medium enterprises as illustrated these past six months by the acquisition of Elinor a manufacturer of precious metal cases by FP Journe of Donzeacute-Baume a specialist in cases and bracelets by Richemont of Indexor a manufacturer of hour markers by Swatch via MOM Le Preacutelet and the alliance between Bulgari and Leschot another case-maker

Still companies realised quite some time ago that vertical integration alone was no longer sufficienthellip

A generation of new workshopsExpertise is one thing production capacity is another Some companies are so cruelly lacking capacity that delivery times for certain new products can stretch to as much as three years

One remedy has been to form an alliance with one of the watchmakers working behind-the-scenes making high-end movements for third parties

This was the route chosen recently by Hermegraves when it acquired a 25 stake in Vaucher Manufacture Fleurier

Richemont had the same goal in mind when it took over Minerva and production facilities at Roger Dubuis As for Bovet by reviving Dimier it has simply given a prestigious new name to STT Holding a recent acquisition comprising three specialised manufacturers of tourbillons balance-springs and calibres

Production production production

This shuffles the deck but does not add any new cards to a sector which overall needs to extend its production facilities Companies have got the message and are busy composing the architectural masterpieces that will give them more production space The same phenomenon is at work among suppliers too In the valley of Saint-Imier in the Franches-Montagnes district as elsewhere over the past fewyears every village has seen one or more buildingsspring up and new workshops and machines move in What will become of these investments when the cycle enters a downturn

Existing situation of Hong Kong Watch amp Clock Industry

Challenges ahead of small and medium enterprises (SMEs) 中小企面對國內政策改變

Mid-Low Market segments of Hong Kong Watches香港鐘表中下價

Technologies of Hong Kong have yet to catch up Switzerland and Japan科技緊次於瑞士及日本

Certain components made by Hong Kong have a leading role to play某些零部件市場有領導地位

The quality of watches manufactured by Hong Kong has a large variation 香港鐘表行業技術品質參差不齊

Understanding Impacts of Financial Tsunami

How big (small) are we talking about

Any opportunitiesOur skillsOur production capacitiesOur quality systemOur raw materialsOur vertical integrationYOur Decision to move forwardFrom Basic Quantity to Luxurious few

Upcoming challengesFree trade barriers and protection of interests保護主意 外國公司排斥

Tightening of quality standards and requirements瑞士之所以成功是由於不停增加新規格及提升舊規格

Continuous improvements and Exceeding customersrsquo expectation滿足客戶無微不至於客戶未提出之前以為客戶預備

Leading and flowing with the market帶領市場

Upgrade the Hong Kong Watch and Clock Industry as a whole香港鐘表行業應提升功能形象建立品牌

Listen to the customers and improve on the basis of Voice of Customers (VOC )香港鐘表行業應提升功能形象

Brand building learning from our Swiss and Japan counterparts建立品牌 向瑞士學習一步步跟進

Innovations World Trend

Application of various new materials innovative products

synthetic diamondsingle crystal diamondcarbon fibrenew alloy

Carbon Fibre for watches

Carbon Fibre for watches

A 6 μm diameter carbon filament (running from bottom left to top right) compared to a human hair

Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre

A unique concept watch with

- A lubricant-free watch - Resistance to extreme temperatures - 40deg

+ 60deg

C

- Innovative character rewarded by six patents - Movement entirely redesigned and created by

2 years of intense development - High-tech design carbon and titanium case- Automatic tourbillon with a large variable inertiabalance (115mg x cm2) oscillating at a highfrequency of 28800 vibrationshour (4 hertz)

This watch will only be delivered andsold in limited quantities

Jaeger - Lecoultre

Traditional mechanical movements use oils or greases to ensure smooth operations

These take the form of oils in varying degrees of fineness for parts with high translation or rotation speeds or grease for parts subject to large pressures or stresses

The properties of such oils and grease deteriorates over time and the performances of the movement decline if these lubricants are not replaced in due time

Testing conducted during the 1970s on plastic movements had already shown the way towards doing without some of the oils and grease However these watches did not stand the test of time which resulted in wear on the parts that in turn rapidly diminished their chronometric and functional performances

In its ongoing search to enhance the reliability of mechanical movements Jaeger-LeCoultre had already renounced the use of lubrication in the ball-bearing mechanisms of automatic winding systems by introducing ceramic ball-bearings as early as 2002

Today the research team at the Manufacture in Le Sentier has innovated a mechanical movement run without any lubricant This research has culminated in the brand-new Jaeger-LeCoultre Calibre 988C

Innovative mechanical movements without oils amp greases

A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is

Inspired by the unshakeable conviction in the smallest details the watchmakers and designers of the Manufacture have raised the game of precision and functions to unprecedented levels of refinement

The aesthetics of the Master Compressor Extreme Lab reflect the technology within Its transparent dial reveals the heart of the horological mechanism featuring a particularly attractive graphic design characterised by subtle contrasts between the black aluminum of the open-worked centre bridge and the flange the white colour of the applied hanging numerals and hour-markers and the grey of the tourbillon bridge

The centre bridge is made from an aluminum alloy reinforced with particles of titanium carbide Ticaliumreg The mechanical hardness and resistance of this alloy are thus improved by 20 without increasing the density The casevisually reflects the movement with its association of carbon silicon carbonitrideand grade 5 titanium

The first feature covers its original structure featuring an interior carbon fibre case fitted inside a titanium ring The obvious advantage is a gain in weight but the resulting aesthetic effect is doubtless even more remarkable The case as a whole is topped by a bezel in silicon carbonitride a material that is lighter and more resistant than traditional ceramics

Watch suspension mounting

The second feature relates to the suspension mounting of the movement The silent-block made from a supple red polyurethane material not only serves to avoid any risk of water seeping into the crown tube but also mechanically isolates the movement and its Compressor crown

The calibre and winding-stem are thus mounted in a ldquofree-floatingrdquomanner and there is thus no metal to metal link between the movement and the case which means the watch mechanism is protected fromviolent shocks or vibrations

The red aluminum crown echoes the red elements on the dial the silent-block shock absorber and the strap

Jaeger-LeCoultre has also devoted special attention to the strap of this watch Its double-layered construction enhances both its robustness and its appearance The unusual combination of materials such as leather cordura canvasand alcantara reinforced by a composite strip lends this strap a three-dimensional appearance on a par with the case to which it is attached

Mechanical automatic movement Jaeger-LeCoultre Calibre 988C

307 parts

28800 vibrations per hour 4 hertzA barrelTourbillon with magnesium carriageTwo time zonesAMPM indication with local timeCentral pointer-type calendar displays that jumps over the tourbillon carriageMovement diameter 300 mmMovement thickness 705 mmCase diameter 450 mmCase thickness 1480 mmOperational between -40deg and +60degCNo oil no greaseIridium platinum oscillating weight with carbon baseBlack diamond pallet-stonesEasium jewels48-hour power reserveWater-resistant to 100 metresCrafted in carbon and titaniumExclusive limited annual productionReference Q179T470

New materials new solutionsMany watch brands are experimenting with new materials to enhance the technical aspects of their watches

Some companies like Patek Philippe and Rolex are working on new materials for springs and other parts

In 2005 Patek Philippe filed a patent for the first silicon escape wheel for a Swiss lever escapement

Rolex created its new blue Parachrom hairspring made from a new alloy to resist magnetism and increase shock absorbance

Jaeger-LeCoultre are experimenting with new materials to reduce the need for lubrication ndash last year the Extreme Lab introduced the first watch ever that doesnt need any lubrication

Ultra light alloy ndash Mg and AlSome watches are already using new materials such as the Mag Bang with the AG5 alloy which is an ultra light alloy of magnesium and aluminium

Audemars Piguet has for years been a leader in the search for new and advanced materials The latest is the companys minute repeater programme where they are working with laboratories professors and students at the best universities to come up with new metals and designs that will enhance the sound of their minute repeaters

Ulysse Nardin recently unveiled its new Innovision watch a concept watch that combines the companys most daring innovations -from the silicon escapement first used in the Freak to new silicon parts (wheels bridges pinions etc) Ulysse Nardin is part owner of Sigatec SA the company responsible for the development of silicon technology in watch making

Ultra light alloy ndash Mg and Al

The Freak is one example of the way Ulysse Nardin makes things happen When Schneider made the first Freak it did not work because the mixture of materials was not right

Schneider was ready to abandon the new escapement but was talked into trying it another way We failed with the Freak with traditional materials he admits

When we failed with the Freak I wanted to go back to the anchor escapement Ludwig Oechslin our Chief Designer wanted to use the new escapement because he thought it was better So we decided to go forward in two different directions one with the anchor escapement and the other with the new escapement We met someone who had done work with silicon so we decided to try itrdquo

C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin

Ulysse Nardin is concentrating on manufacturing movement parts in silicon

One of the advantages of making parts from silicon is that the process allows complete freedom of design - just about any shape visualized can be realized

The use of silicon could very well change the way movements are designed because it removes some of the old limitations that were in place before In addition working in silicon means higher precision lighter weight and the material in its final form is very hard

New materials unique watchesSome watch companies are using new materials for aesthetic reasons like Gerald Gentas new Gefica which uses bronze in a striking way The use of innovative materials is a major factor in the creation of our watches particularly for Gerald Genta says Gerald Roden Chief Executive Officer of Daniel Roth and Gerald Genta We have long been investigating creative uses for innovative more so for aesthetics than for technical reasons

For quite some time we have experimented with combinations of materials such as carbon fibre aluminium and wood with rubber and even fish skinIn 2003 Gerald Genta was among the first to use unique metals such as palladium and tantalum for cases

We have developed a patent to use liquid ceramic for the Octo line and are currently working with metallurgists to develop other new and innovative metals for Gerald Genta We are also in the final test phases of creating an exciting new treatment for steel

Non Magnetic materials for movement components

Another movement design

Traditional mechanical movements use oils or grease to ensure smooth operations

These take the form of oils in varying degrees of fineness for parts with high translation or rotation speeds or grease for parts subject to high pressures or stresses

The properties of such oils and grease deteriorates over time and the performances of the movement likewise decline if these lubricants are not replaced in due time

Testing conducted during the 1970s on plastic movements had already shown the way towards doing without some of the oils and grease However these watches did not stand the test of time which resulted in wear on the parts that in turn rapidly diminished their chronometric and functional performances

In its ongoing search to enhance the reliability of mechanical movements Jaeger-LeCoultre had already renounced the use of lubrication in the ball-bearing mechanisms of automatic winding systems by introducing ceramic ball-bearings as early as 2002

Today the research team at the Manufacture in Le Sentier has innovated a mechanical movement run without any lubricant whatsoever This research has culminated in the brand-new Jaeger-LeCoultre Calibre 988C

Innovative mechanical movement without any lubricant

New materials in mechanical movements

The engineers and watchmakers have resorted to new materials and new combinations of materials for demanding challenge

The Easiumtrade carbonitride thus makes its way onto the watch making stage This extremely hard material features extraordinary tribological properties and is therefore particularly suited to the making bearings able to operate without lubricants

In Jaeger-LeCoultre Calibre 988C Easium replaces the traditional jewels lubricated with a fine oil The burnished steel pivots of the balance-staff are coated with a special surface treatment and turn inside an Easium bearing The endstone is also made from Easium This is also a material used to make the two bearings allowing the carriage to turn in the bridges without any need to add jewels that would require lubrication

Watchmakers are considering the black crystalline diamond a synthetic material as hard as natural diamonds but with considerably enhanced operational properties for replacing the red pallet-stones Its friction on the silicon teeth of the escape-wheel does not require any oil to improve its operation live All the burnished steel pivots of the wheels and pinions are coated with a surface treatment that obviates any need to oil the jewels

Mainspring barrel in mechanical movement grease replaced by graphite powder

On the other end of the movement the barrel grease has also disappeared Instead a graphite powder helps the bride to slide smoothly inside the drum when the mainspring has been wound beyond the maximum powerreserve by the automatic winding mechanism The molecular structure of graphite consists in a stack of micro-platelets contrary to grease it retains its lubricating properties over time whatever the temperature and the hygrometry level

As for the ball-bearing mechanism of the oscillating weight in addition to the use of ceramic ball bearings mentioned earlier friction has been reduced by optimising the rotor which features carbon fibre arms and a distinctly lighter and more rigid base

Finally the oscillating weight segment is surprising in itself with its iridium platinum alloy the densest non-toxic physical body currently machinableThe entire windingtime-setting mechanism is coated with Nickel-PTFEin order to eliminate the customary greasing points The date jumper-spring features a frictional surface that also operates in ldquodryrdquo mode

Balanced wheel design in mechanical movement

Arenrsquot the most efficient balances circular The latest research by Jaeger-LeCoultre proves the exact opposite

Lengthy testing has revealed the importance of the total surface of the balance on its aerodynamic performances The larger the surface the greater the aerodynamic friction and the more energy it takes to maintain the oscillations of the balance and spring ndash which is in turn detrimental to precision

The geometry devised by Jaeger-LeCoultre coupled with the use of an extremely dense material ndash in this case iridium platinum ndash minimises the surface in friction Thus given a constant level of inertia this balance requires less energy to oscillate than a traditional balance

Balance wheel design in an optimized mechanical movement

The geometry of the balance has also been designed to reduce the ratio between the mass and the inertia of the balance

High inertia ensures a stable regulator that is fairly insensitive to the vibrations and daily shocks to which a watch is subjected and which disturb its precision Nonetheless high inertia implies a higher balance mass leading to larger losses due to mechanical fiction and thus increased energy consumption to maintain the oscillations ndash as well as a larger difference in amplitude between horizontal and vertical positions

The balance of the Jaeger-LeCoultre Calibre 988C has been optimised in order to reduce total mass without modifying the determined inertia The shape of the arms the openings and the geometry enable a several-point gain in the massinertia ratio

This factor directly influences the variations in rate between different positions that are well-known to watchmakers due to the difference in amplitude between the ldquodial-uprdquo and ldquopendant-uprdquo positions The lower the massinertia ratio the smaller the differences between the various positions thus enabling the watchmaker to perform a more precise adjustment of the watch

Contribution to accuracy by the balance spring in a mechanical movement

The balance-spring beats in a perfectly concentric manner in order to guarantee ideal isochronism Not only does it feature the carefully calculated form of a Phillips terminal curve but the watchmakers have also created something they call a ldquobendrdquo in the centre The ldquobendrdquo is a distortion of the balance-spring at aspecific place close to the collet pinning-point and which at given moments modifies the rigidity of the spring and corrects the natural tendency of any spring to ldquobreatherdquo in an off-centred manner Only this winning combination of an outer Phillips terminal curve and a central ldquobendrdquo makes it possible to create a balance-spring that develops in a perfectly concentric way (meaning with symmetrical expansions and contractions in respect to the centre)

Precise adjustment of this movement is of course performed using screws placed on the balance This process now used on all the Jaeger-LeCoultre automatic calibres has replaced the traditional index assembly and ensures peerless initial reliability of the rate that thereby remains unperturbed over time even if the watch is accidentally jarred

To perfect the exceptional efficiency of this regulating organ the aerodynamic properties of the balance have been fine-tuned by bevelling the arms by streamlining the shape of the weights and by integrating adjustment screws inside the weights The escape-wheel is made from silicon which is considerably lighter than steel and thus also favourably influences efficiency

Tourbillon made from light alloys

A one-minute tourbillon houses this literally extraordinary regulator The tourbillon carriage is machined from blocks of a magnesium alloy that is two and a half times lighter than titanium and contributes to reducing energy losses due to friction and thus further improves the exceptional efficiency of the regulator

The cadence of 28800 vibrations per hour the high (115 mgcm2) inertia of the balance and the tourbillon together help guarantee theaccuracy of the watch

Application of various new processing technologies

physical vapour deposition (pvd)chemical vapour deposition (cvd)LIthographie Galvanoformung Adformung (LIGA)electroformingphotochemcial machining (pcm)etchellip

Current development worldwide Mimotec SA (Sion Switzerland)

MEMS Technology ndash DRIE Process

MEMS Technology ndash LIGA Process

LIGA = Lithographie Galvanoformung Adformung

LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre

a German acronym for rdquoLithographie Galvanoformung Abformungldquoin English (X-ray) Lithography Electroplating and Molding

one of the first major techniques to allow on-demand manufacturing of high-aspect-ratio structures (structures that are much taller than wide) with lateral precision below one micrometre This capability is important in the fabrication of MEMS devices Because of the high collimation of X-rays needed the source must be synchrotron light

There are today three different types of LIGA technologies differing in the radiation and preform usedi) X-Ray LIGA the first LIGA technology developed using X-Rays

produced by a synchrotron ii) UV-LIGA using ultraviolet light typically from a mercury lamp and

special resists like SU-8 and iii) Silicon-LIGA using deep reactive ion etched silicon as preform

More suppliers to be trained and trainedhellip

The watch groups that sailed through the 2007 financial year with figures shown at- Swatch (2007 sales up 176)- LVMH (organic revenues growth of 19 for Watches amp Jewelry)- PPR (results for its luxury division up 29)- Richemont (third-quarter sales up 14 at constant exchange rates)

this mad surge in sales raises a number of questions mostly concerning production

In the 1990s these multinationals went shopping for prestigious brands sparking an unprecedented wave of mergers and acquisitions in the branch Since the brand is a unique gateway to the customer the products still have to meet expectations

Business Growth of Global Brands from 2003-2007

Suppliers - Vertical integrationWatchmakers have started to look for reliable suppliers with the intention to sharpen their industrial resources as part of sweeping vertical integration While these buy-outs of small and medium firms may not have made headline news in the same way the take-over of Jaeger-LeCoultre Breguet or Zenith once did they still caused a subtle but important shiftin the watch making landscape

Since the early 2000s numerous suppliers of dials hands cases and movement parts have changed owners which are of particular interest for those who make movements

Clearly we havenrsquot seen the last of these takeovers of highly-specialised small and medium enterprises as illustrated these past six months by the acquisition of Elinor a manufacturer of precious metal cases by FP Journe of Donzeacute-Baume a specialist in cases and bracelets by Richemont of Indexor a manufacturer of hour markers by Swatch via MOM Le Preacutelet and the alliance between Bulgari and Leschot another case-maker

Still companies realised quite some time ago that vertical integration alone was no longer sufficienthellip

A generation of new workshopsExpertise is one thing production capacity is another Some companies are so cruelly lacking capacity that delivery times for certain new products can stretch to as much as three years

One remedy has been to form an alliance with one of the watchmakers working behind-the-scenes making high-end movements for third parties

This was the route chosen recently by Hermegraves when it acquired a 25 stake in Vaucher Manufacture Fleurier

Richemont had the same goal in mind when it took over Minerva and production facilities at Roger Dubuis As for Bovet by reviving Dimier it has simply given a prestigious new name to STT Holding a recent acquisition comprising three specialised manufacturers of tourbillons balance-springs and calibres

Production production production

This shuffles the deck but does not add any new cards to a sector which overall needs to extend its production facilities Companies have got the message and are busy composing the architectural masterpieces that will give them more production space The same phenomenon is at work among suppliers too In the valley of Saint-Imier in the Franches-Montagnes district as elsewhere over the past fewyears every village has seen one or more buildingsspring up and new workshops and machines move in What will become of these investments when the cycle enters a downturn

Existing situation of Hong Kong Watch amp Clock Industry

Challenges ahead of small and medium enterprises (SMEs) 中小企面對國內政策改變

Mid-Low Market segments of Hong Kong Watches香港鐘表中下價

Technologies of Hong Kong have yet to catch up Switzerland and Japan科技緊次於瑞士及日本

Certain components made by Hong Kong have a leading role to play某些零部件市場有領導地位

The quality of watches manufactured by Hong Kong has a large variation 香港鐘表行業技術品質參差不齊

Understanding Impacts of Financial Tsunami

How big (small) are we talking about

Any opportunitiesOur skillsOur production capacitiesOur quality systemOur raw materialsOur vertical integrationYOur Decision to move forwardFrom Basic Quantity to Luxurious few

Upcoming challengesFree trade barriers and protection of interests保護主意 外國公司排斥

Tightening of quality standards and requirements瑞士之所以成功是由於不停增加新規格及提升舊規格

Continuous improvements and Exceeding customersrsquo expectation滿足客戶無微不至於客戶未提出之前以為客戶預備

Leading and flowing with the market帶領市場

Upgrade the Hong Kong Watch and Clock Industry as a whole香港鐘表行業應提升功能形象建立品牌

Listen to the customers and improve on the basis of Voice of Customers (VOC )香港鐘表行業應提升功能形象

Brand building learning from our Swiss and Japan counterparts建立品牌 向瑞士學習一步步跟進

Innovations World Trend

Application of various new materials innovative products

synthetic diamondsingle crystal diamondcarbon fibrenew alloy

Carbon Fibre for watches

Carbon Fibre for watches

A 6 μm diameter carbon filament (running from bottom left to top right) compared to a human hair

Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre

A unique concept watch with

- A lubricant-free watch - Resistance to extreme temperatures - 40deg

+ 60deg

C

- Innovative character rewarded by six patents - Movement entirely redesigned and created by

2 years of intense development - High-tech design carbon and titanium case- Automatic tourbillon with a large variable inertiabalance (115mg x cm2) oscillating at a highfrequency of 28800 vibrationshour (4 hertz)

This watch will only be delivered andsold in limited quantities

Jaeger - Lecoultre

Traditional mechanical movements use oils or greases to ensure smooth operations

These take the form of oils in varying degrees of fineness for parts with high translation or rotation speeds or grease for parts subject to large pressures or stresses

The properties of such oils and grease deteriorates over time and the performances of the movement decline if these lubricants are not replaced in due time

Testing conducted during the 1970s on plastic movements had already shown the way towards doing without some of the oils and grease However these watches did not stand the test of time which resulted in wear on the parts that in turn rapidly diminished their chronometric and functional performances

In its ongoing search to enhance the reliability of mechanical movements Jaeger-LeCoultre had already renounced the use of lubrication in the ball-bearing mechanisms of automatic winding systems by introducing ceramic ball-bearings as early as 2002

Today the research team at the Manufacture in Le Sentier has innovated a mechanical movement run without any lubricant This research has culminated in the brand-new Jaeger-LeCoultre Calibre 988C

Innovative mechanical movements without oils amp greases

A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is

Inspired by the unshakeable conviction in the smallest details the watchmakers and designers of the Manufacture have raised the game of precision and functions to unprecedented levels of refinement

The aesthetics of the Master Compressor Extreme Lab reflect the technology within Its transparent dial reveals the heart of the horological mechanism featuring a particularly attractive graphic design characterised by subtle contrasts between the black aluminum of the open-worked centre bridge and the flange the white colour of the applied hanging numerals and hour-markers and the grey of the tourbillon bridge

The centre bridge is made from an aluminum alloy reinforced with particles of titanium carbide Ticaliumreg The mechanical hardness and resistance of this alloy are thus improved by 20 without increasing the density The casevisually reflects the movement with its association of carbon silicon carbonitrideand grade 5 titanium

The first feature covers its original structure featuring an interior carbon fibre case fitted inside a titanium ring The obvious advantage is a gain in weight but the resulting aesthetic effect is doubtless even more remarkable The case as a whole is topped by a bezel in silicon carbonitride a material that is lighter and more resistant than traditional ceramics

Watch suspension mounting

The second feature relates to the suspension mounting of the movement The silent-block made from a supple red polyurethane material not only serves to avoid any risk of water seeping into the crown tube but also mechanically isolates the movement and its Compressor crown

The calibre and winding-stem are thus mounted in a ldquofree-floatingrdquomanner and there is thus no metal to metal link between the movement and the case which means the watch mechanism is protected fromviolent shocks or vibrations

The red aluminum crown echoes the red elements on the dial the silent-block shock absorber and the strap

Jaeger-LeCoultre has also devoted special attention to the strap of this watch Its double-layered construction enhances both its robustness and its appearance The unusual combination of materials such as leather cordura canvasand alcantara reinforced by a composite strip lends this strap a three-dimensional appearance on a par with the case to which it is attached

Mechanical automatic movement Jaeger-LeCoultre Calibre 988C

307 parts

28800 vibrations per hour 4 hertzA barrelTourbillon with magnesium carriageTwo time zonesAMPM indication with local timeCentral pointer-type calendar displays that jumps over the tourbillon carriageMovement diameter 300 mmMovement thickness 705 mmCase diameter 450 mmCase thickness 1480 mmOperational between -40deg and +60degCNo oil no greaseIridium platinum oscillating weight with carbon baseBlack diamond pallet-stonesEasium jewels48-hour power reserveWater-resistant to 100 metresCrafted in carbon and titaniumExclusive limited annual productionReference Q179T470

New materials new solutionsMany watch brands are experimenting with new materials to enhance the technical aspects of their watches

Some companies like Patek Philippe and Rolex are working on new materials for springs and other parts

In 2005 Patek Philippe filed a patent for the first silicon escape wheel for a Swiss lever escapement

Rolex created its new blue Parachrom hairspring made from a new alloy to resist magnetism and increase shock absorbance

Jaeger-LeCoultre are experimenting with new materials to reduce the need for lubrication ndash last year the Extreme Lab introduced the first watch ever that doesnt need any lubrication

Ultra light alloy ndash Mg and AlSome watches are already using new materials such as the Mag Bang with the AG5 alloy which is an ultra light alloy of magnesium and aluminium

Audemars Piguet has for years been a leader in the search for new and advanced materials The latest is the companys minute repeater programme where they are working with laboratories professors and students at the best universities to come up with new metals and designs that will enhance the sound of their minute repeaters

Ulysse Nardin recently unveiled its new Innovision watch a concept watch that combines the companys most daring innovations -from the silicon escapement first used in the Freak to new silicon parts (wheels bridges pinions etc) Ulysse Nardin is part owner of Sigatec SA the company responsible for the development of silicon technology in watch making

Ultra light alloy ndash Mg and Al

The Freak is one example of the way Ulysse Nardin makes things happen When Schneider made the first Freak it did not work because the mixture of materials was not right

Schneider was ready to abandon the new escapement but was talked into trying it another way We failed with the Freak with traditional materials he admits

When we failed with the Freak I wanted to go back to the anchor escapement Ludwig Oechslin our Chief Designer wanted to use the new escapement because he thought it was better So we decided to go forward in two different directions one with the anchor escapement and the other with the new escapement We met someone who had done work with silicon so we decided to try itrdquo

C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin

Ulysse Nardin is concentrating on manufacturing movement parts in silicon

One of the advantages of making parts from silicon is that the process allows complete freedom of design - just about any shape visualized can be realized

The use of silicon could very well change the way movements are designed because it removes some of the old limitations that were in place before In addition working in silicon means higher precision lighter weight and the material in its final form is very hard

New materials unique watchesSome watch companies are using new materials for aesthetic reasons like Gerald Gentas new Gefica which uses bronze in a striking way The use of innovative materials is a major factor in the creation of our watches particularly for Gerald Genta says Gerald Roden Chief Executive Officer of Daniel Roth and Gerald Genta We have long been investigating creative uses for innovative more so for aesthetics than for technical reasons

For quite some time we have experimented with combinations of materials such as carbon fibre aluminium and wood with rubber and even fish skinIn 2003 Gerald Genta was among the first to use unique metals such as palladium and tantalum for cases

We have developed a patent to use liquid ceramic for the Octo line and are currently working with metallurgists to develop other new and innovative metals for Gerald Genta We are also in the final test phases of creating an exciting new treatment for steel

Non Magnetic materials for movement components

Another movement design

Traditional mechanical movements use oils or grease to ensure smooth operations

These take the form of oils in varying degrees of fineness for parts with high translation or rotation speeds or grease for parts subject to high pressures or stresses

The properties of such oils and grease deteriorates over time and the performances of the movement likewise decline if these lubricants are not replaced in due time

Testing conducted during the 1970s on plastic movements had already shown the way towards doing without some of the oils and grease However these watches did not stand the test of time which resulted in wear on the parts that in turn rapidly diminished their chronometric and functional performances

In its ongoing search to enhance the reliability of mechanical movements Jaeger-LeCoultre had already renounced the use of lubrication in the ball-bearing mechanisms of automatic winding systems by introducing ceramic ball-bearings as early as 2002

Today the research team at the Manufacture in Le Sentier has innovated a mechanical movement run without any lubricant whatsoever This research has culminated in the brand-new Jaeger-LeCoultre Calibre 988C

Innovative mechanical movement without any lubricant

New materials in mechanical movements

The engineers and watchmakers have resorted to new materials and new combinations of materials for demanding challenge

The Easiumtrade carbonitride thus makes its way onto the watch making stage This extremely hard material features extraordinary tribological properties and is therefore particularly suited to the making bearings able to operate without lubricants

In Jaeger-LeCoultre Calibre 988C Easium replaces the traditional jewels lubricated with a fine oil The burnished steel pivots of the balance-staff are coated with a special surface treatment and turn inside an Easium bearing The endstone is also made from Easium This is also a material used to make the two bearings allowing the carriage to turn in the bridges without any need to add jewels that would require lubrication

Watchmakers are considering the black crystalline diamond a synthetic material as hard as natural diamonds but with considerably enhanced operational properties for replacing the red pallet-stones Its friction on the silicon teeth of the escape-wheel does not require any oil to improve its operation live All the burnished steel pivots of the wheels and pinions are coated with a surface treatment that obviates any need to oil the jewels

Mainspring barrel in mechanical movement grease replaced by graphite powder

On the other end of the movement the barrel grease has also disappeared Instead a graphite powder helps the bride to slide smoothly inside the drum when the mainspring has been wound beyond the maximum powerreserve by the automatic winding mechanism The molecular structure of graphite consists in a stack of micro-platelets contrary to grease it retains its lubricating properties over time whatever the temperature and the hygrometry level

As for the ball-bearing mechanism of the oscillating weight in addition to the use of ceramic ball bearings mentioned earlier friction has been reduced by optimising the rotor which features carbon fibre arms and a distinctly lighter and more rigid base

Finally the oscillating weight segment is surprising in itself with its iridium platinum alloy the densest non-toxic physical body currently machinableThe entire windingtime-setting mechanism is coated with Nickel-PTFEin order to eliminate the customary greasing points The date jumper-spring features a frictional surface that also operates in ldquodryrdquo mode

Balanced wheel design in mechanical movement

Arenrsquot the most efficient balances circular The latest research by Jaeger-LeCoultre proves the exact opposite

Lengthy testing has revealed the importance of the total surface of the balance on its aerodynamic performances The larger the surface the greater the aerodynamic friction and the more energy it takes to maintain the oscillations of the balance and spring ndash which is in turn detrimental to precision

The geometry devised by Jaeger-LeCoultre coupled with the use of an extremely dense material ndash in this case iridium platinum ndash minimises the surface in friction Thus given a constant level of inertia this balance requires less energy to oscillate than a traditional balance

Balance wheel design in an optimized mechanical movement

The geometry of the balance has also been designed to reduce the ratio between the mass and the inertia of the balance

High inertia ensures a stable regulator that is fairly insensitive to the vibrations and daily shocks to which a watch is subjected and which disturb its precision Nonetheless high inertia implies a higher balance mass leading to larger losses due to mechanical fiction and thus increased energy consumption to maintain the oscillations ndash as well as a larger difference in amplitude between horizontal and vertical positions

The balance of the Jaeger-LeCoultre Calibre 988C has been optimised in order to reduce total mass without modifying the determined inertia The shape of the arms the openings and the geometry enable a several-point gain in the massinertia ratio

This factor directly influences the variations in rate between different positions that are well-known to watchmakers due to the difference in amplitude between the ldquodial-uprdquo and ldquopendant-uprdquo positions The lower the massinertia ratio the smaller the differences between the various positions thus enabling the watchmaker to perform a more precise adjustment of the watch

Contribution to accuracy by the balance spring in a mechanical movement

The balance-spring beats in a perfectly concentric manner in order to guarantee ideal isochronism Not only does it feature the carefully calculated form of a Phillips terminal curve but the watchmakers have also created something they call a ldquobendrdquo in the centre The ldquobendrdquo is a distortion of the balance-spring at aspecific place close to the collet pinning-point and which at given moments modifies the rigidity of the spring and corrects the natural tendency of any spring to ldquobreatherdquo in an off-centred manner Only this winning combination of an outer Phillips terminal curve and a central ldquobendrdquo makes it possible to create a balance-spring that develops in a perfectly concentric way (meaning with symmetrical expansions and contractions in respect to the centre)

Precise adjustment of this movement is of course performed using screws placed on the balance This process now used on all the Jaeger-LeCoultre automatic calibres has replaced the traditional index assembly and ensures peerless initial reliability of the rate that thereby remains unperturbed over time even if the watch is accidentally jarred

To perfect the exceptional efficiency of this regulating organ the aerodynamic properties of the balance have been fine-tuned by bevelling the arms by streamlining the shape of the weights and by integrating adjustment screws inside the weights The escape-wheel is made from silicon which is considerably lighter than steel and thus also favourably influences efficiency

Tourbillon made from light alloys

A one-minute tourbillon houses this literally extraordinary regulator The tourbillon carriage is machined from blocks of a magnesium alloy that is two and a half times lighter than titanium and contributes to reducing energy losses due to friction and thus further improves the exceptional efficiency of the regulator

The cadence of 28800 vibrations per hour the high (115 mgcm2) inertia of the balance and the tourbillon together help guarantee theaccuracy of the watch

Application of various new processing technologies

physical vapour deposition (pvd)chemical vapour deposition (cvd)LIthographie Galvanoformung Adformung (LIGA)electroformingphotochemcial machining (pcm)etchellip

Current development worldwide Mimotec SA (Sion Switzerland)

MEMS Technology ndash DRIE Process

MEMS Technology ndash LIGA Process

LIGA = Lithographie Galvanoformung Adformung

LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre

a German acronym for rdquoLithographie Galvanoformung Abformungldquoin English (X-ray) Lithography Electroplating and Molding

one of the first major techniques to allow on-demand manufacturing of high-aspect-ratio structures (structures that are much taller than wide) with lateral precision below one micrometre This capability is important in the fabrication of MEMS devices Because of the high collimation of X-rays needed the source must be synchrotron light

There are today three different types of LIGA technologies differing in the radiation and preform usedi) X-Ray LIGA the first LIGA technology developed using X-Rays

produced by a synchrotron ii) UV-LIGA using ultraviolet light typically from a mercury lamp and

special resists like SU-8 and iii) Silicon-LIGA using deep reactive ion etched silicon as preform

Business Growth of Global Brands from 2003-2007

Suppliers - Vertical integrationWatchmakers have started to look for reliable suppliers with the intention to sharpen their industrial resources as part of sweeping vertical integration While these buy-outs of small and medium firms may not have made headline news in the same way the take-over of Jaeger-LeCoultre Breguet or Zenith once did they still caused a subtle but important shiftin the watch making landscape

Since the early 2000s numerous suppliers of dials hands cases and movement parts have changed owners which are of particular interest for those who make movements

Clearly we havenrsquot seen the last of these takeovers of highly-specialised small and medium enterprises as illustrated these past six months by the acquisition of Elinor a manufacturer of precious metal cases by FP Journe of Donzeacute-Baume a specialist in cases and bracelets by Richemont of Indexor a manufacturer of hour markers by Swatch via MOM Le Preacutelet and the alliance between Bulgari and Leschot another case-maker

Still companies realised quite some time ago that vertical integration alone was no longer sufficienthellip

A generation of new workshopsExpertise is one thing production capacity is another Some companies are so cruelly lacking capacity that delivery times for certain new products can stretch to as much as three years

One remedy has been to form an alliance with one of the watchmakers working behind-the-scenes making high-end movements for third parties

This was the route chosen recently by Hermegraves when it acquired a 25 stake in Vaucher Manufacture Fleurier

Richemont had the same goal in mind when it took over Minerva and production facilities at Roger Dubuis As for Bovet by reviving Dimier it has simply given a prestigious new name to STT Holding a recent acquisition comprising three specialised manufacturers of tourbillons balance-springs and calibres

Production production production

This shuffles the deck but does not add any new cards to a sector which overall needs to extend its production facilities Companies have got the message and are busy composing the architectural masterpieces that will give them more production space The same phenomenon is at work among suppliers too In the valley of Saint-Imier in the Franches-Montagnes district as elsewhere over the past fewyears every village has seen one or more buildingsspring up and new workshops and machines move in What will become of these investments when the cycle enters a downturn

Existing situation of Hong Kong Watch amp Clock Industry

Challenges ahead of small and medium enterprises (SMEs) 中小企面對國內政策改變

Mid-Low Market segments of Hong Kong Watches香港鐘表中下價

Technologies of Hong Kong have yet to catch up Switzerland and Japan科技緊次於瑞士及日本

Certain components made by Hong Kong have a leading role to play某些零部件市場有領導地位

The quality of watches manufactured by Hong Kong has a large variation 香港鐘表行業技術品質參差不齊

Understanding Impacts of Financial Tsunami

How big (small) are we talking about

Any opportunitiesOur skillsOur production capacitiesOur quality systemOur raw materialsOur vertical integrationYOur Decision to move forwardFrom Basic Quantity to Luxurious few

Upcoming challengesFree trade barriers and protection of interests保護主意 外國公司排斥

Tightening of quality standards and requirements瑞士之所以成功是由於不停增加新規格及提升舊規格

Continuous improvements and Exceeding customersrsquo expectation滿足客戶無微不至於客戶未提出之前以為客戶預備

Leading and flowing with the market帶領市場

Upgrade the Hong Kong Watch and Clock Industry as a whole香港鐘表行業應提升功能形象建立品牌

Listen to the customers and improve on the basis of Voice of Customers (VOC )香港鐘表行業應提升功能形象

Brand building learning from our Swiss and Japan counterparts建立品牌 向瑞士學習一步步跟進

Innovations World Trend

Application of various new materials innovative products

synthetic diamondsingle crystal diamondcarbon fibrenew alloy

Carbon Fibre for watches

Carbon Fibre for watches

A 6 μm diameter carbon filament (running from bottom left to top right) compared to a human hair

Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre

A unique concept watch with

- A lubricant-free watch - Resistance to extreme temperatures - 40deg

+ 60deg

C

- Innovative character rewarded by six patents - Movement entirely redesigned and created by

2 years of intense development - High-tech design carbon and titanium case- Automatic tourbillon with a large variable inertiabalance (115mg x cm2) oscillating at a highfrequency of 28800 vibrationshour (4 hertz)

This watch will only be delivered andsold in limited quantities

Jaeger - Lecoultre

Traditional mechanical movements use oils or greases to ensure smooth operations

These take the form of oils in varying degrees of fineness for parts with high translation or rotation speeds or grease for parts subject to large pressures or stresses

The properties of such oils and grease deteriorates over time and the performances of the movement decline if these lubricants are not replaced in due time

Testing conducted during the 1970s on plastic movements had already shown the way towards doing without some of the oils and grease However these watches did not stand the test of time which resulted in wear on the parts that in turn rapidly diminished their chronometric and functional performances

In its ongoing search to enhance the reliability of mechanical movements Jaeger-LeCoultre had already renounced the use of lubrication in the ball-bearing mechanisms of automatic winding systems by introducing ceramic ball-bearings as early as 2002

Today the research team at the Manufacture in Le Sentier has innovated a mechanical movement run without any lubricant This research has culminated in the brand-new Jaeger-LeCoultre Calibre 988C

Innovative mechanical movements without oils amp greases

A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is

Inspired by the unshakeable conviction in the smallest details the watchmakers and designers of the Manufacture have raised the game of precision and functions to unprecedented levels of refinement

The aesthetics of the Master Compressor Extreme Lab reflect the technology within Its transparent dial reveals the heart of the horological mechanism featuring a particularly attractive graphic design characterised by subtle contrasts between the black aluminum of the open-worked centre bridge and the flange the white colour of the applied hanging numerals and hour-markers and the grey of the tourbillon bridge

The centre bridge is made from an aluminum alloy reinforced with particles of titanium carbide Ticaliumreg The mechanical hardness and resistance of this alloy are thus improved by 20 without increasing the density The casevisually reflects the movement with its association of carbon silicon carbonitrideand grade 5 titanium

The first feature covers its original structure featuring an interior carbon fibre case fitted inside a titanium ring The obvious advantage is a gain in weight but the resulting aesthetic effect is doubtless even more remarkable The case as a whole is topped by a bezel in silicon carbonitride a material that is lighter and more resistant than traditional ceramics

Watch suspension mounting

The second feature relates to the suspension mounting of the movement The silent-block made from a supple red polyurethane material not only serves to avoid any risk of water seeping into the crown tube but also mechanically isolates the movement and its Compressor crown

The calibre and winding-stem are thus mounted in a ldquofree-floatingrdquomanner and there is thus no metal to metal link between the movement and the case which means the watch mechanism is protected fromviolent shocks or vibrations

The red aluminum crown echoes the red elements on the dial the silent-block shock absorber and the strap

Jaeger-LeCoultre has also devoted special attention to the strap of this watch Its double-layered construction enhances both its robustness and its appearance The unusual combination of materials such as leather cordura canvasand alcantara reinforced by a composite strip lends this strap a three-dimensional appearance on a par with the case to which it is attached

Mechanical automatic movement Jaeger-LeCoultre Calibre 988C

307 parts

28800 vibrations per hour 4 hertzA barrelTourbillon with magnesium carriageTwo time zonesAMPM indication with local timeCentral pointer-type calendar displays that jumps over the tourbillon carriageMovement diameter 300 mmMovement thickness 705 mmCase diameter 450 mmCase thickness 1480 mmOperational between -40deg and +60degCNo oil no greaseIridium platinum oscillating weight with carbon baseBlack diamond pallet-stonesEasium jewels48-hour power reserveWater-resistant to 100 metresCrafted in carbon and titaniumExclusive limited annual productionReference Q179T470

New materials new solutionsMany watch brands are experimenting with new materials to enhance the technical aspects of their watches

Some companies like Patek Philippe and Rolex are working on new materials for springs and other parts

In 2005 Patek Philippe filed a patent for the first silicon escape wheel for a Swiss lever escapement

Rolex created its new blue Parachrom hairspring made from a new alloy to resist magnetism and increase shock absorbance

Jaeger-LeCoultre are experimenting with new materials to reduce the need for lubrication ndash last year the Extreme Lab introduced the first watch ever that doesnt need any lubrication

Ultra light alloy ndash Mg and AlSome watches are already using new materials such as the Mag Bang with the AG5 alloy which is an ultra light alloy of magnesium and aluminium

Audemars Piguet has for years been a leader in the search for new and advanced materials The latest is the companys minute repeater programme where they are working with laboratories professors and students at the best universities to come up with new metals and designs that will enhance the sound of their minute repeaters

Ulysse Nardin recently unveiled its new Innovision watch a concept watch that combines the companys most daring innovations -from the silicon escapement first used in the Freak to new silicon parts (wheels bridges pinions etc) Ulysse Nardin is part owner of Sigatec SA the company responsible for the development of silicon technology in watch making

Ultra light alloy ndash Mg and Al

The Freak is one example of the way Ulysse Nardin makes things happen When Schneider made the first Freak it did not work because the mixture of materials was not right

Schneider was ready to abandon the new escapement but was talked into trying it another way We failed with the Freak with traditional materials he admits

When we failed with the Freak I wanted to go back to the anchor escapement Ludwig Oechslin our Chief Designer wanted to use the new escapement because he thought it was better So we decided to go forward in two different directions one with the anchor escapement and the other with the new escapement We met someone who had done work with silicon so we decided to try itrdquo

C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin

Ulysse Nardin is concentrating on manufacturing movement parts in silicon

One of the advantages of making parts from silicon is that the process allows complete freedom of design - just about any shape visualized can be realized

The use of silicon could very well change the way movements are designed because it removes some of the old limitations that were in place before In addition working in silicon means higher precision lighter weight and the material in its final form is very hard

New materials unique watchesSome watch companies are using new materials for aesthetic reasons like Gerald Gentas new Gefica which uses bronze in a striking way The use of innovative materials is a major factor in the creation of our watches particularly for Gerald Genta says Gerald Roden Chief Executive Officer of Daniel Roth and Gerald Genta We have long been investigating creative uses for innovative more so for aesthetics than for technical reasons

For quite some time we have experimented with combinations of materials such as carbon fibre aluminium and wood with rubber and even fish skinIn 2003 Gerald Genta was among the first to use unique metals such as palladium and tantalum for cases

We have developed a patent to use liquid ceramic for the Octo line and are currently working with metallurgists to develop other new and innovative metals for Gerald Genta We are also in the final test phases of creating an exciting new treatment for steel

Non Magnetic materials for movement components

Another movement design

Traditional mechanical movements use oils or grease to ensure smooth operations

These take the form of oils in varying degrees of fineness for parts with high translation or rotation speeds or grease for parts subject to high pressures or stresses

The properties of such oils and grease deteriorates over time and the performances of the movement likewise decline if these lubricants are not replaced in due time

Testing conducted during the 1970s on plastic movements had already shown the way towards doing without some of the oils and grease However these watches did not stand the test of time which resulted in wear on the parts that in turn rapidly diminished their chronometric and functional performances

In its ongoing search to enhance the reliability of mechanical movements Jaeger-LeCoultre had already renounced the use of lubrication in the ball-bearing mechanisms of automatic winding systems by introducing ceramic ball-bearings as early as 2002

Today the research team at the Manufacture in Le Sentier has innovated a mechanical movement run without any lubricant whatsoever This research has culminated in the brand-new Jaeger-LeCoultre Calibre 988C

Innovative mechanical movement without any lubricant

New materials in mechanical movements

The engineers and watchmakers have resorted to new materials and new combinations of materials for demanding challenge

The Easiumtrade carbonitride thus makes its way onto the watch making stage This extremely hard material features extraordinary tribological properties and is therefore particularly suited to the making bearings able to operate without lubricants

In Jaeger-LeCoultre Calibre 988C Easium replaces the traditional jewels lubricated with a fine oil The burnished steel pivots of the balance-staff are coated with a special surface treatment and turn inside an Easium bearing The endstone is also made from Easium This is also a material used to make the two bearings allowing the carriage to turn in the bridges without any need to add jewels that would require lubrication

Watchmakers are considering the black crystalline diamond a synthetic material as hard as natural diamonds but with considerably enhanced operational properties for replacing the red pallet-stones Its friction on the silicon teeth of the escape-wheel does not require any oil to improve its operation live All the burnished steel pivots of the wheels and pinions are coated with a surface treatment that obviates any need to oil the jewels

Mainspring barrel in mechanical movement grease replaced by graphite powder

On the other end of the movement the barrel grease has also disappeared Instead a graphite powder helps the bride to slide smoothly inside the drum when the mainspring has been wound beyond the maximum powerreserve by the automatic winding mechanism The molecular structure of graphite consists in a stack of micro-platelets contrary to grease it retains its lubricating properties over time whatever the temperature and the hygrometry level

As for the ball-bearing mechanism of the oscillating weight in addition to the use of ceramic ball bearings mentioned earlier friction has been reduced by optimising the rotor which features carbon fibre arms and a distinctly lighter and more rigid base

Finally the oscillating weight segment is surprising in itself with its iridium platinum alloy the densest non-toxic physical body currently machinableThe entire windingtime-setting mechanism is coated with Nickel-PTFEin order to eliminate the customary greasing points The date jumper-spring features a frictional surface that also operates in ldquodryrdquo mode

Balanced wheel design in mechanical movement

Arenrsquot the most efficient balances circular The latest research by Jaeger-LeCoultre proves the exact opposite

Lengthy testing has revealed the importance of the total surface of the balance on its aerodynamic performances The larger the surface the greater the aerodynamic friction and the more energy it takes to maintain the oscillations of the balance and spring ndash which is in turn detrimental to precision

The geometry devised by Jaeger-LeCoultre coupled with the use of an extremely dense material ndash in this case iridium platinum ndash minimises the surface in friction Thus given a constant level of inertia this balance requires less energy to oscillate than a traditional balance

Balance wheel design in an optimized mechanical movement

The geometry of the balance has also been designed to reduce the ratio between the mass and the inertia of the balance

High inertia ensures a stable regulator that is fairly insensitive to the vibrations and daily shocks to which a watch is subjected and which disturb its precision Nonetheless high inertia implies a higher balance mass leading to larger losses due to mechanical fiction and thus increased energy consumption to maintain the oscillations ndash as well as a larger difference in amplitude between horizontal and vertical positions

The balance of the Jaeger-LeCoultre Calibre 988C has been optimised in order to reduce total mass without modifying the determined inertia The shape of the arms the openings and the geometry enable a several-point gain in the massinertia ratio

This factor directly influences the variations in rate between different positions that are well-known to watchmakers due to the difference in amplitude between the ldquodial-uprdquo and ldquopendant-uprdquo positions The lower the massinertia ratio the smaller the differences between the various positions thus enabling the watchmaker to perform a more precise adjustment of the watch

Contribution to accuracy by the balance spring in a mechanical movement

The balance-spring beats in a perfectly concentric manner in order to guarantee ideal isochronism Not only does it feature the carefully calculated form of a Phillips terminal curve but the watchmakers have also created something they call a ldquobendrdquo in the centre The ldquobendrdquo is a distortion of the balance-spring at aspecific place close to the collet pinning-point and which at given moments modifies the rigidity of the spring and corrects the natural tendency of any spring to ldquobreatherdquo in an off-centred manner Only this winning combination of an outer Phillips terminal curve and a central ldquobendrdquo makes it possible to create a balance-spring that develops in a perfectly concentric way (meaning with symmetrical expansions and contractions in respect to the centre)

Precise adjustment of this movement is of course performed using screws placed on the balance This process now used on all the Jaeger-LeCoultre automatic calibres has replaced the traditional index assembly and ensures peerless initial reliability of the rate that thereby remains unperturbed over time even if the watch is accidentally jarred

To perfect the exceptional efficiency of this regulating organ the aerodynamic properties of the balance have been fine-tuned by bevelling the arms by streamlining the shape of the weights and by integrating adjustment screws inside the weights The escape-wheel is made from silicon which is considerably lighter than steel and thus also favourably influences efficiency

Tourbillon made from light alloys

A one-minute tourbillon houses this literally extraordinary regulator The tourbillon carriage is machined from blocks of a magnesium alloy that is two and a half times lighter than titanium and contributes to reducing energy losses due to friction and thus further improves the exceptional efficiency of the regulator

The cadence of 28800 vibrations per hour the high (115 mgcm2) inertia of the balance and the tourbillon together help guarantee theaccuracy of the watch

Application of various new processing technologies

physical vapour deposition (pvd)chemical vapour deposition (cvd)LIthographie Galvanoformung Adformung (LIGA)electroformingphotochemcial machining (pcm)etchellip

Current development worldwide Mimotec SA (Sion Switzerland)

MEMS Technology ndash DRIE Process

MEMS Technology ndash LIGA Process

LIGA = Lithographie Galvanoformung Adformung

LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre

a German acronym for rdquoLithographie Galvanoformung Abformungldquoin English (X-ray) Lithography Electroplating and Molding

one of the first major techniques to allow on-demand manufacturing of high-aspect-ratio structures (structures that are much taller than wide) with lateral precision below one micrometre This capability is important in the fabrication of MEMS devices Because of the high collimation of X-rays needed the source must be synchrotron light

There are today three different types of LIGA technologies differing in the radiation and preform usedi) X-Ray LIGA the first LIGA technology developed using X-Rays

produced by a synchrotron ii) UV-LIGA using ultraviolet light typically from a mercury lamp and

special resists like SU-8 and iii) Silicon-LIGA using deep reactive ion etched silicon as preform

Suppliers - Vertical integrationWatchmakers have started to look for reliable suppliers with the intention to sharpen their industrial resources as part of sweeping vertical integration While these buy-outs of small and medium firms may not have made headline news in the same way the take-over of Jaeger-LeCoultre Breguet or Zenith once did they still caused a subtle but important shiftin the watch making landscape

Since the early 2000s numerous suppliers of dials hands cases and movement parts have changed owners which are of particular interest for those who make movements

Clearly we havenrsquot seen the last of these takeovers of highly-specialised small and medium enterprises as illustrated these past six months by the acquisition of Elinor a manufacturer of precious metal cases by FP Journe of Donzeacute-Baume a specialist in cases and bracelets by Richemont of Indexor a manufacturer of hour markers by Swatch via MOM Le Preacutelet and the alliance between Bulgari and Leschot another case-maker

Still companies realised quite some time ago that vertical integration alone was no longer sufficienthellip

A generation of new workshopsExpertise is one thing production capacity is another Some companies are so cruelly lacking capacity that delivery times for certain new products can stretch to as much as three years

One remedy has been to form an alliance with one of the watchmakers working behind-the-scenes making high-end movements for third parties

This was the route chosen recently by Hermegraves when it acquired a 25 stake in Vaucher Manufacture Fleurier

Richemont had the same goal in mind when it took over Minerva and production facilities at Roger Dubuis As for Bovet by reviving Dimier it has simply given a prestigious new name to STT Holding a recent acquisition comprising three specialised manufacturers of tourbillons balance-springs and calibres

Production production production

This shuffles the deck but does not add any new cards to a sector which overall needs to extend its production facilities Companies have got the message and are busy composing the architectural masterpieces that will give them more production space The same phenomenon is at work among suppliers too In the valley of Saint-Imier in the Franches-Montagnes district as elsewhere over the past fewyears every village has seen one or more buildingsspring up and new workshops and machines move in What will become of these investments when the cycle enters a downturn

Existing situation of Hong Kong Watch amp Clock Industry

Challenges ahead of small and medium enterprises (SMEs) 中小企面對國內政策改變

Mid-Low Market segments of Hong Kong Watches香港鐘表中下價

Technologies of Hong Kong have yet to catch up Switzerland and Japan科技緊次於瑞士及日本

Certain components made by Hong Kong have a leading role to play某些零部件市場有領導地位

The quality of watches manufactured by Hong Kong has a large variation 香港鐘表行業技術品質參差不齊

Understanding Impacts of Financial Tsunami

How big (small) are we talking about

Any opportunitiesOur skillsOur production capacitiesOur quality systemOur raw materialsOur vertical integrationYOur Decision to move forwardFrom Basic Quantity to Luxurious few

Upcoming challengesFree trade barriers and protection of interests保護主意 外國公司排斥

Tightening of quality standards and requirements瑞士之所以成功是由於不停增加新規格及提升舊規格

Continuous improvements and Exceeding customersrsquo expectation滿足客戶無微不至於客戶未提出之前以為客戶預備

Leading and flowing with the market帶領市場

Upgrade the Hong Kong Watch and Clock Industry as a whole香港鐘表行業應提升功能形象建立品牌

Listen to the customers and improve on the basis of Voice of Customers (VOC )香港鐘表行業應提升功能形象

Brand building learning from our Swiss and Japan counterparts建立品牌 向瑞士學習一步步跟進

Innovations World Trend

Application of various new materials innovative products

synthetic diamondsingle crystal diamondcarbon fibrenew alloy

Carbon Fibre for watches

Carbon Fibre for watches

A 6 μm diameter carbon filament (running from bottom left to top right) compared to a human hair

Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre

A unique concept watch with

- A lubricant-free watch - Resistance to extreme temperatures - 40deg

+ 60deg

C

- Innovative character rewarded by six patents - Movement entirely redesigned and created by

2 years of intense development - High-tech design carbon and titanium case- Automatic tourbillon with a large variable inertiabalance (115mg x cm2) oscillating at a highfrequency of 28800 vibrationshour (4 hertz)

This watch will only be delivered andsold in limited quantities

Jaeger - Lecoultre

Traditional mechanical movements use oils or greases to ensure smooth operations

These take the form of oils in varying degrees of fineness for parts with high translation or rotation speeds or grease for parts subject to large pressures or stresses

The properties of such oils and grease deteriorates over time and the performances of the movement decline if these lubricants are not replaced in due time

Testing conducted during the 1970s on plastic movements had already shown the way towards doing without some of the oils and grease However these watches did not stand the test of time which resulted in wear on the parts that in turn rapidly diminished their chronometric and functional performances

In its ongoing search to enhance the reliability of mechanical movements Jaeger-LeCoultre had already renounced the use of lubrication in the ball-bearing mechanisms of automatic winding systems by introducing ceramic ball-bearings as early as 2002

Today the research team at the Manufacture in Le Sentier has innovated a mechanical movement run without any lubricant This research has culminated in the brand-new Jaeger-LeCoultre Calibre 988C

Innovative mechanical movements without oils amp greases

A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is

Inspired by the unshakeable conviction in the smallest details the watchmakers and designers of the Manufacture have raised the game of precision and functions to unprecedented levels of refinement

The aesthetics of the Master Compressor Extreme Lab reflect the technology within Its transparent dial reveals the heart of the horological mechanism featuring a particularly attractive graphic design characterised by subtle contrasts between the black aluminum of the open-worked centre bridge and the flange the white colour of the applied hanging numerals and hour-markers and the grey of the tourbillon bridge

The centre bridge is made from an aluminum alloy reinforced with particles of titanium carbide Ticaliumreg The mechanical hardness and resistance of this alloy are thus improved by 20 without increasing the density The casevisually reflects the movement with its association of carbon silicon carbonitrideand grade 5 titanium

The first feature covers its original structure featuring an interior carbon fibre case fitted inside a titanium ring The obvious advantage is a gain in weight but the resulting aesthetic effect is doubtless even more remarkable The case as a whole is topped by a bezel in silicon carbonitride a material that is lighter and more resistant than traditional ceramics

Watch suspension mounting

The second feature relates to the suspension mounting of the movement The silent-block made from a supple red polyurethane material not only serves to avoid any risk of water seeping into the crown tube but also mechanically isolates the movement and its Compressor crown

The calibre and winding-stem are thus mounted in a ldquofree-floatingrdquomanner and there is thus no metal to metal link between the movement and the case which means the watch mechanism is protected fromviolent shocks or vibrations

The red aluminum crown echoes the red elements on the dial the silent-block shock absorber and the strap

Jaeger-LeCoultre has also devoted special attention to the strap of this watch Its double-layered construction enhances both its robustness and its appearance The unusual combination of materials such as leather cordura canvasand alcantara reinforced by a composite strip lends this strap a three-dimensional appearance on a par with the case to which it is attached

Mechanical automatic movement Jaeger-LeCoultre Calibre 988C

307 parts

28800 vibrations per hour 4 hertzA barrelTourbillon with magnesium carriageTwo time zonesAMPM indication with local timeCentral pointer-type calendar displays that jumps over the tourbillon carriageMovement diameter 300 mmMovement thickness 705 mmCase diameter 450 mmCase thickness 1480 mmOperational between -40deg and +60degCNo oil no greaseIridium platinum oscillating weight with carbon baseBlack diamond pallet-stonesEasium jewels48-hour power reserveWater-resistant to 100 metresCrafted in carbon and titaniumExclusive limited annual productionReference Q179T470

New materials new solutionsMany watch brands are experimenting with new materials to enhance the technical aspects of their watches

Some companies like Patek Philippe and Rolex are working on new materials for springs and other parts

In 2005 Patek Philippe filed a patent for the first silicon escape wheel for a Swiss lever escapement

Rolex created its new blue Parachrom hairspring made from a new alloy to resist magnetism and increase shock absorbance

Jaeger-LeCoultre are experimenting with new materials to reduce the need for lubrication ndash last year the Extreme Lab introduced the first watch ever that doesnt need any lubrication

Ultra light alloy ndash Mg and AlSome watches are already using new materials such as the Mag Bang with the AG5 alloy which is an ultra light alloy of magnesium and aluminium

Audemars Piguet has for years been a leader in the search for new and advanced materials The latest is the companys minute repeater programme where they are working with laboratories professors and students at the best universities to come up with new metals and designs that will enhance the sound of their minute repeaters

Ulysse Nardin recently unveiled its new Innovision watch a concept watch that combines the companys most daring innovations -from the silicon escapement first used in the Freak to new silicon parts (wheels bridges pinions etc) Ulysse Nardin is part owner of Sigatec SA the company responsible for the development of silicon technology in watch making

Ultra light alloy ndash Mg and Al

The Freak is one example of the way Ulysse Nardin makes things happen When Schneider made the first Freak it did not work because the mixture of materials was not right

Schneider was ready to abandon the new escapement but was talked into trying it another way We failed with the Freak with traditional materials he admits

When we failed with the Freak I wanted to go back to the anchor escapement Ludwig Oechslin our Chief Designer wanted to use the new escapement because he thought it was better So we decided to go forward in two different directions one with the anchor escapement and the other with the new escapement We met someone who had done work with silicon so we decided to try itrdquo

C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin

Ulysse Nardin is concentrating on manufacturing movement parts in silicon

One of the advantages of making parts from silicon is that the process allows complete freedom of design - just about any shape visualized can be realized

The use of silicon could very well change the way movements are designed because it removes some of the old limitations that were in place before In addition working in silicon means higher precision lighter weight and the material in its final form is very hard

New materials unique watchesSome watch companies are using new materials for aesthetic reasons like Gerald Gentas new Gefica which uses bronze in a striking way The use of innovative materials is a major factor in the creation of our watches particularly for Gerald Genta says Gerald Roden Chief Executive Officer of Daniel Roth and Gerald Genta We have long been investigating creative uses for innovative more so for aesthetics than for technical reasons

For quite some time we have experimented with combinations of materials such as carbon fibre aluminium and wood with rubber and even fish skinIn 2003 Gerald Genta was among the first to use unique metals such as palladium and tantalum for cases

We have developed a patent to use liquid ceramic for the Octo line and are currently working with metallurgists to develop other new and innovative metals for Gerald Genta We are also in the final test phases of creating an exciting new treatment for steel

Non Magnetic materials for movement components

Another movement design

Traditional mechanical movements use oils or grease to ensure smooth operations

These take the form of oils in varying degrees of fineness for parts with high translation or rotation speeds or grease for parts subject to high pressures or stresses

The properties of such oils and grease deteriorates over time and the performances of the movement likewise decline if these lubricants are not replaced in due time

Testing conducted during the 1970s on plastic movements had already shown the way towards doing without some of the oils and grease However these watches did not stand the test of time which resulted in wear on the parts that in turn rapidly diminished their chronometric and functional performances

In its ongoing search to enhance the reliability of mechanical movements Jaeger-LeCoultre had already renounced the use of lubrication in the ball-bearing mechanisms of automatic winding systems by introducing ceramic ball-bearings as early as 2002

Today the research team at the Manufacture in Le Sentier has innovated a mechanical movement run without any lubricant whatsoever This research has culminated in the brand-new Jaeger-LeCoultre Calibre 988C

Innovative mechanical movement without any lubricant

New materials in mechanical movements

The engineers and watchmakers have resorted to new materials and new combinations of materials for demanding challenge

The Easiumtrade carbonitride thus makes its way onto the watch making stage This extremely hard material features extraordinary tribological properties and is therefore particularly suited to the making bearings able to operate without lubricants

In Jaeger-LeCoultre Calibre 988C Easium replaces the traditional jewels lubricated with a fine oil The burnished steel pivots of the balance-staff are coated with a special surface treatment and turn inside an Easium bearing The endstone is also made from Easium This is also a material used to make the two bearings allowing the carriage to turn in the bridges without any need to add jewels that would require lubrication

Watchmakers are considering the black crystalline diamond a synthetic material as hard as natural diamonds but with considerably enhanced operational properties for replacing the red pallet-stones Its friction on the silicon teeth of the escape-wheel does not require any oil to improve its operation live All the burnished steel pivots of the wheels and pinions are coated with a surface treatment that obviates any need to oil the jewels

Mainspring barrel in mechanical movement grease replaced by graphite powder

On the other end of the movement the barrel grease has also disappeared Instead a graphite powder helps the bride to slide smoothly inside the drum when the mainspring has been wound beyond the maximum powerreserve by the automatic winding mechanism The molecular structure of graphite consists in a stack of micro-platelets contrary to grease it retains its lubricating properties over time whatever the temperature and the hygrometry level

As for the ball-bearing mechanism of the oscillating weight in addition to the use of ceramic ball bearings mentioned earlier friction has been reduced by optimising the rotor which features carbon fibre arms and a distinctly lighter and more rigid base

Finally the oscillating weight segment is surprising in itself with its iridium platinum alloy the densest non-toxic physical body currently machinableThe entire windingtime-setting mechanism is coated with Nickel-PTFEin order to eliminate the customary greasing points The date jumper-spring features a frictional surface that also operates in ldquodryrdquo mode

Balanced wheel design in mechanical movement

Arenrsquot the most efficient balances circular The latest research by Jaeger-LeCoultre proves the exact opposite

Lengthy testing has revealed the importance of the total surface of the balance on its aerodynamic performances The larger the surface the greater the aerodynamic friction and the more energy it takes to maintain the oscillations of the balance and spring ndash which is in turn detrimental to precision

The geometry devised by Jaeger-LeCoultre coupled with the use of an extremely dense material ndash in this case iridium platinum ndash minimises the surface in friction Thus given a constant level of inertia this balance requires less energy to oscillate than a traditional balance

Balance wheel design in an optimized mechanical movement

The geometry of the balance has also been designed to reduce the ratio between the mass and the inertia of the balance

High inertia ensures a stable regulator that is fairly insensitive to the vibrations and daily shocks to which a watch is subjected and which disturb its precision Nonetheless high inertia implies a higher balance mass leading to larger losses due to mechanical fiction and thus increased energy consumption to maintain the oscillations ndash as well as a larger difference in amplitude between horizontal and vertical positions

The balance of the Jaeger-LeCoultre Calibre 988C has been optimised in order to reduce total mass without modifying the determined inertia The shape of the arms the openings and the geometry enable a several-point gain in the massinertia ratio

This factor directly influences the variations in rate between different positions that are well-known to watchmakers due to the difference in amplitude between the ldquodial-uprdquo and ldquopendant-uprdquo positions The lower the massinertia ratio the smaller the differences between the various positions thus enabling the watchmaker to perform a more precise adjustment of the watch

Contribution to accuracy by the balance spring in a mechanical movement

The balance-spring beats in a perfectly concentric manner in order to guarantee ideal isochronism Not only does it feature the carefully calculated form of a Phillips terminal curve but the watchmakers have also created something they call a ldquobendrdquo in the centre The ldquobendrdquo is a distortion of the balance-spring at aspecific place close to the collet pinning-point and which at given moments modifies the rigidity of the spring and corrects the natural tendency of any spring to ldquobreatherdquo in an off-centred manner Only this winning combination of an outer Phillips terminal curve and a central ldquobendrdquo makes it possible to create a balance-spring that develops in a perfectly concentric way (meaning with symmetrical expansions and contractions in respect to the centre)

Precise adjustment of this movement is of course performed using screws placed on the balance This process now used on all the Jaeger-LeCoultre automatic calibres has replaced the traditional index assembly and ensures peerless initial reliability of the rate that thereby remains unperturbed over time even if the watch is accidentally jarred

To perfect the exceptional efficiency of this regulating organ the aerodynamic properties of the balance have been fine-tuned by bevelling the arms by streamlining the shape of the weights and by integrating adjustment screws inside the weights The escape-wheel is made from silicon which is considerably lighter than steel and thus also favourably influences efficiency

Tourbillon made from light alloys

A one-minute tourbillon houses this literally extraordinary regulator The tourbillon carriage is machined from blocks of a magnesium alloy that is two and a half times lighter than titanium and contributes to reducing energy losses due to friction and thus further improves the exceptional efficiency of the regulator

The cadence of 28800 vibrations per hour the high (115 mgcm2) inertia of the balance and the tourbillon together help guarantee theaccuracy of the watch

Application of various new processing technologies

physical vapour deposition (pvd)chemical vapour deposition (cvd)LIthographie Galvanoformung Adformung (LIGA)electroformingphotochemcial machining (pcm)etchellip

Current development worldwide Mimotec SA (Sion Switzerland)

MEMS Technology ndash DRIE Process

MEMS Technology ndash LIGA Process

LIGA = Lithographie Galvanoformung Adformung

LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre

a German acronym for rdquoLithographie Galvanoformung Abformungldquoin English (X-ray) Lithography Electroplating and Molding

one of the first major techniques to allow on-demand manufacturing of high-aspect-ratio structures (structures that are much taller than wide) with lateral precision below one micrometre This capability is important in the fabrication of MEMS devices Because of the high collimation of X-rays needed the source must be synchrotron light

There are today three different types of LIGA technologies differing in the radiation and preform usedi) X-Ray LIGA the first LIGA technology developed using X-Rays

produced by a synchrotron ii) UV-LIGA using ultraviolet light typically from a mercury lamp and

special resists like SU-8 and iii) Silicon-LIGA using deep reactive ion etched silicon as preform

A generation of new workshopsExpertise is one thing production capacity is another Some companies are so cruelly lacking capacity that delivery times for certain new products can stretch to as much as three years

One remedy has been to form an alliance with one of the watchmakers working behind-the-scenes making high-end movements for third parties

This was the route chosen recently by Hermegraves when it acquired a 25 stake in Vaucher Manufacture Fleurier

Richemont had the same goal in mind when it took over Minerva and production facilities at Roger Dubuis As for Bovet by reviving Dimier it has simply given a prestigious new name to STT Holding a recent acquisition comprising three specialised manufacturers of tourbillons balance-springs and calibres

Production production production

This shuffles the deck but does not add any new cards to a sector which overall needs to extend its production facilities Companies have got the message and are busy composing the architectural masterpieces that will give them more production space The same phenomenon is at work among suppliers too In the valley of Saint-Imier in the Franches-Montagnes district as elsewhere over the past fewyears every village has seen one or more buildingsspring up and new workshops and machines move in What will become of these investments when the cycle enters a downturn

Existing situation of Hong Kong Watch amp Clock Industry

Challenges ahead of small and medium enterprises (SMEs) 中小企面對國內政策改變

Mid-Low Market segments of Hong Kong Watches香港鐘表中下價

Technologies of Hong Kong have yet to catch up Switzerland and Japan科技緊次於瑞士及日本

Certain components made by Hong Kong have a leading role to play某些零部件市場有領導地位

The quality of watches manufactured by Hong Kong has a large variation 香港鐘表行業技術品質參差不齊

Understanding Impacts of Financial Tsunami

How big (small) are we talking about

Any opportunitiesOur skillsOur production capacitiesOur quality systemOur raw materialsOur vertical integrationYOur Decision to move forwardFrom Basic Quantity to Luxurious few

Upcoming challengesFree trade barriers and protection of interests保護主意 外國公司排斥

Tightening of quality standards and requirements瑞士之所以成功是由於不停增加新規格及提升舊規格

Continuous improvements and Exceeding customersrsquo expectation滿足客戶無微不至於客戶未提出之前以為客戶預備

Leading and flowing with the market帶領市場

Upgrade the Hong Kong Watch and Clock Industry as a whole香港鐘表行業應提升功能形象建立品牌

Listen to the customers and improve on the basis of Voice of Customers (VOC )香港鐘表行業應提升功能形象

Brand building learning from our Swiss and Japan counterparts建立品牌 向瑞士學習一步步跟進

Innovations World Trend

Application of various new materials innovative products

synthetic diamondsingle crystal diamondcarbon fibrenew alloy

Carbon Fibre for watches

Carbon Fibre for watches

A 6 μm diameter carbon filament (running from bottom left to top right) compared to a human hair

Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre

A unique concept watch with

- A lubricant-free watch - Resistance to extreme temperatures - 40deg

+ 60deg

C

- Innovative character rewarded by six patents - Movement entirely redesigned and created by

2 years of intense development - High-tech design carbon and titanium case- Automatic tourbillon with a large variable inertiabalance (115mg x cm2) oscillating at a highfrequency of 28800 vibrationshour (4 hertz)

This watch will only be delivered andsold in limited quantities

Jaeger - Lecoultre

Traditional mechanical movements use oils or greases to ensure smooth operations

These take the form of oils in varying degrees of fineness for parts with high translation or rotation speeds or grease for parts subject to large pressures or stresses

The properties of such oils and grease deteriorates over time and the performances of the movement decline if these lubricants are not replaced in due time

Testing conducted during the 1970s on plastic movements had already shown the way towards doing without some of the oils and grease However these watches did not stand the test of time which resulted in wear on the parts that in turn rapidly diminished their chronometric and functional performances

In its ongoing search to enhance the reliability of mechanical movements Jaeger-LeCoultre had already renounced the use of lubrication in the ball-bearing mechanisms of automatic winding systems by introducing ceramic ball-bearings as early as 2002

Today the research team at the Manufacture in Le Sentier has innovated a mechanical movement run without any lubricant This research has culminated in the brand-new Jaeger-LeCoultre Calibre 988C

Innovative mechanical movements without oils amp greases

A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is

Inspired by the unshakeable conviction in the smallest details the watchmakers and designers of the Manufacture have raised the game of precision and functions to unprecedented levels of refinement

The aesthetics of the Master Compressor Extreme Lab reflect the technology within Its transparent dial reveals the heart of the horological mechanism featuring a particularly attractive graphic design characterised by subtle contrasts between the black aluminum of the open-worked centre bridge and the flange the white colour of the applied hanging numerals and hour-markers and the grey of the tourbillon bridge

The centre bridge is made from an aluminum alloy reinforced with particles of titanium carbide Ticaliumreg The mechanical hardness and resistance of this alloy are thus improved by 20 without increasing the density The casevisually reflects the movement with its association of carbon silicon carbonitrideand grade 5 titanium

The first feature covers its original structure featuring an interior carbon fibre case fitted inside a titanium ring The obvious advantage is a gain in weight but the resulting aesthetic effect is doubtless even more remarkable The case as a whole is topped by a bezel in silicon carbonitride a material that is lighter and more resistant than traditional ceramics

Watch suspension mounting

The second feature relates to the suspension mounting of the movement The silent-block made from a supple red polyurethane material not only serves to avoid any risk of water seeping into the crown tube but also mechanically isolates the movement and its Compressor crown

The calibre and winding-stem are thus mounted in a ldquofree-floatingrdquomanner and there is thus no metal to metal link between the movement and the case which means the watch mechanism is protected fromviolent shocks or vibrations

The red aluminum crown echoes the red elements on the dial the silent-block shock absorber and the strap

Jaeger-LeCoultre has also devoted special attention to the strap of this watch Its double-layered construction enhances both its robustness and its appearance The unusual combination of materials such as leather cordura canvasand alcantara reinforced by a composite strip lends this strap a three-dimensional appearance on a par with the case to which it is attached

Mechanical automatic movement Jaeger-LeCoultre Calibre 988C

307 parts

28800 vibrations per hour 4 hertzA barrelTourbillon with magnesium carriageTwo time zonesAMPM indication with local timeCentral pointer-type calendar displays that jumps over the tourbillon carriageMovement diameter 300 mmMovement thickness 705 mmCase diameter 450 mmCase thickness 1480 mmOperational between -40deg and +60degCNo oil no greaseIridium platinum oscillating weight with carbon baseBlack diamond pallet-stonesEasium jewels48-hour power reserveWater-resistant to 100 metresCrafted in carbon and titaniumExclusive limited annual productionReference Q179T470

New materials new solutionsMany watch brands are experimenting with new materials to enhance the technical aspects of their watches

Some companies like Patek Philippe and Rolex are working on new materials for springs and other parts

In 2005 Patek Philippe filed a patent for the first silicon escape wheel for a Swiss lever escapement

Rolex created its new blue Parachrom hairspring made from a new alloy to resist magnetism and increase shock absorbance

Jaeger-LeCoultre are experimenting with new materials to reduce the need for lubrication ndash last year the Extreme Lab introduced the first watch ever that doesnt need any lubrication

Ultra light alloy ndash Mg and AlSome watches are already using new materials such as the Mag Bang with the AG5 alloy which is an ultra light alloy of magnesium and aluminium

Audemars Piguet has for years been a leader in the search for new and advanced materials The latest is the companys minute repeater programme where they are working with laboratories professors and students at the best universities to come up with new metals and designs that will enhance the sound of their minute repeaters

Ulysse Nardin recently unveiled its new Innovision watch a concept watch that combines the companys most daring innovations -from the silicon escapement first used in the Freak to new silicon parts (wheels bridges pinions etc) Ulysse Nardin is part owner of Sigatec SA the company responsible for the development of silicon technology in watch making

Ultra light alloy ndash Mg and Al

The Freak is one example of the way Ulysse Nardin makes things happen When Schneider made the first Freak it did not work because the mixture of materials was not right

Schneider was ready to abandon the new escapement but was talked into trying it another way We failed with the Freak with traditional materials he admits

When we failed with the Freak I wanted to go back to the anchor escapement Ludwig Oechslin our Chief Designer wanted to use the new escapement because he thought it was better So we decided to go forward in two different directions one with the anchor escapement and the other with the new escapement We met someone who had done work with silicon so we decided to try itrdquo

C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin

Ulysse Nardin is concentrating on manufacturing movement parts in silicon

One of the advantages of making parts from silicon is that the process allows complete freedom of design - just about any shape visualized can be realized

The use of silicon could very well change the way movements are designed because it removes some of the old limitations that were in place before In addition working in silicon means higher precision lighter weight and the material in its final form is very hard

New materials unique watchesSome watch companies are using new materials for aesthetic reasons like Gerald Gentas new Gefica which uses bronze in a striking way The use of innovative materials is a major factor in the creation of our watches particularly for Gerald Genta says Gerald Roden Chief Executive Officer of Daniel Roth and Gerald Genta We have long been investigating creative uses for innovative more so for aesthetics than for technical reasons

For quite some time we have experimented with combinations of materials such as carbon fibre aluminium and wood with rubber and even fish skinIn 2003 Gerald Genta was among the first to use unique metals such as palladium and tantalum for cases

We have developed a patent to use liquid ceramic for the Octo line and are currently working with metallurgists to develop other new and innovative metals for Gerald Genta We are also in the final test phases of creating an exciting new treatment for steel

Non Magnetic materials for movement components

Another movement design

Traditional mechanical movements use oils or grease to ensure smooth operations

These take the form of oils in varying degrees of fineness for parts with high translation or rotation speeds or grease for parts subject to high pressures or stresses

The properties of such oils and grease deteriorates over time and the performances of the movement likewise decline if these lubricants are not replaced in due time

Testing conducted during the 1970s on plastic movements had already shown the way towards doing without some of the oils and grease However these watches did not stand the test of time which resulted in wear on the parts that in turn rapidly diminished their chronometric and functional performances

In its ongoing search to enhance the reliability of mechanical movements Jaeger-LeCoultre had already renounced the use of lubrication in the ball-bearing mechanisms of automatic winding systems by introducing ceramic ball-bearings as early as 2002

Today the research team at the Manufacture in Le Sentier has innovated a mechanical movement run without any lubricant whatsoever This research has culminated in the brand-new Jaeger-LeCoultre Calibre 988C

Innovative mechanical movement without any lubricant

New materials in mechanical movements

The engineers and watchmakers have resorted to new materials and new combinations of materials for demanding challenge

The Easiumtrade carbonitride thus makes its way onto the watch making stage This extremely hard material features extraordinary tribological properties and is therefore particularly suited to the making bearings able to operate without lubricants

In Jaeger-LeCoultre Calibre 988C Easium replaces the traditional jewels lubricated with a fine oil The burnished steel pivots of the balance-staff are coated with a special surface treatment and turn inside an Easium bearing The endstone is also made from Easium This is also a material used to make the two bearings allowing the carriage to turn in the bridges without any need to add jewels that would require lubrication

Watchmakers are considering the black crystalline diamond a synthetic material as hard as natural diamonds but with considerably enhanced operational properties for replacing the red pallet-stones Its friction on the silicon teeth of the escape-wheel does not require any oil to improve its operation live All the burnished steel pivots of the wheels and pinions are coated with a surface treatment that obviates any need to oil the jewels

Mainspring barrel in mechanical movement grease replaced by graphite powder

On the other end of the movement the barrel grease has also disappeared Instead a graphite powder helps the bride to slide smoothly inside the drum when the mainspring has been wound beyond the maximum powerreserve by the automatic winding mechanism The molecular structure of graphite consists in a stack of micro-platelets contrary to grease it retains its lubricating properties over time whatever the temperature and the hygrometry level

As for the ball-bearing mechanism of the oscillating weight in addition to the use of ceramic ball bearings mentioned earlier friction has been reduced by optimising the rotor which features carbon fibre arms and a distinctly lighter and more rigid base

Finally the oscillating weight segment is surprising in itself with its iridium platinum alloy the densest non-toxic physical body currently machinableThe entire windingtime-setting mechanism is coated with Nickel-PTFEin order to eliminate the customary greasing points The date jumper-spring features a frictional surface that also operates in ldquodryrdquo mode

Balanced wheel design in mechanical movement

Arenrsquot the most efficient balances circular The latest research by Jaeger-LeCoultre proves the exact opposite

Lengthy testing has revealed the importance of the total surface of the balance on its aerodynamic performances The larger the surface the greater the aerodynamic friction and the more energy it takes to maintain the oscillations of the balance and spring ndash which is in turn detrimental to precision

The geometry devised by Jaeger-LeCoultre coupled with the use of an extremely dense material ndash in this case iridium platinum ndash minimises the surface in friction Thus given a constant level of inertia this balance requires less energy to oscillate than a traditional balance

Balance wheel design in an optimized mechanical movement

The geometry of the balance has also been designed to reduce the ratio between the mass and the inertia of the balance

High inertia ensures a stable regulator that is fairly insensitive to the vibrations and daily shocks to which a watch is subjected and which disturb its precision Nonetheless high inertia implies a higher balance mass leading to larger losses due to mechanical fiction and thus increased energy consumption to maintain the oscillations ndash as well as a larger difference in amplitude between horizontal and vertical positions

The balance of the Jaeger-LeCoultre Calibre 988C has been optimised in order to reduce total mass without modifying the determined inertia The shape of the arms the openings and the geometry enable a several-point gain in the massinertia ratio

This factor directly influences the variations in rate between different positions that are well-known to watchmakers due to the difference in amplitude between the ldquodial-uprdquo and ldquopendant-uprdquo positions The lower the massinertia ratio the smaller the differences between the various positions thus enabling the watchmaker to perform a more precise adjustment of the watch

Contribution to accuracy by the balance spring in a mechanical movement

The balance-spring beats in a perfectly concentric manner in order to guarantee ideal isochronism Not only does it feature the carefully calculated form of a Phillips terminal curve but the watchmakers have also created something they call a ldquobendrdquo in the centre The ldquobendrdquo is a distortion of the balance-spring at aspecific place close to the collet pinning-point and which at given moments modifies the rigidity of the spring and corrects the natural tendency of any spring to ldquobreatherdquo in an off-centred manner Only this winning combination of an outer Phillips terminal curve and a central ldquobendrdquo makes it possible to create a balance-spring that develops in a perfectly concentric way (meaning with symmetrical expansions and contractions in respect to the centre)

Precise adjustment of this movement is of course performed using screws placed on the balance This process now used on all the Jaeger-LeCoultre automatic calibres has replaced the traditional index assembly and ensures peerless initial reliability of the rate that thereby remains unperturbed over time even if the watch is accidentally jarred

To perfect the exceptional efficiency of this regulating organ the aerodynamic properties of the balance have been fine-tuned by bevelling the arms by streamlining the shape of the weights and by integrating adjustment screws inside the weights The escape-wheel is made from silicon which is considerably lighter than steel and thus also favourably influences efficiency

Tourbillon made from light alloys

A one-minute tourbillon houses this literally extraordinary regulator The tourbillon carriage is machined from blocks of a magnesium alloy that is two and a half times lighter than titanium and contributes to reducing energy losses due to friction and thus further improves the exceptional efficiency of the regulator

The cadence of 28800 vibrations per hour the high (115 mgcm2) inertia of the balance and the tourbillon together help guarantee theaccuracy of the watch

Application of various new processing technologies

physical vapour deposition (pvd)chemical vapour deposition (cvd)LIthographie Galvanoformung Adformung (LIGA)electroformingphotochemcial machining (pcm)etchellip

Current development worldwide Mimotec SA (Sion Switzerland)

MEMS Technology ndash DRIE Process

MEMS Technology ndash LIGA Process

LIGA = Lithographie Galvanoformung Adformung

LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre

a German acronym for rdquoLithographie Galvanoformung Abformungldquoin English (X-ray) Lithography Electroplating and Molding

one of the first major techniques to allow on-demand manufacturing of high-aspect-ratio structures (structures that are much taller than wide) with lateral precision below one micrometre This capability is important in the fabrication of MEMS devices Because of the high collimation of X-rays needed the source must be synchrotron light

There are today three different types of LIGA technologies differing in the radiation and preform usedi) X-Ray LIGA the first LIGA technology developed using X-Rays

produced by a synchrotron ii) UV-LIGA using ultraviolet light typically from a mercury lamp and

special resists like SU-8 and iii) Silicon-LIGA using deep reactive ion etched silicon as preform

Production production production

This shuffles the deck but does not add any new cards to a sector which overall needs to extend its production facilities Companies have got the message and are busy composing the architectural masterpieces that will give them more production space The same phenomenon is at work among suppliers too In the valley of Saint-Imier in the Franches-Montagnes district as elsewhere over the past fewyears every village has seen one or more buildingsspring up and new workshops and machines move in What will become of these investments when the cycle enters a downturn

Existing situation of Hong Kong Watch amp Clock Industry

Challenges ahead of small and medium enterprises (SMEs) 中小企面對國內政策改變

Mid-Low Market segments of Hong Kong Watches香港鐘表中下價

Technologies of Hong Kong have yet to catch up Switzerland and Japan科技緊次於瑞士及日本

Certain components made by Hong Kong have a leading role to play某些零部件市場有領導地位

The quality of watches manufactured by Hong Kong has a large variation 香港鐘表行業技術品質參差不齊

Understanding Impacts of Financial Tsunami

How big (small) are we talking about

Any opportunitiesOur skillsOur production capacitiesOur quality systemOur raw materialsOur vertical integrationYOur Decision to move forwardFrom Basic Quantity to Luxurious few

Upcoming challengesFree trade barriers and protection of interests保護主意 外國公司排斥

Tightening of quality standards and requirements瑞士之所以成功是由於不停增加新規格及提升舊規格

Continuous improvements and Exceeding customersrsquo expectation滿足客戶無微不至於客戶未提出之前以為客戶預備

Leading and flowing with the market帶領市場

Upgrade the Hong Kong Watch and Clock Industry as a whole香港鐘表行業應提升功能形象建立品牌

Listen to the customers and improve on the basis of Voice of Customers (VOC )香港鐘表行業應提升功能形象

Brand building learning from our Swiss and Japan counterparts建立品牌 向瑞士學習一步步跟進

Innovations World Trend

Application of various new materials innovative products

synthetic diamondsingle crystal diamondcarbon fibrenew alloy

Carbon Fibre for watches

Carbon Fibre for watches

A 6 μm diameter carbon filament (running from bottom left to top right) compared to a human hair

Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre

A unique concept watch with

- A lubricant-free watch - Resistance to extreme temperatures - 40deg

+ 60deg

C

- Innovative character rewarded by six patents - Movement entirely redesigned and created by

2 years of intense development - High-tech design carbon and titanium case- Automatic tourbillon with a large variable inertiabalance (115mg x cm2) oscillating at a highfrequency of 28800 vibrationshour (4 hertz)

This watch will only be delivered andsold in limited quantities

Jaeger - Lecoultre

Traditional mechanical movements use oils or greases to ensure smooth operations

These take the form of oils in varying degrees of fineness for parts with high translation or rotation speeds or grease for parts subject to large pressures or stresses

The properties of such oils and grease deteriorates over time and the performances of the movement decline if these lubricants are not replaced in due time

Testing conducted during the 1970s on plastic movements had already shown the way towards doing without some of the oils and grease However these watches did not stand the test of time which resulted in wear on the parts that in turn rapidly diminished their chronometric and functional performances

In its ongoing search to enhance the reliability of mechanical movements Jaeger-LeCoultre had already renounced the use of lubrication in the ball-bearing mechanisms of automatic winding systems by introducing ceramic ball-bearings as early as 2002

Today the research team at the Manufacture in Le Sentier has innovated a mechanical movement run without any lubricant This research has culminated in the brand-new Jaeger-LeCoultre Calibre 988C

Innovative mechanical movements without oils amp greases

A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is

Inspired by the unshakeable conviction in the smallest details the watchmakers and designers of the Manufacture have raised the game of precision and functions to unprecedented levels of refinement

The aesthetics of the Master Compressor Extreme Lab reflect the technology within Its transparent dial reveals the heart of the horological mechanism featuring a particularly attractive graphic design characterised by subtle contrasts between the black aluminum of the open-worked centre bridge and the flange the white colour of the applied hanging numerals and hour-markers and the grey of the tourbillon bridge

The centre bridge is made from an aluminum alloy reinforced with particles of titanium carbide Ticaliumreg The mechanical hardness and resistance of this alloy are thus improved by 20 without increasing the density The casevisually reflects the movement with its association of carbon silicon carbonitrideand grade 5 titanium

The first feature covers its original structure featuring an interior carbon fibre case fitted inside a titanium ring The obvious advantage is a gain in weight but the resulting aesthetic effect is doubtless even more remarkable The case as a whole is topped by a bezel in silicon carbonitride a material that is lighter and more resistant than traditional ceramics

Watch suspension mounting

The second feature relates to the suspension mounting of the movement The silent-block made from a supple red polyurethane material not only serves to avoid any risk of water seeping into the crown tube but also mechanically isolates the movement and its Compressor crown

The calibre and winding-stem are thus mounted in a ldquofree-floatingrdquomanner and there is thus no metal to metal link between the movement and the case which means the watch mechanism is protected fromviolent shocks or vibrations

The red aluminum crown echoes the red elements on the dial the silent-block shock absorber and the strap

Jaeger-LeCoultre has also devoted special attention to the strap of this watch Its double-layered construction enhances both its robustness and its appearance The unusual combination of materials such as leather cordura canvasand alcantara reinforced by a composite strip lends this strap a three-dimensional appearance on a par with the case to which it is attached

Mechanical automatic movement Jaeger-LeCoultre Calibre 988C

307 parts

28800 vibrations per hour 4 hertzA barrelTourbillon with magnesium carriageTwo time zonesAMPM indication with local timeCentral pointer-type calendar displays that jumps over the tourbillon carriageMovement diameter 300 mmMovement thickness 705 mmCase diameter 450 mmCase thickness 1480 mmOperational between -40deg and +60degCNo oil no greaseIridium platinum oscillating weight with carbon baseBlack diamond pallet-stonesEasium jewels48-hour power reserveWater-resistant to 100 metresCrafted in carbon and titaniumExclusive limited annual productionReference Q179T470

New materials new solutionsMany watch brands are experimenting with new materials to enhance the technical aspects of their watches

Some companies like Patek Philippe and Rolex are working on new materials for springs and other parts

In 2005 Patek Philippe filed a patent for the first silicon escape wheel for a Swiss lever escapement

Rolex created its new blue Parachrom hairspring made from a new alloy to resist magnetism and increase shock absorbance

Jaeger-LeCoultre are experimenting with new materials to reduce the need for lubrication ndash last year the Extreme Lab introduced the first watch ever that doesnt need any lubrication

Ultra light alloy ndash Mg and AlSome watches are already using new materials such as the Mag Bang with the AG5 alloy which is an ultra light alloy of magnesium and aluminium

Audemars Piguet has for years been a leader in the search for new and advanced materials The latest is the companys minute repeater programme where they are working with laboratories professors and students at the best universities to come up with new metals and designs that will enhance the sound of their minute repeaters

Ulysse Nardin recently unveiled its new Innovision watch a concept watch that combines the companys most daring innovations -from the silicon escapement first used in the Freak to new silicon parts (wheels bridges pinions etc) Ulysse Nardin is part owner of Sigatec SA the company responsible for the development of silicon technology in watch making

Ultra light alloy ndash Mg and Al

The Freak is one example of the way Ulysse Nardin makes things happen When Schneider made the first Freak it did not work because the mixture of materials was not right

Schneider was ready to abandon the new escapement but was talked into trying it another way We failed with the Freak with traditional materials he admits

When we failed with the Freak I wanted to go back to the anchor escapement Ludwig Oechslin our Chief Designer wanted to use the new escapement because he thought it was better So we decided to go forward in two different directions one with the anchor escapement and the other with the new escapement We met someone who had done work with silicon so we decided to try itrdquo

C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin

Ulysse Nardin is concentrating on manufacturing movement parts in silicon

One of the advantages of making parts from silicon is that the process allows complete freedom of design - just about any shape visualized can be realized

The use of silicon could very well change the way movements are designed because it removes some of the old limitations that were in place before In addition working in silicon means higher precision lighter weight and the material in its final form is very hard

New materials unique watchesSome watch companies are using new materials for aesthetic reasons like Gerald Gentas new Gefica which uses bronze in a striking way The use of innovative materials is a major factor in the creation of our watches particularly for Gerald Genta says Gerald Roden Chief Executive Officer of Daniel Roth and Gerald Genta We have long been investigating creative uses for innovative more so for aesthetics than for technical reasons

For quite some time we have experimented with combinations of materials such as carbon fibre aluminium and wood with rubber and even fish skinIn 2003 Gerald Genta was among the first to use unique metals such as palladium and tantalum for cases

We have developed a patent to use liquid ceramic for the Octo line and are currently working with metallurgists to develop other new and innovative metals for Gerald Genta We are also in the final test phases of creating an exciting new treatment for steel

Non Magnetic materials for movement components

Another movement design

Traditional mechanical movements use oils or grease to ensure smooth operations

These take the form of oils in varying degrees of fineness for parts with high translation or rotation speeds or grease for parts subject to high pressures or stresses

The properties of such oils and grease deteriorates over time and the performances of the movement likewise decline if these lubricants are not replaced in due time

Testing conducted during the 1970s on plastic movements had already shown the way towards doing without some of the oils and grease However these watches did not stand the test of time which resulted in wear on the parts that in turn rapidly diminished their chronometric and functional performances

In its ongoing search to enhance the reliability of mechanical movements Jaeger-LeCoultre had already renounced the use of lubrication in the ball-bearing mechanisms of automatic winding systems by introducing ceramic ball-bearings as early as 2002

Today the research team at the Manufacture in Le Sentier has innovated a mechanical movement run without any lubricant whatsoever This research has culminated in the brand-new Jaeger-LeCoultre Calibre 988C

Innovative mechanical movement without any lubricant

New materials in mechanical movements

The engineers and watchmakers have resorted to new materials and new combinations of materials for demanding challenge

The Easiumtrade carbonitride thus makes its way onto the watch making stage This extremely hard material features extraordinary tribological properties and is therefore particularly suited to the making bearings able to operate without lubricants

In Jaeger-LeCoultre Calibre 988C Easium replaces the traditional jewels lubricated with a fine oil The burnished steel pivots of the balance-staff are coated with a special surface treatment and turn inside an Easium bearing The endstone is also made from Easium This is also a material used to make the two bearings allowing the carriage to turn in the bridges without any need to add jewels that would require lubrication

Watchmakers are considering the black crystalline diamond a synthetic material as hard as natural diamonds but with considerably enhanced operational properties for replacing the red pallet-stones Its friction on the silicon teeth of the escape-wheel does not require any oil to improve its operation live All the burnished steel pivots of the wheels and pinions are coated with a surface treatment that obviates any need to oil the jewels

Mainspring barrel in mechanical movement grease replaced by graphite powder

On the other end of the movement the barrel grease has also disappeared Instead a graphite powder helps the bride to slide smoothly inside the drum when the mainspring has been wound beyond the maximum powerreserve by the automatic winding mechanism The molecular structure of graphite consists in a stack of micro-platelets contrary to grease it retains its lubricating properties over time whatever the temperature and the hygrometry level

As for the ball-bearing mechanism of the oscillating weight in addition to the use of ceramic ball bearings mentioned earlier friction has been reduced by optimising the rotor which features carbon fibre arms and a distinctly lighter and more rigid base

Finally the oscillating weight segment is surprising in itself with its iridium platinum alloy the densest non-toxic physical body currently machinableThe entire windingtime-setting mechanism is coated with Nickel-PTFEin order to eliminate the customary greasing points The date jumper-spring features a frictional surface that also operates in ldquodryrdquo mode

Balanced wheel design in mechanical movement

Arenrsquot the most efficient balances circular The latest research by Jaeger-LeCoultre proves the exact opposite

Lengthy testing has revealed the importance of the total surface of the balance on its aerodynamic performances The larger the surface the greater the aerodynamic friction and the more energy it takes to maintain the oscillations of the balance and spring ndash which is in turn detrimental to precision

The geometry devised by Jaeger-LeCoultre coupled with the use of an extremely dense material ndash in this case iridium platinum ndash minimises the surface in friction Thus given a constant level of inertia this balance requires less energy to oscillate than a traditional balance

Balance wheel design in an optimized mechanical movement

The geometry of the balance has also been designed to reduce the ratio between the mass and the inertia of the balance

High inertia ensures a stable regulator that is fairly insensitive to the vibrations and daily shocks to which a watch is subjected and which disturb its precision Nonetheless high inertia implies a higher balance mass leading to larger losses due to mechanical fiction and thus increased energy consumption to maintain the oscillations ndash as well as a larger difference in amplitude between horizontal and vertical positions

The balance of the Jaeger-LeCoultre Calibre 988C has been optimised in order to reduce total mass without modifying the determined inertia The shape of the arms the openings and the geometry enable a several-point gain in the massinertia ratio

This factor directly influences the variations in rate between different positions that are well-known to watchmakers due to the difference in amplitude between the ldquodial-uprdquo and ldquopendant-uprdquo positions The lower the massinertia ratio the smaller the differences between the various positions thus enabling the watchmaker to perform a more precise adjustment of the watch

Contribution to accuracy by the balance spring in a mechanical movement

The balance-spring beats in a perfectly concentric manner in order to guarantee ideal isochronism Not only does it feature the carefully calculated form of a Phillips terminal curve but the watchmakers have also created something they call a ldquobendrdquo in the centre The ldquobendrdquo is a distortion of the balance-spring at aspecific place close to the collet pinning-point and which at given moments modifies the rigidity of the spring and corrects the natural tendency of any spring to ldquobreatherdquo in an off-centred manner Only this winning combination of an outer Phillips terminal curve and a central ldquobendrdquo makes it possible to create a balance-spring that develops in a perfectly concentric way (meaning with symmetrical expansions and contractions in respect to the centre)

Precise adjustment of this movement is of course performed using screws placed on the balance This process now used on all the Jaeger-LeCoultre automatic calibres has replaced the traditional index assembly and ensures peerless initial reliability of the rate that thereby remains unperturbed over time even if the watch is accidentally jarred

To perfect the exceptional efficiency of this regulating organ the aerodynamic properties of the balance have been fine-tuned by bevelling the arms by streamlining the shape of the weights and by integrating adjustment screws inside the weights The escape-wheel is made from silicon which is considerably lighter than steel and thus also favourably influences efficiency

Tourbillon made from light alloys

A one-minute tourbillon houses this literally extraordinary regulator The tourbillon carriage is machined from blocks of a magnesium alloy that is two and a half times lighter than titanium and contributes to reducing energy losses due to friction and thus further improves the exceptional efficiency of the regulator

The cadence of 28800 vibrations per hour the high (115 mgcm2) inertia of the balance and the tourbillon together help guarantee theaccuracy of the watch

Application of various new processing technologies

physical vapour deposition (pvd)chemical vapour deposition (cvd)LIthographie Galvanoformung Adformung (LIGA)electroformingphotochemcial machining (pcm)etchellip

Current development worldwide Mimotec SA (Sion Switzerland)

MEMS Technology ndash DRIE Process

MEMS Technology ndash LIGA Process

LIGA = Lithographie Galvanoformung Adformung

LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre

a German acronym for rdquoLithographie Galvanoformung Abformungldquoin English (X-ray) Lithography Electroplating and Molding

one of the first major techniques to allow on-demand manufacturing of high-aspect-ratio structures (structures that are much taller than wide) with lateral precision below one micrometre This capability is important in the fabrication of MEMS devices Because of the high collimation of X-rays needed the source must be synchrotron light

There are today three different types of LIGA technologies differing in the radiation and preform usedi) X-Ray LIGA the first LIGA technology developed using X-Rays

produced by a synchrotron ii) UV-LIGA using ultraviolet light typically from a mercury lamp and

special resists like SU-8 and iii) Silicon-LIGA using deep reactive ion etched silicon as preform

Existing situation of Hong Kong Watch amp Clock Industry

Challenges ahead of small and medium enterprises (SMEs) 中小企面對國內政策改變

Mid-Low Market segments of Hong Kong Watches香港鐘表中下價

Technologies of Hong Kong have yet to catch up Switzerland and Japan科技緊次於瑞士及日本

Certain components made by Hong Kong have a leading role to play某些零部件市場有領導地位

The quality of watches manufactured by Hong Kong has a large variation 香港鐘表行業技術品質參差不齊

Understanding Impacts of Financial Tsunami

How big (small) are we talking about

Any opportunitiesOur skillsOur production capacitiesOur quality systemOur raw materialsOur vertical integrationYOur Decision to move forwardFrom Basic Quantity to Luxurious few

Upcoming challengesFree trade barriers and protection of interests保護主意 外國公司排斥

Tightening of quality standards and requirements瑞士之所以成功是由於不停增加新規格及提升舊規格

Continuous improvements and Exceeding customersrsquo expectation滿足客戶無微不至於客戶未提出之前以為客戶預備

Leading and flowing with the market帶領市場

Upgrade the Hong Kong Watch and Clock Industry as a whole香港鐘表行業應提升功能形象建立品牌

Listen to the customers and improve on the basis of Voice of Customers (VOC )香港鐘表行業應提升功能形象

Brand building learning from our Swiss and Japan counterparts建立品牌 向瑞士學習一步步跟進

Innovations World Trend

Application of various new materials innovative products

synthetic diamondsingle crystal diamondcarbon fibrenew alloy

Carbon Fibre for watches

Carbon Fibre for watches

A 6 μm diameter carbon filament (running from bottom left to top right) compared to a human hair

Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre

A unique concept watch with

- A lubricant-free watch - Resistance to extreme temperatures - 40deg

+ 60deg

C

- Innovative character rewarded by six patents - Movement entirely redesigned and created by

2 years of intense development - High-tech design carbon and titanium case- Automatic tourbillon with a large variable inertiabalance (115mg x cm2) oscillating at a highfrequency of 28800 vibrationshour (4 hertz)

This watch will only be delivered andsold in limited quantities

Jaeger - Lecoultre

Traditional mechanical movements use oils or greases to ensure smooth operations

These take the form of oils in varying degrees of fineness for parts with high translation or rotation speeds or grease for parts subject to large pressures or stresses

The properties of such oils and grease deteriorates over time and the performances of the movement decline if these lubricants are not replaced in due time

Testing conducted during the 1970s on plastic movements had already shown the way towards doing without some of the oils and grease However these watches did not stand the test of time which resulted in wear on the parts that in turn rapidly diminished their chronometric and functional performances

In its ongoing search to enhance the reliability of mechanical movements Jaeger-LeCoultre had already renounced the use of lubrication in the ball-bearing mechanisms of automatic winding systems by introducing ceramic ball-bearings as early as 2002

Today the research team at the Manufacture in Le Sentier has innovated a mechanical movement run without any lubricant This research has culminated in the brand-new Jaeger-LeCoultre Calibre 988C

Innovative mechanical movements without oils amp greases

A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is

Inspired by the unshakeable conviction in the smallest details the watchmakers and designers of the Manufacture have raised the game of precision and functions to unprecedented levels of refinement

The aesthetics of the Master Compressor Extreme Lab reflect the technology within Its transparent dial reveals the heart of the horological mechanism featuring a particularly attractive graphic design characterised by subtle contrasts between the black aluminum of the open-worked centre bridge and the flange the white colour of the applied hanging numerals and hour-markers and the grey of the tourbillon bridge

The centre bridge is made from an aluminum alloy reinforced with particles of titanium carbide Ticaliumreg The mechanical hardness and resistance of this alloy are thus improved by 20 without increasing the density The casevisually reflects the movement with its association of carbon silicon carbonitrideand grade 5 titanium

The first feature covers its original structure featuring an interior carbon fibre case fitted inside a titanium ring The obvious advantage is a gain in weight but the resulting aesthetic effect is doubtless even more remarkable The case as a whole is topped by a bezel in silicon carbonitride a material that is lighter and more resistant than traditional ceramics

Watch suspension mounting

The second feature relates to the suspension mounting of the movement The silent-block made from a supple red polyurethane material not only serves to avoid any risk of water seeping into the crown tube but also mechanically isolates the movement and its Compressor crown

The calibre and winding-stem are thus mounted in a ldquofree-floatingrdquomanner and there is thus no metal to metal link between the movement and the case which means the watch mechanism is protected fromviolent shocks or vibrations

The red aluminum crown echoes the red elements on the dial the silent-block shock absorber and the strap

Jaeger-LeCoultre has also devoted special attention to the strap of this watch Its double-layered construction enhances both its robustness and its appearance The unusual combination of materials such as leather cordura canvasand alcantara reinforced by a composite strip lends this strap a three-dimensional appearance on a par with the case to which it is attached

Mechanical automatic movement Jaeger-LeCoultre Calibre 988C

307 parts

28800 vibrations per hour 4 hertzA barrelTourbillon with magnesium carriageTwo time zonesAMPM indication with local timeCentral pointer-type calendar displays that jumps over the tourbillon carriageMovement diameter 300 mmMovement thickness 705 mmCase diameter 450 mmCase thickness 1480 mmOperational between -40deg and +60degCNo oil no greaseIridium platinum oscillating weight with carbon baseBlack diamond pallet-stonesEasium jewels48-hour power reserveWater-resistant to 100 metresCrafted in carbon and titaniumExclusive limited annual productionReference Q179T470

New materials new solutionsMany watch brands are experimenting with new materials to enhance the technical aspects of their watches

Some companies like Patek Philippe and Rolex are working on new materials for springs and other parts

In 2005 Patek Philippe filed a patent for the first silicon escape wheel for a Swiss lever escapement

Rolex created its new blue Parachrom hairspring made from a new alloy to resist magnetism and increase shock absorbance

Jaeger-LeCoultre are experimenting with new materials to reduce the need for lubrication ndash last year the Extreme Lab introduced the first watch ever that doesnt need any lubrication

Ultra light alloy ndash Mg and AlSome watches are already using new materials such as the Mag Bang with the AG5 alloy which is an ultra light alloy of magnesium and aluminium

Audemars Piguet has for years been a leader in the search for new and advanced materials The latest is the companys minute repeater programme where they are working with laboratories professors and students at the best universities to come up with new metals and designs that will enhance the sound of their minute repeaters

Ulysse Nardin recently unveiled its new Innovision watch a concept watch that combines the companys most daring innovations -from the silicon escapement first used in the Freak to new silicon parts (wheels bridges pinions etc) Ulysse Nardin is part owner of Sigatec SA the company responsible for the development of silicon technology in watch making

Ultra light alloy ndash Mg and Al

The Freak is one example of the way Ulysse Nardin makes things happen When Schneider made the first Freak it did not work because the mixture of materials was not right

Schneider was ready to abandon the new escapement but was talked into trying it another way We failed with the Freak with traditional materials he admits

When we failed with the Freak I wanted to go back to the anchor escapement Ludwig Oechslin our Chief Designer wanted to use the new escapement because he thought it was better So we decided to go forward in two different directions one with the anchor escapement and the other with the new escapement We met someone who had done work with silicon so we decided to try itrdquo

C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin

Ulysse Nardin is concentrating on manufacturing movement parts in silicon

One of the advantages of making parts from silicon is that the process allows complete freedom of design - just about any shape visualized can be realized

The use of silicon could very well change the way movements are designed because it removes some of the old limitations that were in place before In addition working in silicon means higher precision lighter weight and the material in its final form is very hard

New materials unique watchesSome watch companies are using new materials for aesthetic reasons like Gerald Gentas new Gefica which uses bronze in a striking way The use of innovative materials is a major factor in the creation of our watches particularly for Gerald Genta says Gerald Roden Chief Executive Officer of Daniel Roth and Gerald Genta We have long been investigating creative uses for innovative more so for aesthetics than for technical reasons

For quite some time we have experimented with combinations of materials such as carbon fibre aluminium and wood with rubber and even fish skinIn 2003 Gerald Genta was among the first to use unique metals such as palladium and tantalum for cases

We have developed a patent to use liquid ceramic for the Octo line and are currently working with metallurgists to develop other new and innovative metals for Gerald Genta We are also in the final test phases of creating an exciting new treatment for steel

Non Magnetic materials for movement components

Another movement design

Traditional mechanical movements use oils or grease to ensure smooth operations

These take the form of oils in varying degrees of fineness for parts with high translation or rotation speeds or grease for parts subject to high pressures or stresses

The properties of such oils and grease deteriorates over time and the performances of the movement likewise decline if these lubricants are not replaced in due time

Testing conducted during the 1970s on plastic movements had already shown the way towards doing without some of the oils and grease However these watches did not stand the test of time which resulted in wear on the parts that in turn rapidly diminished their chronometric and functional performances

In its ongoing search to enhance the reliability of mechanical movements Jaeger-LeCoultre had already renounced the use of lubrication in the ball-bearing mechanisms of automatic winding systems by introducing ceramic ball-bearings as early as 2002

Today the research team at the Manufacture in Le Sentier has innovated a mechanical movement run without any lubricant whatsoever This research has culminated in the brand-new Jaeger-LeCoultre Calibre 988C

Innovative mechanical movement without any lubricant

New materials in mechanical movements

The engineers and watchmakers have resorted to new materials and new combinations of materials for demanding challenge

The Easiumtrade carbonitride thus makes its way onto the watch making stage This extremely hard material features extraordinary tribological properties and is therefore particularly suited to the making bearings able to operate without lubricants

In Jaeger-LeCoultre Calibre 988C Easium replaces the traditional jewels lubricated with a fine oil The burnished steel pivots of the balance-staff are coated with a special surface treatment and turn inside an Easium bearing The endstone is also made from Easium This is also a material used to make the two bearings allowing the carriage to turn in the bridges without any need to add jewels that would require lubrication

Watchmakers are considering the black crystalline diamond a synthetic material as hard as natural diamonds but with considerably enhanced operational properties for replacing the red pallet-stones Its friction on the silicon teeth of the escape-wheel does not require any oil to improve its operation live All the burnished steel pivots of the wheels and pinions are coated with a surface treatment that obviates any need to oil the jewels

Mainspring barrel in mechanical movement grease replaced by graphite powder

On the other end of the movement the barrel grease has also disappeared Instead a graphite powder helps the bride to slide smoothly inside the drum when the mainspring has been wound beyond the maximum powerreserve by the automatic winding mechanism The molecular structure of graphite consists in a stack of micro-platelets contrary to grease it retains its lubricating properties over time whatever the temperature and the hygrometry level

As for the ball-bearing mechanism of the oscillating weight in addition to the use of ceramic ball bearings mentioned earlier friction has been reduced by optimising the rotor which features carbon fibre arms and a distinctly lighter and more rigid base

Finally the oscillating weight segment is surprising in itself with its iridium platinum alloy the densest non-toxic physical body currently machinableThe entire windingtime-setting mechanism is coated with Nickel-PTFEin order to eliminate the customary greasing points The date jumper-spring features a frictional surface that also operates in ldquodryrdquo mode

Balanced wheel design in mechanical movement

Arenrsquot the most efficient balances circular The latest research by Jaeger-LeCoultre proves the exact opposite

Lengthy testing has revealed the importance of the total surface of the balance on its aerodynamic performances The larger the surface the greater the aerodynamic friction and the more energy it takes to maintain the oscillations of the balance and spring ndash which is in turn detrimental to precision

The geometry devised by Jaeger-LeCoultre coupled with the use of an extremely dense material ndash in this case iridium platinum ndash minimises the surface in friction Thus given a constant level of inertia this balance requires less energy to oscillate than a traditional balance

Balance wheel design in an optimized mechanical movement

The geometry of the balance has also been designed to reduce the ratio between the mass and the inertia of the balance

High inertia ensures a stable regulator that is fairly insensitive to the vibrations and daily shocks to which a watch is subjected and which disturb its precision Nonetheless high inertia implies a higher balance mass leading to larger losses due to mechanical fiction and thus increased energy consumption to maintain the oscillations ndash as well as a larger difference in amplitude between horizontal and vertical positions

The balance of the Jaeger-LeCoultre Calibre 988C has been optimised in order to reduce total mass without modifying the determined inertia The shape of the arms the openings and the geometry enable a several-point gain in the massinertia ratio

This factor directly influences the variations in rate between different positions that are well-known to watchmakers due to the difference in amplitude between the ldquodial-uprdquo and ldquopendant-uprdquo positions The lower the massinertia ratio the smaller the differences between the various positions thus enabling the watchmaker to perform a more precise adjustment of the watch

Contribution to accuracy by the balance spring in a mechanical movement

The balance-spring beats in a perfectly concentric manner in order to guarantee ideal isochronism Not only does it feature the carefully calculated form of a Phillips terminal curve but the watchmakers have also created something they call a ldquobendrdquo in the centre The ldquobendrdquo is a distortion of the balance-spring at aspecific place close to the collet pinning-point and which at given moments modifies the rigidity of the spring and corrects the natural tendency of any spring to ldquobreatherdquo in an off-centred manner Only this winning combination of an outer Phillips terminal curve and a central ldquobendrdquo makes it possible to create a balance-spring that develops in a perfectly concentric way (meaning with symmetrical expansions and contractions in respect to the centre)

Precise adjustment of this movement is of course performed using screws placed on the balance This process now used on all the Jaeger-LeCoultre automatic calibres has replaced the traditional index assembly and ensures peerless initial reliability of the rate that thereby remains unperturbed over time even if the watch is accidentally jarred

To perfect the exceptional efficiency of this regulating organ the aerodynamic properties of the balance have been fine-tuned by bevelling the arms by streamlining the shape of the weights and by integrating adjustment screws inside the weights The escape-wheel is made from silicon which is considerably lighter than steel and thus also favourably influences efficiency

Tourbillon made from light alloys

A one-minute tourbillon houses this literally extraordinary regulator The tourbillon carriage is machined from blocks of a magnesium alloy that is two and a half times lighter than titanium and contributes to reducing energy losses due to friction and thus further improves the exceptional efficiency of the regulator

The cadence of 28800 vibrations per hour the high (115 mgcm2) inertia of the balance and the tourbillon together help guarantee theaccuracy of the watch

Application of various new processing technologies

physical vapour deposition (pvd)chemical vapour deposition (cvd)LIthographie Galvanoformung Adformung (LIGA)electroformingphotochemcial machining (pcm)etchellip

Current development worldwide Mimotec SA (Sion Switzerland)

MEMS Technology ndash DRIE Process

MEMS Technology ndash LIGA Process

LIGA = Lithographie Galvanoformung Adformung

LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre

a German acronym for rdquoLithographie Galvanoformung Abformungldquoin English (X-ray) Lithography Electroplating and Molding

one of the first major techniques to allow on-demand manufacturing of high-aspect-ratio structures (structures that are much taller than wide) with lateral precision below one micrometre This capability is important in the fabrication of MEMS devices Because of the high collimation of X-rays needed the source must be synchrotron light

There are today three different types of LIGA technologies differing in the radiation and preform usedi) X-Ray LIGA the first LIGA technology developed using X-Rays

produced by a synchrotron ii) UV-LIGA using ultraviolet light typically from a mercury lamp and

special resists like SU-8 and iii) Silicon-LIGA using deep reactive ion etched silicon as preform

Understanding Impacts of Financial Tsunami

How big (small) are we talking about

Any opportunitiesOur skillsOur production capacitiesOur quality systemOur raw materialsOur vertical integrationYOur Decision to move forwardFrom Basic Quantity to Luxurious few

Upcoming challengesFree trade barriers and protection of interests保護主意 外國公司排斥

Tightening of quality standards and requirements瑞士之所以成功是由於不停增加新規格及提升舊規格

Continuous improvements and Exceeding customersrsquo expectation滿足客戶無微不至於客戶未提出之前以為客戶預備

Leading and flowing with the market帶領市場

Upgrade the Hong Kong Watch and Clock Industry as a whole香港鐘表行業應提升功能形象建立品牌

Listen to the customers and improve on the basis of Voice of Customers (VOC )香港鐘表行業應提升功能形象

Brand building learning from our Swiss and Japan counterparts建立品牌 向瑞士學習一步步跟進

Innovations World Trend

Application of various new materials innovative products

synthetic diamondsingle crystal diamondcarbon fibrenew alloy

Carbon Fibre for watches

Carbon Fibre for watches

A 6 μm diameter carbon filament (running from bottom left to top right) compared to a human hair

Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre

A unique concept watch with

- A lubricant-free watch - Resistance to extreme temperatures - 40deg

+ 60deg

C

- Innovative character rewarded by six patents - Movement entirely redesigned and created by

2 years of intense development - High-tech design carbon and titanium case- Automatic tourbillon with a large variable inertiabalance (115mg x cm2) oscillating at a highfrequency of 28800 vibrationshour (4 hertz)

This watch will only be delivered andsold in limited quantities

Jaeger - Lecoultre

Traditional mechanical movements use oils or greases to ensure smooth operations

These take the form of oils in varying degrees of fineness for parts with high translation or rotation speeds or grease for parts subject to large pressures or stresses

The properties of such oils and grease deteriorates over time and the performances of the movement decline if these lubricants are not replaced in due time

Testing conducted during the 1970s on plastic movements had already shown the way towards doing without some of the oils and grease However these watches did not stand the test of time which resulted in wear on the parts that in turn rapidly diminished their chronometric and functional performances

In its ongoing search to enhance the reliability of mechanical movements Jaeger-LeCoultre had already renounced the use of lubrication in the ball-bearing mechanisms of automatic winding systems by introducing ceramic ball-bearings as early as 2002

Today the research team at the Manufacture in Le Sentier has innovated a mechanical movement run without any lubricant This research has culminated in the brand-new Jaeger-LeCoultre Calibre 988C

Innovative mechanical movements without oils amp greases

A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is

Inspired by the unshakeable conviction in the smallest details the watchmakers and designers of the Manufacture have raised the game of precision and functions to unprecedented levels of refinement

The aesthetics of the Master Compressor Extreme Lab reflect the technology within Its transparent dial reveals the heart of the horological mechanism featuring a particularly attractive graphic design characterised by subtle contrasts between the black aluminum of the open-worked centre bridge and the flange the white colour of the applied hanging numerals and hour-markers and the grey of the tourbillon bridge

The centre bridge is made from an aluminum alloy reinforced with particles of titanium carbide Ticaliumreg The mechanical hardness and resistance of this alloy are thus improved by 20 without increasing the density The casevisually reflects the movement with its association of carbon silicon carbonitrideand grade 5 titanium

The first feature covers its original structure featuring an interior carbon fibre case fitted inside a titanium ring The obvious advantage is a gain in weight but the resulting aesthetic effect is doubtless even more remarkable The case as a whole is topped by a bezel in silicon carbonitride a material that is lighter and more resistant than traditional ceramics

Watch suspension mounting

The second feature relates to the suspension mounting of the movement The silent-block made from a supple red polyurethane material not only serves to avoid any risk of water seeping into the crown tube but also mechanically isolates the movement and its Compressor crown

The calibre and winding-stem are thus mounted in a ldquofree-floatingrdquomanner and there is thus no metal to metal link between the movement and the case which means the watch mechanism is protected fromviolent shocks or vibrations

The red aluminum crown echoes the red elements on the dial the silent-block shock absorber and the strap

Jaeger-LeCoultre has also devoted special attention to the strap of this watch Its double-layered construction enhances both its robustness and its appearance The unusual combination of materials such as leather cordura canvasand alcantara reinforced by a composite strip lends this strap a three-dimensional appearance on a par with the case to which it is attached

Mechanical automatic movement Jaeger-LeCoultre Calibre 988C

307 parts

28800 vibrations per hour 4 hertzA barrelTourbillon with magnesium carriageTwo time zonesAMPM indication with local timeCentral pointer-type calendar displays that jumps over the tourbillon carriageMovement diameter 300 mmMovement thickness 705 mmCase diameter 450 mmCase thickness 1480 mmOperational between -40deg and +60degCNo oil no greaseIridium platinum oscillating weight with carbon baseBlack diamond pallet-stonesEasium jewels48-hour power reserveWater-resistant to 100 metresCrafted in carbon and titaniumExclusive limited annual productionReference Q179T470

New materials new solutionsMany watch brands are experimenting with new materials to enhance the technical aspects of their watches

Some companies like Patek Philippe and Rolex are working on new materials for springs and other parts

In 2005 Patek Philippe filed a patent for the first silicon escape wheel for a Swiss lever escapement

Rolex created its new blue Parachrom hairspring made from a new alloy to resist magnetism and increase shock absorbance

Jaeger-LeCoultre are experimenting with new materials to reduce the need for lubrication ndash last year the Extreme Lab introduced the first watch ever that doesnt need any lubrication

Ultra light alloy ndash Mg and AlSome watches are already using new materials such as the Mag Bang with the AG5 alloy which is an ultra light alloy of magnesium and aluminium

Audemars Piguet has for years been a leader in the search for new and advanced materials The latest is the companys minute repeater programme where they are working with laboratories professors and students at the best universities to come up with new metals and designs that will enhance the sound of their minute repeaters

Ulysse Nardin recently unveiled its new Innovision watch a concept watch that combines the companys most daring innovations -from the silicon escapement first used in the Freak to new silicon parts (wheels bridges pinions etc) Ulysse Nardin is part owner of Sigatec SA the company responsible for the development of silicon technology in watch making

Ultra light alloy ndash Mg and Al

The Freak is one example of the way Ulysse Nardin makes things happen When Schneider made the first Freak it did not work because the mixture of materials was not right

Schneider was ready to abandon the new escapement but was talked into trying it another way We failed with the Freak with traditional materials he admits

When we failed with the Freak I wanted to go back to the anchor escapement Ludwig Oechslin our Chief Designer wanted to use the new escapement because he thought it was better So we decided to go forward in two different directions one with the anchor escapement and the other with the new escapement We met someone who had done work with silicon so we decided to try itrdquo

C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin

Ulysse Nardin is concentrating on manufacturing movement parts in silicon

One of the advantages of making parts from silicon is that the process allows complete freedom of design - just about any shape visualized can be realized

The use of silicon could very well change the way movements are designed because it removes some of the old limitations that were in place before In addition working in silicon means higher precision lighter weight and the material in its final form is very hard

New materials unique watchesSome watch companies are using new materials for aesthetic reasons like Gerald Gentas new Gefica which uses bronze in a striking way The use of innovative materials is a major factor in the creation of our watches particularly for Gerald Genta says Gerald Roden Chief Executive Officer of Daniel Roth and Gerald Genta We have long been investigating creative uses for innovative more so for aesthetics than for technical reasons

For quite some time we have experimented with combinations of materials such as carbon fibre aluminium and wood with rubber and even fish skinIn 2003 Gerald Genta was among the first to use unique metals such as palladium and tantalum for cases

We have developed a patent to use liquid ceramic for the Octo line and are currently working with metallurgists to develop other new and innovative metals for Gerald Genta We are also in the final test phases of creating an exciting new treatment for steel

Non Magnetic materials for movement components

Another movement design

Traditional mechanical movements use oils or grease to ensure smooth operations

These take the form of oils in varying degrees of fineness for parts with high translation or rotation speeds or grease for parts subject to high pressures or stresses

The properties of such oils and grease deteriorates over time and the performances of the movement likewise decline if these lubricants are not replaced in due time

Testing conducted during the 1970s on plastic movements had already shown the way towards doing without some of the oils and grease However these watches did not stand the test of time which resulted in wear on the parts that in turn rapidly diminished their chronometric and functional performances

In its ongoing search to enhance the reliability of mechanical movements Jaeger-LeCoultre had already renounced the use of lubrication in the ball-bearing mechanisms of automatic winding systems by introducing ceramic ball-bearings as early as 2002

Today the research team at the Manufacture in Le Sentier has innovated a mechanical movement run without any lubricant whatsoever This research has culminated in the brand-new Jaeger-LeCoultre Calibre 988C

Innovative mechanical movement without any lubricant

New materials in mechanical movements

The engineers and watchmakers have resorted to new materials and new combinations of materials for demanding challenge

The Easiumtrade carbonitride thus makes its way onto the watch making stage This extremely hard material features extraordinary tribological properties and is therefore particularly suited to the making bearings able to operate without lubricants

In Jaeger-LeCoultre Calibre 988C Easium replaces the traditional jewels lubricated with a fine oil The burnished steel pivots of the balance-staff are coated with a special surface treatment and turn inside an Easium bearing The endstone is also made from Easium This is also a material used to make the two bearings allowing the carriage to turn in the bridges without any need to add jewels that would require lubrication

Watchmakers are considering the black crystalline diamond a synthetic material as hard as natural diamonds but with considerably enhanced operational properties for replacing the red pallet-stones Its friction on the silicon teeth of the escape-wheel does not require any oil to improve its operation live All the burnished steel pivots of the wheels and pinions are coated with a surface treatment that obviates any need to oil the jewels

Mainspring barrel in mechanical movement grease replaced by graphite powder

On the other end of the movement the barrel grease has also disappeared Instead a graphite powder helps the bride to slide smoothly inside the drum when the mainspring has been wound beyond the maximum powerreserve by the automatic winding mechanism The molecular structure of graphite consists in a stack of micro-platelets contrary to grease it retains its lubricating properties over time whatever the temperature and the hygrometry level

As for the ball-bearing mechanism of the oscillating weight in addition to the use of ceramic ball bearings mentioned earlier friction has been reduced by optimising the rotor which features carbon fibre arms and a distinctly lighter and more rigid base

Finally the oscillating weight segment is surprising in itself with its iridium platinum alloy the densest non-toxic physical body currently machinableThe entire windingtime-setting mechanism is coated with Nickel-PTFEin order to eliminate the customary greasing points The date jumper-spring features a frictional surface that also operates in ldquodryrdquo mode

Balanced wheel design in mechanical movement

Arenrsquot the most efficient balances circular The latest research by Jaeger-LeCoultre proves the exact opposite

Lengthy testing has revealed the importance of the total surface of the balance on its aerodynamic performances The larger the surface the greater the aerodynamic friction and the more energy it takes to maintain the oscillations of the balance and spring ndash which is in turn detrimental to precision

The geometry devised by Jaeger-LeCoultre coupled with the use of an extremely dense material ndash in this case iridium platinum ndash minimises the surface in friction Thus given a constant level of inertia this balance requires less energy to oscillate than a traditional balance

Balance wheel design in an optimized mechanical movement

The geometry of the balance has also been designed to reduce the ratio between the mass and the inertia of the balance

High inertia ensures a stable regulator that is fairly insensitive to the vibrations and daily shocks to which a watch is subjected and which disturb its precision Nonetheless high inertia implies a higher balance mass leading to larger losses due to mechanical fiction and thus increased energy consumption to maintain the oscillations ndash as well as a larger difference in amplitude between horizontal and vertical positions

The balance of the Jaeger-LeCoultre Calibre 988C has been optimised in order to reduce total mass without modifying the determined inertia The shape of the arms the openings and the geometry enable a several-point gain in the massinertia ratio

This factor directly influences the variations in rate between different positions that are well-known to watchmakers due to the difference in amplitude between the ldquodial-uprdquo and ldquopendant-uprdquo positions The lower the massinertia ratio the smaller the differences between the various positions thus enabling the watchmaker to perform a more precise adjustment of the watch

Contribution to accuracy by the balance spring in a mechanical movement

The balance-spring beats in a perfectly concentric manner in order to guarantee ideal isochronism Not only does it feature the carefully calculated form of a Phillips terminal curve but the watchmakers have also created something they call a ldquobendrdquo in the centre The ldquobendrdquo is a distortion of the balance-spring at aspecific place close to the collet pinning-point and which at given moments modifies the rigidity of the spring and corrects the natural tendency of any spring to ldquobreatherdquo in an off-centred manner Only this winning combination of an outer Phillips terminal curve and a central ldquobendrdquo makes it possible to create a balance-spring that develops in a perfectly concentric way (meaning with symmetrical expansions and contractions in respect to the centre)

Precise adjustment of this movement is of course performed using screws placed on the balance This process now used on all the Jaeger-LeCoultre automatic calibres has replaced the traditional index assembly and ensures peerless initial reliability of the rate that thereby remains unperturbed over time even if the watch is accidentally jarred

To perfect the exceptional efficiency of this regulating organ the aerodynamic properties of the balance have been fine-tuned by bevelling the arms by streamlining the shape of the weights and by integrating adjustment screws inside the weights The escape-wheel is made from silicon which is considerably lighter than steel and thus also favourably influences efficiency

Tourbillon made from light alloys

A one-minute tourbillon houses this literally extraordinary regulator The tourbillon carriage is machined from blocks of a magnesium alloy that is two and a half times lighter than titanium and contributes to reducing energy losses due to friction and thus further improves the exceptional efficiency of the regulator

The cadence of 28800 vibrations per hour the high (115 mgcm2) inertia of the balance and the tourbillon together help guarantee theaccuracy of the watch

Application of various new processing technologies

physical vapour deposition (pvd)chemical vapour deposition (cvd)LIthographie Galvanoformung Adformung (LIGA)electroformingphotochemcial machining (pcm)etchellip

Current development worldwide Mimotec SA (Sion Switzerland)

MEMS Technology ndash DRIE Process

MEMS Technology ndash LIGA Process

LIGA = Lithographie Galvanoformung Adformung

LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre

a German acronym for rdquoLithographie Galvanoformung Abformungldquoin English (X-ray) Lithography Electroplating and Molding

one of the first major techniques to allow on-demand manufacturing of high-aspect-ratio structures (structures that are much taller than wide) with lateral precision below one micrometre This capability is important in the fabrication of MEMS devices Because of the high collimation of X-rays needed the source must be synchrotron light

There are today three different types of LIGA technologies differing in the radiation and preform usedi) X-Ray LIGA the first LIGA technology developed using X-Rays

produced by a synchrotron ii) UV-LIGA using ultraviolet light typically from a mercury lamp and

special resists like SU-8 and iii) Silicon-LIGA using deep reactive ion etched silicon as preform

Any opportunitiesOur skillsOur production capacitiesOur quality systemOur raw materialsOur vertical integrationYOur Decision to move forwardFrom Basic Quantity to Luxurious few

Upcoming challengesFree trade barriers and protection of interests保護主意 外國公司排斥

Tightening of quality standards and requirements瑞士之所以成功是由於不停增加新規格及提升舊規格

Continuous improvements and Exceeding customersrsquo expectation滿足客戶無微不至於客戶未提出之前以為客戶預備

Leading and flowing with the market帶領市場

Upgrade the Hong Kong Watch and Clock Industry as a whole香港鐘表行業應提升功能形象建立品牌

Listen to the customers and improve on the basis of Voice of Customers (VOC )香港鐘表行業應提升功能形象

Brand building learning from our Swiss and Japan counterparts建立品牌 向瑞士學習一步步跟進

Innovations World Trend

Application of various new materials innovative products

synthetic diamondsingle crystal diamondcarbon fibrenew alloy

Carbon Fibre for watches

Carbon Fibre for watches

A 6 μm diameter carbon filament (running from bottom left to top right) compared to a human hair

Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre

A unique concept watch with

- A lubricant-free watch - Resistance to extreme temperatures - 40deg

+ 60deg

C

- Innovative character rewarded by six patents - Movement entirely redesigned and created by

2 years of intense development - High-tech design carbon and titanium case- Automatic tourbillon with a large variable inertiabalance (115mg x cm2) oscillating at a highfrequency of 28800 vibrationshour (4 hertz)

This watch will only be delivered andsold in limited quantities

Jaeger - Lecoultre

Traditional mechanical movements use oils or greases to ensure smooth operations

These take the form of oils in varying degrees of fineness for parts with high translation or rotation speeds or grease for parts subject to large pressures or stresses

The properties of such oils and grease deteriorates over time and the performances of the movement decline if these lubricants are not replaced in due time

Testing conducted during the 1970s on plastic movements had already shown the way towards doing without some of the oils and grease However these watches did not stand the test of time which resulted in wear on the parts that in turn rapidly diminished their chronometric and functional performances

In its ongoing search to enhance the reliability of mechanical movements Jaeger-LeCoultre had already renounced the use of lubrication in the ball-bearing mechanisms of automatic winding systems by introducing ceramic ball-bearings as early as 2002

Today the research team at the Manufacture in Le Sentier has innovated a mechanical movement run without any lubricant This research has culminated in the brand-new Jaeger-LeCoultre Calibre 988C

Innovative mechanical movements without oils amp greases

A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is

Inspired by the unshakeable conviction in the smallest details the watchmakers and designers of the Manufacture have raised the game of precision and functions to unprecedented levels of refinement

The aesthetics of the Master Compressor Extreme Lab reflect the technology within Its transparent dial reveals the heart of the horological mechanism featuring a particularly attractive graphic design characterised by subtle contrasts between the black aluminum of the open-worked centre bridge and the flange the white colour of the applied hanging numerals and hour-markers and the grey of the tourbillon bridge

The centre bridge is made from an aluminum alloy reinforced with particles of titanium carbide Ticaliumreg The mechanical hardness and resistance of this alloy are thus improved by 20 without increasing the density The casevisually reflects the movement with its association of carbon silicon carbonitrideand grade 5 titanium

The first feature covers its original structure featuring an interior carbon fibre case fitted inside a titanium ring The obvious advantage is a gain in weight but the resulting aesthetic effect is doubtless even more remarkable The case as a whole is topped by a bezel in silicon carbonitride a material that is lighter and more resistant than traditional ceramics

Watch suspension mounting

The second feature relates to the suspension mounting of the movement The silent-block made from a supple red polyurethane material not only serves to avoid any risk of water seeping into the crown tube but also mechanically isolates the movement and its Compressor crown

The calibre and winding-stem are thus mounted in a ldquofree-floatingrdquomanner and there is thus no metal to metal link between the movement and the case which means the watch mechanism is protected fromviolent shocks or vibrations

The red aluminum crown echoes the red elements on the dial the silent-block shock absorber and the strap

Jaeger-LeCoultre has also devoted special attention to the strap of this watch Its double-layered construction enhances both its robustness and its appearance The unusual combination of materials such as leather cordura canvasand alcantara reinforced by a composite strip lends this strap a three-dimensional appearance on a par with the case to which it is attached

Mechanical automatic movement Jaeger-LeCoultre Calibre 988C

307 parts

28800 vibrations per hour 4 hertzA barrelTourbillon with magnesium carriageTwo time zonesAMPM indication with local timeCentral pointer-type calendar displays that jumps over the tourbillon carriageMovement diameter 300 mmMovement thickness 705 mmCase diameter 450 mmCase thickness 1480 mmOperational between -40deg and +60degCNo oil no greaseIridium platinum oscillating weight with carbon baseBlack diamond pallet-stonesEasium jewels48-hour power reserveWater-resistant to 100 metresCrafted in carbon and titaniumExclusive limited annual productionReference Q179T470

New materials new solutionsMany watch brands are experimenting with new materials to enhance the technical aspects of their watches

Some companies like Patek Philippe and Rolex are working on new materials for springs and other parts

In 2005 Patek Philippe filed a patent for the first silicon escape wheel for a Swiss lever escapement

Rolex created its new blue Parachrom hairspring made from a new alloy to resist magnetism and increase shock absorbance

Jaeger-LeCoultre are experimenting with new materials to reduce the need for lubrication ndash last year the Extreme Lab introduced the first watch ever that doesnt need any lubrication

Ultra light alloy ndash Mg and AlSome watches are already using new materials such as the Mag Bang with the AG5 alloy which is an ultra light alloy of magnesium and aluminium

Audemars Piguet has for years been a leader in the search for new and advanced materials The latest is the companys minute repeater programme where they are working with laboratories professors and students at the best universities to come up with new metals and designs that will enhance the sound of their minute repeaters

Ulysse Nardin recently unveiled its new Innovision watch a concept watch that combines the companys most daring innovations -from the silicon escapement first used in the Freak to new silicon parts (wheels bridges pinions etc) Ulysse Nardin is part owner of Sigatec SA the company responsible for the development of silicon technology in watch making

Ultra light alloy ndash Mg and Al

The Freak is one example of the way Ulysse Nardin makes things happen When Schneider made the first Freak it did not work because the mixture of materials was not right

Schneider was ready to abandon the new escapement but was talked into trying it another way We failed with the Freak with traditional materials he admits

When we failed with the Freak I wanted to go back to the anchor escapement Ludwig Oechslin our Chief Designer wanted to use the new escapement because he thought it was better So we decided to go forward in two different directions one with the anchor escapement and the other with the new escapement We met someone who had done work with silicon so we decided to try itrdquo

C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin

Ulysse Nardin is concentrating on manufacturing movement parts in silicon

One of the advantages of making parts from silicon is that the process allows complete freedom of design - just about any shape visualized can be realized

The use of silicon could very well change the way movements are designed because it removes some of the old limitations that were in place before In addition working in silicon means higher precision lighter weight and the material in its final form is very hard

New materials unique watchesSome watch companies are using new materials for aesthetic reasons like Gerald Gentas new Gefica which uses bronze in a striking way The use of innovative materials is a major factor in the creation of our watches particularly for Gerald Genta says Gerald Roden Chief Executive Officer of Daniel Roth and Gerald Genta We have long been investigating creative uses for innovative more so for aesthetics than for technical reasons

For quite some time we have experimented with combinations of materials such as carbon fibre aluminium and wood with rubber and even fish skinIn 2003 Gerald Genta was among the first to use unique metals such as palladium and tantalum for cases

We have developed a patent to use liquid ceramic for the Octo line and are currently working with metallurgists to develop other new and innovative metals for Gerald Genta We are also in the final test phases of creating an exciting new treatment for steel

Non Magnetic materials for movement components

Another movement design

Traditional mechanical movements use oils or grease to ensure smooth operations

These take the form of oils in varying degrees of fineness for parts with high translation or rotation speeds or grease for parts subject to high pressures or stresses

The properties of such oils and grease deteriorates over time and the performances of the movement likewise decline if these lubricants are not replaced in due time

Testing conducted during the 1970s on plastic movements had already shown the way towards doing without some of the oils and grease However these watches did not stand the test of time which resulted in wear on the parts that in turn rapidly diminished their chronometric and functional performances

In its ongoing search to enhance the reliability of mechanical movements Jaeger-LeCoultre had already renounced the use of lubrication in the ball-bearing mechanisms of automatic winding systems by introducing ceramic ball-bearings as early as 2002

Today the research team at the Manufacture in Le Sentier has innovated a mechanical movement run without any lubricant whatsoever This research has culminated in the brand-new Jaeger-LeCoultre Calibre 988C

Innovative mechanical movement without any lubricant

New materials in mechanical movements

The engineers and watchmakers have resorted to new materials and new combinations of materials for demanding challenge

The Easiumtrade carbonitride thus makes its way onto the watch making stage This extremely hard material features extraordinary tribological properties and is therefore particularly suited to the making bearings able to operate without lubricants

In Jaeger-LeCoultre Calibre 988C Easium replaces the traditional jewels lubricated with a fine oil The burnished steel pivots of the balance-staff are coated with a special surface treatment and turn inside an Easium bearing The endstone is also made from Easium This is also a material used to make the two bearings allowing the carriage to turn in the bridges without any need to add jewels that would require lubrication

Watchmakers are considering the black crystalline diamond a synthetic material as hard as natural diamonds but with considerably enhanced operational properties for replacing the red pallet-stones Its friction on the silicon teeth of the escape-wheel does not require any oil to improve its operation live All the burnished steel pivots of the wheels and pinions are coated with a surface treatment that obviates any need to oil the jewels

Mainspring barrel in mechanical movement grease replaced by graphite powder

On the other end of the movement the barrel grease has also disappeared Instead a graphite powder helps the bride to slide smoothly inside the drum when the mainspring has been wound beyond the maximum powerreserve by the automatic winding mechanism The molecular structure of graphite consists in a stack of micro-platelets contrary to grease it retains its lubricating properties over time whatever the temperature and the hygrometry level

As for the ball-bearing mechanism of the oscillating weight in addition to the use of ceramic ball bearings mentioned earlier friction has been reduced by optimising the rotor which features carbon fibre arms and a distinctly lighter and more rigid base

Finally the oscillating weight segment is surprising in itself with its iridium platinum alloy the densest non-toxic physical body currently machinableThe entire windingtime-setting mechanism is coated with Nickel-PTFEin order to eliminate the customary greasing points The date jumper-spring features a frictional surface that also operates in ldquodryrdquo mode

Balanced wheel design in mechanical movement

Arenrsquot the most efficient balances circular The latest research by Jaeger-LeCoultre proves the exact opposite

Lengthy testing has revealed the importance of the total surface of the balance on its aerodynamic performances The larger the surface the greater the aerodynamic friction and the more energy it takes to maintain the oscillations of the balance and spring ndash which is in turn detrimental to precision

The geometry devised by Jaeger-LeCoultre coupled with the use of an extremely dense material ndash in this case iridium platinum ndash minimises the surface in friction Thus given a constant level of inertia this balance requires less energy to oscillate than a traditional balance

Balance wheel design in an optimized mechanical movement

The geometry of the balance has also been designed to reduce the ratio between the mass and the inertia of the balance

High inertia ensures a stable regulator that is fairly insensitive to the vibrations and daily shocks to which a watch is subjected and which disturb its precision Nonetheless high inertia implies a higher balance mass leading to larger losses due to mechanical fiction and thus increased energy consumption to maintain the oscillations ndash as well as a larger difference in amplitude between horizontal and vertical positions

The balance of the Jaeger-LeCoultre Calibre 988C has been optimised in order to reduce total mass without modifying the determined inertia The shape of the arms the openings and the geometry enable a several-point gain in the massinertia ratio

This factor directly influences the variations in rate between different positions that are well-known to watchmakers due to the difference in amplitude between the ldquodial-uprdquo and ldquopendant-uprdquo positions The lower the massinertia ratio the smaller the differences between the various positions thus enabling the watchmaker to perform a more precise adjustment of the watch

Contribution to accuracy by the balance spring in a mechanical movement

The balance-spring beats in a perfectly concentric manner in order to guarantee ideal isochronism Not only does it feature the carefully calculated form of a Phillips terminal curve but the watchmakers have also created something they call a ldquobendrdquo in the centre The ldquobendrdquo is a distortion of the balance-spring at aspecific place close to the collet pinning-point and which at given moments modifies the rigidity of the spring and corrects the natural tendency of any spring to ldquobreatherdquo in an off-centred manner Only this winning combination of an outer Phillips terminal curve and a central ldquobendrdquo makes it possible to create a balance-spring that develops in a perfectly concentric way (meaning with symmetrical expansions and contractions in respect to the centre)

Precise adjustment of this movement is of course performed using screws placed on the balance This process now used on all the Jaeger-LeCoultre automatic calibres has replaced the traditional index assembly and ensures peerless initial reliability of the rate that thereby remains unperturbed over time even if the watch is accidentally jarred

To perfect the exceptional efficiency of this regulating organ the aerodynamic properties of the balance have been fine-tuned by bevelling the arms by streamlining the shape of the weights and by integrating adjustment screws inside the weights The escape-wheel is made from silicon which is considerably lighter than steel and thus also favourably influences efficiency

Tourbillon made from light alloys

A one-minute tourbillon houses this literally extraordinary regulator The tourbillon carriage is machined from blocks of a magnesium alloy that is two and a half times lighter than titanium and contributes to reducing energy losses due to friction and thus further improves the exceptional efficiency of the regulator

The cadence of 28800 vibrations per hour the high (115 mgcm2) inertia of the balance and the tourbillon together help guarantee theaccuracy of the watch

Application of various new processing technologies

physical vapour deposition (pvd)chemical vapour deposition (cvd)LIthographie Galvanoformung Adformung (LIGA)electroformingphotochemcial machining (pcm)etchellip

Current development worldwide Mimotec SA (Sion Switzerland)

MEMS Technology ndash DRIE Process

MEMS Technology ndash LIGA Process

LIGA = Lithographie Galvanoformung Adformung

LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre

a German acronym for rdquoLithographie Galvanoformung Abformungldquoin English (X-ray) Lithography Electroplating and Molding

one of the first major techniques to allow on-demand manufacturing of high-aspect-ratio structures (structures that are much taller than wide) with lateral precision below one micrometre This capability is important in the fabrication of MEMS devices Because of the high collimation of X-rays needed the source must be synchrotron light

There are today three different types of LIGA technologies differing in the radiation and preform usedi) X-Ray LIGA the first LIGA technology developed using X-Rays

produced by a synchrotron ii) UV-LIGA using ultraviolet light typically from a mercury lamp and

special resists like SU-8 and iii) Silicon-LIGA using deep reactive ion etched silicon as preform

Upcoming challengesFree trade barriers and protection of interests保護主意 外國公司排斥

Tightening of quality standards and requirements瑞士之所以成功是由於不停增加新規格及提升舊規格

Continuous improvements and Exceeding customersrsquo expectation滿足客戶無微不至於客戶未提出之前以為客戶預備

Leading and flowing with the market帶領市場

Upgrade the Hong Kong Watch and Clock Industry as a whole香港鐘表行業應提升功能形象建立品牌

Listen to the customers and improve on the basis of Voice of Customers (VOC )香港鐘表行業應提升功能形象

Brand building learning from our Swiss and Japan counterparts建立品牌 向瑞士學習一步步跟進

Innovations World Trend

Application of various new materials innovative products

synthetic diamondsingle crystal diamondcarbon fibrenew alloy

Carbon Fibre for watches

Carbon Fibre for watches

A 6 μm diameter carbon filament (running from bottom left to top right) compared to a human hair

Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre

A unique concept watch with

- A lubricant-free watch - Resistance to extreme temperatures - 40deg

+ 60deg

C

- Innovative character rewarded by six patents - Movement entirely redesigned and created by

2 years of intense development - High-tech design carbon and titanium case- Automatic tourbillon with a large variable inertiabalance (115mg x cm2) oscillating at a highfrequency of 28800 vibrationshour (4 hertz)

This watch will only be delivered andsold in limited quantities

Jaeger - Lecoultre

Traditional mechanical movements use oils or greases to ensure smooth operations

These take the form of oils in varying degrees of fineness for parts with high translation or rotation speeds or grease for parts subject to large pressures or stresses

The properties of such oils and grease deteriorates over time and the performances of the movement decline if these lubricants are not replaced in due time

Testing conducted during the 1970s on plastic movements had already shown the way towards doing without some of the oils and grease However these watches did not stand the test of time which resulted in wear on the parts that in turn rapidly diminished their chronometric and functional performances

In its ongoing search to enhance the reliability of mechanical movements Jaeger-LeCoultre had already renounced the use of lubrication in the ball-bearing mechanisms of automatic winding systems by introducing ceramic ball-bearings as early as 2002

Today the research team at the Manufacture in Le Sentier has innovated a mechanical movement run without any lubricant This research has culminated in the brand-new Jaeger-LeCoultre Calibre 988C

Innovative mechanical movements without oils amp greases

A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is

Inspired by the unshakeable conviction in the smallest details the watchmakers and designers of the Manufacture have raised the game of precision and functions to unprecedented levels of refinement

The aesthetics of the Master Compressor Extreme Lab reflect the technology within Its transparent dial reveals the heart of the horological mechanism featuring a particularly attractive graphic design characterised by subtle contrasts between the black aluminum of the open-worked centre bridge and the flange the white colour of the applied hanging numerals and hour-markers and the grey of the tourbillon bridge

The centre bridge is made from an aluminum alloy reinforced with particles of titanium carbide Ticaliumreg The mechanical hardness and resistance of this alloy are thus improved by 20 without increasing the density The casevisually reflects the movement with its association of carbon silicon carbonitrideand grade 5 titanium

The first feature covers its original structure featuring an interior carbon fibre case fitted inside a titanium ring The obvious advantage is a gain in weight but the resulting aesthetic effect is doubtless even more remarkable The case as a whole is topped by a bezel in silicon carbonitride a material that is lighter and more resistant than traditional ceramics

Watch suspension mounting

The second feature relates to the suspension mounting of the movement The silent-block made from a supple red polyurethane material not only serves to avoid any risk of water seeping into the crown tube but also mechanically isolates the movement and its Compressor crown

The calibre and winding-stem are thus mounted in a ldquofree-floatingrdquomanner and there is thus no metal to metal link between the movement and the case which means the watch mechanism is protected fromviolent shocks or vibrations

The red aluminum crown echoes the red elements on the dial the silent-block shock absorber and the strap

Jaeger-LeCoultre has also devoted special attention to the strap of this watch Its double-layered construction enhances both its robustness and its appearance The unusual combination of materials such as leather cordura canvasand alcantara reinforced by a composite strip lends this strap a three-dimensional appearance on a par with the case to which it is attached

Mechanical automatic movement Jaeger-LeCoultre Calibre 988C

307 parts

28800 vibrations per hour 4 hertzA barrelTourbillon with magnesium carriageTwo time zonesAMPM indication with local timeCentral pointer-type calendar displays that jumps over the tourbillon carriageMovement diameter 300 mmMovement thickness 705 mmCase diameter 450 mmCase thickness 1480 mmOperational between -40deg and +60degCNo oil no greaseIridium platinum oscillating weight with carbon baseBlack diamond pallet-stonesEasium jewels48-hour power reserveWater-resistant to 100 metresCrafted in carbon and titaniumExclusive limited annual productionReference Q179T470

New materials new solutionsMany watch brands are experimenting with new materials to enhance the technical aspects of their watches

Some companies like Patek Philippe and Rolex are working on new materials for springs and other parts

In 2005 Patek Philippe filed a patent for the first silicon escape wheel for a Swiss lever escapement

Rolex created its new blue Parachrom hairspring made from a new alloy to resist magnetism and increase shock absorbance

Jaeger-LeCoultre are experimenting with new materials to reduce the need for lubrication ndash last year the Extreme Lab introduced the first watch ever that doesnt need any lubrication

Ultra light alloy ndash Mg and AlSome watches are already using new materials such as the Mag Bang with the AG5 alloy which is an ultra light alloy of magnesium and aluminium

Audemars Piguet has for years been a leader in the search for new and advanced materials The latest is the companys minute repeater programme where they are working with laboratories professors and students at the best universities to come up with new metals and designs that will enhance the sound of their minute repeaters

Ulysse Nardin recently unveiled its new Innovision watch a concept watch that combines the companys most daring innovations -from the silicon escapement first used in the Freak to new silicon parts (wheels bridges pinions etc) Ulysse Nardin is part owner of Sigatec SA the company responsible for the development of silicon technology in watch making

Ultra light alloy ndash Mg and Al

The Freak is one example of the way Ulysse Nardin makes things happen When Schneider made the first Freak it did not work because the mixture of materials was not right

Schneider was ready to abandon the new escapement but was talked into trying it another way We failed with the Freak with traditional materials he admits

When we failed with the Freak I wanted to go back to the anchor escapement Ludwig Oechslin our Chief Designer wanted to use the new escapement because he thought it was better So we decided to go forward in two different directions one with the anchor escapement and the other with the new escapement We met someone who had done work with silicon so we decided to try itrdquo

C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin

Ulysse Nardin is concentrating on manufacturing movement parts in silicon

One of the advantages of making parts from silicon is that the process allows complete freedom of design - just about any shape visualized can be realized

The use of silicon could very well change the way movements are designed because it removes some of the old limitations that were in place before In addition working in silicon means higher precision lighter weight and the material in its final form is very hard

New materials unique watchesSome watch companies are using new materials for aesthetic reasons like Gerald Gentas new Gefica which uses bronze in a striking way The use of innovative materials is a major factor in the creation of our watches particularly for Gerald Genta says Gerald Roden Chief Executive Officer of Daniel Roth and Gerald Genta We have long been investigating creative uses for innovative more so for aesthetics than for technical reasons

For quite some time we have experimented with combinations of materials such as carbon fibre aluminium and wood with rubber and even fish skinIn 2003 Gerald Genta was among the first to use unique metals such as palladium and tantalum for cases

We have developed a patent to use liquid ceramic for the Octo line and are currently working with metallurgists to develop other new and innovative metals for Gerald Genta We are also in the final test phases of creating an exciting new treatment for steel

Non Magnetic materials for movement components

Another movement design

Traditional mechanical movements use oils or grease to ensure smooth operations

These take the form of oils in varying degrees of fineness for parts with high translation or rotation speeds or grease for parts subject to high pressures or stresses

The properties of such oils and grease deteriorates over time and the performances of the movement likewise decline if these lubricants are not replaced in due time

Testing conducted during the 1970s on plastic movements had already shown the way towards doing without some of the oils and grease However these watches did not stand the test of time which resulted in wear on the parts that in turn rapidly diminished their chronometric and functional performances

In its ongoing search to enhance the reliability of mechanical movements Jaeger-LeCoultre had already renounced the use of lubrication in the ball-bearing mechanisms of automatic winding systems by introducing ceramic ball-bearings as early as 2002

Today the research team at the Manufacture in Le Sentier has innovated a mechanical movement run without any lubricant whatsoever This research has culminated in the brand-new Jaeger-LeCoultre Calibre 988C

Innovative mechanical movement without any lubricant

New materials in mechanical movements

The engineers and watchmakers have resorted to new materials and new combinations of materials for demanding challenge

The Easiumtrade carbonitride thus makes its way onto the watch making stage This extremely hard material features extraordinary tribological properties and is therefore particularly suited to the making bearings able to operate without lubricants

In Jaeger-LeCoultre Calibre 988C Easium replaces the traditional jewels lubricated with a fine oil The burnished steel pivots of the balance-staff are coated with a special surface treatment and turn inside an Easium bearing The endstone is also made from Easium This is also a material used to make the two bearings allowing the carriage to turn in the bridges without any need to add jewels that would require lubrication

Watchmakers are considering the black crystalline diamond a synthetic material as hard as natural diamonds but with considerably enhanced operational properties for replacing the red pallet-stones Its friction on the silicon teeth of the escape-wheel does not require any oil to improve its operation live All the burnished steel pivots of the wheels and pinions are coated with a surface treatment that obviates any need to oil the jewels

Mainspring barrel in mechanical movement grease replaced by graphite powder

On the other end of the movement the barrel grease has also disappeared Instead a graphite powder helps the bride to slide smoothly inside the drum when the mainspring has been wound beyond the maximum powerreserve by the automatic winding mechanism The molecular structure of graphite consists in a stack of micro-platelets contrary to grease it retains its lubricating properties over time whatever the temperature and the hygrometry level

As for the ball-bearing mechanism of the oscillating weight in addition to the use of ceramic ball bearings mentioned earlier friction has been reduced by optimising the rotor which features carbon fibre arms and a distinctly lighter and more rigid base

Finally the oscillating weight segment is surprising in itself with its iridium platinum alloy the densest non-toxic physical body currently machinableThe entire windingtime-setting mechanism is coated with Nickel-PTFEin order to eliminate the customary greasing points The date jumper-spring features a frictional surface that also operates in ldquodryrdquo mode

Balanced wheel design in mechanical movement

Arenrsquot the most efficient balances circular The latest research by Jaeger-LeCoultre proves the exact opposite

Lengthy testing has revealed the importance of the total surface of the balance on its aerodynamic performances The larger the surface the greater the aerodynamic friction and the more energy it takes to maintain the oscillations of the balance and spring ndash which is in turn detrimental to precision

The geometry devised by Jaeger-LeCoultre coupled with the use of an extremely dense material ndash in this case iridium platinum ndash minimises the surface in friction Thus given a constant level of inertia this balance requires less energy to oscillate than a traditional balance

Balance wheel design in an optimized mechanical movement

The geometry of the balance has also been designed to reduce the ratio between the mass and the inertia of the balance

High inertia ensures a stable regulator that is fairly insensitive to the vibrations and daily shocks to which a watch is subjected and which disturb its precision Nonetheless high inertia implies a higher balance mass leading to larger losses due to mechanical fiction and thus increased energy consumption to maintain the oscillations ndash as well as a larger difference in amplitude between horizontal and vertical positions

The balance of the Jaeger-LeCoultre Calibre 988C has been optimised in order to reduce total mass without modifying the determined inertia The shape of the arms the openings and the geometry enable a several-point gain in the massinertia ratio

This factor directly influences the variations in rate between different positions that are well-known to watchmakers due to the difference in amplitude between the ldquodial-uprdquo and ldquopendant-uprdquo positions The lower the massinertia ratio the smaller the differences between the various positions thus enabling the watchmaker to perform a more precise adjustment of the watch

Contribution to accuracy by the balance spring in a mechanical movement

The balance-spring beats in a perfectly concentric manner in order to guarantee ideal isochronism Not only does it feature the carefully calculated form of a Phillips terminal curve but the watchmakers have also created something they call a ldquobendrdquo in the centre The ldquobendrdquo is a distortion of the balance-spring at aspecific place close to the collet pinning-point and which at given moments modifies the rigidity of the spring and corrects the natural tendency of any spring to ldquobreatherdquo in an off-centred manner Only this winning combination of an outer Phillips terminal curve and a central ldquobendrdquo makes it possible to create a balance-spring that develops in a perfectly concentric way (meaning with symmetrical expansions and contractions in respect to the centre)

Precise adjustment of this movement is of course performed using screws placed on the balance This process now used on all the Jaeger-LeCoultre automatic calibres has replaced the traditional index assembly and ensures peerless initial reliability of the rate that thereby remains unperturbed over time even if the watch is accidentally jarred

To perfect the exceptional efficiency of this regulating organ the aerodynamic properties of the balance have been fine-tuned by bevelling the arms by streamlining the shape of the weights and by integrating adjustment screws inside the weights The escape-wheel is made from silicon which is considerably lighter than steel and thus also favourably influences efficiency

Tourbillon made from light alloys

A one-minute tourbillon houses this literally extraordinary regulator The tourbillon carriage is machined from blocks of a magnesium alloy that is two and a half times lighter than titanium and contributes to reducing energy losses due to friction and thus further improves the exceptional efficiency of the regulator

The cadence of 28800 vibrations per hour the high (115 mgcm2) inertia of the balance and the tourbillon together help guarantee theaccuracy of the watch

Application of various new processing technologies

physical vapour deposition (pvd)chemical vapour deposition (cvd)LIthographie Galvanoformung Adformung (LIGA)electroformingphotochemcial machining (pcm)etchellip

Current development worldwide Mimotec SA (Sion Switzerland)

MEMS Technology ndash DRIE Process

MEMS Technology ndash LIGA Process

LIGA = Lithographie Galvanoformung Adformung

LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre

a German acronym for rdquoLithographie Galvanoformung Abformungldquoin English (X-ray) Lithography Electroplating and Molding

one of the first major techniques to allow on-demand manufacturing of high-aspect-ratio structures (structures that are much taller than wide) with lateral precision below one micrometre This capability is important in the fabrication of MEMS devices Because of the high collimation of X-rays needed the source must be synchrotron light

There are today three different types of LIGA technologies differing in the radiation and preform usedi) X-Ray LIGA the first LIGA technology developed using X-Rays

produced by a synchrotron ii) UV-LIGA using ultraviolet light typically from a mercury lamp and

special resists like SU-8 and iii) Silicon-LIGA using deep reactive ion etched silicon as preform

Innovations World Trend

Application of various new materials innovative products

synthetic diamondsingle crystal diamondcarbon fibrenew alloy

Carbon Fibre for watches

Carbon Fibre for watches

A 6 μm diameter carbon filament (running from bottom left to top right) compared to a human hair

Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre

A unique concept watch with

- A lubricant-free watch - Resistance to extreme temperatures - 40deg

+ 60deg

C

- Innovative character rewarded by six patents - Movement entirely redesigned and created by

2 years of intense development - High-tech design carbon and titanium case- Automatic tourbillon with a large variable inertiabalance (115mg x cm2) oscillating at a highfrequency of 28800 vibrationshour (4 hertz)

This watch will only be delivered andsold in limited quantities

Jaeger - Lecoultre

Traditional mechanical movements use oils or greases to ensure smooth operations

These take the form of oils in varying degrees of fineness for parts with high translation or rotation speeds or grease for parts subject to large pressures or stresses

The properties of such oils and grease deteriorates over time and the performances of the movement decline if these lubricants are not replaced in due time

Testing conducted during the 1970s on plastic movements had already shown the way towards doing without some of the oils and grease However these watches did not stand the test of time which resulted in wear on the parts that in turn rapidly diminished their chronometric and functional performances

In its ongoing search to enhance the reliability of mechanical movements Jaeger-LeCoultre had already renounced the use of lubrication in the ball-bearing mechanisms of automatic winding systems by introducing ceramic ball-bearings as early as 2002

Today the research team at the Manufacture in Le Sentier has innovated a mechanical movement run without any lubricant This research has culminated in the brand-new Jaeger-LeCoultre Calibre 988C

Innovative mechanical movements without oils amp greases

A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is

Inspired by the unshakeable conviction in the smallest details the watchmakers and designers of the Manufacture have raised the game of precision and functions to unprecedented levels of refinement

The aesthetics of the Master Compressor Extreme Lab reflect the technology within Its transparent dial reveals the heart of the horological mechanism featuring a particularly attractive graphic design characterised by subtle contrasts between the black aluminum of the open-worked centre bridge and the flange the white colour of the applied hanging numerals and hour-markers and the grey of the tourbillon bridge

The centre bridge is made from an aluminum alloy reinforced with particles of titanium carbide Ticaliumreg The mechanical hardness and resistance of this alloy are thus improved by 20 without increasing the density The casevisually reflects the movement with its association of carbon silicon carbonitrideand grade 5 titanium

The first feature covers its original structure featuring an interior carbon fibre case fitted inside a titanium ring The obvious advantage is a gain in weight but the resulting aesthetic effect is doubtless even more remarkable The case as a whole is topped by a bezel in silicon carbonitride a material that is lighter and more resistant than traditional ceramics

Watch suspension mounting

The second feature relates to the suspension mounting of the movement The silent-block made from a supple red polyurethane material not only serves to avoid any risk of water seeping into the crown tube but also mechanically isolates the movement and its Compressor crown

The calibre and winding-stem are thus mounted in a ldquofree-floatingrdquomanner and there is thus no metal to metal link between the movement and the case which means the watch mechanism is protected fromviolent shocks or vibrations

The red aluminum crown echoes the red elements on the dial the silent-block shock absorber and the strap

Jaeger-LeCoultre has also devoted special attention to the strap of this watch Its double-layered construction enhances both its robustness and its appearance The unusual combination of materials such as leather cordura canvasand alcantara reinforced by a composite strip lends this strap a three-dimensional appearance on a par with the case to which it is attached

Mechanical automatic movement Jaeger-LeCoultre Calibre 988C

307 parts

28800 vibrations per hour 4 hertzA barrelTourbillon with magnesium carriageTwo time zonesAMPM indication with local timeCentral pointer-type calendar displays that jumps over the tourbillon carriageMovement diameter 300 mmMovement thickness 705 mmCase diameter 450 mmCase thickness 1480 mmOperational between -40deg and +60degCNo oil no greaseIridium platinum oscillating weight with carbon baseBlack diamond pallet-stonesEasium jewels48-hour power reserveWater-resistant to 100 metresCrafted in carbon and titaniumExclusive limited annual productionReference Q179T470

New materials new solutionsMany watch brands are experimenting with new materials to enhance the technical aspects of their watches

Some companies like Patek Philippe and Rolex are working on new materials for springs and other parts

In 2005 Patek Philippe filed a patent for the first silicon escape wheel for a Swiss lever escapement

Rolex created its new blue Parachrom hairspring made from a new alloy to resist magnetism and increase shock absorbance

Jaeger-LeCoultre are experimenting with new materials to reduce the need for lubrication ndash last year the Extreme Lab introduced the first watch ever that doesnt need any lubrication

Ultra light alloy ndash Mg and AlSome watches are already using new materials such as the Mag Bang with the AG5 alloy which is an ultra light alloy of magnesium and aluminium

Audemars Piguet has for years been a leader in the search for new and advanced materials The latest is the companys minute repeater programme where they are working with laboratories professors and students at the best universities to come up with new metals and designs that will enhance the sound of their minute repeaters

Ulysse Nardin recently unveiled its new Innovision watch a concept watch that combines the companys most daring innovations -from the silicon escapement first used in the Freak to new silicon parts (wheels bridges pinions etc) Ulysse Nardin is part owner of Sigatec SA the company responsible for the development of silicon technology in watch making

Ultra light alloy ndash Mg and Al

The Freak is one example of the way Ulysse Nardin makes things happen When Schneider made the first Freak it did not work because the mixture of materials was not right

Schneider was ready to abandon the new escapement but was talked into trying it another way We failed with the Freak with traditional materials he admits

When we failed with the Freak I wanted to go back to the anchor escapement Ludwig Oechslin our Chief Designer wanted to use the new escapement because he thought it was better So we decided to go forward in two different directions one with the anchor escapement and the other with the new escapement We met someone who had done work with silicon so we decided to try itrdquo

C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin

Ulysse Nardin is concentrating on manufacturing movement parts in silicon

One of the advantages of making parts from silicon is that the process allows complete freedom of design - just about any shape visualized can be realized

The use of silicon could very well change the way movements are designed because it removes some of the old limitations that were in place before In addition working in silicon means higher precision lighter weight and the material in its final form is very hard

New materials unique watchesSome watch companies are using new materials for aesthetic reasons like Gerald Gentas new Gefica which uses bronze in a striking way The use of innovative materials is a major factor in the creation of our watches particularly for Gerald Genta says Gerald Roden Chief Executive Officer of Daniel Roth and Gerald Genta We have long been investigating creative uses for innovative more so for aesthetics than for technical reasons

For quite some time we have experimented with combinations of materials such as carbon fibre aluminium and wood with rubber and even fish skinIn 2003 Gerald Genta was among the first to use unique metals such as palladium and tantalum for cases

We have developed a patent to use liquid ceramic for the Octo line and are currently working with metallurgists to develop other new and innovative metals for Gerald Genta We are also in the final test phases of creating an exciting new treatment for steel

Non Magnetic materials for movement components

Another movement design

Traditional mechanical movements use oils or grease to ensure smooth operations

These take the form of oils in varying degrees of fineness for parts with high translation or rotation speeds or grease for parts subject to high pressures or stresses

The properties of such oils and grease deteriorates over time and the performances of the movement likewise decline if these lubricants are not replaced in due time

Testing conducted during the 1970s on plastic movements had already shown the way towards doing without some of the oils and grease However these watches did not stand the test of time which resulted in wear on the parts that in turn rapidly diminished their chronometric and functional performances

In its ongoing search to enhance the reliability of mechanical movements Jaeger-LeCoultre had already renounced the use of lubrication in the ball-bearing mechanisms of automatic winding systems by introducing ceramic ball-bearings as early as 2002

Today the research team at the Manufacture in Le Sentier has innovated a mechanical movement run without any lubricant whatsoever This research has culminated in the brand-new Jaeger-LeCoultre Calibre 988C

Innovative mechanical movement without any lubricant

New materials in mechanical movements

The engineers and watchmakers have resorted to new materials and new combinations of materials for demanding challenge

The Easiumtrade carbonitride thus makes its way onto the watch making stage This extremely hard material features extraordinary tribological properties and is therefore particularly suited to the making bearings able to operate without lubricants

In Jaeger-LeCoultre Calibre 988C Easium replaces the traditional jewels lubricated with a fine oil The burnished steel pivots of the balance-staff are coated with a special surface treatment and turn inside an Easium bearing The endstone is also made from Easium This is also a material used to make the two bearings allowing the carriage to turn in the bridges without any need to add jewels that would require lubrication

Watchmakers are considering the black crystalline diamond a synthetic material as hard as natural diamonds but with considerably enhanced operational properties for replacing the red pallet-stones Its friction on the silicon teeth of the escape-wheel does not require any oil to improve its operation live All the burnished steel pivots of the wheels and pinions are coated with a surface treatment that obviates any need to oil the jewels

Mainspring barrel in mechanical movement grease replaced by graphite powder

On the other end of the movement the barrel grease has also disappeared Instead a graphite powder helps the bride to slide smoothly inside the drum when the mainspring has been wound beyond the maximum powerreserve by the automatic winding mechanism The molecular structure of graphite consists in a stack of micro-platelets contrary to grease it retains its lubricating properties over time whatever the temperature and the hygrometry level

As for the ball-bearing mechanism of the oscillating weight in addition to the use of ceramic ball bearings mentioned earlier friction has been reduced by optimising the rotor which features carbon fibre arms and a distinctly lighter and more rigid base

Finally the oscillating weight segment is surprising in itself with its iridium platinum alloy the densest non-toxic physical body currently machinableThe entire windingtime-setting mechanism is coated with Nickel-PTFEin order to eliminate the customary greasing points The date jumper-spring features a frictional surface that also operates in ldquodryrdquo mode

Balanced wheel design in mechanical movement

Arenrsquot the most efficient balances circular The latest research by Jaeger-LeCoultre proves the exact opposite

Lengthy testing has revealed the importance of the total surface of the balance on its aerodynamic performances The larger the surface the greater the aerodynamic friction and the more energy it takes to maintain the oscillations of the balance and spring ndash which is in turn detrimental to precision

The geometry devised by Jaeger-LeCoultre coupled with the use of an extremely dense material ndash in this case iridium platinum ndash minimises the surface in friction Thus given a constant level of inertia this balance requires less energy to oscillate than a traditional balance

Balance wheel design in an optimized mechanical movement

The geometry of the balance has also been designed to reduce the ratio between the mass and the inertia of the balance

High inertia ensures a stable regulator that is fairly insensitive to the vibrations and daily shocks to which a watch is subjected and which disturb its precision Nonetheless high inertia implies a higher balance mass leading to larger losses due to mechanical fiction and thus increased energy consumption to maintain the oscillations ndash as well as a larger difference in amplitude between horizontal and vertical positions

The balance of the Jaeger-LeCoultre Calibre 988C has been optimised in order to reduce total mass without modifying the determined inertia The shape of the arms the openings and the geometry enable a several-point gain in the massinertia ratio

This factor directly influences the variations in rate between different positions that are well-known to watchmakers due to the difference in amplitude between the ldquodial-uprdquo and ldquopendant-uprdquo positions The lower the massinertia ratio the smaller the differences between the various positions thus enabling the watchmaker to perform a more precise adjustment of the watch

Contribution to accuracy by the balance spring in a mechanical movement

The balance-spring beats in a perfectly concentric manner in order to guarantee ideal isochronism Not only does it feature the carefully calculated form of a Phillips terminal curve but the watchmakers have also created something they call a ldquobendrdquo in the centre The ldquobendrdquo is a distortion of the balance-spring at aspecific place close to the collet pinning-point and which at given moments modifies the rigidity of the spring and corrects the natural tendency of any spring to ldquobreatherdquo in an off-centred manner Only this winning combination of an outer Phillips terminal curve and a central ldquobendrdquo makes it possible to create a balance-spring that develops in a perfectly concentric way (meaning with symmetrical expansions and contractions in respect to the centre)

Precise adjustment of this movement is of course performed using screws placed on the balance This process now used on all the Jaeger-LeCoultre automatic calibres has replaced the traditional index assembly and ensures peerless initial reliability of the rate that thereby remains unperturbed over time even if the watch is accidentally jarred

To perfect the exceptional efficiency of this regulating organ the aerodynamic properties of the balance have been fine-tuned by bevelling the arms by streamlining the shape of the weights and by integrating adjustment screws inside the weights The escape-wheel is made from silicon which is considerably lighter than steel and thus also favourably influences efficiency

Tourbillon made from light alloys

A one-minute tourbillon houses this literally extraordinary regulator The tourbillon carriage is machined from blocks of a magnesium alloy that is two and a half times lighter than titanium and contributes to reducing energy losses due to friction and thus further improves the exceptional efficiency of the regulator

The cadence of 28800 vibrations per hour the high (115 mgcm2) inertia of the balance and the tourbillon together help guarantee theaccuracy of the watch

Application of various new processing technologies

physical vapour deposition (pvd)chemical vapour deposition (cvd)LIthographie Galvanoformung Adformung (LIGA)electroformingphotochemcial machining (pcm)etchellip

Current development worldwide Mimotec SA (Sion Switzerland)

MEMS Technology ndash DRIE Process

MEMS Technology ndash LIGA Process

LIGA = Lithographie Galvanoformung Adformung

LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre

a German acronym for rdquoLithographie Galvanoformung Abformungldquoin English (X-ray) Lithography Electroplating and Molding

one of the first major techniques to allow on-demand manufacturing of high-aspect-ratio structures (structures that are much taller than wide) with lateral precision below one micrometre This capability is important in the fabrication of MEMS devices Because of the high collimation of X-rays needed the source must be synchrotron light

There are today three different types of LIGA technologies differing in the radiation and preform usedi) X-Ray LIGA the first LIGA technology developed using X-Rays

produced by a synchrotron ii) UV-LIGA using ultraviolet light typically from a mercury lamp and

special resists like SU-8 and iii) Silicon-LIGA using deep reactive ion etched silicon as preform

Application of various new materials innovative products

synthetic diamondsingle crystal diamondcarbon fibrenew alloy

Carbon Fibre for watches

Carbon Fibre for watches

A 6 μm diameter carbon filament (running from bottom left to top right) compared to a human hair

Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre

A unique concept watch with

- A lubricant-free watch - Resistance to extreme temperatures - 40deg

+ 60deg

C

- Innovative character rewarded by six patents - Movement entirely redesigned and created by

2 years of intense development - High-tech design carbon and titanium case- Automatic tourbillon with a large variable inertiabalance (115mg x cm2) oscillating at a highfrequency of 28800 vibrationshour (4 hertz)

This watch will only be delivered andsold in limited quantities

Jaeger - Lecoultre

Traditional mechanical movements use oils or greases to ensure smooth operations

These take the form of oils in varying degrees of fineness for parts with high translation or rotation speeds or grease for parts subject to large pressures or stresses

The properties of such oils and grease deteriorates over time and the performances of the movement decline if these lubricants are not replaced in due time

Testing conducted during the 1970s on plastic movements had already shown the way towards doing without some of the oils and grease However these watches did not stand the test of time which resulted in wear on the parts that in turn rapidly diminished their chronometric and functional performances

In its ongoing search to enhance the reliability of mechanical movements Jaeger-LeCoultre had already renounced the use of lubrication in the ball-bearing mechanisms of automatic winding systems by introducing ceramic ball-bearings as early as 2002

Today the research team at the Manufacture in Le Sentier has innovated a mechanical movement run without any lubricant This research has culminated in the brand-new Jaeger-LeCoultre Calibre 988C

Innovative mechanical movements without oils amp greases

A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is

Inspired by the unshakeable conviction in the smallest details the watchmakers and designers of the Manufacture have raised the game of precision and functions to unprecedented levels of refinement

The aesthetics of the Master Compressor Extreme Lab reflect the technology within Its transparent dial reveals the heart of the horological mechanism featuring a particularly attractive graphic design characterised by subtle contrasts between the black aluminum of the open-worked centre bridge and the flange the white colour of the applied hanging numerals and hour-markers and the grey of the tourbillon bridge

The centre bridge is made from an aluminum alloy reinforced with particles of titanium carbide Ticaliumreg The mechanical hardness and resistance of this alloy are thus improved by 20 without increasing the density The casevisually reflects the movement with its association of carbon silicon carbonitrideand grade 5 titanium

The first feature covers its original structure featuring an interior carbon fibre case fitted inside a titanium ring The obvious advantage is a gain in weight but the resulting aesthetic effect is doubtless even more remarkable The case as a whole is topped by a bezel in silicon carbonitride a material that is lighter and more resistant than traditional ceramics

Watch suspension mounting

The second feature relates to the suspension mounting of the movement The silent-block made from a supple red polyurethane material not only serves to avoid any risk of water seeping into the crown tube but also mechanically isolates the movement and its Compressor crown

The calibre and winding-stem are thus mounted in a ldquofree-floatingrdquomanner and there is thus no metal to metal link between the movement and the case which means the watch mechanism is protected fromviolent shocks or vibrations

The red aluminum crown echoes the red elements on the dial the silent-block shock absorber and the strap

Jaeger-LeCoultre has also devoted special attention to the strap of this watch Its double-layered construction enhances both its robustness and its appearance The unusual combination of materials such as leather cordura canvasand alcantara reinforced by a composite strip lends this strap a three-dimensional appearance on a par with the case to which it is attached

Mechanical automatic movement Jaeger-LeCoultre Calibre 988C

307 parts

28800 vibrations per hour 4 hertzA barrelTourbillon with magnesium carriageTwo time zonesAMPM indication with local timeCentral pointer-type calendar displays that jumps over the tourbillon carriageMovement diameter 300 mmMovement thickness 705 mmCase diameter 450 mmCase thickness 1480 mmOperational between -40deg and +60degCNo oil no greaseIridium platinum oscillating weight with carbon baseBlack diamond pallet-stonesEasium jewels48-hour power reserveWater-resistant to 100 metresCrafted in carbon and titaniumExclusive limited annual productionReference Q179T470

New materials new solutionsMany watch brands are experimenting with new materials to enhance the technical aspects of their watches

Some companies like Patek Philippe and Rolex are working on new materials for springs and other parts

In 2005 Patek Philippe filed a patent for the first silicon escape wheel for a Swiss lever escapement

Rolex created its new blue Parachrom hairspring made from a new alloy to resist magnetism and increase shock absorbance

Jaeger-LeCoultre are experimenting with new materials to reduce the need for lubrication ndash last year the Extreme Lab introduced the first watch ever that doesnt need any lubrication

Ultra light alloy ndash Mg and AlSome watches are already using new materials such as the Mag Bang with the AG5 alloy which is an ultra light alloy of magnesium and aluminium

Audemars Piguet has for years been a leader in the search for new and advanced materials The latest is the companys minute repeater programme where they are working with laboratories professors and students at the best universities to come up with new metals and designs that will enhance the sound of their minute repeaters

Ulysse Nardin recently unveiled its new Innovision watch a concept watch that combines the companys most daring innovations -from the silicon escapement first used in the Freak to new silicon parts (wheels bridges pinions etc) Ulysse Nardin is part owner of Sigatec SA the company responsible for the development of silicon technology in watch making

Ultra light alloy ndash Mg and Al

The Freak is one example of the way Ulysse Nardin makes things happen When Schneider made the first Freak it did not work because the mixture of materials was not right

Schneider was ready to abandon the new escapement but was talked into trying it another way We failed with the Freak with traditional materials he admits

When we failed with the Freak I wanted to go back to the anchor escapement Ludwig Oechslin our Chief Designer wanted to use the new escapement because he thought it was better So we decided to go forward in two different directions one with the anchor escapement and the other with the new escapement We met someone who had done work with silicon so we decided to try itrdquo

C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin

Ulysse Nardin is concentrating on manufacturing movement parts in silicon

One of the advantages of making parts from silicon is that the process allows complete freedom of design - just about any shape visualized can be realized

The use of silicon could very well change the way movements are designed because it removes some of the old limitations that were in place before In addition working in silicon means higher precision lighter weight and the material in its final form is very hard

New materials unique watchesSome watch companies are using new materials for aesthetic reasons like Gerald Gentas new Gefica which uses bronze in a striking way The use of innovative materials is a major factor in the creation of our watches particularly for Gerald Genta says Gerald Roden Chief Executive Officer of Daniel Roth and Gerald Genta We have long been investigating creative uses for innovative more so for aesthetics than for technical reasons

For quite some time we have experimented with combinations of materials such as carbon fibre aluminium and wood with rubber and even fish skinIn 2003 Gerald Genta was among the first to use unique metals such as palladium and tantalum for cases

We have developed a patent to use liquid ceramic for the Octo line and are currently working with metallurgists to develop other new and innovative metals for Gerald Genta We are also in the final test phases of creating an exciting new treatment for steel

Non Magnetic materials for movement components

Another movement design

Traditional mechanical movements use oils or grease to ensure smooth operations

These take the form of oils in varying degrees of fineness for parts with high translation or rotation speeds or grease for parts subject to high pressures or stresses

The properties of such oils and grease deteriorates over time and the performances of the movement likewise decline if these lubricants are not replaced in due time

Testing conducted during the 1970s on plastic movements had already shown the way towards doing without some of the oils and grease However these watches did not stand the test of time which resulted in wear on the parts that in turn rapidly diminished their chronometric and functional performances

In its ongoing search to enhance the reliability of mechanical movements Jaeger-LeCoultre had already renounced the use of lubrication in the ball-bearing mechanisms of automatic winding systems by introducing ceramic ball-bearings as early as 2002

Today the research team at the Manufacture in Le Sentier has innovated a mechanical movement run without any lubricant whatsoever This research has culminated in the brand-new Jaeger-LeCoultre Calibre 988C

Innovative mechanical movement without any lubricant

New materials in mechanical movements

The engineers and watchmakers have resorted to new materials and new combinations of materials for demanding challenge

The Easiumtrade carbonitride thus makes its way onto the watch making stage This extremely hard material features extraordinary tribological properties and is therefore particularly suited to the making bearings able to operate without lubricants

In Jaeger-LeCoultre Calibre 988C Easium replaces the traditional jewels lubricated with a fine oil The burnished steel pivots of the balance-staff are coated with a special surface treatment and turn inside an Easium bearing The endstone is also made from Easium This is also a material used to make the two bearings allowing the carriage to turn in the bridges without any need to add jewels that would require lubrication

Watchmakers are considering the black crystalline diamond a synthetic material as hard as natural diamonds but with considerably enhanced operational properties for replacing the red pallet-stones Its friction on the silicon teeth of the escape-wheel does not require any oil to improve its operation live All the burnished steel pivots of the wheels and pinions are coated with a surface treatment that obviates any need to oil the jewels

Mainspring barrel in mechanical movement grease replaced by graphite powder

On the other end of the movement the barrel grease has also disappeared Instead a graphite powder helps the bride to slide smoothly inside the drum when the mainspring has been wound beyond the maximum powerreserve by the automatic winding mechanism The molecular structure of graphite consists in a stack of micro-platelets contrary to grease it retains its lubricating properties over time whatever the temperature and the hygrometry level

As for the ball-bearing mechanism of the oscillating weight in addition to the use of ceramic ball bearings mentioned earlier friction has been reduced by optimising the rotor which features carbon fibre arms and a distinctly lighter and more rigid base

Finally the oscillating weight segment is surprising in itself with its iridium platinum alloy the densest non-toxic physical body currently machinableThe entire windingtime-setting mechanism is coated with Nickel-PTFEin order to eliminate the customary greasing points The date jumper-spring features a frictional surface that also operates in ldquodryrdquo mode

Balanced wheel design in mechanical movement

Arenrsquot the most efficient balances circular The latest research by Jaeger-LeCoultre proves the exact opposite

Lengthy testing has revealed the importance of the total surface of the balance on its aerodynamic performances The larger the surface the greater the aerodynamic friction and the more energy it takes to maintain the oscillations of the balance and spring ndash which is in turn detrimental to precision

The geometry devised by Jaeger-LeCoultre coupled with the use of an extremely dense material ndash in this case iridium platinum ndash minimises the surface in friction Thus given a constant level of inertia this balance requires less energy to oscillate than a traditional balance

Balance wheel design in an optimized mechanical movement

The geometry of the balance has also been designed to reduce the ratio between the mass and the inertia of the balance

High inertia ensures a stable regulator that is fairly insensitive to the vibrations and daily shocks to which a watch is subjected and which disturb its precision Nonetheless high inertia implies a higher balance mass leading to larger losses due to mechanical fiction and thus increased energy consumption to maintain the oscillations ndash as well as a larger difference in amplitude between horizontal and vertical positions

The balance of the Jaeger-LeCoultre Calibre 988C has been optimised in order to reduce total mass without modifying the determined inertia The shape of the arms the openings and the geometry enable a several-point gain in the massinertia ratio

This factor directly influences the variations in rate between different positions that are well-known to watchmakers due to the difference in amplitude between the ldquodial-uprdquo and ldquopendant-uprdquo positions The lower the massinertia ratio the smaller the differences between the various positions thus enabling the watchmaker to perform a more precise adjustment of the watch

Contribution to accuracy by the balance spring in a mechanical movement

The balance-spring beats in a perfectly concentric manner in order to guarantee ideal isochronism Not only does it feature the carefully calculated form of a Phillips terminal curve but the watchmakers have also created something they call a ldquobendrdquo in the centre The ldquobendrdquo is a distortion of the balance-spring at aspecific place close to the collet pinning-point and which at given moments modifies the rigidity of the spring and corrects the natural tendency of any spring to ldquobreatherdquo in an off-centred manner Only this winning combination of an outer Phillips terminal curve and a central ldquobendrdquo makes it possible to create a balance-spring that develops in a perfectly concentric way (meaning with symmetrical expansions and contractions in respect to the centre)

Precise adjustment of this movement is of course performed using screws placed on the balance This process now used on all the Jaeger-LeCoultre automatic calibres has replaced the traditional index assembly and ensures peerless initial reliability of the rate that thereby remains unperturbed over time even if the watch is accidentally jarred

To perfect the exceptional efficiency of this regulating organ the aerodynamic properties of the balance have been fine-tuned by bevelling the arms by streamlining the shape of the weights and by integrating adjustment screws inside the weights The escape-wheel is made from silicon which is considerably lighter than steel and thus also favourably influences efficiency

Tourbillon made from light alloys

A one-minute tourbillon houses this literally extraordinary regulator The tourbillon carriage is machined from blocks of a magnesium alloy that is two and a half times lighter than titanium and contributes to reducing energy losses due to friction and thus further improves the exceptional efficiency of the regulator

The cadence of 28800 vibrations per hour the high (115 mgcm2) inertia of the balance and the tourbillon together help guarantee theaccuracy of the watch

Application of various new processing technologies

physical vapour deposition (pvd)chemical vapour deposition (cvd)LIthographie Galvanoformung Adformung (LIGA)electroformingphotochemcial machining (pcm)etchellip

Current development worldwide Mimotec SA (Sion Switzerland)

MEMS Technology ndash DRIE Process

MEMS Technology ndash LIGA Process

LIGA = Lithographie Galvanoformung Adformung

LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre

a German acronym for rdquoLithographie Galvanoformung Abformungldquoin English (X-ray) Lithography Electroplating and Molding

one of the first major techniques to allow on-demand manufacturing of high-aspect-ratio structures (structures that are much taller than wide) with lateral precision below one micrometre This capability is important in the fabrication of MEMS devices Because of the high collimation of X-rays needed the source must be synchrotron light

There are today three different types of LIGA technologies differing in the radiation and preform usedi) X-Ray LIGA the first LIGA technology developed using X-Rays

produced by a synchrotron ii) UV-LIGA using ultraviolet light typically from a mercury lamp and

special resists like SU-8 and iii) Silicon-LIGA using deep reactive ion etched silicon as preform

Carbon Fibre for watches

Carbon Fibre for watches

A 6 μm diameter carbon filament (running from bottom left to top right) compared to a human hair

Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre

A unique concept watch with

- A lubricant-free watch - Resistance to extreme temperatures - 40deg

+ 60deg

C

- Innovative character rewarded by six patents - Movement entirely redesigned and created by

2 years of intense development - High-tech design carbon and titanium case- Automatic tourbillon with a large variable inertiabalance (115mg x cm2) oscillating at a highfrequency of 28800 vibrationshour (4 hertz)

This watch will only be delivered andsold in limited quantities

Jaeger - Lecoultre

Traditional mechanical movements use oils or greases to ensure smooth operations

These take the form of oils in varying degrees of fineness for parts with high translation or rotation speeds or grease for parts subject to large pressures or stresses

The properties of such oils and grease deteriorates over time and the performances of the movement decline if these lubricants are not replaced in due time

Testing conducted during the 1970s on plastic movements had already shown the way towards doing without some of the oils and grease However these watches did not stand the test of time which resulted in wear on the parts that in turn rapidly diminished their chronometric and functional performances

In its ongoing search to enhance the reliability of mechanical movements Jaeger-LeCoultre had already renounced the use of lubrication in the ball-bearing mechanisms of automatic winding systems by introducing ceramic ball-bearings as early as 2002

Today the research team at the Manufacture in Le Sentier has innovated a mechanical movement run without any lubricant This research has culminated in the brand-new Jaeger-LeCoultre Calibre 988C

Innovative mechanical movements without oils amp greases

A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is

Inspired by the unshakeable conviction in the smallest details the watchmakers and designers of the Manufacture have raised the game of precision and functions to unprecedented levels of refinement

The aesthetics of the Master Compressor Extreme Lab reflect the technology within Its transparent dial reveals the heart of the horological mechanism featuring a particularly attractive graphic design characterised by subtle contrasts between the black aluminum of the open-worked centre bridge and the flange the white colour of the applied hanging numerals and hour-markers and the grey of the tourbillon bridge

The centre bridge is made from an aluminum alloy reinforced with particles of titanium carbide Ticaliumreg The mechanical hardness and resistance of this alloy are thus improved by 20 without increasing the density The casevisually reflects the movement with its association of carbon silicon carbonitrideand grade 5 titanium

The first feature covers its original structure featuring an interior carbon fibre case fitted inside a titanium ring The obvious advantage is a gain in weight but the resulting aesthetic effect is doubtless even more remarkable The case as a whole is topped by a bezel in silicon carbonitride a material that is lighter and more resistant than traditional ceramics

Watch suspension mounting

The second feature relates to the suspension mounting of the movement The silent-block made from a supple red polyurethane material not only serves to avoid any risk of water seeping into the crown tube but also mechanically isolates the movement and its Compressor crown

The calibre and winding-stem are thus mounted in a ldquofree-floatingrdquomanner and there is thus no metal to metal link between the movement and the case which means the watch mechanism is protected fromviolent shocks or vibrations

The red aluminum crown echoes the red elements on the dial the silent-block shock absorber and the strap

Jaeger-LeCoultre has also devoted special attention to the strap of this watch Its double-layered construction enhances both its robustness and its appearance The unusual combination of materials such as leather cordura canvasand alcantara reinforced by a composite strip lends this strap a three-dimensional appearance on a par with the case to which it is attached

Mechanical automatic movement Jaeger-LeCoultre Calibre 988C

307 parts

28800 vibrations per hour 4 hertzA barrelTourbillon with magnesium carriageTwo time zonesAMPM indication with local timeCentral pointer-type calendar displays that jumps over the tourbillon carriageMovement diameter 300 mmMovement thickness 705 mmCase diameter 450 mmCase thickness 1480 mmOperational between -40deg and +60degCNo oil no greaseIridium platinum oscillating weight with carbon baseBlack diamond pallet-stonesEasium jewels48-hour power reserveWater-resistant to 100 metresCrafted in carbon and titaniumExclusive limited annual productionReference Q179T470

New materials new solutionsMany watch brands are experimenting with new materials to enhance the technical aspects of their watches

Some companies like Patek Philippe and Rolex are working on new materials for springs and other parts

In 2005 Patek Philippe filed a patent for the first silicon escape wheel for a Swiss lever escapement

Rolex created its new blue Parachrom hairspring made from a new alloy to resist magnetism and increase shock absorbance

Jaeger-LeCoultre are experimenting with new materials to reduce the need for lubrication ndash last year the Extreme Lab introduced the first watch ever that doesnt need any lubrication

Ultra light alloy ndash Mg and AlSome watches are already using new materials such as the Mag Bang with the AG5 alloy which is an ultra light alloy of magnesium and aluminium

Audemars Piguet has for years been a leader in the search for new and advanced materials The latest is the companys minute repeater programme where they are working with laboratories professors and students at the best universities to come up with new metals and designs that will enhance the sound of their minute repeaters

Ulysse Nardin recently unveiled its new Innovision watch a concept watch that combines the companys most daring innovations -from the silicon escapement first used in the Freak to new silicon parts (wheels bridges pinions etc) Ulysse Nardin is part owner of Sigatec SA the company responsible for the development of silicon technology in watch making

Ultra light alloy ndash Mg and Al

The Freak is one example of the way Ulysse Nardin makes things happen When Schneider made the first Freak it did not work because the mixture of materials was not right

Schneider was ready to abandon the new escapement but was talked into trying it another way We failed with the Freak with traditional materials he admits

When we failed with the Freak I wanted to go back to the anchor escapement Ludwig Oechslin our Chief Designer wanted to use the new escapement because he thought it was better So we decided to go forward in two different directions one with the anchor escapement and the other with the new escapement We met someone who had done work with silicon so we decided to try itrdquo

C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin

Ulysse Nardin is concentrating on manufacturing movement parts in silicon

One of the advantages of making parts from silicon is that the process allows complete freedom of design - just about any shape visualized can be realized

The use of silicon could very well change the way movements are designed because it removes some of the old limitations that were in place before In addition working in silicon means higher precision lighter weight and the material in its final form is very hard

New materials unique watchesSome watch companies are using new materials for aesthetic reasons like Gerald Gentas new Gefica which uses bronze in a striking way The use of innovative materials is a major factor in the creation of our watches particularly for Gerald Genta says Gerald Roden Chief Executive Officer of Daniel Roth and Gerald Genta We have long been investigating creative uses for innovative more so for aesthetics than for technical reasons

For quite some time we have experimented with combinations of materials such as carbon fibre aluminium and wood with rubber and even fish skinIn 2003 Gerald Genta was among the first to use unique metals such as palladium and tantalum for cases

We have developed a patent to use liquid ceramic for the Octo line and are currently working with metallurgists to develop other new and innovative metals for Gerald Genta We are also in the final test phases of creating an exciting new treatment for steel

Non Magnetic materials for movement components

Another movement design

Traditional mechanical movements use oils or grease to ensure smooth operations

These take the form of oils in varying degrees of fineness for parts with high translation or rotation speeds or grease for parts subject to high pressures or stresses

The properties of such oils and grease deteriorates over time and the performances of the movement likewise decline if these lubricants are not replaced in due time

Testing conducted during the 1970s on plastic movements had already shown the way towards doing without some of the oils and grease However these watches did not stand the test of time which resulted in wear on the parts that in turn rapidly diminished their chronometric and functional performances

In its ongoing search to enhance the reliability of mechanical movements Jaeger-LeCoultre had already renounced the use of lubrication in the ball-bearing mechanisms of automatic winding systems by introducing ceramic ball-bearings as early as 2002

Today the research team at the Manufacture in Le Sentier has innovated a mechanical movement run without any lubricant whatsoever This research has culminated in the brand-new Jaeger-LeCoultre Calibre 988C

Innovative mechanical movement without any lubricant

New materials in mechanical movements

The engineers and watchmakers have resorted to new materials and new combinations of materials for demanding challenge

The Easiumtrade carbonitride thus makes its way onto the watch making stage This extremely hard material features extraordinary tribological properties and is therefore particularly suited to the making bearings able to operate without lubricants

In Jaeger-LeCoultre Calibre 988C Easium replaces the traditional jewels lubricated with a fine oil The burnished steel pivots of the balance-staff are coated with a special surface treatment and turn inside an Easium bearing The endstone is also made from Easium This is also a material used to make the two bearings allowing the carriage to turn in the bridges without any need to add jewels that would require lubrication

Watchmakers are considering the black crystalline diamond a synthetic material as hard as natural diamonds but with considerably enhanced operational properties for replacing the red pallet-stones Its friction on the silicon teeth of the escape-wheel does not require any oil to improve its operation live All the burnished steel pivots of the wheels and pinions are coated with a surface treatment that obviates any need to oil the jewels

Mainspring barrel in mechanical movement grease replaced by graphite powder

On the other end of the movement the barrel grease has also disappeared Instead a graphite powder helps the bride to slide smoothly inside the drum when the mainspring has been wound beyond the maximum powerreserve by the automatic winding mechanism The molecular structure of graphite consists in a stack of micro-platelets contrary to grease it retains its lubricating properties over time whatever the temperature and the hygrometry level

As for the ball-bearing mechanism of the oscillating weight in addition to the use of ceramic ball bearings mentioned earlier friction has been reduced by optimising the rotor which features carbon fibre arms and a distinctly lighter and more rigid base

Finally the oscillating weight segment is surprising in itself with its iridium platinum alloy the densest non-toxic physical body currently machinableThe entire windingtime-setting mechanism is coated with Nickel-PTFEin order to eliminate the customary greasing points The date jumper-spring features a frictional surface that also operates in ldquodryrdquo mode

Balanced wheel design in mechanical movement

Arenrsquot the most efficient balances circular The latest research by Jaeger-LeCoultre proves the exact opposite

Lengthy testing has revealed the importance of the total surface of the balance on its aerodynamic performances The larger the surface the greater the aerodynamic friction and the more energy it takes to maintain the oscillations of the balance and spring ndash which is in turn detrimental to precision

The geometry devised by Jaeger-LeCoultre coupled with the use of an extremely dense material ndash in this case iridium platinum ndash minimises the surface in friction Thus given a constant level of inertia this balance requires less energy to oscillate than a traditional balance

Balance wheel design in an optimized mechanical movement

The geometry of the balance has also been designed to reduce the ratio between the mass and the inertia of the balance

High inertia ensures a stable regulator that is fairly insensitive to the vibrations and daily shocks to which a watch is subjected and which disturb its precision Nonetheless high inertia implies a higher balance mass leading to larger losses due to mechanical fiction and thus increased energy consumption to maintain the oscillations ndash as well as a larger difference in amplitude between horizontal and vertical positions

The balance of the Jaeger-LeCoultre Calibre 988C has been optimised in order to reduce total mass without modifying the determined inertia The shape of the arms the openings and the geometry enable a several-point gain in the massinertia ratio

This factor directly influences the variations in rate between different positions that are well-known to watchmakers due to the difference in amplitude between the ldquodial-uprdquo and ldquopendant-uprdquo positions The lower the massinertia ratio the smaller the differences between the various positions thus enabling the watchmaker to perform a more precise adjustment of the watch

Contribution to accuracy by the balance spring in a mechanical movement

The balance-spring beats in a perfectly concentric manner in order to guarantee ideal isochronism Not only does it feature the carefully calculated form of a Phillips terminal curve but the watchmakers have also created something they call a ldquobendrdquo in the centre The ldquobendrdquo is a distortion of the balance-spring at aspecific place close to the collet pinning-point and which at given moments modifies the rigidity of the spring and corrects the natural tendency of any spring to ldquobreatherdquo in an off-centred manner Only this winning combination of an outer Phillips terminal curve and a central ldquobendrdquo makes it possible to create a balance-spring that develops in a perfectly concentric way (meaning with symmetrical expansions and contractions in respect to the centre)

Precise adjustment of this movement is of course performed using screws placed on the balance This process now used on all the Jaeger-LeCoultre automatic calibres has replaced the traditional index assembly and ensures peerless initial reliability of the rate that thereby remains unperturbed over time even if the watch is accidentally jarred

To perfect the exceptional efficiency of this regulating organ the aerodynamic properties of the balance have been fine-tuned by bevelling the arms by streamlining the shape of the weights and by integrating adjustment screws inside the weights The escape-wheel is made from silicon which is considerably lighter than steel and thus also favourably influences efficiency

Tourbillon made from light alloys

A one-minute tourbillon houses this literally extraordinary regulator The tourbillon carriage is machined from blocks of a magnesium alloy that is two and a half times lighter than titanium and contributes to reducing energy losses due to friction and thus further improves the exceptional efficiency of the regulator

The cadence of 28800 vibrations per hour the high (115 mgcm2) inertia of the balance and the tourbillon together help guarantee theaccuracy of the watch

Application of various new processing technologies

physical vapour deposition (pvd)chemical vapour deposition (cvd)LIthographie Galvanoformung Adformung (LIGA)electroformingphotochemcial machining (pcm)etchellip

Current development worldwide Mimotec SA (Sion Switzerland)

MEMS Technology ndash DRIE Process

MEMS Technology ndash LIGA Process

LIGA = Lithographie Galvanoformung Adformung

LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre

a German acronym for rdquoLithographie Galvanoformung Abformungldquoin English (X-ray) Lithography Electroplating and Molding

one of the first major techniques to allow on-demand manufacturing of high-aspect-ratio structures (structures that are much taller than wide) with lateral precision below one micrometre This capability is important in the fabrication of MEMS devices Because of the high collimation of X-rays needed the source must be synchrotron light

There are today three different types of LIGA technologies differing in the radiation and preform usedi) X-Ray LIGA the first LIGA technology developed using X-Rays

produced by a synchrotron ii) UV-LIGA using ultraviolet light typically from a mercury lamp and

special resists like SU-8 and iii) Silicon-LIGA using deep reactive ion etched silicon as preform

Carbon Fibre for watches

A 6 μm diameter carbon filament (running from bottom left to top right) compared to a human hair

Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre

A unique concept watch with

- A lubricant-free watch - Resistance to extreme temperatures - 40deg

+ 60deg

C

- Innovative character rewarded by six patents - Movement entirely redesigned and created by

2 years of intense development - High-tech design carbon and titanium case- Automatic tourbillon with a large variable inertiabalance (115mg x cm2) oscillating at a highfrequency of 28800 vibrationshour (4 hertz)

This watch will only be delivered andsold in limited quantities

Jaeger - Lecoultre

Traditional mechanical movements use oils or greases to ensure smooth operations

These take the form of oils in varying degrees of fineness for parts with high translation or rotation speeds or grease for parts subject to large pressures or stresses

The properties of such oils and grease deteriorates over time and the performances of the movement decline if these lubricants are not replaced in due time

Testing conducted during the 1970s on plastic movements had already shown the way towards doing without some of the oils and grease However these watches did not stand the test of time which resulted in wear on the parts that in turn rapidly diminished their chronometric and functional performances

In its ongoing search to enhance the reliability of mechanical movements Jaeger-LeCoultre had already renounced the use of lubrication in the ball-bearing mechanisms of automatic winding systems by introducing ceramic ball-bearings as early as 2002

Today the research team at the Manufacture in Le Sentier has innovated a mechanical movement run without any lubricant This research has culminated in the brand-new Jaeger-LeCoultre Calibre 988C

Innovative mechanical movements without oils amp greases

A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is

Inspired by the unshakeable conviction in the smallest details the watchmakers and designers of the Manufacture have raised the game of precision and functions to unprecedented levels of refinement

The aesthetics of the Master Compressor Extreme Lab reflect the technology within Its transparent dial reveals the heart of the horological mechanism featuring a particularly attractive graphic design characterised by subtle contrasts between the black aluminum of the open-worked centre bridge and the flange the white colour of the applied hanging numerals and hour-markers and the grey of the tourbillon bridge

The centre bridge is made from an aluminum alloy reinforced with particles of titanium carbide Ticaliumreg The mechanical hardness and resistance of this alloy are thus improved by 20 without increasing the density The casevisually reflects the movement with its association of carbon silicon carbonitrideand grade 5 titanium

The first feature covers its original structure featuring an interior carbon fibre case fitted inside a titanium ring The obvious advantage is a gain in weight but the resulting aesthetic effect is doubtless even more remarkable The case as a whole is topped by a bezel in silicon carbonitride a material that is lighter and more resistant than traditional ceramics

Watch suspension mounting

The second feature relates to the suspension mounting of the movement The silent-block made from a supple red polyurethane material not only serves to avoid any risk of water seeping into the crown tube but also mechanically isolates the movement and its Compressor crown

The calibre and winding-stem are thus mounted in a ldquofree-floatingrdquomanner and there is thus no metal to metal link between the movement and the case which means the watch mechanism is protected fromviolent shocks or vibrations

The red aluminum crown echoes the red elements on the dial the silent-block shock absorber and the strap

Jaeger-LeCoultre has also devoted special attention to the strap of this watch Its double-layered construction enhances both its robustness and its appearance The unusual combination of materials such as leather cordura canvasand alcantara reinforced by a composite strip lends this strap a three-dimensional appearance on a par with the case to which it is attached

Mechanical automatic movement Jaeger-LeCoultre Calibre 988C

307 parts

28800 vibrations per hour 4 hertzA barrelTourbillon with magnesium carriageTwo time zonesAMPM indication with local timeCentral pointer-type calendar displays that jumps over the tourbillon carriageMovement diameter 300 mmMovement thickness 705 mmCase diameter 450 mmCase thickness 1480 mmOperational between -40deg and +60degCNo oil no greaseIridium platinum oscillating weight with carbon baseBlack diamond pallet-stonesEasium jewels48-hour power reserveWater-resistant to 100 metresCrafted in carbon and titaniumExclusive limited annual productionReference Q179T470

New materials new solutionsMany watch brands are experimenting with new materials to enhance the technical aspects of their watches

Some companies like Patek Philippe and Rolex are working on new materials for springs and other parts

In 2005 Patek Philippe filed a patent for the first silicon escape wheel for a Swiss lever escapement

Rolex created its new blue Parachrom hairspring made from a new alloy to resist magnetism and increase shock absorbance

Jaeger-LeCoultre are experimenting with new materials to reduce the need for lubrication ndash last year the Extreme Lab introduced the first watch ever that doesnt need any lubrication

Ultra light alloy ndash Mg and AlSome watches are already using new materials such as the Mag Bang with the AG5 alloy which is an ultra light alloy of magnesium and aluminium

Audemars Piguet has for years been a leader in the search for new and advanced materials The latest is the companys minute repeater programme where they are working with laboratories professors and students at the best universities to come up with new metals and designs that will enhance the sound of their minute repeaters

Ulysse Nardin recently unveiled its new Innovision watch a concept watch that combines the companys most daring innovations -from the silicon escapement first used in the Freak to new silicon parts (wheels bridges pinions etc) Ulysse Nardin is part owner of Sigatec SA the company responsible for the development of silicon technology in watch making

Ultra light alloy ndash Mg and Al

The Freak is one example of the way Ulysse Nardin makes things happen When Schneider made the first Freak it did not work because the mixture of materials was not right

Schneider was ready to abandon the new escapement but was talked into trying it another way We failed with the Freak with traditional materials he admits

When we failed with the Freak I wanted to go back to the anchor escapement Ludwig Oechslin our Chief Designer wanted to use the new escapement because he thought it was better So we decided to go forward in two different directions one with the anchor escapement and the other with the new escapement We met someone who had done work with silicon so we decided to try itrdquo

C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin

Ulysse Nardin is concentrating on manufacturing movement parts in silicon

One of the advantages of making parts from silicon is that the process allows complete freedom of design - just about any shape visualized can be realized

The use of silicon could very well change the way movements are designed because it removes some of the old limitations that were in place before In addition working in silicon means higher precision lighter weight and the material in its final form is very hard

New materials unique watchesSome watch companies are using new materials for aesthetic reasons like Gerald Gentas new Gefica which uses bronze in a striking way The use of innovative materials is a major factor in the creation of our watches particularly for Gerald Genta says Gerald Roden Chief Executive Officer of Daniel Roth and Gerald Genta We have long been investigating creative uses for innovative more so for aesthetics than for technical reasons

For quite some time we have experimented with combinations of materials such as carbon fibre aluminium and wood with rubber and even fish skinIn 2003 Gerald Genta was among the first to use unique metals such as palladium and tantalum for cases

We have developed a patent to use liquid ceramic for the Octo line and are currently working with metallurgists to develop other new and innovative metals for Gerald Genta We are also in the final test phases of creating an exciting new treatment for steel

Non Magnetic materials for movement components

Another movement design

Traditional mechanical movements use oils or grease to ensure smooth operations

These take the form of oils in varying degrees of fineness for parts with high translation or rotation speeds or grease for parts subject to high pressures or stresses

The properties of such oils and grease deteriorates over time and the performances of the movement likewise decline if these lubricants are not replaced in due time

Testing conducted during the 1970s on plastic movements had already shown the way towards doing without some of the oils and grease However these watches did not stand the test of time which resulted in wear on the parts that in turn rapidly diminished their chronometric and functional performances

In its ongoing search to enhance the reliability of mechanical movements Jaeger-LeCoultre had already renounced the use of lubrication in the ball-bearing mechanisms of automatic winding systems by introducing ceramic ball-bearings as early as 2002

Today the research team at the Manufacture in Le Sentier has innovated a mechanical movement run without any lubricant whatsoever This research has culminated in the brand-new Jaeger-LeCoultre Calibre 988C

Innovative mechanical movement without any lubricant

New materials in mechanical movements

The engineers and watchmakers have resorted to new materials and new combinations of materials for demanding challenge

The Easiumtrade carbonitride thus makes its way onto the watch making stage This extremely hard material features extraordinary tribological properties and is therefore particularly suited to the making bearings able to operate without lubricants

In Jaeger-LeCoultre Calibre 988C Easium replaces the traditional jewels lubricated with a fine oil The burnished steel pivots of the balance-staff are coated with a special surface treatment and turn inside an Easium bearing The endstone is also made from Easium This is also a material used to make the two bearings allowing the carriage to turn in the bridges without any need to add jewels that would require lubrication

Watchmakers are considering the black crystalline diamond a synthetic material as hard as natural diamonds but with considerably enhanced operational properties for replacing the red pallet-stones Its friction on the silicon teeth of the escape-wheel does not require any oil to improve its operation live All the burnished steel pivots of the wheels and pinions are coated with a surface treatment that obviates any need to oil the jewels

Mainspring barrel in mechanical movement grease replaced by graphite powder

On the other end of the movement the barrel grease has also disappeared Instead a graphite powder helps the bride to slide smoothly inside the drum when the mainspring has been wound beyond the maximum powerreserve by the automatic winding mechanism The molecular structure of graphite consists in a stack of micro-platelets contrary to grease it retains its lubricating properties over time whatever the temperature and the hygrometry level

As for the ball-bearing mechanism of the oscillating weight in addition to the use of ceramic ball bearings mentioned earlier friction has been reduced by optimising the rotor which features carbon fibre arms and a distinctly lighter and more rigid base

Finally the oscillating weight segment is surprising in itself with its iridium platinum alloy the densest non-toxic physical body currently machinableThe entire windingtime-setting mechanism is coated with Nickel-PTFEin order to eliminate the customary greasing points The date jumper-spring features a frictional surface that also operates in ldquodryrdquo mode

Balanced wheel design in mechanical movement

Arenrsquot the most efficient balances circular The latest research by Jaeger-LeCoultre proves the exact opposite

Lengthy testing has revealed the importance of the total surface of the balance on its aerodynamic performances The larger the surface the greater the aerodynamic friction and the more energy it takes to maintain the oscillations of the balance and spring ndash which is in turn detrimental to precision

The geometry devised by Jaeger-LeCoultre coupled with the use of an extremely dense material ndash in this case iridium platinum ndash minimises the surface in friction Thus given a constant level of inertia this balance requires less energy to oscillate than a traditional balance

Balance wheel design in an optimized mechanical movement

The geometry of the balance has also been designed to reduce the ratio between the mass and the inertia of the balance

High inertia ensures a stable regulator that is fairly insensitive to the vibrations and daily shocks to which a watch is subjected and which disturb its precision Nonetheless high inertia implies a higher balance mass leading to larger losses due to mechanical fiction and thus increased energy consumption to maintain the oscillations ndash as well as a larger difference in amplitude between horizontal and vertical positions

The balance of the Jaeger-LeCoultre Calibre 988C has been optimised in order to reduce total mass without modifying the determined inertia The shape of the arms the openings and the geometry enable a several-point gain in the massinertia ratio

This factor directly influences the variations in rate between different positions that are well-known to watchmakers due to the difference in amplitude between the ldquodial-uprdquo and ldquopendant-uprdquo positions The lower the massinertia ratio the smaller the differences between the various positions thus enabling the watchmaker to perform a more precise adjustment of the watch

Contribution to accuracy by the balance spring in a mechanical movement

The balance-spring beats in a perfectly concentric manner in order to guarantee ideal isochronism Not only does it feature the carefully calculated form of a Phillips terminal curve but the watchmakers have also created something they call a ldquobendrdquo in the centre The ldquobendrdquo is a distortion of the balance-spring at aspecific place close to the collet pinning-point and which at given moments modifies the rigidity of the spring and corrects the natural tendency of any spring to ldquobreatherdquo in an off-centred manner Only this winning combination of an outer Phillips terminal curve and a central ldquobendrdquo makes it possible to create a balance-spring that develops in a perfectly concentric way (meaning with symmetrical expansions and contractions in respect to the centre)

Precise adjustment of this movement is of course performed using screws placed on the balance This process now used on all the Jaeger-LeCoultre automatic calibres has replaced the traditional index assembly and ensures peerless initial reliability of the rate that thereby remains unperturbed over time even if the watch is accidentally jarred

To perfect the exceptional efficiency of this regulating organ the aerodynamic properties of the balance have been fine-tuned by bevelling the arms by streamlining the shape of the weights and by integrating adjustment screws inside the weights The escape-wheel is made from silicon which is considerably lighter than steel and thus also favourably influences efficiency

Tourbillon made from light alloys

A one-minute tourbillon houses this literally extraordinary regulator The tourbillon carriage is machined from blocks of a magnesium alloy that is two and a half times lighter than titanium and contributes to reducing energy losses due to friction and thus further improves the exceptional efficiency of the regulator

The cadence of 28800 vibrations per hour the high (115 mgcm2) inertia of the balance and the tourbillon together help guarantee theaccuracy of the watch

Application of various new processing technologies

physical vapour deposition (pvd)chemical vapour deposition (cvd)LIthographie Galvanoformung Adformung (LIGA)electroformingphotochemcial machining (pcm)etchellip

Current development worldwide Mimotec SA (Sion Switzerland)

MEMS Technology ndash DRIE Process

MEMS Technology ndash LIGA Process

LIGA = Lithographie Galvanoformung Adformung

LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre

a German acronym for rdquoLithographie Galvanoformung Abformungldquoin English (X-ray) Lithography Electroplating and Molding

one of the first major techniques to allow on-demand manufacturing of high-aspect-ratio structures (structures that are much taller than wide) with lateral precision below one micrometre This capability is important in the fabrication of MEMS devices Because of the high collimation of X-rays needed the source must be synchrotron light

There are today three different types of LIGA technologies differing in the radiation and preform usedi) X-Ray LIGA the first LIGA technology developed using X-Rays

produced by a synchrotron ii) UV-LIGA using ultraviolet light typically from a mercury lamp and

special resists like SU-8 and iii) Silicon-LIGA using deep reactive ion etched silicon as preform

Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre

A unique concept watch with

- A lubricant-free watch - Resistance to extreme temperatures - 40deg

+ 60deg

C

- Innovative character rewarded by six patents - Movement entirely redesigned and created by

2 years of intense development - High-tech design carbon and titanium case- Automatic tourbillon with a large variable inertiabalance (115mg x cm2) oscillating at a highfrequency of 28800 vibrationshour (4 hertz)

This watch will only be delivered andsold in limited quantities

Jaeger - Lecoultre

Traditional mechanical movements use oils or greases to ensure smooth operations

These take the form of oils in varying degrees of fineness for parts with high translation or rotation speeds or grease for parts subject to large pressures or stresses

The properties of such oils and grease deteriorates over time and the performances of the movement decline if these lubricants are not replaced in due time

Testing conducted during the 1970s on plastic movements had already shown the way towards doing without some of the oils and grease However these watches did not stand the test of time which resulted in wear on the parts that in turn rapidly diminished their chronometric and functional performances

In its ongoing search to enhance the reliability of mechanical movements Jaeger-LeCoultre had already renounced the use of lubrication in the ball-bearing mechanisms of automatic winding systems by introducing ceramic ball-bearings as early as 2002

Today the research team at the Manufacture in Le Sentier has innovated a mechanical movement run without any lubricant This research has culminated in the brand-new Jaeger-LeCoultre Calibre 988C

Innovative mechanical movements without oils amp greases

A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is

Inspired by the unshakeable conviction in the smallest details the watchmakers and designers of the Manufacture have raised the game of precision and functions to unprecedented levels of refinement

The aesthetics of the Master Compressor Extreme Lab reflect the technology within Its transparent dial reveals the heart of the horological mechanism featuring a particularly attractive graphic design characterised by subtle contrasts between the black aluminum of the open-worked centre bridge and the flange the white colour of the applied hanging numerals and hour-markers and the grey of the tourbillon bridge

The centre bridge is made from an aluminum alloy reinforced with particles of titanium carbide Ticaliumreg The mechanical hardness and resistance of this alloy are thus improved by 20 without increasing the density The casevisually reflects the movement with its association of carbon silicon carbonitrideand grade 5 titanium

The first feature covers its original structure featuring an interior carbon fibre case fitted inside a titanium ring The obvious advantage is a gain in weight but the resulting aesthetic effect is doubtless even more remarkable The case as a whole is topped by a bezel in silicon carbonitride a material that is lighter and more resistant than traditional ceramics

Watch suspension mounting

The second feature relates to the suspension mounting of the movement The silent-block made from a supple red polyurethane material not only serves to avoid any risk of water seeping into the crown tube but also mechanically isolates the movement and its Compressor crown

The calibre and winding-stem are thus mounted in a ldquofree-floatingrdquomanner and there is thus no metal to metal link between the movement and the case which means the watch mechanism is protected fromviolent shocks or vibrations

The red aluminum crown echoes the red elements on the dial the silent-block shock absorber and the strap

Jaeger-LeCoultre has also devoted special attention to the strap of this watch Its double-layered construction enhances both its robustness and its appearance The unusual combination of materials such as leather cordura canvasand alcantara reinforced by a composite strip lends this strap a three-dimensional appearance on a par with the case to which it is attached

Mechanical automatic movement Jaeger-LeCoultre Calibre 988C

307 parts

28800 vibrations per hour 4 hertzA barrelTourbillon with magnesium carriageTwo time zonesAMPM indication with local timeCentral pointer-type calendar displays that jumps over the tourbillon carriageMovement diameter 300 mmMovement thickness 705 mmCase diameter 450 mmCase thickness 1480 mmOperational between -40deg and +60degCNo oil no greaseIridium platinum oscillating weight with carbon baseBlack diamond pallet-stonesEasium jewels48-hour power reserveWater-resistant to 100 metresCrafted in carbon and titaniumExclusive limited annual productionReference Q179T470

New materials new solutionsMany watch brands are experimenting with new materials to enhance the technical aspects of their watches

Some companies like Patek Philippe and Rolex are working on new materials for springs and other parts

In 2005 Patek Philippe filed a patent for the first silicon escape wheel for a Swiss lever escapement

Rolex created its new blue Parachrom hairspring made from a new alloy to resist magnetism and increase shock absorbance

Jaeger-LeCoultre are experimenting with new materials to reduce the need for lubrication ndash last year the Extreme Lab introduced the first watch ever that doesnt need any lubrication

Ultra light alloy ndash Mg and AlSome watches are already using new materials such as the Mag Bang with the AG5 alloy which is an ultra light alloy of magnesium and aluminium

Audemars Piguet has for years been a leader in the search for new and advanced materials The latest is the companys minute repeater programme where they are working with laboratories professors and students at the best universities to come up with new metals and designs that will enhance the sound of their minute repeaters

Ulysse Nardin recently unveiled its new Innovision watch a concept watch that combines the companys most daring innovations -from the silicon escapement first used in the Freak to new silicon parts (wheels bridges pinions etc) Ulysse Nardin is part owner of Sigatec SA the company responsible for the development of silicon technology in watch making

Ultra light alloy ndash Mg and Al

The Freak is one example of the way Ulysse Nardin makes things happen When Schneider made the first Freak it did not work because the mixture of materials was not right

Schneider was ready to abandon the new escapement but was talked into trying it another way We failed with the Freak with traditional materials he admits

When we failed with the Freak I wanted to go back to the anchor escapement Ludwig Oechslin our Chief Designer wanted to use the new escapement because he thought it was better So we decided to go forward in two different directions one with the anchor escapement and the other with the new escapement We met someone who had done work with silicon so we decided to try itrdquo

C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin

Ulysse Nardin is concentrating on manufacturing movement parts in silicon

One of the advantages of making parts from silicon is that the process allows complete freedom of design - just about any shape visualized can be realized

The use of silicon could very well change the way movements are designed because it removes some of the old limitations that were in place before In addition working in silicon means higher precision lighter weight and the material in its final form is very hard

New materials unique watchesSome watch companies are using new materials for aesthetic reasons like Gerald Gentas new Gefica which uses bronze in a striking way The use of innovative materials is a major factor in the creation of our watches particularly for Gerald Genta says Gerald Roden Chief Executive Officer of Daniel Roth and Gerald Genta We have long been investigating creative uses for innovative more so for aesthetics than for technical reasons

For quite some time we have experimented with combinations of materials such as carbon fibre aluminium and wood with rubber and even fish skinIn 2003 Gerald Genta was among the first to use unique metals such as palladium and tantalum for cases

We have developed a patent to use liquid ceramic for the Octo line and are currently working with metallurgists to develop other new and innovative metals for Gerald Genta We are also in the final test phases of creating an exciting new treatment for steel

Non Magnetic materials for movement components

Another movement design

Traditional mechanical movements use oils or grease to ensure smooth operations

These take the form of oils in varying degrees of fineness for parts with high translation or rotation speeds or grease for parts subject to high pressures or stresses

The properties of such oils and grease deteriorates over time and the performances of the movement likewise decline if these lubricants are not replaced in due time

Testing conducted during the 1970s on plastic movements had already shown the way towards doing without some of the oils and grease However these watches did not stand the test of time which resulted in wear on the parts that in turn rapidly diminished their chronometric and functional performances

In its ongoing search to enhance the reliability of mechanical movements Jaeger-LeCoultre had already renounced the use of lubrication in the ball-bearing mechanisms of automatic winding systems by introducing ceramic ball-bearings as early as 2002

Today the research team at the Manufacture in Le Sentier has innovated a mechanical movement run without any lubricant whatsoever This research has culminated in the brand-new Jaeger-LeCoultre Calibre 988C

Innovative mechanical movement without any lubricant

New materials in mechanical movements

The engineers and watchmakers have resorted to new materials and new combinations of materials for demanding challenge

The Easiumtrade carbonitride thus makes its way onto the watch making stage This extremely hard material features extraordinary tribological properties and is therefore particularly suited to the making bearings able to operate without lubricants

In Jaeger-LeCoultre Calibre 988C Easium replaces the traditional jewels lubricated with a fine oil The burnished steel pivots of the balance-staff are coated with a special surface treatment and turn inside an Easium bearing The endstone is also made from Easium This is also a material used to make the two bearings allowing the carriage to turn in the bridges without any need to add jewels that would require lubrication

Watchmakers are considering the black crystalline diamond a synthetic material as hard as natural diamonds but with considerably enhanced operational properties for replacing the red pallet-stones Its friction on the silicon teeth of the escape-wheel does not require any oil to improve its operation live All the burnished steel pivots of the wheels and pinions are coated with a surface treatment that obviates any need to oil the jewels

Mainspring barrel in mechanical movement grease replaced by graphite powder

On the other end of the movement the barrel grease has also disappeared Instead a graphite powder helps the bride to slide smoothly inside the drum when the mainspring has been wound beyond the maximum powerreserve by the automatic winding mechanism The molecular structure of graphite consists in a stack of micro-platelets contrary to grease it retains its lubricating properties over time whatever the temperature and the hygrometry level

As for the ball-bearing mechanism of the oscillating weight in addition to the use of ceramic ball bearings mentioned earlier friction has been reduced by optimising the rotor which features carbon fibre arms and a distinctly lighter and more rigid base

Finally the oscillating weight segment is surprising in itself with its iridium platinum alloy the densest non-toxic physical body currently machinableThe entire windingtime-setting mechanism is coated with Nickel-PTFEin order to eliminate the customary greasing points The date jumper-spring features a frictional surface that also operates in ldquodryrdquo mode

Balanced wheel design in mechanical movement

Arenrsquot the most efficient balances circular The latest research by Jaeger-LeCoultre proves the exact opposite

Lengthy testing has revealed the importance of the total surface of the balance on its aerodynamic performances The larger the surface the greater the aerodynamic friction and the more energy it takes to maintain the oscillations of the balance and spring ndash which is in turn detrimental to precision

The geometry devised by Jaeger-LeCoultre coupled with the use of an extremely dense material ndash in this case iridium platinum ndash minimises the surface in friction Thus given a constant level of inertia this balance requires less energy to oscillate than a traditional balance

Balance wheel design in an optimized mechanical movement

The geometry of the balance has also been designed to reduce the ratio between the mass and the inertia of the balance

High inertia ensures a stable regulator that is fairly insensitive to the vibrations and daily shocks to which a watch is subjected and which disturb its precision Nonetheless high inertia implies a higher balance mass leading to larger losses due to mechanical fiction and thus increased energy consumption to maintain the oscillations ndash as well as a larger difference in amplitude between horizontal and vertical positions

The balance of the Jaeger-LeCoultre Calibre 988C has been optimised in order to reduce total mass without modifying the determined inertia The shape of the arms the openings and the geometry enable a several-point gain in the massinertia ratio

This factor directly influences the variations in rate between different positions that are well-known to watchmakers due to the difference in amplitude between the ldquodial-uprdquo and ldquopendant-uprdquo positions The lower the massinertia ratio the smaller the differences between the various positions thus enabling the watchmaker to perform a more precise adjustment of the watch

Contribution to accuracy by the balance spring in a mechanical movement

The balance-spring beats in a perfectly concentric manner in order to guarantee ideal isochronism Not only does it feature the carefully calculated form of a Phillips terminal curve but the watchmakers have also created something they call a ldquobendrdquo in the centre The ldquobendrdquo is a distortion of the balance-spring at aspecific place close to the collet pinning-point and which at given moments modifies the rigidity of the spring and corrects the natural tendency of any spring to ldquobreatherdquo in an off-centred manner Only this winning combination of an outer Phillips terminal curve and a central ldquobendrdquo makes it possible to create a balance-spring that develops in a perfectly concentric way (meaning with symmetrical expansions and contractions in respect to the centre)

Precise adjustment of this movement is of course performed using screws placed on the balance This process now used on all the Jaeger-LeCoultre automatic calibres has replaced the traditional index assembly and ensures peerless initial reliability of the rate that thereby remains unperturbed over time even if the watch is accidentally jarred

To perfect the exceptional efficiency of this regulating organ the aerodynamic properties of the balance have been fine-tuned by bevelling the arms by streamlining the shape of the weights and by integrating adjustment screws inside the weights The escape-wheel is made from silicon which is considerably lighter than steel and thus also favourably influences efficiency

Tourbillon made from light alloys

A one-minute tourbillon houses this literally extraordinary regulator The tourbillon carriage is machined from blocks of a magnesium alloy that is two and a half times lighter than titanium and contributes to reducing energy losses due to friction and thus further improves the exceptional efficiency of the regulator

The cadence of 28800 vibrations per hour the high (115 mgcm2) inertia of the balance and the tourbillon together help guarantee theaccuracy of the watch

Application of various new processing technologies

physical vapour deposition (pvd)chemical vapour deposition (cvd)LIthographie Galvanoformung Adformung (LIGA)electroformingphotochemcial machining (pcm)etchellip

Current development worldwide Mimotec SA (Sion Switzerland)

MEMS Technology ndash DRIE Process

MEMS Technology ndash LIGA Process

LIGA = Lithographie Galvanoformung Adformung

LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre

a German acronym for rdquoLithographie Galvanoformung Abformungldquoin English (X-ray) Lithography Electroplating and Molding

one of the first major techniques to allow on-demand manufacturing of high-aspect-ratio structures (structures that are much taller than wide) with lateral precision below one micrometre This capability is important in the fabrication of MEMS devices Because of the high collimation of X-rays needed the source must be synchrotron light

There are today three different types of LIGA technologies differing in the radiation and preform usedi) X-Ray LIGA the first LIGA technology developed using X-Rays

produced by a synchrotron ii) UV-LIGA using ultraviolet light typically from a mercury lamp and

special resists like SU-8 and iii) Silicon-LIGA using deep reactive ion etched silicon as preform

Jaeger - Lecoultre

Traditional mechanical movements use oils or greases to ensure smooth operations

These take the form of oils in varying degrees of fineness for parts with high translation or rotation speeds or grease for parts subject to large pressures or stresses

The properties of such oils and grease deteriorates over time and the performances of the movement decline if these lubricants are not replaced in due time

Testing conducted during the 1970s on plastic movements had already shown the way towards doing without some of the oils and grease However these watches did not stand the test of time which resulted in wear on the parts that in turn rapidly diminished their chronometric and functional performances

In its ongoing search to enhance the reliability of mechanical movements Jaeger-LeCoultre had already renounced the use of lubrication in the ball-bearing mechanisms of automatic winding systems by introducing ceramic ball-bearings as early as 2002

Today the research team at the Manufacture in Le Sentier has innovated a mechanical movement run without any lubricant This research has culminated in the brand-new Jaeger-LeCoultre Calibre 988C

Innovative mechanical movements without oils amp greases

A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is

Inspired by the unshakeable conviction in the smallest details the watchmakers and designers of the Manufacture have raised the game of precision and functions to unprecedented levels of refinement

The aesthetics of the Master Compressor Extreme Lab reflect the technology within Its transparent dial reveals the heart of the horological mechanism featuring a particularly attractive graphic design characterised by subtle contrasts between the black aluminum of the open-worked centre bridge and the flange the white colour of the applied hanging numerals and hour-markers and the grey of the tourbillon bridge

The centre bridge is made from an aluminum alloy reinforced with particles of titanium carbide Ticaliumreg The mechanical hardness and resistance of this alloy are thus improved by 20 without increasing the density The casevisually reflects the movement with its association of carbon silicon carbonitrideand grade 5 titanium

The first feature covers its original structure featuring an interior carbon fibre case fitted inside a titanium ring The obvious advantage is a gain in weight but the resulting aesthetic effect is doubtless even more remarkable The case as a whole is topped by a bezel in silicon carbonitride a material that is lighter and more resistant than traditional ceramics

Watch suspension mounting

The second feature relates to the suspension mounting of the movement The silent-block made from a supple red polyurethane material not only serves to avoid any risk of water seeping into the crown tube but also mechanically isolates the movement and its Compressor crown

The calibre and winding-stem are thus mounted in a ldquofree-floatingrdquomanner and there is thus no metal to metal link between the movement and the case which means the watch mechanism is protected fromviolent shocks or vibrations

The red aluminum crown echoes the red elements on the dial the silent-block shock absorber and the strap

Jaeger-LeCoultre has also devoted special attention to the strap of this watch Its double-layered construction enhances both its robustness and its appearance The unusual combination of materials such as leather cordura canvasand alcantara reinforced by a composite strip lends this strap a three-dimensional appearance on a par with the case to which it is attached

Mechanical automatic movement Jaeger-LeCoultre Calibre 988C

307 parts

28800 vibrations per hour 4 hertzA barrelTourbillon with magnesium carriageTwo time zonesAMPM indication with local timeCentral pointer-type calendar displays that jumps over the tourbillon carriageMovement diameter 300 mmMovement thickness 705 mmCase diameter 450 mmCase thickness 1480 mmOperational between -40deg and +60degCNo oil no greaseIridium platinum oscillating weight with carbon baseBlack diamond pallet-stonesEasium jewels48-hour power reserveWater-resistant to 100 metresCrafted in carbon and titaniumExclusive limited annual productionReference Q179T470

New materials new solutionsMany watch brands are experimenting with new materials to enhance the technical aspects of their watches

Some companies like Patek Philippe and Rolex are working on new materials for springs and other parts

In 2005 Patek Philippe filed a patent for the first silicon escape wheel for a Swiss lever escapement

Rolex created its new blue Parachrom hairspring made from a new alloy to resist magnetism and increase shock absorbance

Jaeger-LeCoultre are experimenting with new materials to reduce the need for lubrication ndash last year the Extreme Lab introduced the first watch ever that doesnt need any lubrication

Ultra light alloy ndash Mg and AlSome watches are already using new materials such as the Mag Bang with the AG5 alloy which is an ultra light alloy of magnesium and aluminium

Audemars Piguet has for years been a leader in the search for new and advanced materials The latest is the companys minute repeater programme where they are working with laboratories professors and students at the best universities to come up with new metals and designs that will enhance the sound of their minute repeaters

Ulysse Nardin recently unveiled its new Innovision watch a concept watch that combines the companys most daring innovations -from the silicon escapement first used in the Freak to new silicon parts (wheels bridges pinions etc) Ulysse Nardin is part owner of Sigatec SA the company responsible for the development of silicon technology in watch making

Ultra light alloy ndash Mg and Al

The Freak is one example of the way Ulysse Nardin makes things happen When Schneider made the first Freak it did not work because the mixture of materials was not right

Schneider was ready to abandon the new escapement but was talked into trying it another way We failed with the Freak with traditional materials he admits

When we failed with the Freak I wanted to go back to the anchor escapement Ludwig Oechslin our Chief Designer wanted to use the new escapement because he thought it was better So we decided to go forward in two different directions one with the anchor escapement and the other with the new escapement We met someone who had done work with silicon so we decided to try itrdquo

C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin

Ulysse Nardin is concentrating on manufacturing movement parts in silicon

One of the advantages of making parts from silicon is that the process allows complete freedom of design - just about any shape visualized can be realized

The use of silicon could very well change the way movements are designed because it removes some of the old limitations that were in place before In addition working in silicon means higher precision lighter weight and the material in its final form is very hard

New materials unique watchesSome watch companies are using new materials for aesthetic reasons like Gerald Gentas new Gefica which uses bronze in a striking way The use of innovative materials is a major factor in the creation of our watches particularly for Gerald Genta says Gerald Roden Chief Executive Officer of Daniel Roth and Gerald Genta We have long been investigating creative uses for innovative more so for aesthetics than for technical reasons

For quite some time we have experimented with combinations of materials such as carbon fibre aluminium and wood with rubber and even fish skinIn 2003 Gerald Genta was among the first to use unique metals such as palladium and tantalum for cases

We have developed a patent to use liquid ceramic for the Octo line and are currently working with metallurgists to develop other new and innovative metals for Gerald Genta We are also in the final test phases of creating an exciting new treatment for steel

Non Magnetic materials for movement components

Another movement design

Traditional mechanical movements use oils or grease to ensure smooth operations

These take the form of oils in varying degrees of fineness for parts with high translation or rotation speeds or grease for parts subject to high pressures or stresses

The properties of such oils and grease deteriorates over time and the performances of the movement likewise decline if these lubricants are not replaced in due time

Testing conducted during the 1970s on plastic movements had already shown the way towards doing without some of the oils and grease However these watches did not stand the test of time which resulted in wear on the parts that in turn rapidly diminished their chronometric and functional performances

In its ongoing search to enhance the reliability of mechanical movements Jaeger-LeCoultre had already renounced the use of lubrication in the ball-bearing mechanisms of automatic winding systems by introducing ceramic ball-bearings as early as 2002

Today the research team at the Manufacture in Le Sentier has innovated a mechanical movement run without any lubricant whatsoever This research has culminated in the brand-new Jaeger-LeCoultre Calibre 988C

Innovative mechanical movement without any lubricant

New materials in mechanical movements

The engineers and watchmakers have resorted to new materials and new combinations of materials for demanding challenge

The Easiumtrade carbonitride thus makes its way onto the watch making stage This extremely hard material features extraordinary tribological properties and is therefore particularly suited to the making bearings able to operate without lubricants

In Jaeger-LeCoultre Calibre 988C Easium replaces the traditional jewels lubricated with a fine oil The burnished steel pivots of the balance-staff are coated with a special surface treatment and turn inside an Easium bearing The endstone is also made from Easium This is also a material used to make the two bearings allowing the carriage to turn in the bridges without any need to add jewels that would require lubrication

Watchmakers are considering the black crystalline diamond a synthetic material as hard as natural diamonds but with considerably enhanced operational properties for replacing the red pallet-stones Its friction on the silicon teeth of the escape-wheel does not require any oil to improve its operation live All the burnished steel pivots of the wheels and pinions are coated with a surface treatment that obviates any need to oil the jewels

Mainspring barrel in mechanical movement grease replaced by graphite powder

On the other end of the movement the barrel grease has also disappeared Instead a graphite powder helps the bride to slide smoothly inside the drum when the mainspring has been wound beyond the maximum powerreserve by the automatic winding mechanism The molecular structure of graphite consists in a stack of micro-platelets contrary to grease it retains its lubricating properties over time whatever the temperature and the hygrometry level

As for the ball-bearing mechanism of the oscillating weight in addition to the use of ceramic ball bearings mentioned earlier friction has been reduced by optimising the rotor which features carbon fibre arms and a distinctly lighter and more rigid base

Finally the oscillating weight segment is surprising in itself with its iridium platinum alloy the densest non-toxic physical body currently machinableThe entire windingtime-setting mechanism is coated with Nickel-PTFEin order to eliminate the customary greasing points The date jumper-spring features a frictional surface that also operates in ldquodryrdquo mode

Balanced wheel design in mechanical movement

Arenrsquot the most efficient balances circular The latest research by Jaeger-LeCoultre proves the exact opposite

Lengthy testing has revealed the importance of the total surface of the balance on its aerodynamic performances The larger the surface the greater the aerodynamic friction and the more energy it takes to maintain the oscillations of the balance and spring ndash which is in turn detrimental to precision

The geometry devised by Jaeger-LeCoultre coupled with the use of an extremely dense material ndash in this case iridium platinum ndash minimises the surface in friction Thus given a constant level of inertia this balance requires less energy to oscillate than a traditional balance

Balance wheel design in an optimized mechanical movement

The geometry of the balance has also been designed to reduce the ratio between the mass and the inertia of the balance

High inertia ensures a stable regulator that is fairly insensitive to the vibrations and daily shocks to which a watch is subjected and which disturb its precision Nonetheless high inertia implies a higher balance mass leading to larger losses due to mechanical fiction and thus increased energy consumption to maintain the oscillations ndash as well as a larger difference in amplitude between horizontal and vertical positions

The balance of the Jaeger-LeCoultre Calibre 988C has been optimised in order to reduce total mass without modifying the determined inertia The shape of the arms the openings and the geometry enable a several-point gain in the massinertia ratio

This factor directly influences the variations in rate between different positions that are well-known to watchmakers due to the difference in amplitude between the ldquodial-uprdquo and ldquopendant-uprdquo positions The lower the massinertia ratio the smaller the differences between the various positions thus enabling the watchmaker to perform a more precise adjustment of the watch

Contribution to accuracy by the balance spring in a mechanical movement

The balance-spring beats in a perfectly concentric manner in order to guarantee ideal isochronism Not only does it feature the carefully calculated form of a Phillips terminal curve but the watchmakers have also created something they call a ldquobendrdquo in the centre The ldquobendrdquo is a distortion of the balance-spring at aspecific place close to the collet pinning-point and which at given moments modifies the rigidity of the spring and corrects the natural tendency of any spring to ldquobreatherdquo in an off-centred manner Only this winning combination of an outer Phillips terminal curve and a central ldquobendrdquo makes it possible to create a balance-spring that develops in a perfectly concentric way (meaning with symmetrical expansions and contractions in respect to the centre)

Precise adjustment of this movement is of course performed using screws placed on the balance This process now used on all the Jaeger-LeCoultre automatic calibres has replaced the traditional index assembly and ensures peerless initial reliability of the rate that thereby remains unperturbed over time even if the watch is accidentally jarred

To perfect the exceptional efficiency of this regulating organ the aerodynamic properties of the balance have been fine-tuned by bevelling the arms by streamlining the shape of the weights and by integrating adjustment screws inside the weights The escape-wheel is made from silicon which is considerably lighter than steel and thus also favourably influences efficiency

Tourbillon made from light alloys

A one-minute tourbillon houses this literally extraordinary regulator The tourbillon carriage is machined from blocks of a magnesium alloy that is two and a half times lighter than titanium and contributes to reducing energy losses due to friction and thus further improves the exceptional efficiency of the regulator

The cadence of 28800 vibrations per hour the high (115 mgcm2) inertia of the balance and the tourbillon together help guarantee theaccuracy of the watch

Application of various new processing technologies

physical vapour deposition (pvd)chemical vapour deposition (cvd)LIthographie Galvanoformung Adformung (LIGA)electroformingphotochemcial machining (pcm)etchellip

Current development worldwide Mimotec SA (Sion Switzerland)

MEMS Technology ndash DRIE Process

MEMS Technology ndash LIGA Process

LIGA = Lithographie Galvanoformung Adformung

LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre

a German acronym for rdquoLithographie Galvanoformung Abformungldquoin English (X-ray) Lithography Electroplating and Molding

one of the first major techniques to allow on-demand manufacturing of high-aspect-ratio structures (structures that are much taller than wide) with lateral precision below one micrometre This capability is important in the fabrication of MEMS devices Because of the high collimation of X-rays needed the source must be synchrotron light

There are today three different types of LIGA technologies differing in the radiation and preform usedi) X-Ray LIGA the first LIGA technology developed using X-Rays

produced by a synchrotron ii) UV-LIGA using ultraviolet light typically from a mercury lamp and

special resists like SU-8 and iii) Silicon-LIGA using deep reactive ion etched silicon as preform

Traditional mechanical movements use oils or greases to ensure smooth operations

These take the form of oils in varying degrees of fineness for parts with high translation or rotation speeds or grease for parts subject to large pressures or stresses

The properties of such oils and grease deteriorates over time and the performances of the movement decline if these lubricants are not replaced in due time

Testing conducted during the 1970s on plastic movements had already shown the way towards doing without some of the oils and grease However these watches did not stand the test of time which resulted in wear on the parts that in turn rapidly diminished their chronometric and functional performances

In its ongoing search to enhance the reliability of mechanical movements Jaeger-LeCoultre had already renounced the use of lubrication in the ball-bearing mechanisms of automatic winding systems by introducing ceramic ball-bearings as early as 2002

Today the research team at the Manufacture in Le Sentier has innovated a mechanical movement run without any lubricant This research has culminated in the brand-new Jaeger-LeCoultre Calibre 988C

Innovative mechanical movements without oils amp greases

A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is

Inspired by the unshakeable conviction in the smallest details the watchmakers and designers of the Manufacture have raised the game of precision and functions to unprecedented levels of refinement

The aesthetics of the Master Compressor Extreme Lab reflect the technology within Its transparent dial reveals the heart of the horological mechanism featuring a particularly attractive graphic design characterised by subtle contrasts between the black aluminum of the open-worked centre bridge and the flange the white colour of the applied hanging numerals and hour-markers and the grey of the tourbillon bridge

The centre bridge is made from an aluminum alloy reinforced with particles of titanium carbide Ticaliumreg The mechanical hardness and resistance of this alloy are thus improved by 20 without increasing the density The casevisually reflects the movement with its association of carbon silicon carbonitrideand grade 5 titanium

The first feature covers its original structure featuring an interior carbon fibre case fitted inside a titanium ring The obvious advantage is a gain in weight but the resulting aesthetic effect is doubtless even more remarkable The case as a whole is topped by a bezel in silicon carbonitride a material that is lighter and more resistant than traditional ceramics

Watch suspension mounting

The second feature relates to the suspension mounting of the movement The silent-block made from a supple red polyurethane material not only serves to avoid any risk of water seeping into the crown tube but also mechanically isolates the movement and its Compressor crown

The calibre and winding-stem are thus mounted in a ldquofree-floatingrdquomanner and there is thus no metal to metal link between the movement and the case which means the watch mechanism is protected fromviolent shocks or vibrations

The red aluminum crown echoes the red elements on the dial the silent-block shock absorber and the strap

Jaeger-LeCoultre has also devoted special attention to the strap of this watch Its double-layered construction enhances both its robustness and its appearance The unusual combination of materials such as leather cordura canvasand alcantara reinforced by a composite strip lends this strap a three-dimensional appearance on a par with the case to which it is attached

Mechanical automatic movement Jaeger-LeCoultre Calibre 988C

307 parts

28800 vibrations per hour 4 hertzA barrelTourbillon with magnesium carriageTwo time zonesAMPM indication with local timeCentral pointer-type calendar displays that jumps over the tourbillon carriageMovement diameter 300 mmMovement thickness 705 mmCase diameter 450 mmCase thickness 1480 mmOperational between -40deg and +60degCNo oil no greaseIridium platinum oscillating weight with carbon baseBlack diamond pallet-stonesEasium jewels48-hour power reserveWater-resistant to 100 metresCrafted in carbon and titaniumExclusive limited annual productionReference Q179T470

New materials new solutionsMany watch brands are experimenting with new materials to enhance the technical aspects of their watches

Some companies like Patek Philippe and Rolex are working on new materials for springs and other parts

In 2005 Patek Philippe filed a patent for the first silicon escape wheel for a Swiss lever escapement

Rolex created its new blue Parachrom hairspring made from a new alloy to resist magnetism and increase shock absorbance

Jaeger-LeCoultre are experimenting with new materials to reduce the need for lubrication ndash last year the Extreme Lab introduced the first watch ever that doesnt need any lubrication

Ultra light alloy ndash Mg and AlSome watches are already using new materials such as the Mag Bang with the AG5 alloy which is an ultra light alloy of magnesium and aluminium

Audemars Piguet has for years been a leader in the search for new and advanced materials The latest is the companys minute repeater programme where they are working with laboratories professors and students at the best universities to come up with new metals and designs that will enhance the sound of their minute repeaters

Ulysse Nardin recently unveiled its new Innovision watch a concept watch that combines the companys most daring innovations -from the silicon escapement first used in the Freak to new silicon parts (wheels bridges pinions etc) Ulysse Nardin is part owner of Sigatec SA the company responsible for the development of silicon technology in watch making

Ultra light alloy ndash Mg and Al

The Freak is one example of the way Ulysse Nardin makes things happen When Schneider made the first Freak it did not work because the mixture of materials was not right

Schneider was ready to abandon the new escapement but was talked into trying it another way We failed with the Freak with traditional materials he admits

When we failed with the Freak I wanted to go back to the anchor escapement Ludwig Oechslin our Chief Designer wanted to use the new escapement because he thought it was better So we decided to go forward in two different directions one with the anchor escapement and the other with the new escapement We met someone who had done work with silicon so we decided to try itrdquo

C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin

Ulysse Nardin is concentrating on manufacturing movement parts in silicon

One of the advantages of making parts from silicon is that the process allows complete freedom of design - just about any shape visualized can be realized

The use of silicon could very well change the way movements are designed because it removes some of the old limitations that were in place before In addition working in silicon means higher precision lighter weight and the material in its final form is very hard

New materials unique watchesSome watch companies are using new materials for aesthetic reasons like Gerald Gentas new Gefica which uses bronze in a striking way The use of innovative materials is a major factor in the creation of our watches particularly for Gerald Genta says Gerald Roden Chief Executive Officer of Daniel Roth and Gerald Genta We have long been investigating creative uses for innovative more so for aesthetics than for technical reasons

For quite some time we have experimented with combinations of materials such as carbon fibre aluminium and wood with rubber and even fish skinIn 2003 Gerald Genta was among the first to use unique metals such as palladium and tantalum for cases

We have developed a patent to use liquid ceramic for the Octo line and are currently working with metallurgists to develop other new and innovative metals for Gerald Genta We are also in the final test phases of creating an exciting new treatment for steel

Non Magnetic materials for movement components

Another movement design

Traditional mechanical movements use oils or grease to ensure smooth operations

These take the form of oils in varying degrees of fineness for parts with high translation or rotation speeds or grease for parts subject to high pressures or stresses

The properties of such oils and grease deteriorates over time and the performances of the movement likewise decline if these lubricants are not replaced in due time

Testing conducted during the 1970s on plastic movements had already shown the way towards doing without some of the oils and grease However these watches did not stand the test of time which resulted in wear on the parts that in turn rapidly diminished their chronometric and functional performances

In its ongoing search to enhance the reliability of mechanical movements Jaeger-LeCoultre had already renounced the use of lubrication in the ball-bearing mechanisms of automatic winding systems by introducing ceramic ball-bearings as early as 2002

Today the research team at the Manufacture in Le Sentier has innovated a mechanical movement run without any lubricant whatsoever This research has culminated in the brand-new Jaeger-LeCoultre Calibre 988C

Innovative mechanical movement without any lubricant

New materials in mechanical movements

The engineers and watchmakers have resorted to new materials and new combinations of materials for demanding challenge

The Easiumtrade carbonitride thus makes its way onto the watch making stage This extremely hard material features extraordinary tribological properties and is therefore particularly suited to the making bearings able to operate without lubricants

In Jaeger-LeCoultre Calibre 988C Easium replaces the traditional jewels lubricated with a fine oil The burnished steel pivots of the balance-staff are coated with a special surface treatment and turn inside an Easium bearing The endstone is also made from Easium This is also a material used to make the two bearings allowing the carriage to turn in the bridges without any need to add jewels that would require lubrication

Watchmakers are considering the black crystalline diamond a synthetic material as hard as natural diamonds but with considerably enhanced operational properties for replacing the red pallet-stones Its friction on the silicon teeth of the escape-wheel does not require any oil to improve its operation live All the burnished steel pivots of the wheels and pinions are coated with a surface treatment that obviates any need to oil the jewels

Mainspring barrel in mechanical movement grease replaced by graphite powder

On the other end of the movement the barrel grease has also disappeared Instead a graphite powder helps the bride to slide smoothly inside the drum when the mainspring has been wound beyond the maximum powerreserve by the automatic winding mechanism The molecular structure of graphite consists in a stack of micro-platelets contrary to grease it retains its lubricating properties over time whatever the temperature and the hygrometry level

As for the ball-bearing mechanism of the oscillating weight in addition to the use of ceramic ball bearings mentioned earlier friction has been reduced by optimising the rotor which features carbon fibre arms and a distinctly lighter and more rigid base

Finally the oscillating weight segment is surprising in itself with its iridium platinum alloy the densest non-toxic physical body currently machinableThe entire windingtime-setting mechanism is coated with Nickel-PTFEin order to eliminate the customary greasing points The date jumper-spring features a frictional surface that also operates in ldquodryrdquo mode

Balanced wheel design in mechanical movement

Arenrsquot the most efficient balances circular The latest research by Jaeger-LeCoultre proves the exact opposite

Lengthy testing has revealed the importance of the total surface of the balance on its aerodynamic performances The larger the surface the greater the aerodynamic friction and the more energy it takes to maintain the oscillations of the balance and spring ndash which is in turn detrimental to precision

The geometry devised by Jaeger-LeCoultre coupled with the use of an extremely dense material ndash in this case iridium platinum ndash minimises the surface in friction Thus given a constant level of inertia this balance requires less energy to oscillate than a traditional balance

Balance wheel design in an optimized mechanical movement

The geometry of the balance has also been designed to reduce the ratio between the mass and the inertia of the balance

High inertia ensures a stable regulator that is fairly insensitive to the vibrations and daily shocks to which a watch is subjected and which disturb its precision Nonetheless high inertia implies a higher balance mass leading to larger losses due to mechanical fiction and thus increased energy consumption to maintain the oscillations ndash as well as a larger difference in amplitude between horizontal and vertical positions

The balance of the Jaeger-LeCoultre Calibre 988C has been optimised in order to reduce total mass without modifying the determined inertia The shape of the arms the openings and the geometry enable a several-point gain in the massinertia ratio

This factor directly influences the variations in rate between different positions that are well-known to watchmakers due to the difference in amplitude between the ldquodial-uprdquo and ldquopendant-uprdquo positions The lower the massinertia ratio the smaller the differences between the various positions thus enabling the watchmaker to perform a more precise adjustment of the watch

Contribution to accuracy by the balance spring in a mechanical movement

The balance-spring beats in a perfectly concentric manner in order to guarantee ideal isochronism Not only does it feature the carefully calculated form of a Phillips terminal curve but the watchmakers have also created something they call a ldquobendrdquo in the centre The ldquobendrdquo is a distortion of the balance-spring at aspecific place close to the collet pinning-point and which at given moments modifies the rigidity of the spring and corrects the natural tendency of any spring to ldquobreatherdquo in an off-centred manner Only this winning combination of an outer Phillips terminal curve and a central ldquobendrdquo makes it possible to create a balance-spring that develops in a perfectly concentric way (meaning with symmetrical expansions and contractions in respect to the centre)

Precise adjustment of this movement is of course performed using screws placed on the balance This process now used on all the Jaeger-LeCoultre automatic calibres has replaced the traditional index assembly and ensures peerless initial reliability of the rate that thereby remains unperturbed over time even if the watch is accidentally jarred

To perfect the exceptional efficiency of this regulating organ the aerodynamic properties of the balance have been fine-tuned by bevelling the arms by streamlining the shape of the weights and by integrating adjustment screws inside the weights The escape-wheel is made from silicon which is considerably lighter than steel and thus also favourably influences efficiency

Tourbillon made from light alloys

A one-minute tourbillon houses this literally extraordinary regulator The tourbillon carriage is machined from blocks of a magnesium alloy that is two and a half times lighter than titanium and contributes to reducing energy losses due to friction and thus further improves the exceptional efficiency of the regulator

The cadence of 28800 vibrations per hour the high (115 mgcm2) inertia of the balance and the tourbillon together help guarantee theaccuracy of the watch

Application of various new processing technologies

physical vapour deposition (pvd)chemical vapour deposition (cvd)LIthographie Galvanoformung Adformung (LIGA)electroformingphotochemcial machining (pcm)etchellip

Current development worldwide Mimotec SA (Sion Switzerland)

MEMS Technology ndash DRIE Process

MEMS Technology ndash LIGA Process

LIGA = Lithographie Galvanoformung Adformung

LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre

a German acronym for rdquoLithographie Galvanoformung Abformungldquoin English (X-ray) Lithography Electroplating and Molding

one of the first major techniques to allow on-demand manufacturing of high-aspect-ratio structures (structures that are much taller than wide) with lateral precision below one micrometre This capability is important in the fabrication of MEMS devices Because of the high collimation of X-rays needed the source must be synchrotron light

There are today three different types of LIGA technologies differing in the radiation and preform usedi) X-Ray LIGA the first LIGA technology developed using X-Rays

produced by a synchrotron ii) UV-LIGA using ultraviolet light typically from a mercury lamp and

special resists like SU-8 and iii) Silicon-LIGA using deep reactive ion etched silicon as preform

A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is

Inspired by the unshakeable conviction in the smallest details the watchmakers and designers of the Manufacture have raised the game of precision and functions to unprecedented levels of refinement

The aesthetics of the Master Compressor Extreme Lab reflect the technology within Its transparent dial reveals the heart of the horological mechanism featuring a particularly attractive graphic design characterised by subtle contrasts between the black aluminum of the open-worked centre bridge and the flange the white colour of the applied hanging numerals and hour-markers and the grey of the tourbillon bridge

The centre bridge is made from an aluminum alloy reinforced with particles of titanium carbide Ticaliumreg The mechanical hardness and resistance of this alloy are thus improved by 20 without increasing the density The casevisually reflects the movement with its association of carbon silicon carbonitrideand grade 5 titanium

The first feature covers its original structure featuring an interior carbon fibre case fitted inside a titanium ring The obvious advantage is a gain in weight but the resulting aesthetic effect is doubtless even more remarkable The case as a whole is topped by a bezel in silicon carbonitride a material that is lighter and more resistant than traditional ceramics

Watch suspension mounting

The second feature relates to the suspension mounting of the movement The silent-block made from a supple red polyurethane material not only serves to avoid any risk of water seeping into the crown tube but also mechanically isolates the movement and its Compressor crown

The calibre and winding-stem are thus mounted in a ldquofree-floatingrdquomanner and there is thus no metal to metal link between the movement and the case which means the watch mechanism is protected fromviolent shocks or vibrations

The red aluminum crown echoes the red elements on the dial the silent-block shock absorber and the strap

Jaeger-LeCoultre has also devoted special attention to the strap of this watch Its double-layered construction enhances both its robustness and its appearance The unusual combination of materials such as leather cordura canvasand alcantara reinforced by a composite strip lends this strap a three-dimensional appearance on a par with the case to which it is attached

Mechanical automatic movement Jaeger-LeCoultre Calibre 988C

307 parts

28800 vibrations per hour 4 hertzA barrelTourbillon with magnesium carriageTwo time zonesAMPM indication with local timeCentral pointer-type calendar displays that jumps over the tourbillon carriageMovement diameter 300 mmMovement thickness 705 mmCase diameter 450 mmCase thickness 1480 mmOperational between -40deg and +60degCNo oil no greaseIridium platinum oscillating weight with carbon baseBlack diamond pallet-stonesEasium jewels48-hour power reserveWater-resistant to 100 metresCrafted in carbon and titaniumExclusive limited annual productionReference Q179T470

New materials new solutionsMany watch brands are experimenting with new materials to enhance the technical aspects of their watches

Some companies like Patek Philippe and Rolex are working on new materials for springs and other parts

In 2005 Patek Philippe filed a patent for the first silicon escape wheel for a Swiss lever escapement

Rolex created its new blue Parachrom hairspring made from a new alloy to resist magnetism and increase shock absorbance

Jaeger-LeCoultre are experimenting with new materials to reduce the need for lubrication ndash last year the Extreme Lab introduced the first watch ever that doesnt need any lubrication

Ultra light alloy ndash Mg and AlSome watches are already using new materials such as the Mag Bang with the AG5 alloy which is an ultra light alloy of magnesium and aluminium

Audemars Piguet has for years been a leader in the search for new and advanced materials The latest is the companys minute repeater programme where they are working with laboratories professors and students at the best universities to come up with new metals and designs that will enhance the sound of their minute repeaters

Ulysse Nardin recently unveiled its new Innovision watch a concept watch that combines the companys most daring innovations -from the silicon escapement first used in the Freak to new silicon parts (wheels bridges pinions etc) Ulysse Nardin is part owner of Sigatec SA the company responsible for the development of silicon technology in watch making

Ultra light alloy ndash Mg and Al

The Freak is one example of the way Ulysse Nardin makes things happen When Schneider made the first Freak it did not work because the mixture of materials was not right

Schneider was ready to abandon the new escapement but was talked into trying it another way We failed with the Freak with traditional materials he admits

When we failed with the Freak I wanted to go back to the anchor escapement Ludwig Oechslin our Chief Designer wanted to use the new escapement because he thought it was better So we decided to go forward in two different directions one with the anchor escapement and the other with the new escapement We met someone who had done work with silicon so we decided to try itrdquo

C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin

Ulysse Nardin is concentrating on manufacturing movement parts in silicon

One of the advantages of making parts from silicon is that the process allows complete freedom of design - just about any shape visualized can be realized

The use of silicon could very well change the way movements are designed because it removes some of the old limitations that were in place before In addition working in silicon means higher precision lighter weight and the material in its final form is very hard

New materials unique watchesSome watch companies are using new materials for aesthetic reasons like Gerald Gentas new Gefica which uses bronze in a striking way The use of innovative materials is a major factor in the creation of our watches particularly for Gerald Genta says Gerald Roden Chief Executive Officer of Daniel Roth and Gerald Genta We have long been investigating creative uses for innovative more so for aesthetics than for technical reasons

For quite some time we have experimented with combinations of materials such as carbon fibre aluminium and wood with rubber and even fish skinIn 2003 Gerald Genta was among the first to use unique metals such as palladium and tantalum for cases

We have developed a patent to use liquid ceramic for the Octo line and are currently working with metallurgists to develop other new and innovative metals for Gerald Genta We are also in the final test phases of creating an exciting new treatment for steel

Non Magnetic materials for movement components

Another movement design

Traditional mechanical movements use oils or grease to ensure smooth operations

These take the form of oils in varying degrees of fineness for parts with high translation or rotation speeds or grease for parts subject to high pressures or stresses

The properties of such oils and grease deteriorates over time and the performances of the movement likewise decline if these lubricants are not replaced in due time

Testing conducted during the 1970s on plastic movements had already shown the way towards doing without some of the oils and grease However these watches did not stand the test of time which resulted in wear on the parts that in turn rapidly diminished their chronometric and functional performances

In its ongoing search to enhance the reliability of mechanical movements Jaeger-LeCoultre had already renounced the use of lubrication in the ball-bearing mechanisms of automatic winding systems by introducing ceramic ball-bearings as early as 2002

Today the research team at the Manufacture in Le Sentier has innovated a mechanical movement run without any lubricant whatsoever This research has culminated in the brand-new Jaeger-LeCoultre Calibre 988C

Innovative mechanical movement without any lubricant

New materials in mechanical movements

The engineers and watchmakers have resorted to new materials and new combinations of materials for demanding challenge

The Easiumtrade carbonitride thus makes its way onto the watch making stage This extremely hard material features extraordinary tribological properties and is therefore particularly suited to the making bearings able to operate without lubricants

In Jaeger-LeCoultre Calibre 988C Easium replaces the traditional jewels lubricated with a fine oil The burnished steel pivots of the balance-staff are coated with a special surface treatment and turn inside an Easium bearing The endstone is also made from Easium This is also a material used to make the two bearings allowing the carriage to turn in the bridges without any need to add jewels that would require lubrication

Watchmakers are considering the black crystalline diamond a synthetic material as hard as natural diamonds but with considerably enhanced operational properties for replacing the red pallet-stones Its friction on the silicon teeth of the escape-wheel does not require any oil to improve its operation live All the burnished steel pivots of the wheels and pinions are coated with a surface treatment that obviates any need to oil the jewels

Mainspring barrel in mechanical movement grease replaced by graphite powder

On the other end of the movement the barrel grease has also disappeared Instead a graphite powder helps the bride to slide smoothly inside the drum when the mainspring has been wound beyond the maximum powerreserve by the automatic winding mechanism The molecular structure of graphite consists in a stack of micro-platelets contrary to grease it retains its lubricating properties over time whatever the temperature and the hygrometry level

As for the ball-bearing mechanism of the oscillating weight in addition to the use of ceramic ball bearings mentioned earlier friction has been reduced by optimising the rotor which features carbon fibre arms and a distinctly lighter and more rigid base

Finally the oscillating weight segment is surprising in itself with its iridium platinum alloy the densest non-toxic physical body currently machinableThe entire windingtime-setting mechanism is coated with Nickel-PTFEin order to eliminate the customary greasing points The date jumper-spring features a frictional surface that also operates in ldquodryrdquo mode

Balanced wheel design in mechanical movement

Arenrsquot the most efficient balances circular The latest research by Jaeger-LeCoultre proves the exact opposite

Lengthy testing has revealed the importance of the total surface of the balance on its aerodynamic performances The larger the surface the greater the aerodynamic friction and the more energy it takes to maintain the oscillations of the balance and spring ndash which is in turn detrimental to precision

The geometry devised by Jaeger-LeCoultre coupled with the use of an extremely dense material ndash in this case iridium platinum ndash minimises the surface in friction Thus given a constant level of inertia this balance requires less energy to oscillate than a traditional balance

Balance wheel design in an optimized mechanical movement

The geometry of the balance has also been designed to reduce the ratio between the mass and the inertia of the balance

High inertia ensures a stable regulator that is fairly insensitive to the vibrations and daily shocks to which a watch is subjected and which disturb its precision Nonetheless high inertia implies a higher balance mass leading to larger losses due to mechanical fiction and thus increased energy consumption to maintain the oscillations ndash as well as a larger difference in amplitude between horizontal and vertical positions

The balance of the Jaeger-LeCoultre Calibre 988C has been optimised in order to reduce total mass without modifying the determined inertia The shape of the arms the openings and the geometry enable a several-point gain in the massinertia ratio

This factor directly influences the variations in rate between different positions that are well-known to watchmakers due to the difference in amplitude between the ldquodial-uprdquo and ldquopendant-uprdquo positions The lower the massinertia ratio the smaller the differences between the various positions thus enabling the watchmaker to perform a more precise adjustment of the watch

Contribution to accuracy by the balance spring in a mechanical movement

The balance-spring beats in a perfectly concentric manner in order to guarantee ideal isochronism Not only does it feature the carefully calculated form of a Phillips terminal curve but the watchmakers have also created something they call a ldquobendrdquo in the centre The ldquobendrdquo is a distortion of the balance-spring at aspecific place close to the collet pinning-point and which at given moments modifies the rigidity of the spring and corrects the natural tendency of any spring to ldquobreatherdquo in an off-centred manner Only this winning combination of an outer Phillips terminal curve and a central ldquobendrdquo makes it possible to create a balance-spring that develops in a perfectly concentric way (meaning with symmetrical expansions and contractions in respect to the centre)

Precise adjustment of this movement is of course performed using screws placed on the balance This process now used on all the Jaeger-LeCoultre automatic calibres has replaced the traditional index assembly and ensures peerless initial reliability of the rate that thereby remains unperturbed over time even if the watch is accidentally jarred

To perfect the exceptional efficiency of this regulating organ the aerodynamic properties of the balance have been fine-tuned by bevelling the arms by streamlining the shape of the weights and by integrating adjustment screws inside the weights The escape-wheel is made from silicon which is considerably lighter than steel and thus also favourably influences efficiency

Tourbillon made from light alloys

A one-minute tourbillon houses this literally extraordinary regulator The tourbillon carriage is machined from blocks of a magnesium alloy that is two and a half times lighter than titanium and contributes to reducing energy losses due to friction and thus further improves the exceptional efficiency of the regulator

The cadence of 28800 vibrations per hour the high (115 mgcm2) inertia of the balance and the tourbillon together help guarantee theaccuracy of the watch

Application of various new processing technologies

physical vapour deposition (pvd)chemical vapour deposition (cvd)LIthographie Galvanoformung Adformung (LIGA)electroformingphotochemcial machining (pcm)etchellip

Current development worldwide Mimotec SA (Sion Switzerland)

MEMS Technology ndash DRIE Process

MEMS Technology ndash LIGA Process

LIGA = Lithographie Galvanoformung Adformung

LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre

a German acronym for rdquoLithographie Galvanoformung Abformungldquoin English (X-ray) Lithography Electroplating and Molding

one of the first major techniques to allow on-demand manufacturing of high-aspect-ratio structures (structures that are much taller than wide) with lateral precision below one micrometre This capability is important in the fabrication of MEMS devices Because of the high collimation of X-rays needed the source must be synchrotron light

There are today three different types of LIGA technologies differing in the radiation and preform usedi) X-Ray LIGA the first LIGA technology developed using X-Rays

produced by a synchrotron ii) UV-LIGA using ultraviolet light typically from a mercury lamp and

special resists like SU-8 and iii) Silicon-LIGA using deep reactive ion etched silicon as preform

Watch suspension mounting

The second feature relates to the suspension mounting of the movement The silent-block made from a supple red polyurethane material not only serves to avoid any risk of water seeping into the crown tube but also mechanically isolates the movement and its Compressor crown

The calibre and winding-stem are thus mounted in a ldquofree-floatingrdquomanner and there is thus no metal to metal link between the movement and the case which means the watch mechanism is protected fromviolent shocks or vibrations

The red aluminum crown echoes the red elements on the dial the silent-block shock absorber and the strap

Jaeger-LeCoultre has also devoted special attention to the strap of this watch Its double-layered construction enhances both its robustness and its appearance The unusual combination of materials such as leather cordura canvasand alcantara reinforced by a composite strip lends this strap a three-dimensional appearance on a par with the case to which it is attached

Mechanical automatic movement Jaeger-LeCoultre Calibre 988C

307 parts

28800 vibrations per hour 4 hertzA barrelTourbillon with magnesium carriageTwo time zonesAMPM indication with local timeCentral pointer-type calendar displays that jumps over the tourbillon carriageMovement diameter 300 mmMovement thickness 705 mmCase diameter 450 mmCase thickness 1480 mmOperational between -40deg and +60degCNo oil no greaseIridium platinum oscillating weight with carbon baseBlack diamond pallet-stonesEasium jewels48-hour power reserveWater-resistant to 100 metresCrafted in carbon and titaniumExclusive limited annual productionReference Q179T470

New materials new solutionsMany watch brands are experimenting with new materials to enhance the technical aspects of their watches

Some companies like Patek Philippe and Rolex are working on new materials for springs and other parts

In 2005 Patek Philippe filed a patent for the first silicon escape wheel for a Swiss lever escapement

Rolex created its new blue Parachrom hairspring made from a new alloy to resist magnetism and increase shock absorbance

Jaeger-LeCoultre are experimenting with new materials to reduce the need for lubrication ndash last year the Extreme Lab introduced the first watch ever that doesnt need any lubrication

Ultra light alloy ndash Mg and AlSome watches are already using new materials such as the Mag Bang with the AG5 alloy which is an ultra light alloy of magnesium and aluminium

Audemars Piguet has for years been a leader in the search for new and advanced materials The latest is the companys minute repeater programme where they are working with laboratories professors and students at the best universities to come up with new metals and designs that will enhance the sound of their minute repeaters

Ulysse Nardin recently unveiled its new Innovision watch a concept watch that combines the companys most daring innovations -from the silicon escapement first used in the Freak to new silicon parts (wheels bridges pinions etc) Ulysse Nardin is part owner of Sigatec SA the company responsible for the development of silicon technology in watch making

Ultra light alloy ndash Mg and Al

The Freak is one example of the way Ulysse Nardin makes things happen When Schneider made the first Freak it did not work because the mixture of materials was not right

Schneider was ready to abandon the new escapement but was talked into trying it another way We failed with the Freak with traditional materials he admits

When we failed with the Freak I wanted to go back to the anchor escapement Ludwig Oechslin our Chief Designer wanted to use the new escapement because he thought it was better So we decided to go forward in two different directions one with the anchor escapement and the other with the new escapement We met someone who had done work with silicon so we decided to try itrdquo

C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin

Ulysse Nardin is concentrating on manufacturing movement parts in silicon

One of the advantages of making parts from silicon is that the process allows complete freedom of design - just about any shape visualized can be realized

The use of silicon could very well change the way movements are designed because it removes some of the old limitations that were in place before In addition working in silicon means higher precision lighter weight and the material in its final form is very hard

New materials unique watchesSome watch companies are using new materials for aesthetic reasons like Gerald Gentas new Gefica which uses bronze in a striking way The use of innovative materials is a major factor in the creation of our watches particularly for Gerald Genta says Gerald Roden Chief Executive Officer of Daniel Roth and Gerald Genta We have long been investigating creative uses for innovative more so for aesthetics than for technical reasons

For quite some time we have experimented with combinations of materials such as carbon fibre aluminium and wood with rubber and even fish skinIn 2003 Gerald Genta was among the first to use unique metals such as palladium and tantalum for cases

We have developed a patent to use liquid ceramic for the Octo line and are currently working with metallurgists to develop other new and innovative metals for Gerald Genta We are also in the final test phases of creating an exciting new treatment for steel

Non Magnetic materials for movement components

Another movement design

Traditional mechanical movements use oils or grease to ensure smooth operations

These take the form of oils in varying degrees of fineness for parts with high translation or rotation speeds or grease for parts subject to high pressures or stresses

The properties of such oils and grease deteriorates over time and the performances of the movement likewise decline if these lubricants are not replaced in due time

Testing conducted during the 1970s on plastic movements had already shown the way towards doing without some of the oils and grease However these watches did not stand the test of time which resulted in wear on the parts that in turn rapidly diminished their chronometric and functional performances

In its ongoing search to enhance the reliability of mechanical movements Jaeger-LeCoultre had already renounced the use of lubrication in the ball-bearing mechanisms of automatic winding systems by introducing ceramic ball-bearings as early as 2002

Today the research team at the Manufacture in Le Sentier has innovated a mechanical movement run without any lubricant whatsoever This research has culminated in the brand-new Jaeger-LeCoultre Calibre 988C

Innovative mechanical movement without any lubricant

New materials in mechanical movements

The engineers and watchmakers have resorted to new materials and new combinations of materials for demanding challenge

The Easiumtrade carbonitride thus makes its way onto the watch making stage This extremely hard material features extraordinary tribological properties and is therefore particularly suited to the making bearings able to operate without lubricants

In Jaeger-LeCoultre Calibre 988C Easium replaces the traditional jewels lubricated with a fine oil The burnished steel pivots of the balance-staff are coated with a special surface treatment and turn inside an Easium bearing The endstone is also made from Easium This is also a material used to make the two bearings allowing the carriage to turn in the bridges without any need to add jewels that would require lubrication

Watchmakers are considering the black crystalline diamond a synthetic material as hard as natural diamonds but with considerably enhanced operational properties for replacing the red pallet-stones Its friction on the silicon teeth of the escape-wheel does not require any oil to improve its operation live All the burnished steel pivots of the wheels and pinions are coated with a surface treatment that obviates any need to oil the jewels

Mainspring barrel in mechanical movement grease replaced by graphite powder

On the other end of the movement the barrel grease has also disappeared Instead a graphite powder helps the bride to slide smoothly inside the drum when the mainspring has been wound beyond the maximum powerreserve by the automatic winding mechanism The molecular structure of graphite consists in a stack of micro-platelets contrary to grease it retains its lubricating properties over time whatever the temperature and the hygrometry level

As for the ball-bearing mechanism of the oscillating weight in addition to the use of ceramic ball bearings mentioned earlier friction has been reduced by optimising the rotor which features carbon fibre arms and a distinctly lighter and more rigid base

Finally the oscillating weight segment is surprising in itself with its iridium platinum alloy the densest non-toxic physical body currently machinableThe entire windingtime-setting mechanism is coated with Nickel-PTFEin order to eliminate the customary greasing points The date jumper-spring features a frictional surface that also operates in ldquodryrdquo mode

Balanced wheel design in mechanical movement

Arenrsquot the most efficient balances circular The latest research by Jaeger-LeCoultre proves the exact opposite

Lengthy testing has revealed the importance of the total surface of the balance on its aerodynamic performances The larger the surface the greater the aerodynamic friction and the more energy it takes to maintain the oscillations of the balance and spring ndash which is in turn detrimental to precision

The geometry devised by Jaeger-LeCoultre coupled with the use of an extremely dense material ndash in this case iridium platinum ndash minimises the surface in friction Thus given a constant level of inertia this balance requires less energy to oscillate than a traditional balance

Balance wheel design in an optimized mechanical movement

The geometry of the balance has also been designed to reduce the ratio between the mass and the inertia of the balance

High inertia ensures a stable regulator that is fairly insensitive to the vibrations and daily shocks to which a watch is subjected and which disturb its precision Nonetheless high inertia implies a higher balance mass leading to larger losses due to mechanical fiction and thus increased energy consumption to maintain the oscillations ndash as well as a larger difference in amplitude between horizontal and vertical positions

The balance of the Jaeger-LeCoultre Calibre 988C has been optimised in order to reduce total mass without modifying the determined inertia The shape of the arms the openings and the geometry enable a several-point gain in the massinertia ratio

This factor directly influences the variations in rate between different positions that are well-known to watchmakers due to the difference in amplitude between the ldquodial-uprdquo and ldquopendant-uprdquo positions The lower the massinertia ratio the smaller the differences between the various positions thus enabling the watchmaker to perform a more precise adjustment of the watch

Contribution to accuracy by the balance spring in a mechanical movement

The balance-spring beats in a perfectly concentric manner in order to guarantee ideal isochronism Not only does it feature the carefully calculated form of a Phillips terminal curve but the watchmakers have also created something they call a ldquobendrdquo in the centre The ldquobendrdquo is a distortion of the balance-spring at aspecific place close to the collet pinning-point and which at given moments modifies the rigidity of the spring and corrects the natural tendency of any spring to ldquobreatherdquo in an off-centred manner Only this winning combination of an outer Phillips terminal curve and a central ldquobendrdquo makes it possible to create a balance-spring that develops in a perfectly concentric way (meaning with symmetrical expansions and contractions in respect to the centre)

Precise adjustment of this movement is of course performed using screws placed on the balance This process now used on all the Jaeger-LeCoultre automatic calibres has replaced the traditional index assembly and ensures peerless initial reliability of the rate that thereby remains unperturbed over time even if the watch is accidentally jarred

To perfect the exceptional efficiency of this regulating organ the aerodynamic properties of the balance have been fine-tuned by bevelling the arms by streamlining the shape of the weights and by integrating adjustment screws inside the weights The escape-wheel is made from silicon which is considerably lighter than steel and thus also favourably influences efficiency

Tourbillon made from light alloys

A one-minute tourbillon houses this literally extraordinary regulator The tourbillon carriage is machined from blocks of a magnesium alloy that is two and a half times lighter than titanium and contributes to reducing energy losses due to friction and thus further improves the exceptional efficiency of the regulator

The cadence of 28800 vibrations per hour the high (115 mgcm2) inertia of the balance and the tourbillon together help guarantee theaccuracy of the watch

Application of various new processing technologies

physical vapour deposition (pvd)chemical vapour deposition (cvd)LIthographie Galvanoformung Adformung (LIGA)electroformingphotochemcial machining (pcm)etchellip

Current development worldwide Mimotec SA (Sion Switzerland)

MEMS Technology ndash DRIE Process

MEMS Technology ndash LIGA Process

LIGA = Lithographie Galvanoformung Adformung

LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre

a German acronym for rdquoLithographie Galvanoformung Abformungldquoin English (X-ray) Lithography Electroplating and Molding

one of the first major techniques to allow on-demand manufacturing of high-aspect-ratio structures (structures that are much taller than wide) with lateral precision below one micrometre This capability is important in the fabrication of MEMS devices Because of the high collimation of X-rays needed the source must be synchrotron light

There are today three different types of LIGA technologies differing in the radiation and preform usedi) X-Ray LIGA the first LIGA technology developed using X-Rays

produced by a synchrotron ii) UV-LIGA using ultraviolet light typically from a mercury lamp and

special resists like SU-8 and iii) Silicon-LIGA using deep reactive ion etched silicon as preform

Mechanical automatic movement Jaeger-LeCoultre Calibre 988C

307 parts

28800 vibrations per hour 4 hertzA barrelTourbillon with magnesium carriageTwo time zonesAMPM indication with local timeCentral pointer-type calendar displays that jumps over the tourbillon carriageMovement diameter 300 mmMovement thickness 705 mmCase diameter 450 mmCase thickness 1480 mmOperational between -40deg and +60degCNo oil no greaseIridium platinum oscillating weight with carbon baseBlack diamond pallet-stonesEasium jewels48-hour power reserveWater-resistant to 100 metresCrafted in carbon and titaniumExclusive limited annual productionReference Q179T470

New materials new solutionsMany watch brands are experimenting with new materials to enhance the technical aspects of their watches

Some companies like Patek Philippe and Rolex are working on new materials for springs and other parts

In 2005 Patek Philippe filed a patent for the first silicon escape wheel for a Swiss lever escapement

Rolex created its new blue Parachrom hairspring made from a new alloy to resist magnetism and increase shock absorbance

Jaeger-LeCoultre are experimenting with new materials to reduce the need for lubrication ndash last year the Extreme Lab introduced the first watch ever that doesnt need any lubrication

Ultra light alloy ndash Mg and AlSome watches are already using new materials such as the Mag Bang with the AG5 alloy which is an ultra light alloy of magnesium and aluminium

Audemars Piguet has for years been a leader in the search for new and advanced materials The latest is the companys minute repeater programme where they are working with laboratories professors and students at the best universities to come up with new metals and designs that will enhance the sound of their minute repeaters

Ulysse Nardin recently unveiled its new Innovision watch a concept watch that combines the companys most daring innovations -from the silicon escapement first used in the Freak to new silicon parts (wheels bridges pinions etc) Ulysse Nardin is part owner of Sigatec SA the company responsible for the development of silicon technology in watch making

Ultra light alloy ndash Mg and Al

The Freak is one example of the way Ulysse Nardin makes things happen When Schneider made the first Freak it did not work because the mixture of materials was not right

Schneider was ready to abandon the new escapement but was talked into trying it another way We failed with the Freak with traditional materials he admits

When we failed with the Freak I wanted to go back to the anchor escapement Ludwig Oechslin our Chief Designer wanted to use the new escapement because he thought it was better So we decided to go forward in two different directions one with the anchor escapement and the other with the new escapement We met someone who had done work with silicon so we decided to try itrdquo

C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin

Ulysse Nardin is concentrating on manufacturing movement parts in silicon

One of the advantages of making parts from silicon is that the process allows complete freedom of design - just about any shape visualized can be realized

The use of silicon could very well change the way movements are designed because it removes some of the old limitations that were in place before In addition working in silicon means higher precision lighter weight and the material in its final form is very hard

New materials unique watchesSome watch companies are using new materials for aesthetic reasons like Gerald Gentas new Gefica which uses bronze in a striking way The use of innovative materials is a major factor in the creation of our watches particularly for Gerald Genta says Gerald Roden Chief Executive Officer of Daniel Roth and Gerald Genta We have long been investigating creative uses for innovative more so for aesthetics than for technical reasons

For quite some time we have experimented with combinations of materials such as carbon fibre aluminium and wood with rubber and even fish skinIn 2003 Gerald Genta was among the first to use unique metals such as palladium and tantalum for cases

We have developed a patent to use liquid ceramic for the Octo line and are currently working with metallurgists to develop other new and innovative metals for Gerald Genta We are also in the final test phases of creating an exciting new treatment for steel

Non Magnetic materials for movement components

Another movement design

Traditional mechanical movements use oils or grease to ensure smooth operations

These take the form of oils in varying degrees of fineness for parts with high translation or rotation speeds or grease for parts subject to high pressures or stresses

The properties of such oils and grease deteriorates over time and the performances of the movement likewise decline if these lubricants are not replaced in due time

Testing conducted during the 1970s on plastic movements had already shown the way towards doing without some of the oils and grease However these watches did not stand the test of time which resulted in wear on the parts that in turn rapidly diminished their chronometric and functional performances

In its ongoing search to enhance the reliability of mechanical movements Jaeger-LeCoultre had already renounced the use of lubrication in the ball-bearing mechanisms of automatic winding systems by introducing ceramic ball-bearings as early as 2002

Today the research team at the Manufacture in Le Sentier has innovated a mechanical movement run without any lubricant whatsoever This research has culminated in the brand-new Jaeger-LeCoultre Calibre 988C

Innovative mechanical movement without any lubricant

New materials in mechanical movements

The engineers and watchmakers have resorted to new materials and new combinations of materials for demanding challenge

The Easiumtrade carbonitride thus makes its way onto the watch making stage This extremely hard material features extraordinary tribological properties and is therefore particularly suited to the making bearings able to operate without lubricants

In Jaeger-LeCoultre Calibre 988C Easium replaces the traditional jewels lubricated with a fine oil The burnished steel pivots of the balance-staff are coated with a special surface treatment and turn inside an Easium bearing The endstone is also made from Easium This is also a material used to make the two bearings allowing the carriage to turn in the bridges without any need to add jewels that would require lubrication

Watchmakers are considering the black crystalline diamond a synthetic material as hard as natural diamonds but with considerably enhanced operational properties for replacing the red pallet-stones Its friction on the silicon teeth of the escape-wheel does not require any oil to improve its operation live All the burnished steel pivots of the wheels and pinions are coated with a surface treatment that obviates any need to oil the jewels

Mainspring barrel in mechanical movement grease replaced by graphite powder

On the other end of the movement the barrel grease has also disappeared Instead a graphite powder helps the bride to slide smoothly inside the drum when the mainspring has been wound beyond the maximum powerreserve by the automatic winding mechanism The molecular structure of graphite consists in a stack of micro-platelets contrary to grease it retains its lubricating properties over time whatever the temperature and the hygrometry level

As for the ball-bearing mechanism of the oscillating weight in addition to the use of ceramic ball bearings mentioned earlier friction has been reduced by optimising the rotor which features carbon fibre arms and a distinctly lighter and more rigid base

Finally the oscillating weight segment is surprising in itself with its iridium platinum alloy the densest non-toxic physical body currently machinableThe entire windingtime-setting mechanism is coated with Nickel-PTFEin order to eliminate the customary greasing points The date jumper-spring features a frictional surface that also operates in ldquodryrdquo mode

Balanced wheel design in mechanical movement

Arenrsquot the most efficient balances circular The latest research by Jaeger-LeCoultre proves the exact opposite

Lengthy testing has revealed the importance of the total surface of the balance on its aerodynamic performances The larger the surface the greater the aerodynamic friction and the more energy it takes to maintain the oscillations of the balance and spring ndash which is in turn detrimental to precision

The geometry devised by Jaeger-LeCoultre coupled with the use of an extremely dense material ndash in this case iridium platinum ndash minimises the surface in friction Thus given a constant level of inertia this balance requires less energy to oscillate than a traditional balance

Balance wheel design in an optimized mechanical movement

The geometry of the balance has also been designed to reduce the ratio between the mass and the inertia of the balance

High inertia ensures a stable regulator that is fairly insensitive to the vibrations and daily shocks to which a watch is subjected and which disturb its precision Nonetheless high inertia implies a higher balance mass leading to larger losses due to mechanical fiction and thus increased energy consumption to maintain the oscillations ndash as well as a larger difference in amplitude between horizontal and vertical positions

The balance of the Jaeger-LeCoultre Calibre 988C has been optimised in order to reduce total mass without modifying the determined inertia The shape of the arms the openings and the geometry enable a several-point gain in the massinertia ratio

This factor directly influences the variations in rate between different positions that are well-known to watchmakers due to the difference in amplitude between the ldquodial-uprdquo and ldquopendant-uprdquo positions The lower the massinertia ratio the smaller the differences between the various positions thus enabling the watchmaker to perform a more precise adjustment of the watch

Contribution to accuracy by the balance spring in a mechanical movement

The balance-spring beats in a perfectly concentric manner in order to guarantee ideal isochronism Not only does it feature the carefully calculated form of a Phillips terminal curve but the watchmakers have also created something they call a ldquobendrdquo in the centre The ldquobendrdquo is a distortion of the balance-spring at aspecific place close to the collet pinning-point and which at given moments modifies the rigidity of the spring and corrects the natural tendency of any spring to ldquobreatherdquo in an off-centred manner Only this winning combination of an outer Phillips terminal curve and a central ldquobendrdquo makes it possible to create a balance-spring that develops in a perfectly concentric way (meaning with symmetrical expansions and contractions in respect to the centre)

Precise adjustment of this movement is of course performed using screws placed on the balance This process now used on all the Jaeger-LeCoultre automatic calibres has replaced the traditional index assembly and ensures peerless initial reliability of the rate that thereby remains unperturbed over time even if the watch is accidentally jarred

To perfect the exceptional efficiency of this regulating organ the aerodynamic properties of the balance have been fine-tuned by bevelling the arms by streamlining the shape of the weights and by integrating adjustment screws inside the weights The escape-wheel is made from silicon which is considerably lighter than steel and thus also favourably influences efficiency

Tourbillon made from light alloys

A one-minute tourbillon houses this literally extraordinary regulator The tourbillon carriage is machined from blocks of a magnesium alloy that is two and a half times lighter than titanium and contributes to reducing energy losses due to friction and thus further improves the exceptional efficiency of the regulator

The cadence of 28800 vibrations per hour the high (115 mgcm2) inertia of the balance and the tourbillon together help guarantee theaccuracy of the watch

Application of various new processing technologies

physical vapour deposition (pvd)chemical vapour deposition (cvd)LIthographie Galvanoformung Adformung (LIGA)electroformingphotochemcial machining (pcm)etchellip

Current development worldwide Mimotec SA (Sion Switzerland)

MEMS Technology ndash DRIE Process

MEMS Technology ndash LIGA Process

LIGA = Lithographie Galvanoformung Adformung

LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre

a German acronym for rdquoLithographie Galvanoformung Abformungldquoin English (X-ray) Lithography Electroplating and Molding

one of the first major techniques to allow on-demand manufacturing of high-aspect-ratio structures (structures that are much taller than wide) with lateral precision below one micrometre This capability is important in the fabrication of MEMS devices Because of the high collimation of X-rays needed the source must be synchrotron light

There are today three different types of LIGA technologies differing in the radiation and preform usedi) X-Ray LIGA the first LIGA technology developed using X-Rays

produced by a synchrotron ii) UV-LIGA using ultraviolet light typically from a mercury lamp and

special resists like SU-8 and iii) Silicon-LIGA using deep reactive ion etched silicon as preform

New materials new solutionsMany watch brands are experimenting with new materials to enhance the technical aspects of their watches

Some companies like Patek Philippe and Rolex are working on new materials for springs and other parts

In 2005 Patek Philippe filed a patent for the first silicon escape wheel for a Swiss lever escapement

Rolex created its new blue Parachrom hairspring made from a new alloy to resist magnetism and increase shock absorbance

Jaeger-LeCoultre are experimenting with new materials to reduce the need for lubrication ndash last year the Extreme Lab introduced the first watch ever that doesnt need any lubrication

Ultra light alloy ndash Mg and AlSome watches are already using new materials such as the Mag Bang with the AG5 alloy which is an ultra light alloy of magnesium and aluminium

Audemars Piguet has for years been a leader in the search for new and advanced materials The latest is the companys minute repeater programme where they are working with laboratories professors and students at the best universities to come up with new metals and designs that will enhance the sound of their minute repeaters

Ulysse Nardin recently unveiled its new Innovision watch a concept watch that combines the companys most daring innovations -from the silicon escapement first used in the Freak to new silicon parts (wheels bridges pinions etc) Ulysse Nardin is part owner of Sigatec SA the company responsible for the development of silicon technology in watch making

Ultra light alloy ndash Mg and Al

The Freak is one example of the way Ulysse Nardin makes things happen When Schneider made the first Freak it did not work because the mixture of materials was not right

Schneider was ready to abandon the new escapement but was talked into trying it another way We failed with the Freak with traditional materials he admits

When we failed with the Freak I wanted to go back to the anchor escapement Ludwig Oechslin our Chief Designer wanted to use the new escapement because he thought it was better So we decided to go forward in two different directions one with the anchor escapement and the other with the new escapement We met someone who had done work with silicon so we decided to try itrdquo

C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin

Ulysse Nardin is concentrating on manufacturing movement parts in silicon

One of the advantages of making parts from silicon is that the process allows complete freedom of design - just about any shape visualized can be realized

The use of silicon could very well change the way movements are designed because it removes some of the old limitations that were in place before In addition working in silicon means higher precision lighter weight and the material in its final form is very hard

New materials unique watchesSome watch companies are using new materials for aesthetic reasons like Gerald Gentas new Gefica which uses bronze in a striking way The use of innovative materials is a major factor in the creation of our watches particularly for Gerald Genta says Gerald Roden Chief Executive Officer of Daniel Roth and Gerald Genta We have long been investigating creative uses for innovative more so for aesthetics than for technical reasons

For quite some time we have experimented with combinations of materials such as carbon fibre aluminium and wood with rubber and even fish skinIn 2003 Gerald Genta was among the first to use unique metals such as palladium and tantalum for cases

We have developed a patent to use liquid ceramic for the Octo line and are currently working with metallurgists to develop other new and innovative metals for Gerald Genta We are also in the final test phases of creating an exciting new treatment for steel

Non Magnetic materials for movement components

Another movement design

Traditional mechanical movements use oils or grease to ensure smooth operations

These take the form of oils in varying degrees of fineness for parts with high translation or rotation speeds or grease for parts subject to high pressures or stresses

The properties of such oils and grease deteriorates over time and the performances of the movement likewise decline if these lubricants are not replaced in due time

Testing conducted during the 1970s on plastic movements had already shown the way towards doing without some of the oils and grease However these watches did not stand the test of time which resulted in wear on the parts that in turn rapidly diminished their chronometric and functional performances

In its ongoing search to enhance the reliability of mechanical movements Jaeger-LeCoultre had already renounced the use of lubrication in the ball-bearing mechanisms of automatic winding systems by introducing ceramic ball-bearings as early as 2002

Today the research team at the Manufacture in Le Sentier has innovated a mechanical movement run without any lubricant whatsoever This research has culminated in the brand-new Jaeger-LeCoultre Calibre 988C

Innovative mechanical movement without any lubricant

New materials in mechanical movements

The engineers and watchmakers have resorted to new materials and new combinations of materials for demanding challenge

The Easiumtrade carbonitride thus makes its way onto the watch making stage This extremely hard material features extraordinary tribological properties and is therefore particularly suited to the making bearings able to operate without lubricants

In Jaeger-LeCoultre Calibre 988C Easium replaces the traditional jewels lubricated with a fine oil The burnished steel pivots of the balance-staff are coated with a special surface treatment and turn inside an Easium bearing The endstone is also made from Easium This is also a material used to make the two bearings allowing the carriage to turn in the bridges without any need to add jewels that would require lubrication

Watchmakers are considering the black crystalline diamond a synthetic material as hard as natural diamonds but with considerably enhanced operational properties for replacing the red pallet-stones Its friction on the silicon teeth of the escape-wheel does not require any oil to improve its operation live All the burnished steel pivots of the wheels and pinions are coated with a surface treatment that obviates any need to oil the jewels

Mainspring barrel in mechanical movement grease replaced by graphite powder

On the other end of the movement the barrel grease has also disappeared Instead a graphite powder helps the bride to slide smoothly inside the drum when the mainspring has been wound beyond the maximum powerreserve by the automatic winding mechanism The molecular structure of graphite consists in a stack of micro-platelets contrary to grease it retains its lubricating properties over time whatever the temperature and the hygrometry level

As for the ball-bearing mechanism of the oscillating weight in addition to the use of ceramic ball bearings mentioned earlier friction has been reduced by optimising the rotor which features carbon fibre arms and a distinctly lighter and more rigid base

Finally the oscillating weight segment is surprising in itself with its iridium platinum alloy the densest non-toxic physical body currently machinableThe entire windingtime-setting mechanism is coated with Nickel-PTFEin order to eliminate the customary greasing points The date jumper-spring features a frictional surface that also operates in ldquodryrdquo mode

Balanced wheel design in mechanical movement

Arenrsquot the most efficient balances circular The latest research by Jaeger-LeCoultre proves the exact opposite

Lengthy testing has revealed the importance of the total surface of the balance on its aerodynamic performances The larger the surface the greater the aerodynamic friction and the more energy it takes to maintain the oscillations of the balance and spring ndash which is in turn detrimental to precision

The geometry devised by Jaeger-LeCoultre coupled with the use of an extremely dense material ndash in this case iridium platinum ndash minimises the surface in friction Thus given a constant level of inertia this balance requires less energy to oscillate than a traditional balance

Balance wheel design in an optimized mechanical movement

The geometry of the balance has also been designed to reduce the ratio between the mass and the inertia of the balance

High inertia ensures a stable regulator that is fairly insensitive to the vibrations and daily shocks to which a watch is subjected and which disturb its precision Nonetheless high inertia implies a higher balance mass leading to larger losses due to mechanical fiction and thus increased energy consumption to maintain the oscillations ndash as well as a larger difference in amplitude between horizontal and vertical positions

The balance of the Jaeger-LeCoultre Calibre 988C has been optimised in order to reduce total mass without modifying the determined inertia The shape of the arms the openings and the geometry enable a several-point gain in the massinertia ratio

This factor directly influences the variations in rate between different positions that are well-known to watchmakers due to the difference in amplitude between the ldquodial-uprdquo and ldquopendant-uprdquo positions The lower the massinertia ratio the smaller the differences between the various positions thus enabling the watchmaker to perform a more precise adjustment of the watch

Contribution to accuracy by the balance spring in a mechanical movement

The balance-spring beats in a perfectly concentric manner in order to guarantee ideal isochronism Not only does it feature the carefully calculated form of a Phillips terminal curve but the watchmakers have also created something they call a ldquobendrdquo in the centre The ldquobendrdquo is a distortion of the balance-spring at aspecific place close to the collet pinning-point and which at given moments modifies the rigidity of the spring and corrects the natural tendency of any spring to ldquobreatherdquo in an off-centred manner Only this winning combination of an outer Phillips terminal curve and a central ldquobendrdquo makes it possible to create a balance-spring that develops in a perfectly concentric way (meaning with symmetrical expansions and contractions in respect to the centre)

Precise adjustment of this movement is of course performed using screws placed on the balance This process now used on all the Jaeger-LeCoultre automatic calibres has replaced the traditional index assembly and ensures peerless initial reliability of the rate that thereby remains unperturbed over time even if the watch is accidentally jarred

To perfect the exceptional efficiency of this regulating organ the aerodynamic properties of the balance have been fine-tuned by bevelling the arms by streamlining the shape of the weights and by integrating adjustment screws inside the weights The escape-wheel is made from silicon which is considerably lighter than steel and thus also favourably influences efficiency

Tourbillon made from light alloys

A one-minute tourbillon houses this literally extraordinary regulator The tourbillon carriage is machined from blocks of a magnesium alloy that is two and a half times lighter than titanium and contributes to reducing energy losses due to friction and thus further improves the exceptional efficiency of the regulator

The cadence of 28800 vibrations per hour the high (115 mgcm2) inertia of the balance and the tourbillon together help guarantee theaccuracy of the watch

Application of various new processing technologies

physical vapour deposition (pvd)chemical vapour deposition (cvd)LIthographie Galvanoformung Adformung (LIGA)electroformingphotochemcial machining (pcm)etchellip

Current development worldwide Mimotec SA (Sion Switzerland)

MEMS Technology ndash DRIE Process

MEMS Technology ndash LIGA Process

LIGA = Lithographie Galvanoformung Adformung

LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre

a German acronym for rdquoLithographie Galvanoformung Abformungldquoin English (X-ray) Lithography Electroplating and Molding

one of the first major techniques to allow on-demand manufacturing of high-aspect-ratio structures (structures that are much taller than wide) with lateral precision below one micrometre This capability is important in the fabrication of MEMS devices Because of the high collimation of X-rays needed the source must be synchrotron light

There are today three different types of LIGA technologies differing in the radiation and preform usedi) X-Ray LIGA the first LIGA technology developed using X-Rays

produced by a synchrotron ii) UV-LIGA using ultraviolet light typically from a mercury lamp and

special resists like SU-8 and iii) Silicon-LIGA using deep reactive ion etched silicon as preform

Ultra light alloy ndash Mg and AlSome watches are already using new materials such as the Mag Bang with the AG5 alloy which is an ultra light alloy of magnesium and aluminium

Audemars Piguet has for years been a leader in the search for new and advanced materials The latest is the companys minute repeater programme where they are working with laboratories professors and students at the best universities to come up with new metals and designs that will enhance the sound of their minute repeaters

Ulysse Nardin recently unveiled its new Innovision watch a concept watch that combines the companys most daring innovations -from the silicon escapement first used in the Freak to new silicon parts (wheels bridges pinions etc) Ulysse Nardin is part owner of Sigatec SA the company responsible for the development of silicon technology in watch making

Ultra light alloy ndash Mg and Al

The Freak is one example of the way Ulysse Nardin makes things happen When Schneider made the first Freak it did not work because the mixture of materials was not right

Schneider was ready to abandon the new escapement but was talked into trying it another way We failed with the Freak with traditional materials he admits

When we failed with the Freak I wanted to go back to the anchor escapement Ludwig Oechslin our Chief Designer wanted to use the new escapement because he thought it was better So we decided to go forward in two different directions one with the anchor escapement and the other with the new escapement We met someone who had done work with silicon so we decided to try itrdquo

C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin

Ulysse Nardin is concentrating on manufacturing movement parts in silicon

One of the advantages of making parts from silicon is that the process allows complete freedom of design - just about any shape visualized can be realized

The use of silicon could very well change the way movements are designed because it removes some of the old limitations that were in place before In addition working in silicon means higher precision lighter weight and the material in its final form is very hard

New materials unique watchesSome watch companies are using new materials for aesthetic reasons like Gerald Gentas new Gefica which uses bronze in a striking way The use of innovative materials is a major factor in the creation of our watches particularly for Gerald Genta says Gerald Roden Chief Executive Officer of Daniel Roth and Gerald Genta We have long been investigating creative uses for innovative more so for aesthetics than for technical reasons

For quite some time we have experimented with combinations of materials such as carbon fibre aluminium and wood with rubber and even fish skinIn 2003 Gerald Genta was among the first to use unique metals such as palladium and tantalum for cases

We have developed a patent to use liquid ceramic for the Octo line and are currently working with metallurgists to develop other new and innovative metals for Gerald Genta We are also in the final test phases of creating an exciting new treatment for steel

Non Magnetic materials for movement components

Another movement design

Traditional mechanical movements use oils or grease to ensure smooth operations

These take the form of oils in varying degrees of fineness for parts with high translation or rotation speeds or grease for parts subject to high pressures or stresses

The properties of such oils and grease deteriorates over time and the performances of the movement likewise decline if these lubricants are not replaced in due time

Testing conducted during the 1970s on plastic movements had already shown the way towards doing without some of the oils and grease However these watches did not stand the test of time which resulted in wear on the parts that in turn rapidly diminished their chronometric and functional performances

In its ongoing search to enhance the reliability of mechanical movements Jaeger-LeCoultre had already renounced the use of lubrication in the ball-bearing mechanisms of automatic winding systems by introducing ceramic ball-bearings as early as 2002

Today the research team at the Manufacture in Le Sentier has innovated a mechanical movement run without any lubricant whatsoever This research has culminated in the brand-new Jaeger-LeCoultre Calibre 988C

Innovative mechanical movement without any lubricant

New materials in mechanical movements

The engineers and watchmakers have resorted to new materials and new combinations of materials for demanding challenge

The Easiumtrade carbonitride thus makes its way onto the watch making stage This extremely hard material features extraordinary tribological properties and is therefore particularly suited to the making bearings able to operate without lubricants

In Jaeger-LeCoultre Calibre 988C Easium replaces the traditional jewels lubricated with a fine oil The burnished steel pivots of the balance-staff are coated with a special surface treatment and turn inside an Easium bearing The endstone is also made from Easium This is also a material used to make the two bearings allowing the carriage to turn in the bridges without any need to add jewels that would require lubrication

Watchmakers are considering the black crystalline diamond a synthetic material as hard as natural diamonds but with considerably enhanced operational properties for replacing the red pallet-stones Its friction on the silicon teeth of the escape-wheel does not require any oil to improve its operation live All the burnished steel pivots of the wheels and pinions are coated with a surface treatment that obviates any need to oil the jewels

Mainspring barrel in mechanical movement grease replaced by graphite powder

On the other end of the movement the barrel grease has also disappeared Instead a graphite powder helps the bride to slide smoothly inside the drum when the mainspring has been wound beyond the maximum powerreserve by the automatic winding mechanism The molecular structure of graphite consists in a stack of micro-platelets contrary to grease it retains its lubricating properties over time whatever the temperature and the hygrometry level

As for the ball-bearing mechanism of the oscillating weight in addition to the use of ceramic ball bearings mentioned earlier friction has been reduced by optimising the rotor which features carbon fibre arms and a distinctly lighter and more rigid base

Finally the oscillating weight segment is surprising in itself with its iridium platinum alloy the densest non-toxic physical body currently machinableThe entire windingtime-setting mechanism is coated with Nickel-PTFEin order to eliminate the customary greasing points The date jumper-spring features a frictional surface that also operates in ldquodryrdquo mode

Balanced wheel design in mechanical movement

Arenrsquot the most efficient balances circular The latest research by Jaeger-LeCoultre proves the exact opposite

Lengthy testing has revealed the importance of the total surface of the balance on its aerodynamic performances The larger the surface the greater the aerodynamic friction and the more energy it takes to maintain the oscillations of the balance and spring ndash which is in turn detrimental to precision

The geometry devised by Jaeger-LeCoultre coupled with the use of an extremely dense material ndash in this case iridium platinum ndash minimises the surface in friction Thus given a constant level of inertia this balance requires less energy to oscillate than a traditional balance

Balance wheel design in an optimized mechanical movement

The geometry of the balance has also been designed to reduce the ratio between the mass and the inertia of the balance

High inertia ensures a stable regulator that is fairly insensitive to the vibrations and daily shocks to which a watch is subjected and which disturb its precision Nonetheless high inertia implies a higher balance mass leading to larger losses due to mechanical fiction and thus increased energy consumption to maintain the oscillations ndash as well as a larger difference in amplitude between horizontal and vertical positions

The balance of the Jaeger-LeCoultre Calibre 988C has been optimised in order to reduce total mass without modifying the determined inertia The shape of the arms the openings and the geometry enable a several-point gain in the massinertia ratio

This factor directly influences the variations in rate between different positions that are well-known to watchmakers due to the difference in amplitude between the ldquodial-uprdquo and ldquopendant-uprdquo positions The lower the massinertia ratio the smaller the differences between the various positions thus enabling the watchmaker to perform a more precise adjustment of the watch

Contribution to accuracy by the balance spring in a mechanical movement

The balance-spring beats in a perfectly concentric manner in order to guarantee ideal isochronism Not only does it feature the carefully calculated form of a Phillips terminal curve but the watchmakers have also created something they call a ldquobendrdquo in the centre The ldquobendrdquo is a distortion of the balance-spring at aspecific place close to the collet pinning-point and which at given moments modifies the rigidity of the spring and corrects the natural tendency of any spring to ldquobreatherdquo in an off-centred manner Only this winning combination of an outer Phillips terminal curve and a central ldquobendrdquo makes it possible to create a balance-spring that develops in a perfectly concentric way (meaning with symmetrical expansions and contractions in respect to the centre)

Precise adjustment of this movement is of course performed using screws placed on the balance This process now used on all the Jaeger-LeCoultre automatic calibres has replaced the traditional index assembly and ensures peerless initial reliability of the rate that thereby remains unperturbed over time even if the watch is accidentally jarred

To perfect the exceptional efficiency of this regulating organ the aerodynamic properties of the balance have been fine-tuned by bevelling the arms by streamlining the shape of the weights and by integrating adjustment screws inside the weights The escape-wheel is made from silicon which is considerably lighter than steel and thus also favourably influences efficiency

Tourbillon made from light alloys

A one-minute tourbillon houses this literally extraordinary regulator The tourbillon carriage is machined from blocks of a magnesium alloy that is two and a half times lighter than titanium and contributes to reducing energy losses due to friction and thus further improves the exceptional efficiency of the regulator

The cadence of 28800 vibrations per hour the high (115 mgcm2) inertia of the balance and the tourbillon together help guarantee theaccuracy of the watch

Application of various new processing technologies

physical vapour deposition (pvd)chemical vapour deposition (cvd)LIthographie Galvanoformung Adformung (LIGA)electroformingphotochemcial machining (pcm)etchellip

Current development worldwide Mimotec SA (Sion Switzerland)

MEMS Technology ndash DRIE Process

MEMS Technology ndash LIGA Process

LIGA = Lithographie Galvanoformung Adformung

LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre

a German acronym for rdquoLithographie Galvanoformung Abformungldquoin English (X-ray) Lithography Electroplating and Molding

one of the first major techniques to allow on-demand manufacturing of high-aspect-ratio structures (structures that are much taller than wide) with lateral precision below one micrometre This capability is important in the fabrication of MEMS devices Because of the high collimation of X-rays needed the source must be synchrotron light

There are today three different types of LIGA technologies differing in the radiation and preform usedi) X-Ray LIGA the first LIGA technology developed using X-Rays

produced by a synchrotron ii) UV-LIGA using ultraviolet light typically from a mercury lamp and

special resists like SU-8 and iii) Silicon-LIGA using deep reactive ion etched silicon as preform

Ultra light alloy ndash Mg and Al

The Freak is one example of the way Ulysse Nardin makes things happen When Schneider made the first Freak it did not work because the mixture of materials was not right

Schneider was ready to abandon the new escapement but was talked into trying it another way We failed with the Freak with traditional materials he admits

When we failed with the Freak I wanted to go back to the anchor escapement Ludwig Oechslin our Chief Designer wanted to use the new escapement because he thought it was better So we decided to go forward in two different directions one with the anchor escapement and the other with the new escapement We met someone who had done work with silicon so we decided to try itrdquo

C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin

Ulysse Nardin is concentrating on manufacturing movement parts in silicon

One of the advantages of making parts from silicon is that the process allows complete freedom of design - just about any shape visualized can be realized

The use of silicon could very well change the way movements are designed because it removes some of the old limitations that were in place before In addition working in silicon means higher precision lighter weight and the material in its final form is very hard

New materials unique watchesSome watch companies are using new materials for aesthetic reasons like Gerald Gentas new Gefica which uses bronze in a striking way The use of innovative materials is a major factor in the creation of our watches particularly for Gerald Genta says Gerald Roden Chief Executive Officer of Daniel Roth and Gerald Genta We have long been investigating creative uses for innovative more so for aesthetics than for technical reasons

For quite some time we have experimented with combinations of materials such as carbon fibre aluminium and wood with rubber and even fish skinIn 2003 Gerald Genta was among the first to use unique metals such as palladium and tantalum for cases

We have developed a patent to use liquid ceramic for the Octo line and are currently working with metallurgists to develop other new and innovative metals for Gerald Genta We are also in the final test phases of creating an exciting new treatment for steel

Non Magnetic materials for movement components

Another movement design

Traditional mechanical movements use oils or grease to ensure smooth operations

These take the form of oils in varying degrees of fineness for parts with high translation or rotation speeds or grease for parts subject to high pressures or stresses

The properties of such oils and grease deteriorates over time and the performances of the movement likewise decline if these lubricants are not replaced in due time

Testing conducted during the 1970s on plastic movements had already shown the way towards doing without some of the oils and grease However these watches did not stand the test of time which resulted in wear on the parts that in turn rapidly diminished their chronometric and functional performances

In its ongoing search to enhance the reliability of mechanical movements Jaeger-LeCoultre had already renounced the use of lubrication in the ball-bearing mechanisms of automatic winding systems by introducing ceramic ball-bearings as early as 2002

Today the research team at the Manufacture in Le Sentier has innovated a mechanical movement run without any lubricant whatsoever This research has culminated in the brand-new Jaeger-LeCoultre Calibre 988C

Innovative mechanical movement without any lubricant

New materials in mechanical movements

The engineers and watchmakers have resorted to new materials and new combinations of materials for demanding challenge

The Easiumtrade carbonitride thus makes its way onto the watch making stage This extremely hard material features extraordinary tribological properties and is therefore particularly suited to the making bearings able to operate without lubricants

In Jaeger-LeCoultre Calibre 988C Easium replaces the traditional jewels lubricated with a fine oil The burnished steel pivots of the balance-staff are coated with a special surface treatment and turn inside an Easium bearing The endstone is also made from Easium This is also a material used to make the two bearings allowing the carriage to turn in the bridges without any need to add jewels that would require lubrication

Watchmakers are considering the black crystalline diamond a synthetic material as hard as natural diamonds but with considerably enhanced operational properties for replacing the red pallet-stones Its friction on the silicon teeth of the escape-wheel does not require any oil to improve its operation live All the burnished steel pivots of the wheels and pinions are coated with a surface treatment that obviates any need to oil the jewels

Mainspring barrel in mechanical movement grease replaced by graphite powder

On the other end of the movement the barrel grease has also disappeared Instead a graphite powder helps the bride to slide smoothly inside the drum when the mainspring has been wound beyond the maximum powerreserve by the automatic winding mechanism The molecular structure of graphite consists in a stack of micro-platelets contrary to grease it retains its lubricating properties over time whatever the temperature and the hygrometry level

As for the ball-bearing mechanism of the oscillating weight in addition to the use of ceramic ball bearings mentioned earlier friction has been reduced by optimising the rotor which features carbon fibre arms and a distinctly lighter and more rigid base

Finally the oscillating weight segment is surprising in itself with its iridium platinum alloy the densest non-toxic physical body currently machinableThe entire windingtime-setting mechanism is coated with Nickel-PTFEin order to eliminate the customary greasing points The date jumper-spring features a frictional surface that also operates in ldquodryrdquo mode

Balanced wheel design in mechanical movement

Arenrsquot the most efficient balances circular The latest research by Jaeger-LeCoultre proves the exact opposite

Lengthy testing has revealed the importance of the total surface of the balance on its aerodynamic performances The larger the surface the greater the aerodynamic friction and the more energy it takes to maintain the oscillations of the balance and spring ndash which is in turn detrimental to precision

The geometry devised by Jaeger-LeCoultre coupled with the use of an extremely dense material ndash in this case iridium platinum ndash minimises the surface in friction Thus given a constant level of inertia this balance requires less energy to oscillate than a traditional balance

Balance wheel design in an optimized mechanical movement

The geometry of the balance has also been designed to reduce the ratio between the mass and the inertia of the balance

High inertia ensures a stable regulator that is fairly insensitive to the vibrations and daily shocks to which a watch is subjected and which disturb its precision Nonetheless high inertia implies a higher balance mass leading to larger losses due to mechanical fiction and thus increased energy consumption to maintain the oscillations ndash as well as a larger difference in amplitude between horizontal and vertical positions

The balance of the Jaeger-LeCoultre Calibre 988C has been optimised in order to reduce total mass without modifying the determined inertia The shape of the arms the openings and the geometry enable a several-point gain in the massinertia ratio

This factor directly influences the variations in rate between different positions that are well-known to watchmakers due to the difference in amplitude between the ldquodial-uprdquo and ldquopendant-uprdquo positions The lower the massinertia ratio the smaller the differences between the various positions thus enabling the watchmaker to perform a more precise adjustment of the watch

Contribution to accuracy by the balance spring in a mechanical movement

The balance-spring beats in a perfectly concentric manner in order to guarantee ideal isochronism Not only does it feature the carefully calculated form of a Phillips terminal curve but the watchmakers have also created something they call a ldquobendrdquo in the centre The ldquobendrdquo is a distortion of the balance-spring at aspecific place close to the collet pinning-point and which at given moments modifies the rigidity of the spring and corrects the natural tendency of any spring to ldquobreatherdquo in an off-centred manner Only this winning combination of an outer Phillips terminal curve and a central ldquobendrdquo makes it possible to create a balance-spring that develops in a perfectly concentric way (meaning with symmetrical expansions and contractions in respect to the centre)

Precise adjustment of this movement is of course performed using screws placed on the balance This process now used on all the Jaeger-LeCoultre automatic calibres has replaced the traditional index assembly and ensures peerless initial reliability of the rate that thereby remains unperturbed over time even if the watch is accidentally jarred

To perfect the exceptional efficiency of this regulating organ the aerodynamic properties of the balance have been fine-tuned by bevelling the arms by streamlining the shape of the weights and by integrating adjustment screws inside the weights The escape-wheel is made from silicon which is considerably lighter than steel and thus also favourably influences efficiency

Tourbillon made from light alloys

A one-minute tourbillon houses this literally extraordinary regulator The tourbillon carriage is machined from blocks of a magnesium alloy that is two and a half times lighter than titanium and contributes to reducing energy losses due to friction and thus further improves the exceptional efficiency of the regulator

The cadence of 28800 vibrations per hour the high (115 mgcm2) inertia of the balance and the tourbillon together help guarantee theaccuracy of the watch

Application of various new processing technologies

physical vapour deposition (pvd)chemical vapour deposition (cvd)LIthographie Galvanoformung Adformung (LIGA)electroformingphotochemcial machining (pcm)etchellip

Current development worldwide Mimotec SA (Sion Switzerland)

MEMS Technology ndash DRIE Process

MEMS Technology ndash LIGA Process

LIGA = Lithographie Galvanoformung Adformung

LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre

a German acronym for rdquoLithographie Galvanoformung Abformungldquoin English (X-ray) Lithography Electroplating and Molding

one of the first major techniques to allow on-demand manufacturing of high-aspect-ratio structures (structures that are much taller than wide) with lateral precision below one micrometre This capability is important in the fabrication of MEMS devices Because of the high collimation of X-rays needed the source must be synchrotron light

There are today three different types of LIGA technologies differing in the radiation and preform usedi) X-Ray LIGA the first LIGA technology developed using X-Rays

produced by a synchrotron ii) UV-LIGA using ultraviolet light typically from a mercury lamp and

special resists like SU-8 and iii) Silicon-LIGA using deep reactive ion etched silicon as preform

C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin

Ulysse Nardin is concentrating on manufacturing movement parts in silicon

One of the advantages of making parts from silicon is that the process allows complete freedom of design - just about any shape visualized can be realized

The use of silicon could very well change the way movements are designed because it removes some of the old limitations that were in place before In addition working in silicon means higher precision lighter weight and the material in its final form is very hard

New materials unique watchesSome watch companies are using new materials for aesthetic reasons like Gerald Gentas new Gefica which uses bronze in a striking way The use of innovative materials is a major factor in the creation of our watches particularly for Gerald Genta says Gerald Roden Chief Executive Officer of Daniel Roth and Gerald Genta We have long been investigating creative uses for innovative more so for aesthetics than for technical reasons

For quite some time we have experimented with combinations of materials such as carbon fibre aluminium and wood with rubber and even fish skinIn 2003 Gerald Genta was among the first to use unique metals such as palladium and tantalum for cases

We have developed a patent to use liquid ceramic for the Octo line and are currently working with metallurgists to develop other new and innovative metals for Gerald Genta We are also in the final test phases of creating an exciting new treatment for steel

Non Magnetic materials for movement components

Another movement design

Traditional mechanical movements use oils or grease to ensure smooth operations

These take the form of oils in varying degrees of fineness for parts with high translation or rotation speeds or grease for parts subject to high pressures or stresses

The properties of such oils and grease deteriorates over time and the performances of the movement likewise decline if these lubricants are not replaced in due time

Testing conducted during the 1970s on plastic movements had already shown the way towards doing without some of the oils and grease However these watches did not stand the test of time which resulted in wear on the parts that in turn rapidly diminished their chronometric and functional performances

In its ongoing search to enhance the reliability of mechanical movements Jaeger-LeCoultre had already renounced the use of lubrication in the ball-bearing mechanisms of automatic winding systems by introducing ceramic ball-bearings as early as 2002

Today the research team at the Manufacture in Le Sentier has innovated a mechanical movement run without any lubricant whatsoever This research has culminated in the brand-new Jaeger-LeCoultre Calibre 988C

Innovative mechanical movement without any lubricant

New materials in mechanical movements

The engineers and watchmakers have resorted to new materials and new combinations of materials for demanding challenge

The Easiumtrade carbonitride thus makes its way onto the watch making stage This extremely hard material features extraordinary tribological properties and is therefore particularly suited to the making bearings able to operate without lubricants

In Jaeger-LeCoultre Calibre 988C Easium replaces the traditional jewels lubricated with a fine oil The burnished steel pivots of the balance-staff are coated with a special surface treatment and turn inside an Easium bearing The endstone is also made from Easium This is also a material used to make the two bearings allowing the carriage to turn in the bridges without any need to add jewels that would require lubrication

Watchmakers are considering the black crystalline diamond a synthetic material as hard as natural diamonds but with considerably enhanced operational properties for replacing the red pallet-stones Its friction on the silicon teeth of the escape-wheel does not require any oil to improve its operation live All the burnished steel pivots of the wheels and pinions are coated with a surface treatment that obviates any need to oil the jewels

Mainspring barrel in mechanical movement grease replaced by graphite powder

On the other end of the movement the barrel grease has also disappeared Instead a graphite powder helps the bride to slide smoothly inside the drum when the mainspring has been wound beyond the maximum powerreserve by the automatic winding mechanism The molecular structure of graphite consists in a stack of micro-platelets contrary to grease it retains its lubricating properties over time whatever the temperature and the hygrometry level

As for the ball-bearing mechanism of the oscillating weight in addition to the use of ceramic ball bearings mentioned earlier friction has been reduced by optimising the rotor which features carbon fibre arms and a distinctly lighter and more rigid base

Finally the oscillating weight segment is surprising in itself with its iridium platinum alloy the densest non-toxic physical body currently machinableThe entire windingtime-setting mechanism is coated with Nickel-PTFEin order to eliminate the customary greasing points The date jumper-spring features a frictional surface that also operates in ldquodryrdquo mode

Balanced wheel design in mechanical movement

Arenrsquot the most efficient balances circular The latest research by Jaeger-LeCoultre proves the exact opposite

Lengthy testing has revealed the importance of the total surface of the balance on its aerodynamic performances The larger the surface the greater the aerodynamic friction and the more energy it takes to maintain the oscillations of the balance and spring ndash which is in turn detrimental to precision

The geometry devised by Jaeger-LeCoultre coupled with the use of an extremely dense material ndash in this case iridium platinum ndash minimises the surface in friction Thus given a constant level of inertia this balance requires less energy to oscillate than a traditional balance

Balance wheel design in an optimized mechanical movement

The geometry of the balance has also been designed to reduce the ratio between the mass and the inertia of the balance

High inertia ensures a stable regulator that is fairly insensitive to the vibrations and daily shocks to which a watch is subjected and which disturb its precision Nonetheless high inertia implies a higher balance mass leading to larger losses due to mechanical fiction and thus increased energy consumption to maintain the oscillations ndash as well as a larger difference in amplitude between horizontal and vertical positions

The balance of the Jaeger-LeCoultre Calibre 988C has been optimised in order to reduce total mass without modifying the determined inertia The shape of the arms the openings and the geometry enable a several-point gain in the massinertia ratio

This factor directly influences the variations in rate between different positions that are well-known to watchmakers due to the difference in amplitude between the ldquodial-uprdquo and ldquopendant-uprdquo positions The lower the massinertia ratio the smaller the differences between the various positions thus enabling the watchmaker to perform a more precise adjustment of the watch

Contribution to accuracy by the balance spring in a mechanical movement

The balance-spring beats in a perfectly concentric manner in order to guarantee ideal isochronism Not only does it feature the carefully calculated form of a Phillips terminal curve but the watchmakers have also created something they call a ldquobendrdquo in the centre The ldquobendrdquo is a distortion of the balance-spring at aspecific place close to the collet pinning-point and which at given moments modifies the rigidity of the spring and corrects the natural tendency of any spring to ldquobreatherdquo in an off-centred manner Only this winning combination of an outer Phillips terminal curve and a central ldquobendrdquo makes it possible to create a balance-spring that develops in a perfectly concentric way (meaning with symmetrical expansions and contractions in respect to the centre)

Precise adjustment of this movement is of course performed using screws placed on the balance This process now used on all the Jaeger-LeCoultre automatic calibres has replaced the traditional index assembly and ensures peerless initial reliability of the rate that thereby remains unperturbed over time even if the watch is accidentally jarred

To perfect the exceptional efficiency of this regulating organ the aerodynamic properties of the balance have been fine-tuned by bevelling the arms by streamlining the shape of the weights and by integrating adjustment screws inside the weights The escape-wheel is made from silicon which is considerably lighter than steel and thus also favourably influences efficiency

Tourbillon made from light alloys

A one-minute tourbillon houses this literally extraordinary regulator The tourbillon carriage is machined from blocks of a magnesium alloy that is two and a half times lighter than titanium and contributes to reducing energy losses due to friction and thus further improves the exceptional efficiency of the regulator

The cadence of 28800 vibrations per hour the high (115 mgcm2) inertia of the balance and the tourbillon together help guarantee theaccuracy of the watch

Application of various new processing technologies

physical vapour deposition (pvd)chemical vapour deposition (cvd)LIthographie Galvanoformung Adformung (LIGA)electroformingphotochemcial machining (pcm)etchellip

Current development worldwide Mimotec SA (Sion Switzerland)

MEMS Technology ndash DRIE Process

MEMS Technology ndash LIGA Process

LIGA = Lithographie Galvanoformung Adformung

LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre

a German acronym for rdquoLithographie Galvanoformung Abformungldquoin English (X-ray) Lithography Electroplating and Molding

one of the first major techniques to allow on-demand manufacturing of high-aspect-ratio structures (structures that are much taller than wide) with lateral precision below one micrometre This capability is important in the fabrication of MEMS devices Because of the high collimation of X-rays needed the source must be synchrotron light

There are today three different types of LIGA technologies differing in the radiation and preform usedi) X-Ray LIGA the first LIGA technology developed using X-Rays

produced by a synchrotron ii) UV-LIGA using ultraviolet light typically from a mercury lamp and

special resists like SU-8 and iii) Silicon-LIGA using deep reactive ion etched silicon as preform

Ulysse Nardin is concentrating on manufacturing movement parts in silicon

One of the advantages of making parts from silicon is that the process allows complete freedom of design - just about any shape visualized can be realized

The use of silicon could very well change the way movements are designed because it removes some of the old limitations that were in place before In addition working in silicon means higher precision lighter weight and the material in its final form is very hard

New materials unique watchesSome watch companies are using new materials for aesthetic reasons like Gerald Gentas new Gefica which uses bronze in a striking way The use of innovative materials is a major factor in the creation of our watches particularly for Gerald Genta says Gerald Roden Chief Executive Officer of Daniel Roth and Gerald Genta We have long been investigating creative uses for innovative more so for aesthetics than for technical reasons

For quite some time we have experimented with combinations of materials such as carbon fibre aluminium and wood with rubber and even fish skinIn 2003 Gerald Genta was among the first to use unique metals such as palladium and tantalum for cases

We have developed a patent to use liquid ceramic for the Octo line and are currently working with metallurgists to develop other new and innovative metals for Gerald Genta We are also in the final test phases of creating an exciting new treatment for steel

Non Magnetic materials for movement components

Another movement design

Traditional mechanical movements use oils or grease to ensure smooth operations

These take the form of oils in varying degrees of fineness for parts with high translation or rotation speeds or grease for parts subject to high pressures or stresses

The properties of such oils and grease deteriorates over time and the performances of the movement likewise decline if these lubricants are not replaced in due time

Testing conducted during the 1970s on plastic movements had already shown the way towards doing without some of the oils and grease However these watches did not stand the test of time which resulted in wear on the parts that in turn rapidly diminished their chronometric and functional performances

In its ongoing search to enhance the reliability of mechanical movements Jaeger-LeCoultre had already renounced the use of lubrication in the ball-bearing mechanisms of automatic winding systems by introducing ceramic ball-bearings as early as 2002

Today the research team at the Manufacture in Le Sentier has innovated a mechanical movement run without any lubricant whatsoever This research has culminated in the brand-new Jaeger-LeCoultre Calibre 988C

Innovative mechanical movement without any lubricant

New materials in mechanical movements

The engineers and watchmakers have resorted to new materials and new combinations of materials for demanding challenge

The Easiumtrade carbonitride thus makes its way onto the watch making stage This extremely hard material features extraordinary tribological properties and is therefore particularly suited to the making bearings able to operate without lubricants

In Jaeger-LeCoultre Calibre 988C Easium replaces the traditional jewels lubricated with a fine oil The burnished steel pivots of the balance-staff are coated with a special surface treatment and turn inside an Easium bearing The endstone is also made from Easium This is also a material used to make the two bearings allowing the carriage to turn in the bridges without any need to add jewels that would require lubrication

Watchmakers are considering the black crystalline diamond a synthetic material as hard as natural diamonds but with considerably enhanced operational properties for replacing the red pallet-stones Its friction on the silicon teeth of the escape-wheel does not require any oil to improve its operation live All the burnished steel pivots of the wheels and pinions are coated with a surface treatment that obviates any need to oil the jewels

Mainspring barrel in mechanical movement grease replaced by graphite powder

On the other end of the movement the barrel grease has also disappeared Instead a graphite powder helps the bride to slide smoothly inside the drum when the mainspring has been wound beyond the maximum powerreserve by the automatic winding mechanism The molecular structure of graphite consists in a stack of micro-platelets contrary to grease it retains its lubricating properties over time whatever the temperature and the hygrometry level

As for the ball-bearing mechanism of the oscillating weight in addition to the use of ceramic ball bearings mentioned earlier friction has been reduced by optimising the rotor which features carbon fibre arms and a distinctly lighter and more rigid base

Finally the oscillating weight segment is surprising in itself with its iridium platinum alloy the densest non-toxic physical body currently machinableThe entire windingtime-setting mechanism is coated with Nickel-PTFEin order to eliminate the customary greasing points The date jumper-spring features a frictional surface that also operates in ldquodryrdquo mode

Balanced wheel design in mechanical movement

Arenrsquot the most efficient balances circular The latest research by Jaeger-LeCoultre proves the exact opposite

Lengthy testing has revealed the importance of the total surface of the balance on its aerodynamic performances The larger the surface the greater the aerodynamic friction and the more energy it takes to maintain the oscillations of the balance and spring ndash which is in turn detrimental to precision

The geometry devised by Jaeger-LeCoultre coupled with the use of an extremely dense material ndash in this case iridium platinum ndash minimises the surface in friction Thus given a constant level of inertia this balance requires less energy to oscillate than a traditional balance

Balance wheel design in an optimized mechanical movement

The geometry of the balance has also been designed to reduce the ratio between the mass and the inertia of the balance

High inertia ensures a stable regulator that is fairly insensitive to the vibrations and daily shocks to which a watch is subjected and which disturb its precision Nonetheless high inertia implies a higher balance mass leading to larger losses due to mechanical fiction and thus increased energy consumption to maintain the oscillations ndash as well as a larger difference in amplitude between horizontal and vertical positions

The balance of the Jaeger-LeCoultre Calibre 988C has been optimised in order to reduce total mass without modifying the determined inertia The shape of the arms the openings and the geometry enable a several-point gain in the massinertia ratio

This factor directly influences the variations in rate between different positions that are well-known to watchmakers due to the difference in amplitude between the ldquodial-uprdquo and ldquopendant-uprdquo positions The lower the massinertia ratio the smaller the differences between the various positions thus enabling the watchmaker to perform a more precise adjustment of the watch

Contribution to accuracy by the balance spring in a mechanical movement

The balance-spring beats in a perfectly concentric manner in order to guarantee ideal isochronism Not only does it feature the carefully calculated form of a Phillips terminal curve but the watchmakers have also created something they call a ldquobendrdquo in the centre The ldquobendrdquo is a distortion of the balance-spring at aspecific place close to the collet pinning-point and which at given moments modifies the rigidity of the spring and corrects the natural tendency of any spring to ldquobreatherdquo in an off-centred manner Only this winning combination of an outer Phillips terminal curve and a central ldquobendrdquo makes it possible to create a balance-spring that develops in a perfectly concentric way (meaning with symmetrical expansions and contractions in respect to the centre)

Precise adjustment of this movement is of course performed using screws placed on the balance This process now used on all the Jaeger-LeCoultre automatic calibres has replaced the traditional index assembly and ensures peerless initial reliability of the rate that thereby remains unperturbed over time even if the watch is accidentally jarred

To perfect the exceptional efficiency of this regulating organ the aerodynamic properties of the balance have been fine-tuned by bevelling the arms by streamlining the shape of the weights and by integrating adjustment screws inside the weights The escape-wheel is made from silicon which is considerably lighter than steel and thus also favourably influences efficiency

Tourbillon made from light alloys

A one-minute tourbillon houses this literally extraordinary regulator The tourbillon carriage is machined from blocks of a magnesium alloy that is two and a half times lighter than titanium and contributes to reducing energy losses due to friction and thus further improves the exceptional efficiency of the regulator

The cadence of 28800 vibrations per hour the high (115 mgcm2) inertia of the balance and the tourbillon together help guarantee theaccuracy of the watch

Application of various new processing technologies

physical vapour deposition (pvd)chemical vapour deposition (cvd)LIthographie Galvanoformung Adformung (LIGA)electroformingphotochemcial machining (pcm)etchellip

Current development worldwide Mimotec SA (Sion Switzerland)

MEMS Technology ndash DRIE Process

MEMS Technology ndash LIGA Process

LIGA = Lithographie Galvanoformung Adformung

LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre

a German acronym for rdquoLithographie Galvanoformung Abformungldquoin English (X-ray) Lithography Electroplating and Molding

one of the first major techniques to allow on-demand manufacturing of high-aspect-ratio structures (structures that are much taller than wide) with lateral precision below one micrometre This capability is important in the fabrication of MEMS devices Because of the high collimation of X-rays needed the source must be synchrotron light

There are today three different types of LIGA technologies differing in the radiation and preform usedi) X-Ray LIGA the first LIGA technology developed using X-Rays

produced by a synchrotron ii) UV-LIGA using ultraviolet light typically from a mercury lamp and

special resists like SU-8 and iii) Silicon-LIGA using deep reactive ion etched silicon as preform

New materials unique watchesSome watch companies are using new materials for aesthetic reasons like Gerald Gentas new Gefica which uses bronze in a striking way The use of innovative materials is a major factor in the creation of our watches particularly for Gerald Genta says Gerald Roden Chief Executive Officer of Daniel Roth and Gerald Genta We have long been investigating creative uses for innovative more so for aesthetics than for technical reasons

For quite some time we have experimented with combinations of materials such as carbon fibre aluminium and wood with rubber and even fish skinIn 2003 Gerald Genta was among the first to use unique metals such as palladium and tantalum for cases

We have developed a patent to use liquid ceramic for the Octo line and are currently working with metallurgists to develop other new and innovative metals for Gerald Genta We are also in the final test phases of creating an exciting new treatment for steel

Non Magnetic materials for movement components

Another movement design

Traditional mechanical movements use oils or grease to ensure smooth operations

These take the form of oils in varying degrees of fineness for parts with high translation or rotation speeds or grease for parts subject to high pressures or stresses

The properties of such oils and grease deteriorates over time and the performances of the movement likewise decline if these lubricants are not replaced in due time

Testing conducted during the 1970s on plastic movements had already shown the way towards doing without some of the oils and grease However these watches did not stand the test of time which resulted in wear on the parts that in turn rapidly diminished their chronometric and functional performances

In its ongoing search to enhance the reliability of mechanical movements Jaeger-LeCoultre had already renounced the use of lubrication in the ball-bearing mechanisms of automatic winding systems by introducing ceramic ball-bearings as early as 2002

Today the research team at the Manufacture in Le Sentier has innovated a mechanical movement run without any lubricant whatsoever This research has culminated in the brand-new Jaeger-LeCoultre Calibre 988C

Innovative mechanical movement without any lubricant

New materials in mechanical movements

The engineers and watchmakers have resorted to new materials and new combinations of materials for demanding challenge

The Easiumtrade carbonitride thus makes its way onto the watch making stage This extremely hard material features extraordinary tribological properties and is therefore particularly suited to the making bearings able to operate without lubricants

In Jaeger-LeCoultre Calibre 988C Easium replaces the traditional jewels lubricated with a fine oil The burnished steel pivots of the balance-staff are coated with a special surface treatment and turn inside an Easium bearing The endstone is also made from Easium This is also a material used to make the two bearings allowing the carriage to turn in the bridges without any need to add jewels that would require lubrication

Watchmakers are considering the black crystalline diamond a synthetic material as hard as natural diamonds but with considerably enhanced operational properties for replacing the red pallet-stones Its friction on the silicon teeth of the escape-wheel does not require any oil to improve its operation live All the burnished steel pivots of the wheels and pinions are coated with a surface treatment that obviates any need to oil the jewels

Mainspring barrel in mechanical movement grease replaced by graphite powder

On the other end of the movement the barrel grease has also disappeared Instead a graphite powder helps the bride to slide smoothly inside the drum when the mainspring has been wound beyond the maximum powerreserve by the automatic winding mechanism The molecular structure of graphite consists in a stack of micro-platelets contrary to grease it retains its lubricating properties over time whatever the temperature and the hygrometry level

As for the ball-bearing mechanism of the oscillating weight in addition to the use of ceramic ball bearings mentioned earlier friction has been reduced by optimising the rotor which features carbon fibre arms and a distinctly lighter and more rigid base

Finally the oscillating weight segment is surprising in itself with its iridium platinum alloy the densest non-toxic physical body currently machinableThe entire windingtime-setting mechanism is coated with Nickel-PTFEin order to eliminate the customary greasing points The date jumper-spring features a frictional surface that also operates in ldquodryrdquo mode

Balanced wheel design in mechanical movement

Arenrsquot the most efficient balances circular The latest research by Jaeger-LeCoultre proves the exact opposite

Lengthy testing has revealed the importance of the total surface of the balance on its aerodynamic performances The larger the surface the greater the aerodynamic friction and the more energy it takes to maintain the oscillations of the balance and spring ndash which is in turn detrimental to precision

The geometry devised by Jaeger-LeCoultre coupled with the use of an extremely dense material ndash in this case iridium platinum ndash minimises the surface in friction Thus given a constant level of inertia this balance requires less energy to oscillate than a traditional balance

Balance wheel design in an optimized mechanical movement

The geometry of the balance has also been designed to reduce the ratio between the mass and the inertia of the balance

High inertia ensures a stable regulator that is fairly insensitive to the vibrations and daily shocks to which a watch is subjected and which disturb its precision Nonetheless high inertia implies a higher balance mass leading to larger losses due to mechanical fiction and thus increased energy consumption to maintain the oscillations ndash as well as a larger difference in amplitude between horizontal and vertical positions

The balance of the Jaeger-LeCoultre Calibre 988C has been optimised in order to reduce total mass without modifying the determined inertia The shape of the arms the openings and the geometry enable a several-point gain in the massinertia ratio

This factor directly influences the variations in rate between different positions that are well-known to watchmakers due to the difference in amplitude between the ldquodial-uprdquo and ldquopendant-uprdquo positions The lower the massinertia ratio the smaller the differences between the various positions thus enabling the watchmaker to perform a more precise adjustment of the watch

Contribution to accuracy by the balance spring in a mechanical movement

The balance-spring beats in a perfectly concentric manner in order to guarantee ideal isochronism Not only does it feature the carefully calculated form of a Phillips terminal curve but the watchmakers have also created something they call a ldquobendrdquo in the centre The ldquobendrdquo is a distortion of the balance-spring at aspecific place close to the collet pinning-point and which at given moments modifies the rigidity of the spring and corrects the natural tendency of any spring to ldquobreatherdquo in an off-centred manner Only this winning combination of an outer Phillips terminal curve and a central ldquobendrdquo makes it possible to create a balance-spring that develops in a perfectly concentric way (meaning with symmetrical expansions and contractions in respect to the centre)

Precise adjustment of this movement is of course performed using screws placed on the balance This process now used on all the Jaeger-LeCoultre automatic calibres has replaced the traditional index assembly and ensures peerless initial reliability of the rate that thereby remains unperturbed over time even if the watch is accidentally jarred

To perfect the exceptional efficiency of this regulating organ the aerodynamic properties of the balance have been fine-tuned by bevelling the arms by streamlining the shape of the weights and by integrating adjustment screws inside the weights The escape-wheel is made from silicon which is considerably lighter than steel and thus also favourably influences efficiency

Tourbillon made from light alloys

A one-minute tourbillon houses this literally extraordinary regulator The tourbillon carriage is machined from blocks of a magnesium alloy that is two and a half times lighter than titanium and contributes to reducing energy losses due to friction and thus further improves the exceptional efficiency of the regulator

The cadence of 28800 vibrations per hour the high (115 mgcm2) inertia of the balance and the tourbillon together help guarantee theaccuracy of the watch

Application of various new processing technologies

physical vapour deposition (pvd)chemical vapour deposition (cvd)LIthographie Galvanoformung Adformung (LIGA)electroformingphotochemcial machining (pcm)etchellip

Current development worldwide Mimotec SA (Sion Switzerland)

MEMS Technology ndash DRIE Process

MEMS Technology ndash LIGA Process

LIGA = Lithographie Galvanoformung Adformung

LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre

a German acronym for rdquoLithographie Galvanoformung Abformungldquoin English (X-ray) Lithography Electroplating and Molding

one of the first major techniques to allow on-demand manufacturing of high-aspect-ratio structures (structures that are much taller than wide) with lateral precision below one micrometre This capability is important in the fabrication of MEMS devices Because of the high collimation of X-rays needed the source must be synchrotron light

There are today three different types of LIGA technologies differing in the radiation and preform usedi) X-Ray LIGA the first LIGA technology developed using X-Rays

produced by a synchrotron ii) UV-LIGA using ultraviolet light typically from a mercury lamp and

special resists like SU-8 and iii) Silicon-LIGA using deep reactive ion etched silicon as preform

Non Magnetic materials for movement components

Another movement design

Traditional mechanical movements use oils or grease to ensure smooth operations

These take the form of oils in varying degrees of fineness for parts with high translation or rotation speeds or grease for parts subject to high pressures or stresses

The properties of such oils and grease deteriorates over time and the performances of the movement likewise decline if these lubricants are not replaced in due time

Testing conducted during the 1970s on plastic movements had already shown the way towards doing without some of the oils and grease However these watches did not stand the test of time which resulted in wear on the parts that in turn rapidly diminished their chronometric and functional performances

In its ongoing search to enhance the reliability of mechanical movements Jaeger-LeCoultre had already renounced the use of lubrication in the ball-bearing mechanisms of automatic winding systems by introducing ceramic ball-bearings as early as 2002

Today the research team at the Manufacture in Le Sentier has innovated a mechanical movement run without any lubricant whatsoever This research has culminated in the brand-new Jaeger-LeCoultre Calibre 988C

Innovative mechanical movement without any lubricant

New materials in mechanical movements

The engineers and watchmakers have resorted to new materials and new combinations of materials for demanding challenge

The Easiumtrade carbonitride thus makes its way onto the watch making stage This extremely hard material features extraordinary tribological properties and is therefore particularly suited to the making bearings able to operate without lubricants

In Jaeger-LeCoultre Calibre 988C Easium replaces the traditional jewels lubricated with a fine oil The burnished steel pivots of the balance-staff are coated with a special surface treatment and turn inside an Easium bearing The endstone is also made from Easium This is also a material used to make the two bearings allowing the carriage to turn in the bridges without any need to add jewels that would require lubrication

Watchmakers are considering the black crystalline diamond a synthetic material as hard as natural diamonds but with considerably enhanced operational properties for replacing the red pallet-stones Its friction on the silicon teeth of the escape-wheel does not require any oil to improve its operation live All the burnished steel pivots of the wheels and pinions are coated with a surface treatment that obviates any need to oil the jewels

Mainspring barrel in mechanical movement grease replaced by graphite powder

On the other end of the movement the barrel grease has also disappeared Instead a graphite powder helps the bride to slide smoothly inside the drum when the mainspring has been wound beyond the maximum powerreserve by the automatic winding mechanism The molecular structure of graphite consists in a stack of micro-platelets contrary to grease it retains its lubricating properties over time whatever the temperature and the hygrometry level

As for the ball-bearing mechanism of the oscillating weight in addition to the use of ceramic ball bearings mentioned earlier friction has been reduced by optimising the rotor which features carbon fibre arms and a distinctly lighter and more rigid base

Finally the oscillating weight segment is surprising in itself with its iridium platinum alloy the densest non-toxic physical body currently machinableThe entire windingtime-setting mechanism is coated with Nickel-PTFEin order to eliminate the customary greasing points The date jumper-spring features a frictional surface that also operates in ldquodryrdquo mode

Balanced wheel design in mechanical movement

Arenrsquot the most efficient balances circular The latest research by Jaeger-LeCoultre proves the exact opposite

Lengthy testing has revealed the importance of the total surface of the balance on its aerodynamic performances The larger the surface the greater the aerodynamic friction and the more energy it takes to maintain the oscillations of the balance and spring ndash which is in turn detrimental to precision

The geometry devised by Jaeger-LeCoultre coupled with the use of an extremely dense material ndash in this case iridium platinum ndash minimises the surface in friction Thus given a constant level of inertia this balance requires less energy to oscillate than a traditional balance

Balance wheel design in an optimized mechanical movement

The geometry of the balance has also been designed to reduce the ratio between the mass and the inertia of the balance

High inertia ensures a stable regulator that is fairly insensitive to the vibrations and daily shocks to which a watch is subjected and which disturb its precision Nonetheless high inertia implies a higher balance mass leading to larger losses due to mechanical fiction and thus increased energy consumption to maintain the oscillations ndash as well as a larger difference in amplitude between horizontal and vertical positions

The balance of the Jaeger-LeCoultre Calibre 988C has been optimised in order to reduce total mass without modifying the determined inertia The shape of the arms the openings and the geometry enable a several-point gain in the massinertia ratio

This factor directly influences the variations in rate between different positions that are well-known to watchmakers due to the difference in amplitude between the ldquodial-uprdquo and ldquopendant-uprdquo positions The lower the massinertia ratio the smaller the differences between the various positions thus enabling the watchmaker to perform a more precise adjustment of the watch

Contribution to accuracy by the balance spring in a mechanical movement

The balance-spring beats in a perfectly concentric manner in order to guarantee ideal isochronism Not only does it feature the carefully calculated form of a Phillips terminal curve but the watchmakers have also created something they call a ldquobendrdquo in the centre The ldquobendrdquo is a distortion of the balance-spring at aspecific place close to the collet pinning-point and which at given moments modifies the rigidity of the spring and corrects the natural tendency of any spring to ldquobreatherdquo in an off-centred manner Only this winning combination of an outer Phillips terminal curve and a central ldquobendrdquo makes it possible to create a balance-spring that develops in a perfectly concentric way (meaning with symmetrical expansions and contractions in respect to the centre)

Precise adjustment of this movement is of course performed using screws placed on the balance This process now used on all the Jaeger-LeCoultre automatic calibres has replaced the traditional index assembly and ensures peerless initial reliability of the rate that thereby remains unperturbed over time even if the watch is accidentally jarred

To perfect the exceptional efficiency of this regulating organ the aerodynamic properties of the balance have been fine-tuned by bevelling the arms by streamlining the shape of the weights and by integrating adjustment screws inside the weights The escape-wheel is made from silicon which is considerably lighter than steel and thus also favourably influences efficiency

Tourbillon made from light alloys

A one-minute tourbillon houses this literally extraordinary regulator The tourbillon carriage is machined from blocks of a magnesium alloy that is two and a half times lighter than titanium and contributes to reducing energy losses due to friction and thus further improves the exceptional efficiency of the regulator

The cadence of 28800 vibrations per hour the high (115 mgcm2) inertia of the balance and the tourbillon together help guarantee theaccuracy of the watch

Application of various new processing technologies

physical vapour deposition (pvd)chemical vapour deposition (cvd)LIthographie Galvanoformung Adformung (LIGA)electroformingphotochemcial machining (pcm)etchellip

Current development worldwide Mimotec SA (Sion Switzerland)

MEMS Technology ndash DRIE Process

MEMS Technology ndash LIGA Process

LIGA = Lithographie Galvanoformung Adformung

LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre

a German acronym for rdquoLithographie Galvanoformung Abformungldquoin English (X-ray) Lithography Electroplating and Molding

one of the first major techniques to allow on-demand manufacturing of high-aspect-ratio structures (structures that are much taller than wide) with lateral precision below one micrometre This capability is important in the fabrication of MEMS devices Because of the high collimation of X-rays needed the source must be synchrotron light

There are today three different types of LIGA technologies differing in the radiation and preform usedi) X-Ray LIGA the first LIGA technology developed using X-Rays

produced by a synchrotron ii) UV-LIGA using ultraviolet light typically from a mercury lamp and

special resists like SU-8 and iii) Silicon-LIGA using deep reactive ion etched silicon as preform

Another movement design

Traditional mechanical movements use oils or grease to ensure smooth operations

These take the form of oils in varying degrees of fineness for parts with high translation or rotation speeds or grease for parts subject to high pressures or stresses

The properties of such oils and grease deteriorates over time and the performances of the movement likewise decline if these lubricants are not replaced in due time

Testing conducted during the 1970s on plastic movements had already shown the way towards doing without some of the oils and grease However these watches did not stand the test of time which resulted in wear on the parts that in turn rapidly diminished their chronometric and functional performances

In its ongoing search to enhance the reliability of mechanical movements Jaeger-LeCoultre had already renounced the use of lubrication in the ball-bearing mechanisms of automatic winding systems by introducing ceramic ball-bearings as early as 2002

Today the research team at the Manufacture in Le Sentier has innovated a mechanical movement run without any lubricant whatsoever This research has culminated in the brand-new Jaeger-LeCoultre Calibre 988C

Innovative mechanical movement without any lubricant

New materials in mechanical movements

The engineers and watchmakers have resorted to new materials and new combinations of materials for demanding challenge

The Easiumtrade carbonitride thus makes its way onto the watch making stage This extremely hard material features extraordinary tribological properties and is therefore particularly suited to the making bearings able to operate without lubricants

In Jaeger-LeCoultre Calibre 988C Easium replaces the traditional jewels lubricated with a fine oil The burnished steel pivots of the balance-staff are coated with a special surface treatment and turn inside an Easium bearing The endstone is also made from Easium This is also a material used to make the two bearings allowing the carriage to turn in the bridges without any need to add jewels that would require lubrication

Watchmakers are considering the black crystalline diamond a synthetic material as hard as natural diamonds but with considerably enhanced operational properties for replacing the red pallet-stones Its friction on the silicon teeth of the escape-wheel does not require any oil to improve its operation live All the burnished steel pivots of the wheels and pinions are coated with a surface treatment that obviates any need to oil the jewels

Mainspring barrel in mechanical movement grease replaced by graphite powder

On the other end of the movement the barrel grease has also disappeared Instead a graphite powder helps the bride to slide smoothly inside the drum when the mainspring has been wound beyond the maximum powerreserve by the automatic winding mechanism The molecular structure of graphite consists in a stack of micro-platelets contrary to grease it retains its lubricating properties over time whatever the temperature and the hygrometry level

As for the ball-bearing mechanism of the oscillating weight in addition to the use of ceramic ball bearings mentioned earlier friction has been reduced by optimising the rotor which features carbon fibre arms and a distinctly lighter and more rigid base

Finally the oscillating weight segment is surprising in itself with its iridium platinum alloy the densest non-toxic physical body currently machinableThe entire windingtime-setting mechanism is coated with Nickel-PTFEin order to eliminate the customary greasing points The date jumper-spring features a frictional surface that also operates in ldquodryrdquo mode

Balanced wheel design in mechanical movement

Arenrsquot the most efficient balances circular The latest research by Jaeger-LeCoultre proves the exact opposite

Lengthy testing has revealed the importance of the total surface of the balance on its aerodynamic performances The larger the surface the greater the aerodynamic friction and the more energy it takes to maintain the oscillations of the balance and spring ndash which is in turn detrimental to precision

The geometry devised by Jaeger-LeCoultre coupled with the use of an extremely dense material ndash in this case iridium platinum ndash minimises the surface in friction Thus given a constant level of inertia this balance requires less energy to oscillate than a traditional balance

Balance wheel design in an optimized mechanical movement

The geometry of the balance has also been designed to reduce the ratio between the mass and the inertia of the balance

High inertia ensures a stable regulator that is fairly insensitive to the vibrations and daily shocks to which a watch is subjected and which disturb its precision Nonetheless high inertia implies a higher balance mass leading to larger losses due to mechanical fiction and thus increased energy consumption to maintain the oscillations ndash as well as a larger difference in amplitude between horizontal and vertical positions

The balance of the Jaeger-LeCoultre Calibre 988C has been optimised in order to reduce total mass without modifying the determined inertia The shape of the arms the openings and the geometry enable a several-point gain in the massinertia ratio

This factor directly influences the variations in rate between different positions that are well-known to watchmakers due to the difference in amplitude between the ldquodial-uprdquo and ldquopendant-uprdquo positions The lower the massinertia ratio the smaller the differences between the various positions thus enabling the watchmaker to perform a more precise adjustment of the watch

Contribution to accuracy by the balance spring in a mechanical movement

The balance-spring beats in a perfectly concentric manner in order to guarantee ideal isochronism Not only does it feature the carefully calculated form of a Phillips terminal curve but the watchmakers have also created something they call a ldquobendrdquo in the centre The ldquobendrdquo is a distortion of the balance-spring at aspecific place close to the collet pinning-point and which at given moments modifies the rigidity of the spring and corrects the natural tendency of any spring to ldquobreatherdquo in an off-centred manner Only this winning combination of an outer Phillips terminal curve and a central ldquobendrdquo makes it possible to create a balance-spring that develops in a perfectly concentric way (meaning with symmetrical expansions and contractions in respect to the centre)

Precise adjustment of this movement is of course performed using screws placed on the balance This process now used on all the Jaeger-LeCoultre automatic calibres has replaced the traditional index assembly and ensures peerless initial reliability of the rate that thereby remains unperturbed over time even if the watch is accidentally jarred

To perfect the exceptional efficiency of this regulating organ the aerodynamic properties of the balance have been fine-tuned by bevelling the arms by streamlining the shape of the weights and by integrating adjustment screws inside the weights The escape-wheel is made from silicon which is considerably lighter than steel and thus also favourably influences efficiency

Tourbillon made from light alloys

A one-minute tourbillon houses this literally extraordinary regulator The tourbillon carriage is machined from blocks of a magnesium alloy that is two and a half times lighter than titanium and contributes to reducing energy losses due to friction and thus further improves the exceptional efficiency of the regulator

The cadence of 28800 vibrations per hour the high (115 mgcm2) inertia of the balance and the tourbillon together help guarantee theaccuracy of the watch

Application of various new processing technologies

physical vapour deposition (pvd)chemical vapour deposition (cvd)LIthographie Galvanoformung Adformung (LIGA)electroformingphotochemcial machining (pcm)etchellip

Current development worldwide Mimotec SA (Sion Switzerland)

MEMS Technology ndash DRIE Process

MEMS Technology ndash LIGA Process

LIGA = Lithographie Galvanoformung Adformung

LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre

a German acronym for rdquoLithographie Galvanoformung Abformungldquoin English (X-ray) Lithography Electroplating and Molding

one of the first major techniques to allow on-demand manufacturing of high-aspect-ratio structures (structures that are much taller than wide) with lateral precision below one micrometre This capability is important in the fabrication of MEMS devices Because of the high collimation of X-rays needed the source must be synchrotron light

There are today three different types of LIGA technologies differing in the radiation and preform usedi) X-Ray LIGA the first LIGA technology developed using X-Rays

produced by a synchrotron ii) UV-LIGA using ultraviolet light typically from a mercury lamp and

special resists like SU-8 and iii) Silicon-LIGA using deep reactive ion etched silicon as preform

Traditional mechanical movements use oils or grease to ensure smooth operations

These take the form of oils in varying degrees of fineness for parts with high translation or rotation speeds or grease for parts subject to high pressures or stresses

The properties of such oils and grease deteriorates over time and the performances of the movement likewise decline if these lubricants are not replaced in due time

Testing conducted during the 1970s on plastic movements had already shown the way towards doing without some of the oils and grease However these watches did not stand the test of time which resulted in wear on the parts that in turn rapidly diminished their chronometric and functional performances

In its ongoing search to enhance the reliability of mechanical movements Jaeger-LeCoultre had already renounced the use of lubrication in the ball-bearing mechanisms of automatic winding systems by introducing ceramic ball-bearings as early as 2002

Today the research team at the Manufacture in Le Sentier has innovated a mechanical movement run without any lubricant whatsoever This research has culminated in the brand-new Jaeger-LeCoultre Calibre 988C

Innovative mechanical movement without any lubricant

New materials in mechanical movements

The engineers and watchmakers have resorted to new materials and new combinations of materials for demanding challenge

The Easiumtrade carbonitride thus makes its way onto the watch making stage This extremely hard material features extraordinary tribological properties and is therefore particularly suited to the making bearings able to operate without lubricants

In Jaeger-LeCoultre Calibre 988C Easium replaces the traditional jewels lubricated with a fine oil The burnished steel pivots of the balance-staff are coated with a special surface treatment and turn inside an Easium bearing The endstone is also made from Easium This is also a material used to make the two bearings allowing the carriage to turn in the bridges without any need to add jewels that would require lubrication

Watchmakers are considering the black crystalline diamond a synthetic material as hard as natural diamonds but with considerably enhanced operational properties for replacing the red pallet-stones Its friction on the silicon teeth of the escape-wheel does not require any oil to improve its operation live All the burnished steel pivots of the wheels and pinions are coated with a surface treatment that obviates any need to oil the jewels

Mainspring barrel in mechanical movement grease replaced by graphite powder

On the other end of the movement the barrel grease has also disappeared Instead a graphite powder helps the bride to slide smoothly inside the drum when the mainspring has been wound beyond the maximum powerreserve by the automatic winding mechanism The molecular structure of graphite consists in a stack of micro-platelets contrary to grease it retains its lubricating properties over time whatever the temperature and the hygrometry level

As for the ball-bearing mechanism of the oscillating weight in addition to the use of ceramic ball bearings mentioned earlier friction has been reduced by optimising the rotor which features carbon fibre arms and a distinctly lighter and more rigid base

Finally the oscillating weight segment is surprising in itself with its iridium platinum alloy the densest non-toxic physical body currently machinableThe entire windingtime-setting mechanism is coated with Nickel-PTFEin order to eliminate the customary greasing points The date jumper-spring features a frictional surface that also operates in ldquodryrdquo mode

Balanced wheel design in mechanical movement

Arenrsquot the most efficient balances circular The latest research by Jaeger-LeCoultre proves the exact opposite

Lengthy testing has revealed the importance of the total surface of the balance on its aerodynamic performances The larger the surface the greater the aerodynamic friction and the more energy it takes to maintain the oscillations of the balance and spring ndash which is in turn detrimental to precision

The geometry devised by Jaeger-LeCoultre coupled with the use of an extremely dense material ndash in this case iridium platinum ndash minimises the surface in friction Thus given a constant level of inertia this balance requires less energy to oscillate than a traditional balance

Balance wheel design in an optimized mechanical movement

The geometry of the balance has also been designed to reduce the ratio between the mass and the inertia of the balance

High inertia ensures a stable regulator that is fairly insensitive to the vibrations and daily shocks to which a watch is subjected and which disturb its precision Nonetheless high inertia implies a higher balance mass leading to larger losses due to mechanical fiction and thus increased energy consumption to maintain the oscillations ndash as well as a larger difference in amplitude between horizontal and vertical positions

The balance of the Jaeger-LeCoultre Calibre 988C has been optimised in order to reduce total mass without modifying the determined inertia The shape of the arms the openings and the geometry enable a several-point gain in the massinertia ratio

This factor directly influences the variations in rate between different positions that are well-known to watchmakers due to the difference in amplitude between the ldquodial-uprdquo and ldquopendant-uprdquo positions The lower the massinertia ratio the smaller the differences between the various positions thus enabling the watchmaker to perform a more precise adjustment of the watch

Contribution to accuracy by the balance spring in a mechanical movement

The balance-spring beats in a perfectly concentric manner in order to guarantee ideal isochronism Not only does it feature the carefully calculated form of a Phillips terminal curve but the watchmakers have also created something they call a ldquobendrdquo in the centre The ldquobendrdquo is a distortion of the balance-spring at aspecific place close to the collet pinning-point and which at given moments modifies the rigidity of the spring and corrects the natural tendency of any spring to ldquobreatherdquo in an off-centred manner Only this winning combination of an outer Phillips terminal curve and a central ldquobendrdquo makes it possible to create a balance-spring that develops in a perfectly concentric way (meaning with symmetrical expansions and contractions in respect to the centre)

Precise adjustment of this movement is of course performed using screws placed on the balance This process now used on all the Jaeger-LeCoultre automatic calibres has replaced the traditional index assembly and ensures peerless initial reliability of the rate that thereby remains unperturbed over time even if the watch is accidentally jarred

To perfect the exceptional efficiency of this regulating organ the aerodynamic properties of the balance have been fine-tuned by bevelling the arms by streamlining the shape of the weights and by integrating adjustment screws inside the weights The escape-wheel is made from silicon which is considerably lighter than steel and thus also favourably influences efficiency

Tourbillon made from light alloys

A one-minute tourbillon houses this literally extraordinary regulator The tourbillon carriage is machined from blocks of a magnesium alloy that is two and a half times lighter than titanium and contributes to reducing energy losses due to friction and thus further improves the exceptional efficiency of the regulator

The cadence of 28800 vibrations per hour the high (115 mgcm2) inertia of the balance and the tourbillon together help guarantee theaccuracy of the watch

Application of various new processing technologies

physical vapour deposition (pvd)chemical vapour deposition (cvd)LIthographie Galvanoformung Adformung (LIGA)electroformingphotochemcial machining (pcm)etchellip

Current development worldwide Mimotec SA (Sion Switzerland)

MEMS Technology ndash DRIE Process

MEMS Technology ndash LIGA Process

LIGA = Lithographie Galvanoformung Adformung

LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre

a German acronym for rdquoLithographie Galvanoformung Abformungldquoin English (X-ray) Lithography Electroplating and Molding

one of the first major techniques to allow on-demand manufacturing of high-aspect-ratio structures (structures that are much taller than wide) with lateral precision below one micrometre This capability is important in the fabrication of MEMS devices Because of the high collimation of X-rays needed the source must be synchrotron light

There are today three different types of LIGA technologies differing in the radiation and preform usedi) X-Ray LIGA the first LIGA technology developed using X-Rays

produced by a synchrotron ii) UV-LIGA using ultraviolet light typically from a mercury lamp and

special resists like SU-8 and iii) Silicon-LIGA using deep reactive ion etched silicon as preform

New materials in mechanical movements

The engineers and watchmakers have resorted to new materials and new combinations of materials for demanding challenge

The Easiumtrade carbonitride thus makes its way onto the watch making stage This extremely hard material features extraordinary tribological properties and is therefore particularly suited to the making bearings able to operate without lubricants

In Jaeger-LeCoultre Calibre 988C Easium replaces the traditional jewels lubricated with a fine oil The burnished steel pivots of the balance-staff are coated with a special surface treatment and turn inside an Easium bearing The endstone is also made from Easium This is also a material used to make the two bearings allowing the carriage to turn in the bridges without any need to add jewels that would require lubrication

Watchmakers are considering the black crystalline diamond a synthetic material as hard as natural diamonds but with considerably enhanced operational properties for replacing the red pallet-stones Its friction on the silicon teeth of the escape-wheel does not require any oil to improve its operation live All the burnished steel pivots of the wheels and pinions are coated with a surface treatment that obviates any need to oil the jewels

Mainspring barrel in mechanical movement grease replaced by graphite powder

On the other end of the movement the barrel grease has also disappeared Instead a graphite powder helps the bride to slide smoothly inside the drum when the mainspring has been wound beyond the maximum powerreserve by the automatic winding mechanism The molecular structure of graphite consists in a stack of micro-platelets contrary to grease it retains its lubricating properties over time whatever the temperature and the hygrometry level

As for the ball-bearing mechanism of the oscillating weight in addition to the use of ceramic ball bearings mentioned earlier friction has been reduced by optimising the rotor which features carbon fibre arms and a distinctly lighter and more rigid base

Finally the oscillating weight segment is surprising in itself with its iridium platinum alloy the densest non-toxic physical body currently machinableThe entire windingtime-setting mechanism is coated with Nickel-PTFEin order to eliminate the customary greasing points The date jumper-spring features a frictional surface that also operates in ldquodryrdquo mode

Balanced wheel design in mechanical movement

Arenrsquot the most efficient balances circular The latest research by Jaeger-LeCoultre proves the exact opposite

Lengthy testing has revealed the importance of the total surface of the balance on its aerodynamic performances The larger the surface the greater the aerodynamic friction and the more energy it takes to maintain the oscillations of the balance and spring ndash which is in turn detrimental to precision

The geometry devised by Jaeger-LeCoultre coupled with the use of an extremely dense material ndash in this case iridium platinum ndash minimises the surface in friction Thus given a constant level of inertia this balance requires less energy to oscillate than a traditional balance

Balance wheel design in an optimized mechanical movement

The geometry of the balance has also been designed to reduce the ratio between the mass and the inertia of the balance

High inertia ensures a stable regulator that is fairly insensitive to the vibrations and daily shocks to which a watch is subjected and which disturb its precision Nonetheless high inertia implies a higher balance mass leading to larger losses due to mechanical fiction and thus increased energy consumption to maintain the oscillations ndash as well as a larger difference in amplitude between horizontal and vertical positions

The balance of the Jaeger-LeCoultre Calibre 988C has been optimised in order to reduce total mass without modifying the determined inertia The shape of the arms the openings and the geometry enable a several-point gain in the massinertia ratio

This factor directly influences the variations in rate between different positions that are well-known to watchmakers due to the difference in amplitude between the ldquodial-uprdquo and ldquopendant-uprdquo positions The lower the massinertia ratio the smaller the differences between the various positions thus enabling the watchmaker to perform a more precise adjustment of the watch

Contribution to accuracy by the balance spring in a mechanical movement

The balance-spring beats in a perfectly concentric manner in order to guarantee ideal isochronism Not only does it feature the carefully calculated form of a Phillips terminal curve but the watchmakers have also created something they call a ldquobendrdquo in the centre The ldquobendrdquo is a distortion of the balance-spring at aspecific place close to the collet pinning-point and which at given moments modifies the rigidity of the spring and corrects the natural tendency of any spring to ldquobreatherdquo in an off-centred manner Only this winning combination of an outer Phillips terminal curve and a central ldquobendrdquo makes it possible to create a balance-spring that develops in a perfectly concentric way (meaning with symmetrical expansions and contractions in respect to the centre)

Precise adjustment of this movement is of course performed using screws placed on the balance This process now used on all the Jaeger-LeCoultre automatic calibres has replaced the traditional index assembly and ensures peerless initial reliability of the rate that thereby remains unperturbed over time even if the watch is accidentally jarred

To perfect the exceptional efficiency of this regulating organ the aerodynamic properties of the balance have been fine-tuned by bevelling the arms by streamlining the shape of the weights and by integrating adjustment screws inside the weights The escape-wheel is made from silicon which is considerably lighter than steel and thus also favourably influences efficiency

Tourbillon made from light alloys

A one-minute tourbillon houses this literally extraordinary regulator The tourbillon carriage is machined from blocks of a magnesium alloy that is two and a half times lighter than titanium and contributes to reducing energy losses due to friction and thus further improves the exceptional efficiency of the regulator

The cadence of 28800 vibrations per hour the high (115 mgcm2) inertia of the balance and the tourbillon together help guarantee theaccuracy of the watch

Application of various new processing technologies

physical vapour deposition (pvd)chemical vapour deposition (cvd)LIthographie Galvanoformung Adformung (LIGA)electroformingphotochemcial machining (pcm)etchellip

Current development worldwide Mimotec SA (Sion Switzerland)

MEMS Technology ndash DRIE Process

MEMS Technology ndash LIGA Process

LIGA = Lithographie Galvanoformung Adformung

LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre

a German acronym for rdquoLithographie Galvanoformung Abformungldquoin English (X-ray) Lithography Electroplating and Molding

one of the first major techniques to allow on-demand manufacturing of high-aspect-ratio structures (structures that are much taller than wide) with lateral precision below one micrometre This capability is important in the fabrication of MEMS devices Because of the high collimation of X-rays needed the source must be synchrotron light

There are today three different types of LIGA technologies differing in the radiation and preform usedi) X-Ray LIGA the first LIGA technology developed using X-Rays

produced by a synchrotron ii) UV-LIGA using ultraviolet light typically from a mercury lamp and

special resists like SU-8 and iii) Silicon-LIGA using deep reactive ion etched silicon as preform

Mainspring barrel in mechanical movement grease replaced by graphite powder

On the other end of the movement the barrel grease has also disappeared Instead a graphite powder helps the bride to slide smoothly inside the drum when the mainspring has been wound beyond the maximum powerreserve by the automatic winding mechanism The molecular structure of graphite consists in a stack of micro-platelets contrary to grease it retains its lubricating properties over time whatever the temperature and the hygrometry level

As for the ball-bearing mechanism of the oscillating weight in addition to the use of ceramic ball bearings mentioned earlier friction has been reduced by optimising the rotor which features carbon fibre arms and a distinctly lighter and more rigid base

Finally the oscillating weight segment is surprising in itself with its iridium platinum alloy the densest non-toxic physical body currently machinableThe entire windingtime-setting mechanism is coated with Nickel-PTFEin order to eliminate the customary greasing points The date jumper-spring features a frictional surface that also operates in ldquodryrdquo mode

Balanced wheel design in mechanical movement

Arenrsquot the most efficient balances circular The latest research by Jaeger-LeCoultre proves the exact opposite

Lengthy testing has revealed the importance of the total surface of the balance on its aerodynamic performances The larger the surface the greater the aerodynamic friction and the more energy it takes to maintain the oscillations of the balance and spring ndash which is in turn detrimental to precision

The geometry devised by Jaeger-LeCoultre coupled with the use of an extremely dense material ndash in this case iridium platinum ndash minimises the surface in friction Thus given a constant level of inertia this balance requires less energy to oscillate than a traditional balance

Balance wheel design in an optimized mechanical movement

The geometry of the balance has also been designed to reduce the ratio between the mass and the inertia of the balance

High inertia ensures a stable regulator that is fairly insensitive to the vibrations and daily shocks to which a watch is subjected and which disturb its precision Nonetheless high inertia implies a higher balance mass leading to larger losses due to mechanical fiction and thus increased energy consumption to maintain the oscillations ndash as well as a larger difference in amplitude between horizontal and vertical positions

The balance of the Jaeger-LeCoultre Calibre 988C has been optimised in order to reduce total mass without modifying the determined inertia The shape of the arms the openings and the geometry enable a several-point gain in the massinertia ratio

This factor directly influences the variations in rate between different positions that are well-known to watchmakers due to the difference in amplitude between the ldquodial-uprdquo and ldquopendant-uprdquo positions The lower the massinertia ratio the smaller the differences between the various positions thus enabling the watchmaker to perform a more precise adjustment of the watch

Contribution to accuracy by the balance spring in a mechanical movement

The balance-spring beats in a perfectly concentric manner in order to guarantee ideal isochronism Not only does it feature the carefully calculated form of a Phillips terminal curve but the watchmakers have also created something they call a ldquobendrdquo in the centre The ldquobendrdquo is a distortion of the balance-spring at aspecific place close to the collet pinning-point and which at given moments modifies the rigidity of the spring and corrects the natural tendency of any spring to ldquobreatherdquo in an off-centred manner Only this winning combination of an outer Phillips terminal curve and a central ldquobendrdquo makes it possible to create a balance-spring that develops in a perfectly concentric way (meaning with symmetrical expansions and contractions in respect to the centre)

Precise adjustment of this movement is of course performed using screws placed on the balance This process now used on all the Jaeger-LeCoultre automatic calibres has replaced the traditional index assembly and ensures peerless initial reliability of the rate that thereby remains unperturbed over time even if the watch is accidentally jarred

To perfect the exceptional efficiency of this regulating organ the aerodynamic properties of the balance have been fine-tuned by bevelling the arms by streamlining the shape of the weights and by integrating adjustment screws inside the weights The escape-wheel is made from silicon which is considerably lighter than steel and thus also favourably influences efficiency

Tourbillon made from light alloys

A one-minute tourbillon houses this literally extraordinary regulator The tourbillon carriage is machined from blocks of a magnesium alloy that is two and a half times lighter than titanium and contributes to reducing energy losses due to friction and thus further improves the exceptional efficiency of the regulator

The cadence of 28800 vibrations per hour the high (115 mgcm2) inertia of the balance and the tourbillon together help guarantee theaccuracy of the watch

Application of various new processing technologies

physical vapour deposition (pvd)chemical vapour deposition (cvd)LIthographie Galvanoformung Adformung (LIGA)electroformingphotochemcial machining (pcm)etchellip

Current development worldwide Mimotec SA (Sion Switzerland)

MEMS Technology ndash DRIE Process

MEMS Technology ndash LIGA Process

LIGA = Lithographie Galvanoformung Adformung

LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre

a German acronym for rdquoLithographie Galvanoformung Abformungldquoin English (X-ray) Lithography Electroplating and Molding

one of the first major techniques to allow on-demand manufacturing of high-aspect-ratio structures (structures that are much taller than wide) with lateral precision below one micrometre This capability is important in the fabrication of MEMS devices Because of the high collimation of X-rays needed the source must be synchrotron light

There are today three different types of LIGA technologies differing in the radiation and preform usedi) X-Ray LIGA the first LIGA technology developed using X-Rays

produced by a synchrotron ii) UV-LIGA using ultraviolet light typically from a mercury lamp and

special resists like SU-8 and iii) Silicon-LIGA using deep reactive ion etched silicon as preform

Balanced wheel design in mechanical movement

Arenrsquot the most efficient balances circular The latest research by Jaeger-LeCoultre proves the exact opposite

Lengthy testing has revealed the importance of the total surface of the balance on its aerodynamic performances The larger the surface the greater the aerodynamic friction and the more energy it takes to maintain the oscillations of the balance and spring ndash which is in turn detrimental to precision

The geometry devised by Jaeger-LeCoultre coupled with the use of an extremely dense material ndash in this case iridium platinum ndash minimises the surface in friction Thus given a constant level of inertia this balance requires less energy to oscillate than a traditional balance

Balance wheel design in an optimized mechanical movement

The geometry of the balance has also been designed to reduce the ratio between the mass and the inertia of the balance

High inertia ensures a stable regulator that is fairly insensitive to the vibrations and daily shocks to which a watch is subjected and which disturb its precision Nonetheless high inertia implies a higher balance mass leading to larger losses due to mechanical fiction and thus increased energy consumption to maintain the oscillations ndash as well as a larger difference in amplitude between horizontal and vertical positions

The balance of the Jaeger-LeCoultre Calibre 988C has been optimised in order to reduce total mass without modifying the determined inertia The shape of the arms the openings and the geometry enable a several-point gain in the massinertia ratio

This factor directly influences the variations in rate between different positions that are well-known to watchmakers due to the difference in amplitude between the ldquodial-uprdquo and ldquopendant-uprdquo positions The lower the massinertia ratio the smaller the differences between the various positions thus enabling the watchmaker to perform a more precise adjustment of the watch

Contribution to accuracy by the balance spring in a mechanical movement

The balance-spring beats in a perfectly concentric manner in order to guarantee ideal isochronism Not only does it feature the carefully calculated form of a Phillips terminal curve but the watchmakers have also created something they call a ldquobendrdquo in the centre The ldquobendrdquo is a distortion of the balance-spring at aspecific place close to the collet pinning-point and which at given moments modifies the rigidity of the spring and corrects the natural tendency of any spring to ldquobreatherdquo in an off-centred manner Only this winning combination of an outer Phillips terminal curve and a central ldquobendrdquo makes it possible to create a balance-spring that develops in a perfectly concentric way (meaning with symmetrical expansions and contractions in respect to the centre)

Precise adjustment of this movement is of course performed using screws placed on the balance This process now used on all the Jaeger-LeCoultre automatic calibres has replaced the traditional index assembly and ensures peerless initial reliability of the rate that thereby remains unperturbed over time even if the watch is accidentally jarred

To perfect the exceptional efficiency of this regulating organ the aerodynamic properties of the balance have been fine-tuned by bevelling the arms by streamlining the shape of the weights and by integrating adjustment screws inside the weights The escape-wheel is made from silicon which is considerably lighter than steel and thus also favourably influences efficiency

Tourbillon made from light alloys

A one-minute tourbillon houses this literally extraordinary regulator The tourbillon carriage is machined from blocks of a magnesium alloy that is two and a half times lighter than titanium and contributes to reducing energy losses due to friction and thus further improves the exceptional efficiency of the regulator

The cadence of 28800 vibrations per hour the high (115 mgcm2) inertia of the balance and the tourbillon together help guarantee theaccuracy of the watch

Application of various new processing technologies

physical vapour deposition (pvd)chemical vapour deposition (cvd)LIthographie Galvanoformung Adformung (LIGA)electroformingphotochemcial machining (pcm)etchellip

Current development worldwide Mimotec SA (Sion Switzerland)

MEMS Technology ndash DRIE Process

MEMS Technology ndash LIGA Process

LIGA = Lithographie Galvanoformung Adformung

LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre

a German acronym for rdquoLithographie Galvanoformung Abformungldquoin English (X-ray) Lithography Electroplating and Molding

one of the first major techniques to allow on-demand manufacturing of high-aspect-ratio structures (structures that are much taller than wide) with lateral precision below one micrometre This capability is important in the fabrication of MEMS devices Because of the high collimation of X-rays needed the source must be synchrotron light

There are today three different types of LIGA technologies differing in the radiation and preform usedi) X-Ray LIGA the first LIGA technology developed using X-Rays

produced by a synchrotron ii) UV-LIGA using ultraviolet light typically from a mercury lamp and

special resists like SU-8 and iii) Silicon-LIGA using deep reactive ion etched silicon as preform

Balance wheel design in an optimized mechanical movement

The geometry of the balance has also been designed to reduce the ratio between the mass and the inertia of the balance

High inertia ensures a stable regulator that is fairly insensitive to the vibrations and daily shocks to which a watch is subjected and which disturb its precision Nonetheless high inertia implies a higher balance mass leading to larger losses due to mechanical fiction and thus increased energy consumption to maintain the oscillations ndash as well as a larger difference in amplitude between horizontal and vertical positions

The balance of the Jaeger-LeCoultre Calibre 988C has been optimised in order to reduce total mass without modifying the determined inertia The shape of the arms the openings and the geometry enable a several-point gain in the massinertia ratio

This factor directly influences the variations in rate between different positions that are well-known to watchmakers due to the difference in amplitude between the ldquodial-uprdquo and ldquopendant-uprdquo positions The lower the massinertia ratio the smaller the differences between the various positions thus enabling the watchmaker to perform a more precise adjustment of the watch

Contribution to accuracy by the balance spring in a mechanical movement

The balance-spring beats in a perfectly concentric manner in order to guarantee ideal isochronism Not only does it feature the carefully calculated form of a Phillips terminal curve but the watchmakers have also created something they call a ldquobendrdquo in the centre The ldquobendrdquo is a distortion of the balance-spring at aspecific place close to the collet pinning-point and which at given moments modifies the rigidity of the spring and corrects the natural tendency of any spring to ldquobreatherdquo in an off-centred manner Only this winning combination of an outer Phillips terminal curve and a central ldquobendrdquo makes it possible to create a balance-spring that develops in a perfectly concentric way (meaning with symmetrical expansions and contractions in respect to the centre)

Precise adjustment of this movement is of course performed using screws placed on the balance This process now used on all the Jaeger-LeCoultre automatic calibres has replaced the traditional index assembly and ensures peerless initial reliability of the rate that thereby remains unperturbed over time even if the watch is accidentally jarred

To perfect the exceptional efficiency of this regulating organ the aerodynamic properties of the balance have been fine-tuned by bevelling the arms by streamlining the shape of the weights and by integrating adjustment screws inside the weights The escape-wheel is made from silicon which is considerably lighter than steel and thus also favourably influences efficiency

Tourbillon made from light alloys

A one-minute tourbillon houses this literally extraordinary regulator The tourbillon carriage is machined from blocks of a magnesium alloy that is two and a half times lighter than titanium and contributes to reducing energy losses due to friction and thus further improves the exceptional efficiency of the regulator

The cadence of 28800 vibrations per hour the high (115 mgcm2) inertia of the balance and the tourbillon together help guarantee theaccuracy of the watch

Application of various new processing technologies

physical vapour deposition (pvd)chemical vapour deposition (cvd)LIthographie Galvanoformung Adformung (LIGA)electroformingphotochemcial machining (pcm)etchellip

Current development worldwide Mimotec SA (Sion Switzerland)

MEMS Technology ndash DRIE Process

MEMS Technology ndash LIGA Process

LIGA = Lithographie Galvanoformung Adformung

LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre

a German acronym for rdquoLithographie Galvanoformung Abformungldquoin English (X-ray) Lithography Electroplating and Molding

one of the first major techniques to allow on-demand manufacturing of high-aspect-ratio structures (structures that are much taller than wide) with lateral precision below one micrometre This capability is important in the fabrication of MEMS devices Because of the high collimation of X-rays needed the source must be synchrotron light

There are today three different types of LIGA technologies differing in the radiation and preform usedi) X-Ray LIGA the first LIGA technology developed using X-Rays

produced by a synchrotron ii) UV-LIGA using ultraviolet light typically from a mercury lamp and

special resists like SU-8 and iii) Silicon-LIGA using deep reactive ion etched silicon as preform

Contribution to accuracy by the balance spring in a mechanical movement

The balance-spring beats in a perfectly concentric manner in order to guarantee ideal isochronism Not only does it feature the carefully calculated form of a Phillips terminal curve but the watchmakers have also created something they call a ldquobendrdquo in the centre The ldquobendrdquo is a distortion of the balance-spring at aspecific place close to the collet pinning-point and which at given moments modifies the rigidity of the spring and corrects the natural tendency of any spring to ldquobreatherdquo in an off-centred manner Only this winning combination of an outer Phillips terminal curve and a central ldquobendrdquo makes it possible to create a balance-spring that develops in a perfectly concentric way (meaning with symmetrical expansions and contractions in respect to the centre)

Precise adjustment of this movement is of course performed using screws placed on the balance This process now used on all the Jaeger-LeCoultre automatic calibres has replaced the traditional index assembly and ensures peerless initial reliability of the rate that thereby remains unperturbed over time even if the watch is accidentally jarred

To perfect the exceptional efficiency of this regulating organ the aerodynamic properties of the balance have been fine-tuned by bevelling the arms by streamlining the shape of the weights and by integrating adjustment screws inside the weights The escape-wheel is made from silicon which is considerably lighter than steel and thus also favourably influences efficiency

Tourbillon made from light alloys

A one-minute tourbillon houses this literally extraordinary regulator The tourbillon carriage is machined from blocks of a magnesium alloy that is two and a half times lighter than titanium and contributes to reducing energy losses due to friction and thus further improves the exceptional efficiency of the regulator

The cadence of 28800 vibrations per hour the high (115 mgcm2) inertia of the balance and the tourbillon together help guarantee theaccuracy of the watch

Application of various new processing technologies

physical vapour deposition (pvd)chemical vapour deposition (cvd)LIthographie Galvanoformung Adformung (LIGA)electroformingphotochemcial machining (pcm)etchellip

Current development worldwide Mimotec SA (Sion Switzerland)

MEMS Technology ndash DRIE Process

MEMS Technology ndash LIGA Process

LIGA = Lithographie Galvanoformung Adformung

LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre

a German acronym for rdquoLithographie Galvanoformung Abformungldquoin English (X-ray) Lithography Electroplating and Molding

one of the first major techniques to allow on-demand manufacturing of high-aspect-ratio structures (structures that are much taller than wide) with lateral precision below one micrometre This capability is important in the fabrication of MEMS devices Because of the high collimation of X-rays needed the source must be synchrotron light

There are today three different types of LIGA technologies differing in the radiation and preform usedi) X-Ray LIGA the first LIGA technology developed using X-Rays

produced by a synchrotron ii) UV-LIGA using ultraviolet light typically from a mercury lamp and

special resists like SU-8 and iii) Silicon-LIGA using deep reactive ion etched silicon as preform

Tourbillon made from light alloys

A one-minute tourbillon houses this literally extraordinary regulator The tourbillon carriage is machined from blocks of a magnesium alloy that is two and a half times lighter than titanium and contributes to reducing energy losses due to friction and thus further improves the exceptional efficiency of the regulator

The cadence of 28800 vibrations per hour the high (115 mgcm2) inertia of the balance and the tourbillon together help guarantee theaccuracy of the watch

Application of various new processing technologies

physical vapour deposition (pvd)chemical vapour deposition (cvd)LIthographie Galvanoformung Adformung (LIGA)electroformingphotochemcial machining (pcm)etchellip

Current development worldwide Mimotec SA (Sion Switzerland)

MEMS Technology ndash DRIE Process

MEMS Technology ndash LIGA Process

LIGA = Lithographie Galvanoformung Adformung

LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre

a German acronym for rdquoLithographie Galvanoformung Abformungldquoin English (X-ray) Lithography Electroplating and Molding

one of the first major techniques to allow on-demand manufacturing of high-aspect-ratio structures (structures that are much taller than wide) with lateral precision below one micrometre This capability is important in the fabrication of MEMS devices Because of the high collimation of X-rays needed the source must be synchrotron light

There are today three different types of LIGA technologies differing in the radiation and preform usedi) X-Ray LIGA the first LIGA technology developed using X-Rays

produced by a synchrotron ii) UV-LIGA using ultraviolet light typically from a mercury lamp and

special resists like SU-8 and iii) Silicon-LIGA using deep reactive ion etched silicon as preform

Application of various new processing technologies

physical vapour deposition (pvd)chemical vapour deposition (cvd)LIthographie Galvanoformung Adformung (LIGA)electroformingphotochemcial machining (pcm)etchellip

Current development worldwide Mimotec SA (Sion Switzerland)

MEMS Technology ndash DRIE Process

MEMS Technology ndash LIGA Process

LIGA = Lithographie Galvanoformung Adformung

LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre

a German acronym for rdquoLithographie Galvanoformung Abformungldquoin English (X-ray) Lithography Electroplating and Molding

one of the first major techniques to allow on-demand manufacturing of high-aspect-ratio structures (structures that are much taller than wide) with lateral precision below one micrometre This capability is important in the fabrication of MEMS devices Because of the high collimation of X-rays needed the source must be synchrotron light

There are today three different types of LIGA technologies differing in the radiation and preform usedi) X-Ray LIGA the first LIGA technology developed using X-Rays

produced by a synchrotron ii) UV-LIGA using ultraviolet light typically from a mercury lamp and

special resists like SU-8 and iii) Silicon-LIGA using deep reactive ion etched silicon as preform

Current development worldwide Mimotec SA (Sion Switzerland)

MEMS Technology ndash DRIE Process

MEMS Technology ndash LIGA Process

LIGA = Lithographie Galvanoformung Adformung

LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre

a German acronym for rdquoLithographie Galvanoformung Abformungldquoin English (X-ray) Lithography Electroplating and Molding

one of the first major techniques to allow on-demand manufacturing of high-aspect-ratio structures (structures that are much taller than wide) with lateral precision below one micrometre This capability is important in the fabrication of MEMS devices Because of the high collimation of X-rays needed the source must be synchrotron light

There are today three different types of LIGA technologies differing in the radiation and preform usedi) X-Ray LIGA the first LIGA technology developed using X-Rays

produced by a synchrotron ii) UV-LIGA using ultraviolet light typically from a mercury lamp and

special resists like SU-8 and iii) Silicon-LIGA using deep reactive ion etched silicon as preform

MEMS Technology ndash DRIE Process

MEMS Technology ndash LIGA Process

LIGA = Lithographie Galvanoformung Adformung

LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre

a German acronym for rdquoLithographie Galvanoformung Abformungldquoin English (X-ray) Lithography Electroplating and Molding

one of the first major techniques to allow on-demand manufacturing of high-aspect-ratio structures (structures that are much taller than wide) with lateral precision below one micrometre This capability is important in the fabrication of MEMS devices Because of the high collimation of X-rays needed the source must be synchrotron light

There are today three different types of LIGA technologies differing in the radiation and preform usedi) X-Ray LIGA the first LIGA technology developed using X-Rays

produced by a synchrotron ii) UV-LIGA using ultraviolet light typically from a mercury lamp and

special resists like SU-8 and iii) Silicon-LIGA using deep reactive ion etched silicon as preform

MEMS Technology ndash LIGA Process

LIGA = Lithographie Galvanoformung Adformung

LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre

a German acronym for rdquoLithographie Galvanoformung Abformungldquoin English (X-ray) Lithography Electroplating and Molding

one of the first major techniques to allow on-demand manufacturing of high-aspect-ratio structures (structures that are much taller than wide) with lateral precision below one micrometre This capability is important in the fabrication of MEMS devices Because of the high collimation of X-rays needed the source must be synchrotron light

There are today three different types of LIGA technologies differing in the radiation and preform usedi) X-Ray LIGA the first LIGA technology developed using X-Rays

produced by a synchrotron ii) UV-LIGA using ultraviolet light typically from a mercury lamp and

special resists like SU-8 and iii) Silicon-LIGA using deep reactive ion etched silicon as preform

LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre

a German acronym for rdquoLithographie Galvanoformung Abformungldquoin English (X-ray) Lithography Electroplating and Molding

one of the first major techniques to allow on-demand manufacturing of high-aspect-ratio structures (structures that are much taller than wide) with lateral precision below one micrometre This capability is important in the fabrication of MEMS devices Because of the high collimation of X-rays needed the source must be synchrotron light

There are today three different types of LIGA technologies differing in the radiation and preform usedi) X-Ray LIGA the first LIGA technology developed using X-Rays

produced by a synchrotron ii) UV-LIGA using ultraviolet light typically from a mercury lamp and

special resists like SU-8 and iii) Silicon-LIGA using deep reactive ion etched silicon as preform

UV-LIGA Process

Step 1 Exposure

Step 2 Development

Step 3 Electroforming

Step 4 ReleaseUsually the x-ray source is substituted by UV light to realize UV-

LIGA process which is cheaper and quicker

LIGA for components in mechanical movements

LIGA process is a proven technology in making 25D micro-components in micron and sub-micron level

LIGA technologies are uniquely characterized by theirability to generate products in1) full design freedom of x-y plane2) high accuracy high precision3) good quality of sidewall(straight amp roughness)4) high reproducibility5) high yield

LIGA technologies emerge to be new manufacturingtechnologies for watch components also in recent years

Photochemical machining

PRECISION metal parts manufacturer has highlighted customised photochemical machining processes as an environmentally-friendly method of working with metalThe current focus on the environmental impacts of manufacturing is driving companies to adopt processes which minimise hazardous waste and reduce scrap

How HKPC help the industry to meet the challenges

Setting up Special Task Force (成立《專責小組(Task Force)》目的是為協助業界能更了解這方些面的信息並掌握最新的技術

HKPC-Materials technology division - Hong Watch amp clock technology Centre (香港生產力促進局材料科技部 - 香港鐘表科技中心) The Hong Kong Watch Manufacturers Association Ltd (香港表廠商會) 與 Federation of HK Watch Trade amp Industries Ltd (香港鐘表業總會) 協助業界 成立為兩個熱

門的項目成立了兩個項目分別是

- Precious Metal CasesParts Forming Technologies貴金屬錶殼 零部件成型技術」

- New Coating Technologies新塗層技術

Upgrade (升級方面)生產力一直與兩會合作以製造工程小組探討及開展新技術以追貼國際要求

Transformation (轉型方面)協助廠家在國內內銷

HKPC help industry connect to the worldhellip

Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)1 June 2008 (Sunday) to 7 June 2008 (Saturday)參觀了最新的鐘表科技技術機械製造設備接觸了樂意與香港合作的瑞士廠家

Study Mission to Japan for Watch Industry26 Oct 2008 (Sunday) to 1 Nov 2008 (Saturday)參觀了最新的鐘表科技技術機械製造設備

接觸了Japanese Industrial Standards Committee (JISC)Technical committee ISOTC114 樂意與香港合作的瑞士廠家

Study Mission to Switzerland for Hong Kong amp Swiss Watch IndustriesrsquoTechnologies Cooperation Communication 鐘錶工業科技技術合作洽談瑞士考察團10 May 2009 (Sunday) to 16 May 2009 (Saturday)To discuss business opportunities and matching去與瑞士廠家洽談合資合作

Process Quality standardization (工序標準化)以幫助鐘表業技術品質水平得以穩定從而提升香港品牌

Visit of Japan Clock amp Watch Association (Oct 2008)

Understand the political picture of the global watch and clock industryISO Management StructureISO amp National committer in JapanCurrent Status of ISOTC114Current Status of ISOTC114 Established International StandardsImportance of International Standards

ISO Management Structure1 Council11 General Committee

- Principal Officers- Delegates of (Member bodies Correspondent Members

Subscriber Members)12 Central Secretariat13 Areas under direct management of Council

131 Policy Development Committees132 Council Standing Committees133 Technical Management Board

- committee on reference materials (REMCO)- technical advisory groups- technical committees (TCs)

134 Ad hoc advisory group

ISO amp National Committee in Japan

Technical committee ISOTC114 has many different working groups (WG) amp subcommittee (SC) under it

ISOTC114 interacts amp Harmonizes strongly with Japanese industrial standards committee (JISC) under the ministry of economic trade and industry of Japan

WG and SG interact strongly with the industry Industry associations are in charge of respective TCs JCWA interacts strongly with the TC114-Horlogy technical standards committee

Current Status of ISOTC114

Participating member bodiesParticipating members 9 countries4 Asian countries China India Japan Korea5 European countries France Germany Russian Federation Switzerland United KingdomObserving members 12 countries including Hong Kong

Current Status of ISOTC114

WG1- Watch batteries

WG3 - Functional Jewels

SC1 - Shock resistance

SC3 ndash Water resistance

SC6 ndash Coatings

SC7 ndash Overall dimensions

SC10 ndash Rate of watches

SC13 ndash Watch glasses

-

Switzerland

Switzerland

Switzerland

Switzerland

Switzerland

Switzerland

Switzerland

Switzerland

Current Status of ISOTC114WG2 ndash Allergen materials

SC5 ndash Luminescence

SC9 ndash Technical definitions

SC11 ndash Accuracy

SC12 ndash Anti-Magnetism

WG4 ndash Clock

WG5 ndash Rate of watches

France

France

France

Japan

Japan

China

Korea

Current Status of ISOTC114 Established International Standards

25 StandardsTermsDefinitions 4 standards for horological vocabulary functional jewels etchellipDimensions and compatibility of parts 7 standardsfor dimensions of bracelet-to-case fastening elements dimensions of glasses etchellipQuality requirements and testing methods for watches amp clocks 7 standards for battery life water resistance anti-magnetism etchellipQuality requirements and testing methods for components 7 standards for long afterglow paints gold plating hard coating etchellip

Current status of ISOTC114 International Standards under Deliberation

New technologies of watches and clocksi) ISO-IEC JPT Development of standards for secondary batteries for watchesii) WG3 Revision of ISO 1112 (Functional jewels amp non- functional jewels)iii) SC6 Revision of ISO 3160-3 (Abrasion resistance test)iv) WG5 Hard Material Watches

HealthSafetyEnvironmenti) WG2 Guidelines for allergen and hazardous substancesii) SC3 Revision of ISO 2281 (Water resistant watches)

Amendment to standards from the standpoint of customers

Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)

From 1 June 2008 (Sunday)To 7 June 2008 (Saturday)

D1 Titanium Engineering SA

Titanium Engineering SA

CNC micro-machiningCNC micro-toolingAnodizing of Titanium partsElectro-polishingPrecise measurements on partsWish to establish co-operations with companies in Hong Kong and China

Titanium Engineering SA

Titanium Engineering SA

Titanium Engineering SA

Titanium Engineering SA

Metalor Technologies SA

Metalor Technologies SAMetalor is both a gold recycling company and a watch component supplier to big companiesAnnual turn-over is 30 billion SFr (HK$ 190 billion) not including income from raw materials prices increaseIt accepts gold scrap from both internal operations as well as external suppliers from PCB etchellipIt has a rather end-to-end process Raw recycling-con-casting drawing cold-rolling etchellip Good business modelIt supplies not only 999 gold ingot but also engineering materials with tailored propertiesIt tailor-makes gold alloy for clientsIt applies a very strict security system in the factory even to visitors

D2 - BUMOTEC SA

BUMOTEC SA

BUMOTEC SA

Exhibition EPHJ 2008

Exhibition EPHJ 2008Lots of new technologies and suppliers found

Red Gold- different gold alloy (fashion)- with tailor-made properties- well heat-treated- stable and not easily

deformable

Contacts made on various key components suppliers- Components suppliers - hairspring- mainspring

Contacts made on various key technologies suppliers

- Special CNC supplier- Target-cooled Laser cutting- Computer controlled polishing- Fine deburring- Electroforming- CADCAECAM of complete

movement- Clean surface finishing tech

without applying wax- Deep Reactive Ion Etching

(DRIE)- PhotoChemical Machining (PCM)- high resolution imaging and

metrology

Exhibition EPHJ 2008

D3 - Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

D4

Crevoisier SA

CSM Instruments SA

CSM Instruments SA

Polyservice AG

Polyservice AG

Polyservice AG

Recomatic SA

Recomatic SA

Recomatic SA

D5 mb-microtec AG

RC TRITEC AG

RC TRITEC AG

RC TRITEC AG

Successful stories cases

Internal China Sales (Demand + Supply = Price)- 香港鐘錶在國內市場方面早年已推十大品牌在國內試點推廣

- 開始估計以1000 ndash 1500 HKD 手錶好賣之後實際是1500 ndash 3000 HKD 的手錶好賣

Environmental consideration by the Watch and Clock Industry- 環保綠色生產仍國際性問題

- 香港已有廠家於開發時想出避免一些無必要的清洗的污染工 序取消此做法環保也減少成本

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

LIGA for components in mechanical movements

LIGA process is a proven technology in making 25D micro-components in micron and sub-micron level

LIGA technologies are uniquely characterized by theirability to generate products in1) full design freedom of x-y plane2) high accuracy high precision3) good quality of sidewall(straight amp roughness)4) high reproducibility5) high yield

LIGA technologies emerge to be new manufacturingtechnologies for watch components also in recent years

Photochemical machining

PRECISION metal parts manufacturer has highlighted customised photochemical machining processes as an environmentally-friendly method of working with metalThe current focus on the environmental impacts of manufacturing is driving companies to adopt processes which minimise hazardous waste and reduce scrap

How HKPC help the industry to meet the challenges

Setting up Special Task Force (成立《專責小組(Task Force)》目的是為協助業界能更了解這方些面的信息並掌握最新的技術

HKPC-Materials technology division - Hong Watch amp clock technology Centre (香港生產力促進局材料科技部 - 香港鐘表科技中心) The Hong Kong Watch Manufacturers Association Ltd (香港表廠商會) 與 Federation of HK Watch Trade amp Industries Ltd (香港鐘表業總會) 協助業界 成立為兩個熱

門的項目成立了兩個項目分別是

- Precious Metal CasesParts Forming Technologies貴金屬錶殼 零部件成型技術」

- New Coating Technologies新塗層技術

Upgrade (升級方面)生產力一直與兩會合作以製造工程小組探討及開展新技術以追貼國際要求

Transformation (轉型方面)協助廠家在國內內銷

HKPC help industry connect to the worldhellip

Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)1 June 2008 (Sunday) to 7 June 2008 (Saturday)參觀了最新的鐘表科技技術機械製造設備接觸了樂意與香港合作的瑞士廠家

Study Mission to Japan for Watch Industry26 Oct 2008 (Sunday) to 1 Nov 2008 (Saturday)參觀了最新的鐘表科技技術機械製造設備

接觸了Japanese Industrial Standards Committee (JISC)Technical committee ISOTC114 樂意與香港合作的瑞士廠家

Study Mission to Switzerland for Hong Kong amp Swiss Watch IndustriesrsquoTechnologies Cooperation Communication 鐘錶工業科技技術合作洽談瑞士考察團10 May 2009 (Sunday) to 16 May 2009 (Saturday)To discuss business opportunities and matching去與瑞士廠家洽談合資合作

Process Quality standardization (工序標準化)以幫助鐘表業技術品質水平得以穩定從而提升香港品牌

Visit of Japan Clock amp Watch Association (Oct 2008)

Understand the political picture of the global watch and clock industryISO Management StructureISO amp National committer in JapanCurrent Status of ISOTC114Current Status of ISOTC114 Established International StandardsImportance of International Standards

ISO Management Structure1 Council11 General Committee

- Principal Officers- Delegates of (Member bodies Correspondent Members

Subscriber Members)12 Central Secretariat13 Areas under direct management of Council

131 Policy Development Committees132 Council Standing Committees133 Technical Management Board

- committee on reference materials (REMCO)- technical advisory groups- technical committees (TCs)

134 Ad hoc advisory group

ISO amp National Committee in Japan

Technical committee ISOTC114 has many different working groups (WG) amp subcommittee (SC) under it

ISOTC114 interacts amp Harmonizes strongly with Japanese industrial standards committee (JISC) under the ministry of economic trade and industry of Japan

WG and SG interact strongly with the industry Industry associations are in charge of respective TCs JCWA interacts strongly with the TC114-Horlogy technical standards committee

Current Status of ISOTC114

Participating member bodiesParticipating members 9 countries4 Asian countries China India Japan Korea5 European countries France Germany Russian Federation Switzerland United KingdomObserving members 12 countries including Hong Kong

Current Status of ISOTC114

WG1- Watch batteries

WG3 - Functional Jewels

SC1 - Shock resistance

SC3 ndash Water resistance

SC6 ndash Coatings

SC7 ndash Overall dimensions

SC10 ndash Rate of watches

SC13 ndash Watch glasses

-

Switzerland

Switzerland

Switzerland

Switzerland

Switzerland

Switzerland

Switzerland

Switzerland

Current Status of ISOTC114WG2 ndash Allergen materials

SC5 ndash Luminescence

SC9 ndash Technical definitions

SC11 ndash Accuracy

SC12 ndash Anti-Magnetism

WG4 ndash Clock

WG5 ndash Rate of watches

France

France

France

Japan

Japan

China

Korea

Current Status of ISOTC114 Established International Standards

25 StandardsTermsDefinitions 4 standards for horological vocabulary functional jewels etchellipDimensions and compatibility of parts 7 standardsfor dimensions of bracelet-to-case fastening elements dimensions of glasses etchellipQuality requirements and testing methods for watches amp clocks 7 standards for battery life water resistance anti-magnetism etchellipQuality requirements and testing methods for components 7 standards for long afterglow paints gold plating hard coating etchellip

Current status of ISOTC114 International Standards under Deliberation

New technologies of watches and clocksi) ISO-IEC JPT Development of standards for secondary batteries for watchesii) WG3 Revision of ISO 1112 (Functional jewels amp non- functional jewels)iii) SC6 Revision of ISO 3160-3 (Abrasion resistance test)iv) WG5 Hard Material Watches

HealthSafetyEnvironmenti) WG2 Guidelines for allergen and hazardous substancesii) SC3 Revision of ISO 2281 (Water resistant watches)

Amendment to standards from the standpoint of customers

Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)

From 1 June 2008 (Sunday)To 7 June 2008 (Saturday)

D1 Titanium Engineering SA

Titanium Engineering SA

CNC micro-machiningCNC micro-toolingAnodizing of Titanium partsElectro-polishingPrecise measurements on partsWish to establish co-operations with companies in Hong Kong and China

Titanium Engineering SA

Titanium Engineering SA

Titanium Engineering SA

Titanium Engineering SA

Metalor Technologies SA

Metalor Technologies SAMetalor is both a gold recycling company and a watch component supplier to big companiesAnnual turn-over is 30 billion SFr (HK$ 190 billion) not including income from raw materials prices increaseIt accepts gold scrap from both internal operations as well as external suppliers from PCB etchellipIt has a rather end-to-end process Raw recycling-con-casting drawing cold-rolling etchellip Good business modelIt supplies not only 999 gold ingot but also engineering materials with tailored propertiesIt tailor-makes gold alloy for clientsIt applies a very strict security system in the factory even to visitors

D2 - BUMOTEC SA

BUMOTEC SA

BUMOTEC SA

Exhibition EPHJ 2008

Exhibition EPHJ 2008Lots of new technologies and suppliers found

Red Gold- different gold alloy (fashion)- with tailor-made properties- well heat-treated- stable and not easily

deformable

Contacts made on various key components suppliers- Components suppliers - hairspring- mainspring

Contacts made on various key technologies suppliers

- Special CNC supplier- Target-cooled Laser cutting- Computer controlled polishing- Fine deburring- Electroforming- CADCAECAM of complete

movement- Clean surface finishing tech

without applying wax- Deep Reactive Ion Etching

(DRIE)- PhotoChemical Machining (PCM)- high resolution imaging and

metrology

Exhibition EPHJ 2008

D3 - Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

D4

Crevoisier SA

CSM Instruments SA

CSM Instruments SA

Polyservice AG

Polyservice AG

Polyservice AG

Recomatic SA

Recomatic SA

Recomatic SA

D5 mb-microtec AG

RC TRITEC AG

RC TRITEC AG

RC TRITEC AG

Successful stories cases

Internal China Sales (Demand + Supply = Price)- 香港鐘錶在國內市場方面早年已推十大品牌在國內試點推廣

- 開始估計以1000 ndash 1500 HKD 手錶好賣之後實際是1500 ndash 3000 HKD 的手錶好賣

Environmental consideration by the Watch and Clock Industry- 環保綠色生產仍國際性問題

- 香港已有廠家於開發時想出避免一些無必要的清洗的污染工 序取消此做法環保也減少成本

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

Photochemical machining

PRECISION metal parts manufacturer has highlighted customised photochemical machining processes as an environmentally-friendly method of working with metalThe current focus on the environmental impacts of manufacturing is driving companies to adopt processes which minimise hazardous waste and reduce scrap

How HKPC help the industry to meet the challenges

Setting up Special Task Force (成立《專責小組(Task Force)》目的是為協助業界能更了解這方些面的信息並掌握最新的技術

HKPC-Materials technology division - Hong Watch amp clock technology Centre (香港生產力促進局材料科技部 - 香港鐘表科技中心) The Hong Kong Watch Manufacturers Association Ltd (香港表廠商會) 與 Federation of HK Watch Trade amp Industries Ltd (香港鐘表業總會) 協助業界 成立為兩個熱

門的項目成立了兩個項目分別是

- Precious Metal CasesParts Forming Technologies貴金屬錶殼 零部件成型技術」

- New Coating Technologies新塗層技術

Upgrade (升級方面)生產力一直與兩會合作以製造工程小組探討及開展新技術以追貼國際要求

Transformation (轉型方面)協助廠家在國內內銷

HKPC help industry connect to the worldhellip

Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)1 June 2008 (Sunday) to 7 June 2008 (Saturday)參觀了最新的鐘表科技技術機械製造設備接觸了樂意與香港合作的瑞士廠家

Study Mission to Japan for Watch Industry26 Oct 2008 (Sunday) to 1 Nov 2008 (Saturday)參觀了最新的鐘表科技技術機械製造設備

接觸了Japanese Industrial Standards Committee (JISC)Technical committee ISOTC114 樂意與香港合作的瑞士廠家

Study Mission to Switzerland for Hong Kong amp Swiss Watch IndustriesrsquoTechnologies Cooperation Communication 鐘錶工業科技技術合作洽談瑞士考察團10 May 2009 (Sunday) to 16 May 2009 (Saturday)To discuss business opportunities and matching去與瑞士廠家洽談合資合作

Process Quality standardization (工序標準化)以幫助鐘表業技術品質水平得以穩定從而提升香港品牌

Visit of Japan Clock amp Watch Association (Oct 2008)

Understand the political picture of the global watch and clock industryISO Management StructureISO amp National committer in JapanCurrent Status of ISOTC114Current Status of ISOTC114 Established International StandardsImportance of International Standards

ISO Management Structure1 Council11 General Committee

- Principal Officers- Delegates of (Member bodies Correspondent Members

Subscriber Members)12 Central Secretariat13 Areas under direct management of Council

131 Policy Development Committees132 Council Standing Committees133 Technical Management Board

- committee on reference materials (REMCO)- technical advisory groups- technical committees (TCs)

134 Ad hoc advisory group

ISO amp National Committee in Japan

Technical committee ISOTC114 has many different working groups (WG) amp subcommittee (SC) under it

ISOTC114 interacts amp Harmonizes strongly with Japanese industrial standards committee (JISC) under the ministry of economic trade and industry of Japan

WG and SG interact strongly with the industry Industry associations are in charge of respective TCs JCWA interacts strongly with the TC114-Horlogy technical standards committee

Current Status of ISOTC114

Participating member bodiesParticipating members 9 countries4 Asian countries China India Japan Korea5 European countries France Germany Russian Federation Switzerland United KingdomObserving members 12 countries including Hong Kong

Current Status of ISOTC114

WG1- Watch batteries

WG3 - Functional Jewels

SC1 - Shock resistance

SC3 ndash Water resistance

SC6 ndash Coatings

SC7 ndash Overall dimensions

SC10 ndash Rate of watches

SC13 ndash Watch glasses

-

Switzerland

Switzerland

Switzerland

Switzerland

Switzerland

Switzerland

Switzerland

Switzerland

Current Status of ISOTC114WG2 ndash Allergen materials

SC5 ndash Luminescence

SC9 ndash Technical definitions

SC11 ndash Accuracy

SC12 ndash Anti-Magnetism

WG4 ndash Clock

WG5 ndash Rate of watches

France

France

France

Japan

Japan

China

Korea

Current Status of ISOTC114 Established International Standards

25 StandardsTermsDefinitions 4 standards for horological vocabulary functional jewels etchellipDimensions and compatibility of parts 7 standardsfor dimensions of bracelet-to-case fastening elements dimensions of glasses etchellipQuality requirements and testing methods for watches amp clocks 7 standards for battery life water resistance anti-magnetism etchellipQuality requirements and testing methods for components 7 standards for long afterglow paints gold plating hard coating etchellip

Current status of ISOTC114 International Standards under Deliberation

New technologies of watches and clocksi) ISO-IEC JPT Development of standards for secondary batteries for watchesii) WG3 Revision of ISO 1112 (Functional jewels amp non- functional jewels)iii) SC6 Revision of ISO 3160-3 (Abrasion resistance test)iv) WG5 Hard Material Watches

HealthSafetyEnvironmenti) WG2 Guidelines for allergen and hazardous substancesii) SC3 Revision of ISO 2281 (Water resistant watches)

Amendment to standards from the standpoint of customers

Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)

From 1 June 2008 (Sunday)To 7 June 2008 (Saturday)

D1 Titanium Engineering SA

Titanium Engineering SA

CNC micro-machiningCNC micro-toolingAnodizing of Titanium partsElectro-polishingPrecise measurements on partsWish to establish co-operations with companies in Hong Kong and China

Titanium Engineering SA

Titanium Engineering SA

Titanium Engineering SA

Titanium Engineering SA

Metalor Technologies SA

Metalor Technologies SAMetalor is both a gold recycling company and a watch component supplier to big companiesAnnual turn-over is 30 billion SFr (HK$ 190 billion) not including income from raw materials prices increaseIt accepts gold scrap from both internal operations as well as external suppliers from PCB etchellipIt has a rather end-to-end process Raw recycling-con-casting drawing cold-rolling etchellip Good business modelIt supplies not only 999 gold ingot but also engineering materials with tailored propertiesIt tailor-makes gold alloy for clientsIt applies a very strict security system in the factory even to visitors

D2 - BUMOTEC SA

BUMOTEC SA

BUMOTEC SA

Exhibition EPHJ 2008

Exhibition EPHJ 2008Lots of new technologies and suppliers found

Red Gold- different gold alloy (fashion)- with tailor-made properties- well heat-treated- stable and not easily

deformable

Contacts made on various key components suppliers- Components suppliers - hairspring- mainspring

Contacts made on various key technologies suppliers

- Special CNC supplier- Target-cooled Laser cutting- Computer controlled polishing- Fine deburring- Electroforming- CADCAECAM of complete

movement- Clean surface finishing tech

without applying wax- Deep Reactive Ion Etching

(DRIE)- PhotoChemical Machining (PCM)- high resolution imaging and

metrology

Exhibition EPHJ 2008

D3 - Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

D4

Crevoisier SA

CSM Instruments SA

CSM Instruments SA

Polyservice AG

Polyservice AG

Polyservice AG

Recomatic SA

Recomatic SA

Recomatic SA

D5 mb-microtec AG

RC TRITEC AG

RC TRITEC AG

RC TRITEC AG

Successful stories cases

Internal China Sales (Demand + Supply = Price)- 香港鐘錶在國內市場方面早年已推十大品牌在國內試點推廣

- 開始估計以1000 ndash 1500 HKD 手錶好賣之後實際是1500 ndash 3000 HKD 的手錶好賣

Environmental consideration by the Watch and Clock Industry- 環保綠色生產仍國際性問題

- 香港已有廠家於開發時想出避免一些無必要的清洗的污染工 序取消此做法環保也減少成本

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

How HKPC help the industry to meet the challenges

Setting up Special Task Force (成立《專責小組(Task Force)》目的是為協助業界能更了解這方些面的信息並掌握最新的技術

HKPC-Materials technology division - Hong Watch amp clock technology Centre (香港生產力促進局材料科技部 - 香港鐘表科技中心) The Hong Kong Watch Manufacturers Association Ltd (香港表廠商會) 與 Federation of HK Watch Trade amp Industries Ltd (香港鐘表業總會) 協助業界 成立為兩個熱

門的項目成立了兩個項目分別是

- Precious Metal CasesParts Forming Technologies貴金屬錶殼 零部件成型技術」

- New Coating Technologies新塗層技術

Upgrade (升級方面)生產力一直與兩會合作以製造工程小組探討及開展新技術以追貼國際要求

Transformation (轉型方面)協助廠家在國內內銷

HKPC help industry connect to the worldhellip

Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)1 June 2008 (Sunday) to 7 June 2008 (Saturday)參觀了最新的鐘表科技技術機械製造設備接觸了樂意與香港合作的瑞士廠家

Study Mission to Japan for Watch Industry26 Oct 2008 (Sunday) to 1 Nov 2008 (Saturday)參觀了最新的鐘表科技技術機械製造設備

接觸了Japanese Industrial Standards Committee (JISC)Technical committee ISOTC114 樂意與香港合作的瑞士廠家

Study Mission to Switzerland for Hong Kong amp Swiss Watch IndustriesrsquoTechnologies Cooperation Communication 鐘錶工業科技技術合作洽談瑞士考察團10 May 2009 (Sunday) to 16 May 2009 (Saturday)To discuss business opportunities and matching去與瑞士廠家洽談合資合作

Process Quality standardization (工序標準化)以幫助鐘表業技術品質水平得以穩定從而提升香港品牌

Visit of Japan Clock amp Watch Association (Oct 2008)

Understand the political picture of the global watch and clock industryISO Management StructureISO amp National committer in JapanCurrent Status of ISOTC114Current Status of ISOTC114 Established International StandardsImportance of International Standards

ISO Management Structure1 Council11 General Committee

- Principal Officers- Delegates of (Member bodies Correspondent Members

Subscriber Members)12 Central Secretariat13 Areas under direct management of Council

131 Policy Development Committees132 Council Standing Committees133 Technical Management Board

- committee on reference materials (REMCO)- technical advisory groups- technical committees (TCs)

134 Ad hoc advisory group

ISO amp National Committee in Japan

Technical committee ISOTC114 has many different working groups (WG) amp subcommittee (SC) under it

ISOTC114 interacts amp Harmonizes strongly with Japanese industrial standards committee (JISC) under the ministry of economic trade and industry of Japan

WG and SG interact strongly with the industry Industry associations are in charge of respective TCs JCWA interacts strongly with the TC114-Horlogy technical standards committee

Current Status of ISOTC114

Participating member bodiesParticipating members 9 countries4 Asian countries China India Japan Korea5 European countries France Germany Russian Federation Switzerland United KingdomObserving members 12 countries including Hong Kong

Current Status of ISOTC114

WG1- Watch batteries

WG3 - Functional Jewels

SC1 - Shock resistance

SC3 ndash Water resistance

SC6 ndash Coatings

SC7 ndash Overall dimensions

SC10 ndash Rate of watches

SC13 ndash Watch glasses

-

Switzerland

Switzerland

Switzerland

Switzerland

Switzerland

Switzerland

Switzerland

Switzerland

Current Status of ISOTC114WG2 ndash Allergen materials

SC5 ndash Luminescence

SC9 ndash Technical definitions

SC11 ndash Accuracy

SC12 ndash Anti-Magnetism

WG4 ndash Clock

WG5 ndash Rate of watches

France

France

France

Japan

Japan

China

Korea

Current Status of ISOTC114 Established International Standards

25 StandardsTermsDefinitions 4 standards for horological vocabulary functional jewels etchellipDimensions and compatibility of parts 7 standardsfor dimensions of bracelet-to-case fastening elements dimensions of glasses etchellipQuality requirements and testing methods for watches amp clocks 7 standards for battery life water resistance anti-magnetism etchellipQuality requirements and testing methods for components 7 standards for long afterglow paints gold plating hard coating etchellip

Current status of ISOTC114 International Standards under Deliberation

New technologies of watches and clocksi) ISO-IEC JPT Development of standards for secondary batteries for watchesii) WG3 Revision of ISO 1112 (Functional jewels amp non- functional jewels)iii) SC6 Revision of ISO 3160-3 (Abrasion resistance test)iv) WG5 Hard Material Watches

HealthSafetyEnvironmenti) WG2 Guidelines for allergen and hazardous substancesii) SC3 Revision of ISO 2281 (Water resistant watches)

Amendment to standards from the standpoint of customers

Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)

From 1 June 2008 (Sunday)To 7 June 2008 (Saturday)

D1 Titanium Engineering SA

Titanium Engineering SA

CNC micro-machiningCNC micro-toolingAnodizing of Titanium partsElectro-polishingPrecise measurements on partsWish to establish co-operations with companies in Hong Kong and China

Titanium Engineering SA

Titanium Engineering SA

Titanium Engineering SA

Titanium Engineering SA

Metalor Technologies SA

Metalor Technologies SAMetalor is both a gold recycling company and a watch component supplier to big companiesAnnual turn-over is 30 billion SFr (HK$ 190 billion) not including income from raw materials prices increaseIt accepts gold scrap from both internal operations as well as external suppliers from PCB etchellipIt has a rather end-to-end process Raw recycling-con-casting drawing cold-rolling etchellip Good business modelIt supplies not only 999 gold ingot but also engineering materials with tailored propertiesIt tailor-makes gold alloy for clientsIt applies a very strict security system in the factory even to visitors

D2 - BUMOTEC SA

BUMOTEC SA

BUMOTEC SA

Exhibition EPHJ 2008

Exhibition EPHJ 2008Lots of new technologies and suppliers found

Red Gold- different gold alloy (fashion)- with tailor-made properties- well heat-treated- stable and not easily

deformable

Contacts made on various key components suppliers- Components suppliers - hairspring- mainspring

Contacts made on various key technologies suppliers

- Special CNC supplier- Target-cooled Laser cutting- Computer controlled polishing- Fine deburring- Electroforming- CADCAECAM of complete

movement- Clean surface finishing tech

without applying wax- Deep Reactive Ion Etching

(DRIE)- PhotoChemical Machining (PCM)- high resolution imaging and

metrology

Exhibition EPHJ 2008

D3 - Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

D4

Crevoisier SA

CSM Instruments SA

CSM Instruments SA

Polyservice AG

Polyservice AG

Polyservice AG

Recomatic SA

Recomatic SA

Recomatic SA

D5 mb-microtec AG

RC TRITEC AG

RC TRITEC AG

RC TRITEC AG

Successful stories cases

Internal China Sales (Demand + Supply = Price)- 香港鐘錶在國內市場方面早年已推十大品牌在國內試點推廣

- 開始估計以1000 ndash 1500 HKD 手錶好賣之後實際是1500 ndash 3000 HKD 的手錶好賣

Environmental consideration by the Watch and Clock Industry- 環保綠色生產仍國際性問題

- 香港已有廠家於開發時想出避免一些無必要的清洗的污染工 序取消此做法環保也減少成本

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

HKPC help industry connect to the worldhellip

Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)1 June 2008 (Sunday) to 7 June 2008 (Saturday)參觀了最新的鐘表科技技術機械製造設備接觸了樂意與香港合作的瑞士廠家

Study Mission to Japan for Watch Industry26 Oct 2008 (Sunday) to 1 Nov 2008 (Saturday)參觀了最新的鐘表科技技術機械製造設備

接觸了Japanese Industrial Standards Committee (JISC)Technical committee ISOTC114 樂意與香港合作的瑞士廠家

Study Mission to Switzerland for Hong Kong amp Swiss Watch IndustriesrsquoTechnologies Cooperation Communication 鐘錶工業科技技術合作洽談瑞士考察團10 May 2009 (Sunday) to 16 May 2009 (Saturday)To discuss business opportunities and matching去與瑞士廠家洽談合資合作

Process Quality standardization (工序標準化)以幫助鐘表業技術品質水平得以穩定從而提升香港品牌

Visit of Japan Clock amp Watch Association (Oct 2008)

Understand the political picture of the global watch and clock industryISO Management StructureISO amp National committer in JapanCurrent Status of ISOTC114Current Status of ISOTC114 Established International StandardsImportance of International Standards

ISO Management Structure1 Council11 General Committee

- Principal Officers- Delegates of (Member bodies Correspondent Members

Subscriber Members)12 Central Secretariat13 Areas under direct management of Council

131 Policy Development Committees132 Council Standing Committees133 Technical Management Board

- committee on reference materials (REMCO)- technical advisory groups- technical committees (TCs)

134 Ad hoc advisory group

ISO amp National Committee in Japan

Technical committee ISOTC114 has many different working groups (WG) amp subcommittee (SC) under it

ISOTC114 interacts amp Harmonizes strongly with Japanese industrial standards committee (JISC) under the ministry of economic trade and industry of Japan

WG and SG interact strongly with the industry Industry associations are in charge of respective TCs JCWA interacts strongly with the TC114-Horlogy technical standards committee

Current Status of ISOTC114

Participating member bodiesParticipating members 9 countries4 Asian countries China India Japan Korea5 European countries France Germany Russian Federation Switzerland United KingdomObserving members 12 countries including Hong Kong

Current Status of ISOTC114

WG1- Watch batteries

WG3 - Functional Jewels

SC1 - Shock resistance

SC3 ndash Water resistance

SC6 ndash Coatings

SC7 ndash Overall dimensions

SC10 ndash Rate of watches

SC13 ndash Watch glasses

-

Switzerland

Switzerland

Switzerland

Switzerland

Switzerland

Switzerland

Switzerland

Switzerland

Current Status of ISOTC114WG2 ndash Allergen materials

SC5 ndash Luminescence

SC9 ndash Technical definitions

SC11 ndash Accuracy

SC12 ndash Anti-Magnetism

WG4 ndash Clock

WG5 ndash Rate of watches

France

France

France

Japan

Japan

China

Korea

Current Status of ISOTC114 Established International Standards

25 StandardsTermsDefinitions 4 standards for horological vocabulary functional jewels etchellipDimensions and compatibility of parts 7 standardsfor dimensions of bracelet-to-case fastening elements dimensions of glasses etchellipQuality requirements and testing methods for watches amp clocks 7 standards for battery life water resistance anti-magnetism etchellipQuality requirements and testing methods for components 7 standards for long afterglow paints gold plating hard coating etchellip

Current status of ISOTC114 International Standards under Deliberation

New technologies of watches and clocksi) ISO-IEC JPT Development of standards for secondary batteries for watchesii) WG3 Revision of ISO 1112 (Functional jewels amp non- functional jewels)iii) SC6 Revision of ISO 3160-3 (Abrasion resistance test)iv) WG5 Hard Material Watches

HealthSafetyEnvironmenti) WG2 Guidelines for allergen and hazardous substancesii) SC3 Revision of ISO 2281 (Water resistant watches)

Amendment to standards from the standpoint of customers

Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)

From 1 June 2008 (Sunday)To 7 June 2008 (Saturday)

D1 Titanium Engineering SA

Titanium Engineering SA

CNC micro-machiningCNC micro-toolingAnodizing of Titanium partsElectro-polishingPrecise measurements on partsWish to establish co-operations with companies in Hong Kong and China

Titanium Engineering SA

Titanium Engineering SA

Titanium Engineering SA

Titanium Engineering SA

Metalor Technologies SA

Metalor Technologies SAMetalor is both a gold recycling company and a watch component supplier to big companiesAnnual turn-over is 30 billion SFr (HK$ 190 billion) not including income from raw materials prices increaseIt accepts gold scrap from both internal operations as well as external suppliers from PCB etchellipIt has a rather end-to-end process Raw recycling-con-casting drawing cold-rolling etchellip Good business modelIt supplies not only 999 gold ingot but also engineering materials with tailored propertiesIt tailor-makes gold alloy for clientsIt applies a very strict security system in the factory even to visitors

D2 - BUMOTEC SA

BUMOTEC SA

BUMOTEC SA

Exhibition EPHJ 2008

Exhibition EPHJ 2008Lots of new technologies and suppliers found

Red Gold- different gold alloy (fashion)- with tailor-made properties- well heat-treated- stable and not easily

deformable

Contacts made on various key components suppliers- Components suppliers - hairspring- mainspring

Contacts made on various key technologies suppliers

- Special CNC supplier- Target-cooled Laser cutting- Computer controlled polishing- Fine deburring- Electroforming- CADCAECAM of complete

movement- Clean surface finishing tech

without applying wax- Deep Reactive Ion Etching

(DRIE)- PhotoChemical Machining (PCM)- high resolution imaging and

metrology

Exhibition EPHJ 2008

D3 - Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

D4

Crevoisier SA

CSM Instruments SA

CSM Instruments SA

Polyservice AG

Polyservice AG

Polyservice AG

Recomatic SA

Recomatic SA

Recomatic SA

D5 mb-microtec AG

RC TRITEC AG

RC TRITEC AG

RC TRITEC AG

Successful stories cases

Internal China Sales (Demand + Supply = Price)- 香港鐘錶在國內市場方面早年已推十大品牌在國內試點推廣

- 開始估計以1000 ndash 1500 HKD 手錶好賣之後實際是1500 ndash 3000 HKD 的手錶好賣

Environmental consideration by the Watch and Clock Industry- 環保綠色生產仍國際性問題

- 香港已有廠家於開發時想出避免一些無必要的清洗的污染工 序取消此做法環保也減少成本

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

Visit of Japan Clock amp Watch Association (Oct 2008)

Understand the political picture of the global watch and clock industryISO Management StructureISO amp National committer in JapanCurrent Status of ISOTC114Current Status of ISOTC114 Established International StandardsImportance of International Standards

ISO Management Structure1 Council11 General Committee

- Principal Officers- Delegates of (Member bodies Correspondent Members

Subscriber Members)12 Central Secretariat13 Areas under direct management of Council

131 Policy Development Committees132 Council Standing Committees133 Technical Management Board

- committee on reference materials (REMCO)- technical advisory groups- technical committees (TCs)

134 Ad hoc advisory group

ISO amp National Committee in Japan

Technical committee ISOTC114 has many different working groups (WG) amp subcommittee (SC) under it

ISOTC114 interacts amp Harmonizes strongly with Japanese industrial standards committee (JISC) under the ministry of economic trade and industry of Japan

WG and SG interact strongly with the industry Industry associations are in charge of respective TCs JCWA interacts strongly with the TC114-Horlogy technical standards committee

Current Status of ISOTC114

Participating member bodiesParticipating members 9 countries4 Asian countries China India Japan Korea5 European countries France Germany Russian Federation Switzerland United KingdomObserving members 12 countries including Hong Kong

Current Status of ISOTC114

WG1- Watch batteries

WG3 - Functional Jewels

SC1 - Shock resistance

SC3 ndash Water resistance

SC6 ndash Coatings

SC7 ndash Overall dimensions

SC10 ndash Rate of watches

SC13 ndash Watch glasses

-

Switzerland

Switzerland

Switzerland

Switzerland

Switzerland

Switzerland

Switzerland

Switzerland

Current Status of ISOTC114WG2 ndash Allergen materials

SC5 ndash Luminescence

SC9 ndash Technical definitions

SC11 ndash Accuracy

SC12 ndash Anti-Magnetism

WG4 ndash Clock

WG5 ndash Rate of watches

France

France

France

Japan

Japan

China

Korea

Current Status of ISOTC114 Established International Standards

25 StandardsTermsDefinitions 4 standards for horological vocabulary functional jewels etchellipDimensions and compatibility of parts 7 standardsfor dimensions of bracelet-to-case fastening elements dimensions of glasses etchellipQuality requirements and testing methods for watches amp clocks 7 standards for battery life water resistance anti-magnetism etchellipQuality requirements and testing methods for components 7 standards for long afterglow paints gold plating hard coating etchellip

Current status of ISOTC114 International Standards under Deliberation

New technologies of watches and clocksi) ISO-IEC JPT Development of standards for secondary batteries for watchesii) WG3 Revision of ISO 1112 (Functional jewels amp non- functional jewels)iii) SC6 Revision of ISO 3160-3 (Abrasion resistance test)iv) WG5 Hard Material Watches

HealthSafetyEnvironmenti) WG2 Guidelines for allergen and hazardous substancesii) SC3 Revision of ISO 2281 (Water resistant watches)

Amendment to standards from the standpoint of customers

Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)

From 1 June 2008 (Sunday)To 7 June 2008 (Saturday)

D1 Titanium Engineering SA

Titanium Engineering SA

CNC micro-machiningCNC micro-toolingAnodizing of Titanium partsElectro-polishingPrecise measurements on partsWish to establish co-operations with companies in Hong Kong and China

Titanium Engineering SA

Titanium Engineering SA

Titanium Engineering SA

Titanium Engineering SA

Metalor Technologies SA

Metalor Technologies SAMetalor is both a gold recycling company and a watch component supplier to big companiesAnnual turn-over is 30 billion SFr (HK$ 190 billion) not including income from raw materials prices increaseIt accepts gold scrap from both internal operations as well as external suppliers from PCB etchellipIt has a rather end-to-end process Raw recycling-con-casting drawing cold-rolling etchellip Good business modelIt supplies not only 999 gold ingot but also engineering materials with tailored propertiesIt tailor-makes gold alloy for clientsIt applies a very strict security system in the factory even to visitors

D2 - BUMOTEC SA

BUMOTEC SA

BUMOTEC SA

Exhibition EPHJ 2008

Exhibition EPHJ 2008Lots of new technologies and suppliers found

Red Gold- different gold alloy (fashion)- with tailor-made properties- well heat-treated- stable and not easily

deformable

Contacts made on various key components suppliers- Components suppliers - hairspring- mainspring

Contacts made on various key technologies suppliers

- Special CNC supplier- Target-cooled Laser cutting- Computer controlled polishing- Fine deburring- Electroforming- CADCAECAM of complete

movement- Clean surface finishing tech

without applying wax- Deep Reactive Ion Etching

(DRIE)- PhotoChemical Machining (PCM)- high resolution imaging and

metrology

Exhibition EPHJ 2008

D3 - Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

D4

Crevoisier SA

CSM Instruments SA

CSM Instruments SA

Polyservice AG

Polyservice AG

Polyservice AG

Recomatic SA

Recomatic SA

Recomatic SA

D5 mb-microtec AG

RC TRITEC AG

RC TRITEC AG

RC TRITEC AG

Successful stories cases

Internal China Sales (Demand + Supply = Price)- 香港鐘錶在國內市場方面早年已推十大品牌在國內試點推廣

- 開始估計以1000 ndash 1500 HKD 手錶好賣之後實際是1500 ndash 3000 HKD 的手錶好賣

Environmental consideration by the Watch and Clock Industry- 環保綠色生產仍國際性問題

- 香港已有廠家於開發時想出避免一些無必要的清洗的污染工 序取消此做法環保也減少成本

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

ISO Management Structure1 Council11 General Committee

- Principal Officers- Delegates of (Member bodies Correspondent Members

Subscriber Members)12 Central Secretariat13 Areas under direct management of Council

131 Policy Development Committees132 Council Standing Committees133 Technical Management Board

- committee on reference materials (REMCO)- technical advisory groups- technical committees (TCs)

134 Ad hoc advisory group

ISO amp National Committee in Japan

Technical committee ISOTC114 has many different working groups (WG) amp subcommittee (SC) under it

ISOTC114 interacts amp Harmonizes strongly with Japanese industrial standards committee (JISC) under the ministry of economic trade and industry of Japan

WG and SG interact strongly with the industry Industry associations are in charge of respective TCs JCWA interacts strongly with the TC114-Horlogy technical standards committee

Current Status of ISOTC114

Participating member bodiesParticipating members 9 countries4 Asian countries China India Japan Korea5 European countries France Germany Russian Federation Switzerland United KingdomObserving members 12 countries including Hong Kong

Current Status of ISOTC114

WG1- Watch batteries

WG3 - Functional Jewels

SC1 - Shock resistance

SC3 ndash Water resistance

SC6 ndash Coatings

SC7 ndash Overall dimensions

SC10 ndash Rate of watches

SC13 ndash Watch glasses

-

Switzerland

Switzerland

Switzerland

Switzerland

Switzerland

Switzerland

Switzerland

Switzerland

Current Status of ISOTC114WG2 ndash Allergen materials

SC5 ndash Luminescence

SC9 ndash Technical definitions

SC11 ndash Accuracy

SC12 ndash Anti-Magnetism

WG4 ndash Clock

WG5 ndash Rate of watches

France

France

France

Japan

Japan

China

Korea

Current Status of ISOTC114 Established International Standards

25 StandardsTermsDefinitions 4 standards for horological vocabulary functional jewels etchellipDimensions and compatibility of parts 7 standardsfor dimensions of bracelet-to-case fastening elements dimensions of glasses etchellipQuality requirements and testing methods for watches amp clocks 7 standards for battery life water resistance anti-magnetism etchellipQuality requirements and testing methods for components 7 standards for long afterglow paints gold plating hard coating etchellip

Current status of ISOTC114 International Standards under Deliberation

New technologies of watches and clocksi) ISO-IEC JPT Development of standards for secondary batteries for watchesii) WG3 Revision of ISO 1112 (Functional jewels amp non- functional jewels)iii) SC6 Revision of ISO 3160-3 (Abrasion resistance test)iv) WG5 Hard Material Watches

HealthSafetyEnvironmenti) WG2 Guidelines for allergen and hazardous substancesii) SC3 Revision of ISO 2281 (Water resistant watches)

Amendment to standards from the standpoint of customers

Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)

From 1 June 2008 (Sunday)To 7 June 2008 (Saturday)

D1 Titanium Engineering SA

Titanium Engineering SA

CNC micro-machiningCNC micro-toolingAnodizing of Titanium partsElectro-polishingPrecise measurements on partsWish to establish co-operations with companies in Hong Kong and China

Titanium Engineering SA

Titanium Engineering SA

Titanium Engineering SA

Titanium Engineering SA

Metalor Technologies SA

Metalor Technologies SAMetalor is both a gold recycling company and a watch component supplier to big companiesAnnual turn-over is 30 billion SFr (HK$ 190 billion) not including income from raw materials prices increaseIt accepts gold scrap from both internal operations as well as external suppliers from PCB etchellipIt has a rather end-to-end process Raw recycling-con-casting drawing cold-rolling etchellip Good business modelIt supplies not only 999 gold ingot but also engineering materials with tailored propertiesIt tailor-makes gold alloy for clientsIt applies a very strict security system in the factory even to visitors

D2 - BUMOTEC SA

BUMOTEC SA

BUMOTEC SA

Exhibition EPHJ 2008

Exhibition EPHJ 2008Lots of new technologies and suppliers found

Red Gold- different gold alloy (fashion)- with tailor-made properties- well heat-treated- stable and not easily

deformable

Contacts made on various key components suppliers- Components suppliers - hairspring- mainspring

Contacts made on various key technologies suppliers

- Special CNC supplier- Target-cooled Laser cutting- Computer controlled polishing- Fine deburring- Electroforming- CADCAECAM of complete

movement- Clean surface finishing tech

without applying wax- Deep Reactive Ion Etching

(DRIE)- PhotoChemical Machining (PCM)- high resolution imaging and

metrology

Exhibition EPHJ 2008

D3 - Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

D4

Crevoisier SA

CSM Instruments SA

CSM Instruments SA

Polyservice AG

Polyservice AG

Polyservice AG

Recomatic SA

Recomatic SA

Recomatic SA

D5 mb-microtec AG

RC TRITEC AG

RC TRITEC AG

RC TRITEC AG

Successful stories cases

Internal China Sales (Demand + Supply = Price)- 香港鐘錶在國內市場方面早年已推十大品牌在國內試點推廣

- 開始估計以1000 ndash 1500 HKD 手錶好賣之後實際是1500 ndash 3000 HKD 的手錶好賣

Environmental consideration by the Watch and Clock Industry- 環保綠色生產仍國際性問題

- 香港已有廠家於開發時想出避免一些無必要的清洗的污染工 序取消此做法環保也減少成本

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

ISO amp National Committee in Japan

Technical committee ISOTC114 has many different working groups (WG) amp subcommittee (SC) under it

ISOTC114 interacts amp Harmonizes strongly with Japanese industrial standards committee (JISC) under the ministry of economic trade and industry of Japan

WG and SG interact strongly with the industry Industry associations are in charge of respective TCs JCWA interacts strongly with the TC114-Horlogy technical standards committee

Current Status of ISOTC114

Participating member bodiesParticipating members 9 countries4 Asian countries China India Japan Korea5 European countries France Germany Russian Federation Switzerland United KingdomObserving members 12 countries including Hong Kong

Current Status of ISOTC114

WG1- Watch batteries

WG3 - Functional Jewels

SC1 - Shock resistance

SC3 ndash Water resistance

SC6 ndash Coatings

SC7 ndash Overall dimensions

SC10 ndash Rate of watches

SC13 ndash Watch glasses

-

Switzerland

Switzerland

Switzerland

Switzerland

Switzerland

Switzerland

Switzerland

Switzerland

Current Status of ISOTC114WG2 ndash Allergen materials

SC5 ndash Luminescence

SC9 ndash Technical definitions

SC11 ndash Accuracy

SC12 ndash Anti-Magnetism

WG4 ndash Clock

WG5 ndash Rate of watches

France

France

France

Japan

Japan

China

Korea

Current Status of ISOTC114 Established International Standards

25 StandardsTermsDefinitions 4 standards for horological vocabulary functional jewels etchellipDimensions and compatibility of parts 7 standardsfor dimensions of bracelet-to-case fastening elements dimensions of glasses etchellipQuality requirements and testing methods for watches amp clocks 7 standards for battery life water resistance anti-magnetism etchellipQuality requirements and testing methods for components 7 standards for long afterglow paints gold plating hard coating etchellip

Current status of ISOTC114 International Standards under Deliberation

New technologies of watches and clocksi) ISO-IEC JPT Development of standards for secondary batteries for watchesii) WG3 Revision of ISO 1112 (Functional jewels amp non- functional jewels)iii) SC6 Revision of ISO 3160-3 (Abrasion resistance test)iv) WG5 Hard Material Watches

HealthSafetyEnvironmenti) WG2 Guidelines for allergen and hazardous substancesii) SC3 Revision of ISO 2281 (Water resistant watches)

Amendment to standards from the standpoint of customers

Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)

From 1 June 2008 (Sunday)To 7 June 2008 (Saturday)

D1 Titanium Engineering SA

Titanium Engineering SA

CNC micro-machiningCNC micro-toolingAnodizing of Titanium partsElectro-polishingPrecise measurements on partsWish to establish co-operations with companies in Hong Kong and China

Titanium Engineering SA

Titanium Engineering SA

Titanium Engineering SA

Titanium Engineering SA

Metalor Technologies SA

Metalor Technologies SAMetalor is both a gold recycling company and a watch component supplier to big companiesAnnual turn-over is 30 billion SFr (HK$ 190 billion) not including income from raw materials prices increaseIt accepts gold scrap from both internal operations as well as external suppliers from PCB etchellipIt has a rather end-to-end process Raw recycling-con-casting drawing cold-rolling etchellip Good business modelIt supplies not only 999 gold ingot but also engineering materials with tailored propertiesIt tailor-makes gold alloy for clientsIt applies a very strict security system in the factory even to visitors

D2 - BUMOTEC SA

BUMOTEC SA

BUMOTEC SA

Exhibition EPHJ 2008

Exhibition EPHJ 2008Lots of new technologies and suppliers found

Red Gold- different gold alloy (fashion)- with tailor-made properties- well heat-treated- stable and not easily

deformable

Contacts made on various key components suppliers- Components suppliers - hairspring- mainspring

Contacts made on various key technologies suppliers

- Special CNC supplier- Target-cooled Laser cutting- Computer controlled polishing- Fine deburring- Electroforming- CADCAECAM of complete

movement- Clean surface finishing tech

without applying wax- Deep Reactive Ion Etching

(DRIE)- PhotoChemical Machining (PCM)- high resolution imaging and

metrology

Exhibition EPHJ 2008

D3 - Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

D4

Crevoisier SA

CSM Instruments SA

CSM Instruments SA

Polyservice AG

Polyservice AG

Polyservice AG

Recomatic SA

Recomatic SA

Recomatic SA

D5 mb-microtec AG

RC TRITEC AG

RC TRITEC AG

RC TRITEC AG

Successful stories cases

Internal China Sales (Demand + Supply = Price)- 香港鐘錶在國內市場方面早年已推十大品牌在國內試點推廣

- 開始估計以1000 ndash 1500 HKD 手錶好賣之後實際是1500 ndash 3000 HKD 的手錶好賣

Environmental consideration by the Watch and Clock Industry- 環保綠色生產仍國際性問題

- 香港已有廠家於開發時想出避免一些無必要的清洗的污染工 序取消此做法環保也減少成本

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

Current Status of ISOTC114

Participating member bodiesParticipating members 9 countries4 Asian countries China India Japan Korea5 European countries France Germany Russian Federation Switzerland United KingdomObserving members 12 countries including Hong Kong

Current Status of ISOTC114

WG1- Watch batteries

WG3 - Functional Jewels

SC1 - Shock resistance

SC3 ndash Water resistance

SC6 ndash Coatings

SC7 ndash Overall dimensions

SC10 ndash Rate of watches

SC13 ndash Watch glasses

-

Switzerland

Switzerland

Switzerland

Switzerland

Switzerland

Switzerland

Switzerland

Switzerland

Current Status of ISOTC114WG2 ndash Allergen materials

SC5 ndash Luminescence

SC9 ndash Technical definitions

SC11 ndash Accuracy

SC12 ndash Anti-Magnetism

WG4 ndash Clock

WG5 ndash Rate of watches

France

France

France

Japan

Japan

China

Korea

Current Status of ISOTC114 Established International Standards

25 StandardsTermsDefinitions 4 standards for horological vocabulary functional jewels etchellipDimensions and compatibility of parts 7 standardsfor dimensions of bracelet-to-case fastening elements dimensions of glasses etchellipQuality requirements and testing methods for watches amp clocks 7 standards for battery life water resistance anti-magnetism etchellipQuality requirements and testing methods for components 7 standards for long afterglow paints gold plating hard coating etchellip

Current status of ISOTC114 International Standards under Deliberation

New technologies of watches and clocksi) ISO-IEC JPT Development of standards for secondary batteries for watchesii) WG3 Revision of ISO 1112 (Functional jewels amp non- functional jewels)iii) SC6 Revision of ISO 3160-3 (Abrasion resistance test)iv) WG5 Hard Material Watches

HealthSafetyEnvironmenti) WG2 Guidelines for allergen and hazardous substancesii) SC3 Revision of ISO 2281 (Water resistant watches)

Amendment to standards from the standpoint of customers

Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)

From 1 June 2008 (Sunday)To 7 June 2008 (Saturday)

D1 Titanium Engineering SA

Titanium Engineering SA

CNC micro-machiningCNC micro-toolingAnodizing of Titanium partsElectro-polishingPrecise measurements on partsWish to establish co-operations with companies in Hong Kong and China

Titanium Engineering SA

Titanium Engineering SA

Titanium Engineering SA

Titanium Engineering SA

Metalor Technologies SA

Metalor Technologies SAMetalor is both a gold recycling company and a watch component supplier to big companiesAnnual turn-over is 30 billion SFr (HK$ 190 billion) not including income from raw materials prices increaseIt accepts gold scrap from both internal operations as well as external suppliers from PCB etchellipIt has a rather end-to-end process Raw recycling-con-casting drawing cold-rolling etchellip Good business modelIt supplies not only 999 gold ingot but also engineering materials with tailored propertiesIt tailor-makes gold alloy for clientsIt applies a very strict security system in the factory even to visitors

D2 - BUMOTEC SA

BUMOTEC SA

BUMOTEC SA

Exhibition EPHJ 2008

Exhibition EPHJ 2008Lots of new technologies and suppliers found

Red Gold- different gold alloy (fashion)- with tailor-made properties- well heat-treated- stable and not easily

deformable

Contacts made on various key components suppliers- Components suppliers - hairspring- mainspring

Contacts made on various key technologies suppliers

- Special CNC supplier- Target-cooled Laser cutting- Computer controlled polishing- Fine deburring- Electroforming- CADCAECAM of complete

movement- Clean surface finishing tech

without applying wax- Deep Reactive Ion Etching

(DRIE)- PhotoChemical Machining (PCM)- high resolution imaging and

metrology

Exhibition EPHJ 2008

D3 - Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

D4

Crevoisier SA

CSM Instruments SA

CSM Instruments SA

Polyservice AG

Polyservice AG

Polyservice AG

Recomatic SA

Recomatic SA

Recomatic SA

D5 mb-microtec AG

RC TRITEC AG

RC TRITEC AG

RC TRITEC AG

Successful stories cases

Internal China Sales (Demand + Supply = Price)- 香港鐘錶在國內市場方面早年已推十大品牌在國內試點推廣

- 開始估計以1000 ndash 1500 HKD 手錶好賣之後實際是1500 ndash 3000 HKD 的手錶好賣

Environmental consideration by the Watch and Clock Industry- 環保綠色生產仍國際性問題

- 香港已有廠家於開發時想出避免一些無必要的清洗的污染工 序取消此做法環保也減少成本

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

Current Status of ISOTC114

WG1- Watch batteries

WG3 - Functional Jewels

SC1 - Shock resistance

SC3 ndash Water resistance

SC6 ndash Coatings

SC7 ndash Overall dimensions

SC10 ndash Rate of watches

SC13 ndash Watch glasses

-

Switzerland

Switzerland

Switzerland

Switzerland

Switzerland

Switzerland

Switzerland

Switzerland

Current Status of ISOTC114WG2 ndash Allergen materials

SC5 ndash Luminescence

SC9 ndash Technical definitions

SC11 ndash Accuracy

SC12 ndash Anti-Magnetism

WG4 ndash Clock

WG5 ndash Rate of watches

France

France

France

Japan

Japan

China

Korea

Current Status of ISOTC114 Established International Standards

25 StandardsTermsDefinitions 4 standards for horological vocabulary functional jewels etchellipDimensions and compatibility of parts 7 standardsfor dimensions of bracelet-to-case fastening elements dimensions of glasses etchellipQuality requirements and testing methods for watches amp clocks 7 standards for battery life water resistance anti-magnetism etchellipQuality requirements and testing methods for components 7 standards for long afterglow paints gold plating hard coating etchellip

Current status of ISOTC114 International Standards under Deliberation

New technologies of watches and clocksi) ISO-IEC JPT Development of standards for secondary batteries for watchesii) WG3 Revision of ISO 1112 (Functional jewels amp non- functional jewels)iii) SC6 Revision of ISO 3160-3 (Abrasion resistance test)iv) WG5 Hard Material Watches

HealthSafetyEnvironmenti) WG2 Guidelines for allergen and hazardous substancesii) SC3 Revision of ISO 2281 (Water resistant watches)

Amendment to standards from the standpoint of customers

Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)

From 1 June 2008 (Sunday)To 7 June 2008 (Saturday)

D1 Titanium Engineering SA

Titanium Engineering SA

CNC micro-machiningCNC micro-toolingAnodizing of Titanium partsElectro-polishingPrecise measurements on partsWish to establish co-operations with companies in Hong Kong and China

Titanium Engineering SA

Titanium Engineering SA

Titanium Engineering SA

Titanium Engineering SA

Metalor Technologies SA

Metalor Technologies SAMetalor is both a gold recycling company and a watch component supplier to big companiesAnnual turn-over is 30 billion SFr (HK$ 190 billion) not including income from raw materials prices increaseIt accepts gold scrap from both internal operations as well as external suppliers from PCB etchellipIt has a rather end-to-end process Raw recycling-con-casting drawing cold-rolling etchellip Good business modelIt supplies not only 999 gold ingot but also engineering materials with tailored propertiesIt tailor-makes gold alloy for clientsIt applies a very strict security system in the factory even to visitors

D2 - BUMOTEC SA

BUMOTEC SA

BUMOTEC SA

Exhibition EPHJ 2008

Exhibition EPHJ 2008Lots of new technologies and suppliers found

Red Gold- different gold alloy (fashion)- with tailor-made properties- well heat-treated- stable and not easily

deformable

Contacts made on various key components suppliers- Components suppliers - hairspring- mainspring

Contacts made on various key technologies suppliers

- Special CNC supplier- Target-cooled Laser cutting- Computer controlled polishing- Fine deburring- Electroforming- CADCAECAM of complete

movement- Clean surface finishing tech

without applying wax- Deep Reactive Ion Etching

(DRIE)- PhotoChemical Machining (PCM)- high resolution imaging and

metrology

Exhibition EPHJ 2008

D3 - Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

D4

Crevoisier SA

CSM Instruments SA

CSM Instruments SA

Polyservice AG

Polyservice AG

Polyservice AG

Recomatic SA

Recomatic SA

Recomatic SA

D5 mb-microtec AG

RC TRITEC AG

RC TRITEC AG

RC TRITEC AG

Successful stories cases

Internal China Sales (Demand + Supply = Price)- 香港鐘錶在國內市場方面早年已推十大品牌在國內試點推廣

- 開始估計以1000 ndash 1500 HKD 手錶好賣之後實際是1500 ndash 3000 HKD 的手錶好賣

Environmental consideration by the Watch and Clock Industry- 環保綠色生產仍國際性問題

- 香港已有廠家於開發時想出避免一些無必要的清洗的污染工 序取消此做法環保也減少成本

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

Current Status of ISOTC114WG2 ndash Allergen materials

SC5 ndash Luminescence

SC9 ndash Technical definitions

SC11 ndash Accuracy

SC12 ndash Anti-Magnetism

WG4 ndash Clock

WG5 ndash Rate of watches

France

France

France

Japan

Japan

China

Korea

Current Status of ISOTC114 Established International Standards

25 StandardsTermsDefinitions 4 standards for horological vocabulary functional jewels etchellipDimensions and compatibility of parts 7 standardsfor dimensions of bracelet-to-case fastening elements dimensions of glasses etchellipQuality requirements and testing methods for watches amp clocks 7 standards for battery life water resistance anti-magnetism etchellipQuality requirements and testing methods for components 7 standards for long afterglow paints gold plating hard coating etchellip

Current status of ISOTC114 International Standards under Deliberation

New technologies of watches and clocksi) ISO-IEC JPT Development of standards for secondary batteries for watchesii) WG3 Revision of ISO 1112 (Functional jewels amp non- functional jewels)iii) SC6 Revision of ISO 3160-3 (Abrasion resistance test)iv) WG5 Hard Material Watches

HealthSafetyEnvironmenti) WG2 Guidelines for allergen and hazardous substancesii) SC3 Revision of ISO 2281 (Water resistant watches)

Amendment to standards from the standpoint of customers

Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)

From 1 June 2008 (Sunday)To 7 June 2008 (Saturday)

D1 Titanium Engineering SA

Titanium Engineering SA

CNC micro-machiningCNC micro-toolingAnodizing of Titanium partsElectro-polishingPrecise measurements on partsWish to establish co-operations with companies in Hong Kong and China

Titanium Engineering SA

Titanium Engineering SA

Titanium Engineering SA

Titanium Engineering SA

Metalor Technologies SA

Metalor Technologies SAMetalor is both a gold recycling company and a watch component supplier to big companiesAnnual turn-over is 30 billion SFr (HK$ 190 billion) not including income from raw materials prices increaseIt accepts gold scrap from both internal operations as well as external suppliers from PCB etchellipIt has a rather end-to-end process Raw recycling-con-casting drawing cold-rolling etchellip Good business modelIt supplies not only 999 gold ingot but also engineering materials with tailored propertiesIt tailor-makes gold alloy for clientsIt applies a very strict security system in the factory even to visitors

D2 - BUMOTEC SA

BUMOTEC SA

BUMOTEC SA

Exhibition EPHJ 2008

Exhibition EPHJ 2008Lots of new technologies and suppliers found

Red Gold- different gold alloy (fashion)- with tailor-made properties- well heat-treated- stable and not easily

deformable

Contacts made on various key components suppliers- Components suppliers - hairspring- mainspring

Contacts made on various key technologies suppliers

- Special CNC supplier- Target-cooled Laser cutting- Computer controlled polishing- Fine deburring- Electroforming- CADCAECAM of complete

movement- Clean surface finishing tech

without applying wax- Deep Reactive Ion Etching

(DRIE)- PhotoChemical Machining (PCM)- high resolution imaging and

metrology

Exhibition EPHJ 2008

D3 - Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

D4

Crevoisier SA

CSM Instruments SA

CSM Instruments SA

Polyservice AG

Polyservice AG

Polyservice AG

Recomatic SA

Recomatic SA

Recomatic SA

D5 mb-microtec AG

RC TRITEC AG

RC TRITEC AG

RC TRITEC AG

Successful stories cases

Internal China Sales (Demand + Supply = Price)- 香港鐘錶在國內市場方面早年已推十大品牌在國內試點推廣

- 開始估計以1000 ndash 1500 HKD 手錶好賣之後實際是1500 ndash 3000 HKD 的手錶好賣

Environmental consideration by the Watch and Clock Industry- 環保綠色生產仍國際性問題

- 香港已有廠家於開發時想出避免一些無必要的清洗的污染工 序取消此做法環保也減少成本

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

Current Status of ISOTC114 Established International Standards

25 StandardsTermsDefinitions 4 standards for horological vocabulary functional jewels etchellipDimensions and compatibility of parts 7 standardsfor dimensions of bracelet-to-case fastening elements dimensions of glasses etchellipQuality requirements and testing methods for watches amp clocks 7 standards for battery life water resistance anti-magnetism etchellipQuality requirements and testing methods for components 7 standards for long afterglow paints gold plating hard coating etchellip

Current status of ISOTC114 International Standards under Deliberation

New technologies of watches and clocksi) ISO-IEC JPT Development of standards for secondary batteries for watchesii) WG3 Revision of ISO 1112 (Functional jewels amp non- functional jewels)iii) SC6 Revision of ISO 3160-3 (Abrasion resistance test)iv) WG5 Hard Material Watches

HealthSafetyEnvironmenti) WG2 Guidelines for allergen and hazardous substancesii) SC3 Revision of ISO 2281 (Water resistant watches)

Amendment to standards from the standpoint of customers

Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)

From 1 June 2008 (Sunday)To 7 June 2008 (Saturday)

D1 Titanium Engineering SA

Titanium Engineering SA

CNC micro-machiningCNC micro-toolingAnodizing of Titanium partsElectro-polishingPrecise measurements on partsWish to establish co-operations with companies in Hong Kong and China

Titanium Engineering SA

Titanium Engineering SA

Titanium Engineering SA

Titanium Engineering SA

Metalor Technologies SA

Metalor Technologies SAMetalor is both a gold recycling company and a watch component supplier to big companiesAnnual turn-over is 30 billion SFr (HK$ 190 billion) not including income from raw materials prices increaseIt accepts gold scrap from both internal operations as well as external suppliers from PCB etchellipIt has a rather end-to-end process Raw recycling-con-casting drawing cold-rolling etchellip Good business modelIt supplies not only 999 gold ingot but also engineering materials with tailored propertiesIt tailor-makes gold alloy for clientsIt applies a very strict security system in the factory even to visitors

D2 - BUMOTEC SA

BUMOTEC SA

BUMOTEC SA

Exhibition EPHJ 2008

Exhibition EPHJ 2008Lots of new technologies and suppliers found

Red Gold- different gold alloy (fashion)- with tailor-made properties- well heat-treated- stable and not easily

deformable

Contacts made on various key components suppliers- Components suppliers - hairspring- mainspring

Contacts made on various key technologies suppliers

- Special CNC supplier- Target-cooled Laser cutting- Computer controlled polishing- Fine deburring- Electroforming- CADCAECAM of complete

movement- Clean surface finishing tech

without applying wax- Deep Reactive Ion Etching

(DRIE)- PhotoChemical Machining (PCM)- high resolution imaging and

metrology

Exhibition EPHJ 2008

D3 - Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

D4

Crevoisier SA

CSM Instruments SA

CSM Instruments SA

Polyservice AG

Polyservice AG

Polyservice AG

Recomatic SA

Recomatic SA

Recomatic SA

D5 mb-microtec AG

RC TRITEC AG

RC TRITEC AG

RC TRITEC AG

Successful stories cases

Internal China Sales (Demand + Supply = Price)- 香港鐘錶在國內市場方面早年已推十大品牌在國內試點推廣

- 開始估計以1000 ndash 1500 HKD 手錶好賣之後實際是1500 ndash 3000 HKD 的手錶好賣

Environmental consideration by the Watch and Clock Industry- 環保綠色生產仍國際性問題

- 香港已有廠家於開發時想出避免一些無必要的清洗的污染工 序取消此做法環保也減少成本

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

Current status of ISOTC114 International Standards under Deliberation

New technologies of watches and clocksi) ISO-IEC JPT Development of standards for secondary batteries for watchesii) WG3 Revision of ISO 1112 (Functional jewels amp non- functional jewels)iii) SC6 Revision of ISO 3160-3 (Abrasion resistance test)iv) WG5 Hard Material Watches

HealthSafetyEnvironmenti) WG2 Guidelines for allergen and hazardous substancesii) SC3 Revision of ISO 2281 (Water resistant watches)

Amendment to standards from the standpoint of customers

Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)

From 1 June 2008 (Sunday)To 7 June 2008 (Saturday)

D1 Titanium Engineering SA

Titanium Engineering SA

CNC micro-machiningCNC micro-toolingAnodizing of Titanium partsElectro-polishingPrecise measurements on partsWish to establish co-operations with companies in Hong Kong and China

Titanium Engineering SA

Titanium Engineering SA

Titanium Engineering SA

Titanium Engineering SA

Metalor Technologies SA

Metalor Technologies SAMetalor is both a gold recycling company and a watch component supplier to big companiesAnnual turn-over is 30 billion SFr (HK$ 190 billion) not including income from raw materials prices increaseIt accepts gold scrap from both internal operations as well as external suppliers from PCB etchellipIt has a rather end-to-end process Raw recycling-con-casting drawing cold-rolling etchellip Good business modelIt supplies not only 999 gold ingot but also engineering materials with tailored propertiesIt tailor-makes gold alloy for clientsIt applies a very strict security system in the factory even to visitors

D2 - BUMOTEC SA

BUMOTEC SA

BUMOTEC SA

Exhibition EPHJ 2008

Exhibition EPHJ 2008Lots of new technologies and suppliers found

Red Gold- different gold alloy (fashion)- with tailor-made properties- well heat-treated- stable and not easily

deformable

Contacts made on various key components suppliers- Components suppliers - hairspring- mainspring

Contacts made on various key technologies suppliers

- Special CNC supplier- Target-cooled Laser cutting- Computer controlled polishing- Fine deburring- Electroforming- CADCAECAM of complete

movement- Clean surface finishing tech

without applying wax- Deep Reactive Ion Etching

(DRIE)- PhotoChemical Machining (PCM)- high resolution imaging and

metrology

Exhibition EPHJ 2008

D3 - Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

D4

Crevoisier SA

CSM Instruments SA

CSM Instruments SA

Polyservice AG

Polyservice AG

Polyservice AG

Recomatic SA

Recomatic SA

Recomatic SA

D5 mb-microtec AG

RC TRITEC AG

RC TRITEC AG

RC TRITEC AG

Successful stories cases

Internal China Sales (Demand + Supply = Price)- 香港鐘錶在國內市場方面早年已推十大品牌在國內試點推廣

- 開始估計以1000 ndash 1500 HKD 手錶好賣之後實際是1500 ndash 3000 HKD 的手錶好賣

Environmental consideration by the Watch and Clock Industry- 環保綠色生產仍國際性問題

- 香港已有廠家於開發時想出避免一些無必要的清洗的污染工 序取消此做法環保也減少成本

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)

From 1 June 2008 (Sunday)To 7 June 2008 (Saturday)

D1 Titanium Engineering SA

Titanium Engineering SA

CNC micro-machiningCNC micro-toolingAnodizing of Titanium partsElectro-polishingPrecise measurements on partsWish to establish co-operations with companies in Hong Kong and China

Titanium Engineering SA

Titanium Engineering SA

Titanium Engineering SA

Titanium Engineering SA

Metalor Technologies SA

Metalor Technologies SAMetalor is both a gold recycling company and a watch component supplier to big companiesAnnual turn-over is 30 billion SFr (HK$ 190 billion) not including income from raw materials prices increaseIt accepts gold scrap from both internal operations as well as external suppliers from PCB etchellipIt has a rather end-to-end process Raw recycling-con-casting drawing cold-rolling etchellip Good business modelIt supplies not only 999 gold ingot but also engineering materials with tailored propertiesIt tailor-makes gold alloy for clientsIt applies a very strict security system in the factory even to visitors

D2 - BUMOTEC SA

BUMOTEC SA

BUMOTEC SA

Exhibition EPHJ 2008

Exhibition EPHJ 2008Lots of new technologies and suppliers found

Red Gold- different gold alloy (fashion)- with tailor-made properties- well heat-treated- stable and not easily

deformable

Contacts made on various key components suppliers- Components suppliers - hairspring- mainspring

Contacts made on various key technologies suppliers

- Special CNC supplier- Target-cooled Laser cutting- Computer controlled polishing- Fine deburring- Electroforming- CADCAECAM of complete

movement- Clean surface finishing tech

without applying wax- Deep Reactive Ion Etching

(DRIE)- PhotoChemical Machining (PCM)- high resolution imaging and

metrology

Exhibition EPHJ 2008

D3 - Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

D4

Crevoisier SA

CSM Instruments SA

CSM Instruments SA

Polyservice AG

Polyservice AG

Polyservice AG

Recomatic SA

Recomatic SA

Recomatic SA

D5 mb-microtec AG

RC TRITEC AG

RC TRITEC AG

RC TRITEC AG

Successful stories cases

Internal China Sales (Demand + Supply = Price)- 香港鐘錶在國內市場方面早年已推十大品牌在國內試點推廣

- 開始估計以1000 ndash 1500 HKD 手錶好賣之後實際是1500 ndash 3000 HKD 的手錶好賣

Environmental consideration by the Watch and Clock Industry- 環保綠色生產仍國際性問題

- 香港已有廠家於開發時想出避免一些無必要的清洗的污染工 序取消此做法環保也減少成本

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

D1 Titanium Engineering SA

Titanium Engineering SA

CNC micro-machiningCNC micro-toolingAnodizing of Titanium partsElectro-polishingPrecise measurements on partsWish to establish co-operations with companies in Hong Kong and China

Titanium Engineering SA

Titanium Engineering SA

Titanium Engineering SA

Titanium Engineering SA

Metalor Technologies SA

Metalor Technologies SAMetalor is both a gold recycling company and a watch component supplier to big companiesAnnual turn-over is 30 billion SFr (HK$ 190 billion) not including income from raw materials prices increaseIt accepts gold scrap from both internal operations as well as external suppliers from PCB etchellipIt has a rather end-to-end process Raw recycling-con-casting drawing cold-rolling etchellip Good business modelIt supplies not only 999 gold ingot but also engineering materials with tailored propertiesIt tailor-makes gold alloy for clientsIt applies a very strict security system in the factory even to visitors

D2 - BUMOTEC SA

BUMOTEC SA

BUMOTEC SA

Exhibition EPHJ 2008

Exhibition EPHJ 2008Lots of new technologies and suppliers found

Red Gold- different gold alloy (fashion)- with tailor-made properties- well heat-treated- stable and not easily

deformable

Contacts made on various key components suppliers- Components suppliers - hairspring- mainspring

Contacts made on various key technologies suppliers

- Special CNC supplier- Target-cooled Laser cutting- Computer controlled polishing- Fine deburring- Electroforming- CADCAECAM of complete

movement- Clean surface finishing tech

without applying wax- Deep Reactive Ion Etching

(DRIE)- PhotoChemical Machining (PCM)- high resolution imaging and

metrology

Exhibition EPHJ 2008

D3 - Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

D4

Crevoisier SA

CSM Instruments SA

CSM Instruments SA

Polyservice AG

Polyservice AG

Polyservice AG

Recomatic SA

Recomatic SA

Recomatic SA

D5 mb-microtec AG

RC TRITEC AG

RC TRITEC AG

RC TRITEC AG

Successful stories cases

Internal China Sales (Demand + Supply = Price)- 香港鐘錶在國內市場方面早年已推十大品牌在國內試點推廣

- 開始估計以1000 ndash 1500 HKD 手錶好賣之後實際是1500 ndash 3000 HKD 的手錶好賣

Environmental consideration by the Watch and Clock Industry- 環保綠色生產仍國際性問題

- 香港已有廠家於開發時想出避免一些無必要的清洗的污染工 序取消此做法環保也減少成本

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

Titanium Engineering SA

CNC micro-machiningCNC micro-toolingAnodizing of Titanium partsElectro-polishingPrecise measurements on partsWish to establish co-operations with companies in Hong Kong and China

Titanium Engineering SA

Titanium Engineering SA

Titanium Engineering SA

Titanium Engineering SA

Metalor Technologies SA

Metalor Technologies SAMetalor is both a gold recycling company and a watch component supplier to big companiesAnnual turn-over is 30 billion SFr (HK$ 190 billion) not including income from raw materials prices increaseIt accepts gold scrap from both internal operations as well as external suppliers from PCB etchellipIt has a rather end-to-end process Raw recycling-con-casting drawing cold-rolling etchellip Good business modelIt supplies not only 999 gold ingot but also engineering materials with tailored propertiesIt tailor-makes gold alloy for clientsIt applies a very strict security system in the factory even to visitors

D2 - BUMOTEC SA

BUMOTEC SA

BUMOTEC SA

Exhibition EPHJ 2008

Exhibition EPHJ 2008Lots of new technologies and suppliers found

Red Gold- different gold alloy (fashion)- with tailor-made properties- well heat-treated- stable and not easily

deformable

Contacts made on various key components suppliers- Components suppliers - hairspring- mainspring

Contacts made on various key technologies suppliers

- Special CNC supplier- Target-cooled Laser cutting- Computer controlled polishing- Fine deburring- Electroforming- CADCAECAM of complete

movement- Clean surface finishing tech

without applying wax- Deep Reactive Ion Etching

(DRIE)- PhotoChemical Machining (PCM)- high resolution imaging and

metrology

Exhibition EPHJ 2008

D3 - Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

D4

Crevoisier SA

CSM Instruments SA

CSM Instruments SA

Polyservice AG

Polyservice AG

Polyservice AG

Recomatic SA

Recomatic SA

Recomatic SA

D5 mb-microtec AG

RC TRITEC AG

RC TRITEC AG

RC TRITEC AG

Successful stories cases

Internal China Sales (Demand + Supply = Price)- 香港鐘錶在國內市場方面早年已推十大品牌在國內試點推廣

- 開始估計以1000 ndash 1500 HKD 手錶好賣之後實際是1500 ndash 3000 HKD 的手錶好賣

Environmental consideration by the Watch and Clock Industry- 環保綠色生產仍國際性問題

- 香港已有廠家於開發時想出避免一些無必要的清洗的污染工 序取消此做法環保也減少成本

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

Titanium Engineering SA

Titanium Engineering SA

Titanium Engineering SA

Titanium Engineering SA

Metalor Technologies SA

Metalor Technologies SAMetalor is both a gold recycling company and a watch component supplier to big companiesAnnual turn-over is 30 billion SFr (HK$ 190 billion) not including income from raw materials prices increaseIt accepts gold scrap from both internal operations as well as external suppliers from PCB etchellipIt has a rather end-to-end process Raw recycling-con-casting drawing cold-rolling etchellip Good business modelIt supplies not only 999 gold ingot but also engineering materials with tailored propertiesIt tailor-makes gold alloy for clientsIt applies a very strict security system in the factory even to visitors

D2 - BUMOTEC SA

BUMOTEC SA

BUMOTEC SA

Exhibition EPHJ 2008

Exhibition EPHJ 2008Lots of new technologies and suppliers found

Red Gold- different gold alloy (fashion)- with tailor-made properties- well heat-treated- stable and not easily

deformable

Contacts made on various key components suppliers- Components suppliers - hairspring- mainspring

Contacts made on various key technologies suppliers

- Special CNC supplier- Target-cooled Laser cutting- Computer controlled polishing- Fine deburring- Electroforming- CADCAECAM of complete

movement- Clean surface finishing tech

without applying wax- Deep Reactive Ion Etching

(DRIE)- PhotoChemical Machining (PCM)- high resolution imaging and

metrology

Exhibition EPHJ 2008

D3 - Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

D4

Crevoisier SA

CSM Instruments SA

CSM Instruments SA

Polyservice AG

Polyservice AG

Polyservice AG

Recomatic SA

Recomatic SA

Recomatic SA

D5 mb-microtec AG

RC TRITEC AG

RC TRITEC AG

RC TRITEC AG

Successful stories cases

Internal China Sales (Demand + Supply = Price)- 香港鐘錶在國內市場方面早年已推十大品牌在國內試點推廣

- 開始估計以1000 ndash 1500 HKD 手錶好賣之後實際是1500 ndash 3000 HKD 的手錶好賣

Environmental consideration by the Watch and Clock Industry- 環保綠色生產仍國際性問題

- 香港已有廠家於開發時想出避免一些無必要的清洗的污染工 序取消此做法環保也減少成本

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

Titanium Engineering SA

Titanium Engineering SA

Titanium Engineering SA

Metalor Technologies SA

Metalor Technologies SAMetalor is both a gold recycling company and a watch component supplier to big companiesAnnual turn-over is 30 billion SFr (HK$ 190 billion) not including income from raw materials prices increaseIt accepts gold scrap from both internal operations as well as external suppliers from PCB etchellipIt has a rather end-to-end process Raw recycling-con-casting drawing cold-rolling etchellip Good business modelIt supplies not only 999 gold ingot but also engineering materials with tailored propertiesIt tailor-makes gold alloy for clientsIt applies a very strict security system in the factory even to visitors

D2 - BUMOTEC SA

BUMOTEC SA

BUMOTEC SA

Exhibition EPHJ 2008

Exhibition EPHJ 2008Lots of new technologies and suppliers found

Red Gold- different gold alloy (fashion)- with tailor-made properties- well heat-treated- stable and not easily

deformable

Contacts made on various key components suppliers- Components suppliers - hairspring- mainspring

Contacts made on various key technologies suppliers

- Special CNC supplier- Target-cooled Laser cutting- Computer controlled polishing- Fine deburring- Electroforming- CADCAECAM of complete

movement- Clean surface finishing tech

without applying wax- Deep Reactive Ion Etching

(DRIE)- PhotoChemical Machining (PCM)- high resolution imaging and

metrology

Exhibition EPHJ 2008

D3 - Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

D4

Crevoisier SA

CSM Instruments SA

CSM Instruments SA

Polyservice AG

Polyservice AG

Polyservice AG

Recomatic SA

Recomatic SA

Recomatic SA

D5 mb-microtec AG

RC TRITEC AG

RC TRITEC AG

RC TRITEC AG

Successful stories cases

Internal China Sales (Demand + Supply = Price)- 香港鐘錶在國內市場方面早年已推十大品牌在國內試點推廣

- 開始估計以1000 ndash 1500 HKD 手錶好賣之後實際是1500 ndash 3000 HKD 的手錶好賣

Environmental consideration by the Watch and Clock Industry- 環保綠色生產仍國際性問題

- 香港已有廠家於開發時想出避免一些無必要的清洗的污染工 序取消此做法環保也減少成本

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

Titanium Engineering SA

Titanium Engineering SA

Metalor Technologies SA

Metalor Technologies SAMetalor is both a gold recycling company and a watch component supplier to big companiesAnnual turn-over is 30 billion SFr (HK$ 190 billion) not including income from raw materials prices increaseIt accepts gold scrap from both internal operations as well as external suppliers from PCB etchellipIt has a rather end-to-end process Raw recycling-con-casting drawing cold-rolling etchellip Good business modelIt supplies not only 999 gold ingot but also engineering materials with tailored propertiesIt tailor-makes gold alloy for clientsIt applies a very strict security system in the factory even to visitors

D2 - BUMOTEC SA

BUMOTEC SA

BUMOTEC SA

Exhibition EPHJ 2008

Exhibition EPHJ 2008Lots of new technologies and suppliers found

Red Gold- different gold alloy (fashion)- with tailor-made properties- well heat-treated- stable and not easily

deformable

Contacts made on various key components suppliers- Components suppliers - hairspring- mainspring

Contacts made on various key technologies suppliers

- Special CNC supplier- Target-cooled Laser cutting- Computer controlled polishing- Fine deburring- Electroforming- CADCAECAM of complete

movement- Clean surface finishing tech

without applying wax- Deep Reactive Ion Etching

(DRIE)- PhotoChemical Machining (PCM)- high resolution imaging and

metrology

Exhibition EPHJ 2008

D3 - Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

D4

Crevoisier SA

CSM Instruments SA

CSM Instruments SA

Polyservice AG

Polyservice AG

Polyservice AG

Recomatic SA

Recomatic SA

Recomatic SA

D5 mb-microtec AG

RC TRITEC AG

RC TRITEC AG

RC TRITEC AG

Successful stories cases

Internal China Sales (Demand + Supply = Price)- 香港鐘錶在國內市場方面早年已推十大品牌在國內試點推廣

- 開始估計以1000 ndash 1500 HKD 手錶好賣之後實際是1500 ndash 3000 HKD 的手錶好賣

Environmental consideration by the Watch and Clock Industry- 環保綠色生產仍國際性問題

- 香港已有廠家於開發時想出避免一些無必要的清洗的污染工 序取消此做法環保也減少成本

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

Titanium Engineering SA

Metalor Technologies SA

Metalor Technologies SAMetalor is both a gold recycling company and a watch component supplier to big companiesAnnual turn-over is 30 billion SFr (HK$ 190 billion) not including income from raw materials prices increaseIt accepts gold scrap from both internal operations as well as external suppliers from PCB etchellipIt has a rather end-to-end process Raw recycling-con-casting drawing cold-rolling etchellip Good business modelIt supplies not only 999 gold ingot but also engineering materials with tailored propertiesIt tailor-makes gold alloy for clientsIt applies a very strict security system in the factory even to visitors

D2 - BUMOTEC SA

BUMOTEC SA

BUMOTEC SA

Exhibition EPHJ 2008

Exhibition EPHJ 2008Lots of new technologies and suppliers found

Red Gold- different gold alloy (fashion)- with tailor-made properties- well heat-treated- stable and not easily

deformable

Contacts made on various key components suppliers- Components suppliers - hairspring- mainspring

Contacts made on various key technologies suppliers

- Special CNC supplier- Target-cooled Laser cutting- Computer controlled polishing- Fine deburring- Electroforming- CADCAECAM of complete

movement- Clean surface finishing tech

without applying wax- Deep Reactive Ion Etching

(DRIE)- PhotoChemical Machining (PCM)- high resolution imaging and

metrology

Exhibition EPHJ 2008

D3 - Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

D4

Crevoisier SA

CSM Instruments SA

CSM Instruments SA

Polyservice AG

Polyservice AG

Polyservice AG

Recomatic SA

Recomatic SA

Recomatic SA

D5 mb-microtec AG

RC TRITEC AG

RC TRITEC AG

RC TRITEC AG

Successful stories cases

Internal China Sales (Demand + Supply = Price)- 香港鐘錶在國內市場方面早年已推十大品牌在國內試點推廣

- 開始估計以1000 ndash 1500 HKD 手錶好賣之後實際是1500 ndash 3000 HKD 的手錶好賣

Environmental consideration by the Watch and Clock Industry- 環保綠色生產仍國際性問題

- 香港已有廠家於開發時想出避免一些無必要的清洗的污染工 序取消此做法環保也減少成本

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

Metalor Technologies SA

Metalor Technologies SAMetalor is both a gold recycling company and a watch component supplier to big companiesAnnual turn-over is 30 billion SFr (HK$ 190 billion) not including income from raw materials prices increaseIt accepts gold scrap from both internal operations as well as external suppliers from PCB etchellipIt has a rather end-to-end process Raw recycling-con-casting drawing cold-rolling etchellip Good business modelIt supplies not only 999 gold ingot but also engineering materials with tailored propertiesIt tailor-makes gold alloy for clientsIt applies a very strict security system in the factory even to visitors

D2 - BUMOTEC SA

BUMOTEC SA

BUMOTEC SA

Exhibition EPHJ 2008

Exhibition EPHJ 2008Lots of new technologies and suppliers found

Red Gold- different gold alloy (fashion)- with tailor-made properties- well heat-treated- stable and not easily

deformable

Contacts made on various key components suppliers- Components suppliers - hairspring- mainspring

Contacts made on various key technologies suppliers

- Special CNC supplier- Target-cooled Laser cutting- Computer controlled polishing- Fine deburring- Electroforming- CADCAECAM of complete

movement- Clean surface finishing tech

without applying wax- Deep Reactive Ion Etching

(DRIE)- PhotoChemical Machining (PCM)- high resolution imaging and

metrology

Exhibition EPHJ 2008

D3 - Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

D4

Crevoisier SA

CSM Instruments SA

CSM Instruments SA

Polyservice AG

Polyservice AG

Polyservice AG

Recomatic SA

Recomatic SA

Recomatic SA

D5 mb-microtec AG

RC TRITEC AG

RC TRITEC AG

RC TRITEC AG

Successful stories cases

Internal China Sales (Demand + Supply = Price)- 香港鐘錶在國內市場方面早年已推十大品牌在國內試點推廣

- 開始估計以1000 ndash 1500 HKD 手錶好賣之後實際是1500 ndash 3000 HKD 的手錶好賣

Environmental consideration by the Watch and Clock Industry- 環保綠色生產仍國際性問題

- 香港已有廠家於開發時想出避免一些無必要的清洗的污染工 序取消此做法環保也減少成本

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

Metalor Technologies SAMetalor is both a gold recycling company and a watch component supplier to big companiesAnnual turn-over is 30 billion SFr (HK$ 190 billion) not including income from raw materials prices increaseIt accepts gold scrap from both internal operations as well as external suppliers from PCB etchellipIt has a rather end-to-end process Raw recycling-con-casting drawing cold-rolling etchellip Good business modelIt supplies not only 999 gold ingot but also engineering materials with tailored propertiesIt tailor-makes gold alloy for clientsIt applies a very strict security system in the factory even to visitors

D2 - BUMOTEC SA

BUMOTEC SA

BUMOTEC SA

Exhibition EPHJ 2008

Exhibition EPHJ 2008Lots of new technologies and suppliers found

Red Gold- different gold alloy (fashion)- with tailor-made properties- well heat-treated- stable and not easily

deformable

Contacts made on various key components suppliers- Components suppliers - hairspring- mainspring

Contacts made on various key technologies suppliers

- Special CNC supplier- Target-cooled Laser cutting- Computer controlled polishing- Fine deburring- Electroforming- CADCAECAM of complete

movement- Clean surface finishing tech

without applying wax- Deep Reactive Ion Etching

(DRIE)- PhotoChemical Machining (PCM)- high resolution imaging and

metrology

Exhibition EPHJ 2008

D3 - Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

D4

Crevoisier SA

CSM Instruments SA

CSM Instruments SA

Polyservice AG

Polyservice AG

Polyservice AG

Recomatic SA

Recomatic SA

Recomatic SA

D5 mb-microtec AG

RC TRITEC AG

RC TRITEC AG

RC TRITEC AG

Successful stories cases

Internal China Sales (Demand + Supply = Price)- 香港鐘錶在國內市場方面早年已推十大品牌在國內試點推廣

- 開始估計以1000 ndash 1500 HKD 手錶好賣之後實際是1500 ndash 3000 HKD 的手錶好賣

Environmental consideration by the Watch and Clock Industry- 環保綠色生產仍國際性問題

- 香港已有廠家於開發時想出避免一些無必要的清洗的污染工 序取消此做法環保也減少成本

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

D2 - BUMOTEC SA

BUMOTEC SA

BUMOTEC SA

Exhibition EPHJ 2008

Exhibition EPHJ 2008Lots of new technologies and suppliers found

Red Gold- different gold alloy (fashion)- with tailor-made properties- well heat-treated- stable and not easily

deformable

Contacts made on various key components suppliers- Components suppliers - hairspring- mainspring

Contacts made on various key technologies suppliers

- Special CNC supplier- Target-cooled Laser cutting- Computer controlled polishing- Fine deburring- Electroforming- CADCAECAM of complete

movement- Clean surface finishing tech

without applying wax- Deep Reactive Ion Etching

(DRIE)- PhotoChemical Machining (PCM)- high resolution imaging and

metrology

Exhibition EPHJ 2008

D3 - Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

D4

Crevoisier SA

CSM Instruments SA

CSM Instruments SA

Polyservice AG

Polyservice AG

Polyservice AG

Recomatic SA

Recomatic SA

Recomatic SA

D5 mb-microtec AG

RC TRITEC AG

RC TRITEC AG

RC TRITEC AG

Successful stories cases

Internal China Sales (Demand + Supply = Price)- 香港鐘錶在國內市場方面早年已推十大品牌在國內試點推廣

- 開始估計以1000 ndash 1500 HKD 手錶好賣之後實際是1500 ndash 3000 HKD 的手錶好賣

Environmental consideration by the Watch and Clock Industry- 環保綠色生產仍國際性問題

- 香港已有廠家於開發時想出避免一些無必要的清洗的污染工 序取消此做法環保也減少成本

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

BUMOTEC SA

BUMOTEC SA

Exhibition EPHJ 2008

Exhibition EPHJ 2008Lots of new technologies and suppliers found

Red Gold- different gold alloy (fashion)- with tailor-made properties- well heat-treated- stable and not easily

deformable

Contacts made on various key components suppliers- Components suppliers - hairspring- mainspring

Contacts made on various key technologies suppliers

- Special CNC supplier- Target-cooled Laser cutting- Computer controlled polishing- Fine deburring- Electroforming- CADCAECAM of complete

movement- Clean surface finishing tech

without applying wax- Deep Reactive Ion Etching

(DRIE)- PhotoChemical Machining (PCM)- high resolution imaging and

metrology

Exhibition EPHJ 2008

D3 - Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

D4

Crevoisier SA

CSM Instruments SA

CSM Instruments SA

Polyservice AG

Polyservice AG

Polyservice AG

Recomatic SA

Recomatic SA

Recomatic SA

D5 mb-microtec AG

RC TRITEC AG

RC TRITEC AG

RC TRITEC AG

Successful stories cases

Internal China Sales (Demand + Supply = Price)- 香港鐘錶在國內市場方面早年已推十大品牌在國內試點推廣

- 開始估計以1000 ndash 1500 HKD 手錶好賣之後實際是1500 ndash 3000 HKD 的手錶好賣

Environmental consideration by the Watch and Clock Industry- 環保綠色生產仍國際性問題

- 香港已有廠家於開發時想出避免一些無必要的清洗的污染工 序取消此做法環保也減少成本

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

BUMOTEC SA

Exhibition EPHJ 2008

Exhibition EPHJ 2008Lots of new technologies and suppliers found

Red Gold- different gold alloy (fashion)- with tailor-made properties- well heat-treated- stable and not easily

deformable

Contacts made on various key components suppliers- Components suppliers - hairspring- mainspring

Contacts made on various key technologies suppliers

- Special CNC supplier- Target-cooled Laser cutting- Computer controlled polishing- Fine deburring- Electroforming- CADCAECAM of complete

movement- Clean surface finishing tech

without applying wax- Deep Reactive Ion Etching

(DRIE)- PhotoChemical Machining (PCM)- high resolution imaging and

metrology

Exhibition EPHJ 2008

D3 - Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

D4

Crevoisier SA

CSM Instruments SA

CSM Instruments SA

Polyservice AG

Polyservice AG

Polyservice AG

Recomatic SA

Recomatic SA

Recomatic SA

D5 mb-microtec AG

RC TRITEC AG

RC TRITEC AG

RC TRITEC AG

Successful stories cases

Internal China Sales (Demand + Supply = Price)- 香港鐘錶在國內市場方面早年已推十大品牌在國內試點推廣

- 開始估計以1000 ndash 1500 HKD 手錶好賣之後實際是1500 ndash 3000 HKD 的手錶好賣

Environmental consideration by the Watch and Clock Industry- 環保綠色生產仍國際性問題

- 香港已有廠家於開發時想出避免一些無必要的清洗的污染工 序取消此做法環保也減少成本

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

Exhibition EPHJ 2008

Exhibition EPHJ 2008Lots of new technologies and suppliers found

Red Gold- different gold alloy (fashion)- with tailor-made properties- well heat-treated- stable and not easily

deformable

Contacts made on various key components suppliers- Components suppliers - hairspring- mainspring

Contacts made on various key technologies suppliers

- Special CNC supplier- Target-cooled Laser cutting- Computer controlled polishing- Fine deburring- Electroforming- CADCAECAM of complete

movement- Clean surface finishing tech

without applying wax- Deep Reactive Ion Etching

(DRIE)- PhotoChemical Machining (PCM)- high resolution imaging and

metrology

Exhibition EPHJ 2008

D3 - Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

D4

Crevoisier SA

CSM Instruments SA

CSM Instruments SA

Polyservice AG

Polyservice AG

Polyservice AG

Recomatic SA

Recomatic SA

Recomatic SA

D5 mb-microtec AG

RC TRITEC AG

RC TRITEC AG

RC TRITEC AG

Successful stories cases

Internal China Sales (Demand + Supply = Price)- 香港鐘錶在國內市場方面早年已推十大品牌在國內試點推廣

- 開始估計以1000 ndash 1500 HKD 手錶好賣之後實際是1500 ndash 3000 HKD 的手錶好賣

Environmental consideration by the Watch and Clock Industry- 環保綠色生產仍國際性問題

- 香港已有廠家於開發時想出避免一些無必要的清洗的污染工 序取消此做法環保也減少成本

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

Exhibition EPHJ 2008Lots of new technologies and suppliers found

Red Gold- different gold alloy (fashion)- with tailor-made properties- well heat-treated- stable and not easily

deformable

Contacts made on various key components suppliers- Components suppliers - hairspring- mainspring

Contacts made on various key technologies suppliers

- Special CNC supplier- Target-cooled Laser cutting- Computer controlled polishing- Fine deburring- Electroforming- CADCAECAM of complete

movement- Clean surface finishing tech

without applying wax- Deep Reactive Ion Etching

(DRIE)- PhotoChemical Machining (PCM)- high resolution imaging and

metrology

Exhibition EPHJ 2008

D3 - Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

D4

Crevoisier SA

CSM Instruments SA

CSM Instruments SA

Polyservice AG

Polyservice AG

Polyservice AG

Recomatic SA

Recomatic SA

Recomatic SA

D5 mb-microtec AG

RC TRITEC AG

RC TRITEC AG

RC TRITEC AG

Successful stories cases

Internal China Sales (Demand + Supply = Price)- 香港鐘錶在國內市場方面早年已推十大品牌在國內試點推廣

- 開始估計以1000 ndash 1500 HKD 手錶好賣之後實際是1500 ndash 3000 HKD 的手錶好賣

Environmental consideration by the Watch and Clock Industry- 環保綠色生產仍國際性問題

- 香港已有廠家於開發時想出避免一些無必要的清洗的污染工 序取消此做法環保也減少成本

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

Exhibition EPHJ 2008

D3 - Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

D4

Crevoisier SA

CSM Instruments SA

CSM Instruments SA

Polyservice AG

Polyservice AG

Polyservice AG

Recomatic SA

Recomatic SA

Recomatic SA

D5 mb-microtec AG

RC TRITEC AG

RC TRITEC AG

RC TRITEC AG

Successful stories cases

Internal China Sales (Demand + Supply = Price)- 香港鐘錶在國內市場方面早年已推十大品牌在國內試點推廣

- 開始估計以1000 ndash 1500 HKD 手錶好賣之後實際是1500 ndash 3000 HKD 的手錶好賣

Environmental consideration by the Watch and Clock Industry- 環保綠色生產仍國際性問題

- 香港已有廠家於開發時想出避免一些無必要的清洗的污染工 序取消此做法環保也減少成本

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

D3 - Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

D4

Crevoisier SA

CSM Instruments SA

CSM Instruments SA

Polyservice AG

Polyservice AG

Polyservice AG

Recomatic SA

Recomatic SA

Recomatic SA

D5 mb-microtec AG

RC TRITEC AG

RC TRITEC AG

RC TRITEC AG

Successful stories cases

Internal China Sales (Demand + Supply = Price)- 香港鐘錶在國內市場方面早年已推十大品牌在國內試點推廣

- 開始估計以1000 ndash 1500 HKD 手錶好賣之後實際是1500 ndash 3000 HKD 的手錶好賣

Environmental consideration by the Watch and Clock Industry- 環保綠色生產仍國際性問題

- 香港已有廠家於開發時想出避免一些無必要的清洗的污染工 序取消此做法環保也減少成本

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

D4

Crevoisier SA

CSM Instruments SA

CSM Instruments SA

Polyservice AG

Polyservice AG

Polyservice AG

Recomatic SA

Recomatic SA

Recomatic SA

D5 mb-microtec AG

RC TRITEC AG

RC TRITEC AG

RC TRITEC AG

Successful stories cases

Internal China Sales (Demand + Supply = Price)- 香港鐘錶在國內市場方面早年已推十大品牌在國內試點推廣

- 開始估計以1000 ndash 1500 HKD 手錶好賣之後實際是1500 ndash 3000 HKD 的手錶好賣

Environmental consideration by the Watch and Clock Industry- 環保綠色生產仍國際性問題

- 香港已有廠家於開發時想出避免一些無必要的清洗的污染工 序取消此做法環保也減少成本

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

Ineltec Sagraverl

Ineltec Sagraverl

Ineltec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

D4

Crevoisier SA

CSM Instruments SA

CSM Instruments SA

Polyservice AG

Polyservice AG

Polyservice AG

Recomatic SA

Recomatic SA

Recomatic SA

D5 mb-microtec AG

RC TRITEC AG

RC TRITEC AG

RC TRITEC AG

Successful stories cases

Internal China Sales (Demand + Supply = Price)- 香港鐘錶在國內市場方面早年已推十大品牌在國內試點推廣

- 開始估計以1000 ndash 1500 HKD 手錶好賣之後實際是1500 ndash 3000 HKD 的手錶好賣

Environmental consideration by the Watch and Clock Industry- 環保綠色生產仍國際性問題

- 香港已有廠家於開發時想出避免一些無必要的清洗的污染工 序取消此做法環保也減少成本

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

Ineltec Sagraverl

Ineltec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

D4

Crevoisier SA

CSM Instruments SA

CSM Instruments SA

Polyservice AG

Polyservice AG

Polyservice AG

Recomatic SA

Recomatic SA

Recomatic SA

D5 mb-microtec AG

RC TRITEC AG

RC TRITEC AG

RC TRITEC AG

Successful stories cases

Internal China Sales (Demand + Supply = Price)- 香港鐘錶在國內市場方面早年已推十大品牌在國內試點推廣

- 開始估計以1000 ndash 1500 HKD 手錶好賣之後實際是1500 ndash 3000 HKD 的手錶好賣

Environmental consideration by the Watch and Clock Industry- 環保綠色生產仍國際性問題

- 香港已有廠家於開發時想出避免一些無必要的清洗的污染工 序取消此做法環保也減少成本

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

Ineltec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

D4

Crevoisier SA

CSM Instruments SA

CSM Instruments SA

Polyservice AG

Polyservice AG

Polyservice AG

Recomatic SA

Recomatic SA

Recomatic SA

D5 mb-microtec AG

RC TRITEC AG

RC TRITEC AG

RC TRITEC AG

Successful stories cases

Internal China Sales (Demand + Supply = Price)- 香港鐘錶在國內市場方面早年已推十大品牌在國內試點推廣

- 開始估計以1000 ndash 1500 HKD 手錶好賣之後實際是1500 ndash 3000 HKD 的手錶好賣

Environmental consideration by the Watch and Clock Industry- 環保綠色生產仍國際性問題

- 香港已有廠家於開發時想出避免一些無必要的清洗的污染工 序取消此做法環保也減少成本

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

D4

Crevoisier SA

CSM Instruments SA

CSM Instruments SA

Polyservice AG

Polyservice AG

Polyservice AG

Recomatic SA

Recomatic SA

Recomatic SA

D5 mb-microtec AG

RC TRITEC AG

RC TRITEC AG

RC TRITEC AG

Successful stories cases

Internal China Sales (Demand + Supply = Price)- 香港鐘錶在國內市場方面早年已推十大品牌在國內試點推廣

- 開始估計以1000 ndash 1500 HKD 手錶好賣之後實際是1500 ndash 3000 HKD 的手錶好賣

Environmental consideration by the Watch and Clock Industry- 環保綠色生產仍國際性問題

- 香港已有廠家於開發時想出避免一些無必要的清洗的污染工 序取消此做法環保也減少成本

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

D4

Crevoisier SA

CSM Instruments SA

CSM Instruments SA

Polyservice AG

Polyservice AG

Polyservice AG

Recomatic SA

Recomatic SA

Recomatic SA

D5 mb-microtec AG

RC TRITEC AG

RC TRITEC AG

RC TRITEC AG

Successful stories cases

Internal China Sales (Demand + Supply = Price)- 香港鐘錶在國內市場方面早年已推十大品牌在國內試點推廣

- 開始估計以1000 ndash 1500 HKD 手錶好賣之後實際是1500 ndash 3000 HKD 的手錶好賣

Environmental consideration by the Watch and Clock Industry- 環保綠色生產仍國際性問題

- 香港已有廠家於開發時想出避免一些無必要的清洗的污染工 序取消此做法環保也減少成本

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

Swissatec Sagraverl

Swissatec Sagraverl

Swissatec Sagraverl

D4

Crevoisier SA

CSM Instruments SA

CSM Instruments SA

Polyservice AG

Polyservice AG

Polyservice AG

Recomatic SA

Recomatic SA

Recomatic SA

D5 mb-microtec AG

RC TRITEC AG

RC TRITEC AG

RC TRITEC AG

Successful stories cases

Internal China Sales (Demand + Supply = Price)- 香港鐘錶在國內市場方面早年已推十大品牌在國內試點推廣

- 開始估計以1000 ndash 1500 HKD 手錶好賣之後實際是1500 ndash 3000 HKD 的手錶好賣

Environmental consideration by the Watch and Clock Industry- 環保綠色生產仍國際性問題

- 香港已有廠家於開發時想出避免一些無必要的清洗的污染工 序取消此做法環保也減少成本

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

Swissatec Sagraverl

Swissatec Sagraverl

D4

Crevoisier SA

CSM Instruments SA

CSM Instruments SA

Polyservice AG

Polyservice AG

Polyservice AG

Recomatic SA

Recomatic SA

Recomatic SA

D5 mb-microtec AG

RC TRITEC AG

RC TRITEC AG

RC TRITEC AG

Successful stories cases

Internal China Sales (Demand + Supply = Price)- 香港鐘錶在國內市場方面早年已推十大品牌在國內試點推廣

- 開始估計以1000 ndash 1500 HKD 手錶好賣之後實際是1500 ndash 3000 HKD 的手錶好賣

Environmental consideration by the Watch and Clock Industry- 環保綠色生產仍國際性問題

- 香港已有廠家於開發時想出避免一些無必要的清洗的污染工 序取消此做法環保也減少成本

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

Swissatec Sagraverl

D4

Crevoisier SA

CSM Instruments SA

CSM Instruments SA

Polyservice AG

Polyservice AG

Polyservice AG

Recomatic SA

Recomatic SA

Recomatic SA

D5 mb-microtec AG

RC TRITEC AG

RC TRITEC AG

RC TRITEC AG

Successful stories cases

Internal China Sales (Demand + Supply = Price)- 香港鐘錶在國內市場方面早年已推十大品牌在國內試點推廣

- 開始估計以1000 ndash 1500 HKD 手錶好賣之後實際是1500 ndash 3000 HKD 的手錶好賣

Environmental consideration by the Watch and Clock Industry- 環保綠色生產仍國際性問題

- 香港已有廠家於開發時想出避免一些無必要的清洗的污染工 序取消此做法環保也減少成本

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

D4

Crevoisier SA

CSM Instruments SA

CSM Instruments SA

Polyservice AG

Polyservice AG

Polyservice AG

Recomatic SA

Recomatic SA

Recomatic SA

D5 mb-microtec AG

RC TRITEC AG

RC TRITEC AG

RC TRITEC AG

Successful stories cases

Internal China Sales (Demand + Supply = Price)- 香港鐘錶在國內市場方面早年已推十大品牌在國內試點推廣

- 開始估計以1000 ndash 1500 HKD 手錶好賣之後實際是1500 ndash 3000 HKD 的手錶好賣

Environmental consideration by the Watch and Clock Industry- 環保綠色生產仍國際性問題

- 香港已有廠家於開發時想出避免一些無必要的清洗的污染工 序取消此做法環保也減少成本

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

Crevoisier SA

CSM Instruments SA

CSM Instruments SA

Polyservice AG

Polyservice AG

Polyservice AG

Recomatic SA

Recomatic SA

Recomatic SA

D5 mb-microtec AG

RC TRITEC AG

RC TRITEC AG

RC TRITEC AG

Successful stories cases

Internal China Sales (Demand + Supply = Price)- 香港鐘錶在國內市場方面早年已推十大品牌在國內試點推廣

- 開始估計以1000 ndash 1500 HKD 手錶好賣之後實際是1500 ndash 3000 HKD 的手錶好賣

Environmental consideration by the Watch and Clock Industry- 環保綠色生產仍國際性問題

- 香港已有廠家於開發時想出避免一些無必要的清洗的污染工 序取消此做法環保也減少成本

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

CSM Instruments SA

CSM Instruments SA

Polyservice AG

Polyservice AG

Polyservice AG

Recomatic SA

Recomatic SA

Recomatic SA

D5 mb-microtec AG

RC TRITEC AG

RC TRITEC AG

RC TRITEC AG

Successful stories cases

Internal China Sales (Demand + Supply = Price)- 香港鐘錶在國內市場方面早年已推十大品牌在國內試點推廣

- 開始估計以1000 ndash 1500 HKD 手錶好賣之後實際是1500 ndash 3000 HKD 的手錶好賣

Environmental consideration by the Watch and Clock Industry- 環保綠色生產仍國際性問題

- 香港已有廠家於開發時想出避免一些無必要的清洗的污染工 序取消此做法環保也減少成本

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

CSM Instruments SA

Polyservice AG

Polyservice AG

Polyservice AG

Recomatic SA

Recomatic SA

Recomatic SA

D5 mb-microtec AG

RC TRITEC AG

RC TRITEC AG

RC TRITEC AG

Successful stories cases

Internal China Sales (Demand + Supply = Price)- 香港鐘錶在國內市場方面早年已推十大品牌在國內試點推廣

- 開始估計以1000 ndash 1500 HKD 手錶好賣之後實際是1500 ndash 3000 HKD 的手錶好賣

Environmental consideration by the Watch and Clock Industry- 環保綠色生產仍國際性問題

- 香港已有廠家於開發時想出避免一些無必要的清洗的污染工 序取消此做法環保也減少成本

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

Polyservice AG

Polyservice AG

Polyservice AG

Recomatic SA

Recomatic SA

Recomatic SA

D5 mb-microtec AG

RC TRITEC AG

RC TRITEC AG

RC TRITEC AG

Successful stories cases

Internal China Sales (Demand + Supply = Price)- 香港鐘錶在國內市場方面早年已推十大品牌在國內試點推廣

- 開始估計以1000 ndash 1500 HKD 手錶好賣之後實際是1500 ndash 3000 HKD 的手錶好賣

Environmental consideration by the Watch and Clock Industry- 環保綠色生產仍國際性問題

- 香港已有廠家於開發時想出避免一些無必要的清洗的污染工 序取消此做法環保也減少成本

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

Polyservice AG

Polyservice AG

Recomatic SA

Recomatic SA

Recomatic SA

D5 mb-microtec AG

RC TRITEC AG

RC TRITEC AG

RC TRITEC AG

Successful stories cases

Internal China Sales (Demand + Supply = Price)- 香港鐘錶在國內市場方面早年已推十大品牌在國內試點推廣

- 開始估計以1000 ndash 1500 HKD 手錶好賣之後實際是1500 ndash 3000 HKD 的手錶好賣

Environmental consideration by the Watch and Clock Industry- 環保綠色生產仍國際性問題

- 香港已有廠家於開發時想出避免一些無必要的清洗的污染工 序取消此做法環保也減少成本

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

Polyservice AG

Recomatic SA

Recomatic SA

Recomatic SA

D5 mb-microtec AG

RC TRITEC AG

RC TRITEC AG

RC TRITEC AG

Successful stories cases

Internal China Sales (Demand + Supply = Price)- 香港鐘錶在國內市場方面早年已推十大品牌在國內試點推廣

- 開始估計以1000 ndash 1500 HKD 手錶好賣之後實際是1500 ndash 3000 HKD 的手錶好賣

Environmental consideration by the Watch and Clock Industry- 環保綠色生產仍國際性問題

- 香港已有廠家於開發時想出避免一些無必要的清洗的污染工 序取消此做法環保也減少成本

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

Recomatic SA

Recomatic SA

Recomatic SA

D5 mb-microtec AG

RC TRITEC AG

RC TRITEC AG

RC TRITEC AG

Successful stories cases

Internal China Sales (Demand + Supply = Price)- 香港鐘錶在國內市場方面早年已推十大品牌在國內試點推廣

- 開始估計以1000 ndash 1500 HKD 手錶好賣之後實際是1500 ndash 3000 HKD 的手錶好賣

Environmental consideration by the Watch and Clock Industry- 環保綠色生產仍國際性問題

- 香港已有廠家於開發時想出避免一些無必要的清洗的污染工 序取消此做法環保也減少成本

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

Recomatic SA

Recomatic SA

D5 mb-microtec AG

RC TRITEC AG

RC TRITEC AG

RC TRITEC AG

Successful stories cases

Internal China Sales (Demand + Supply = Price)- 香港鐘錶在國內市場方面早年已推十大品牌在國內試點推廣

- 開始估計以1000 ndash 1500 HKD 手錶好賣之後實際是1500 ndash 3000 HKD 的手錶好賣

Environmental consideration by the Watch and Clock Industry- 環保綠色生產仍國際性問題

- 香港已有廠家於開發時想出避免一些無必要的清洗的污染工 序取消此做法環保也減少成本

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

Recomatic SA

D5 mb-microtec AG

RC TRITEC AG

RC TRITEC AG

RC TRITEC AG

Successful stories cases

Internal China Sales (Demand + Supply = Price)- 香港鐘錶在國內市場方面早年已推十大品牌在國內試點推廣

- 開始估計以1000 ndash 1500 HKD 手錶好賣之後實際是1500 ndash 3000 HKD 的手錶好賣

Environmental consideration by the Watch and Clock Industry- 環保綠色生產仍國際性問題

- 香港已有廠家於開發時想出避免一些無必要的清洗的污染工 序取消此做法環保也減少成本

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

D5 mb-microtec AG

RC TRITEC AG

RC TRITEC AG

RC TRITEC AG

Successful stories cases

Internal China Sales (Demand + Supply = Price)- 香港鐘錶在國內市場方面早年已推十大品牌在國內試點推廣

- 開始估計以1000 ndash 1500 HKD 手錶好賣之後實際是1500 ndash 3000 HKD 的手錶好賣

Environmental consideration by the Watch and Clock Industry- 環保綠色生產仍國際性問題

- 香港已有廠家於開發時想出避免一些無必要的清洗的污染工 序取消此做法環保也減少成本

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

RC TRITEC AG

RC TRITEC AG

RC TRITEC AG

Successful stories cases

Internal China Sales (Demand + Supply = Price)- 香港鐘錶在國內市場方面早年已推十大品牌在國內試點推廣

- 開始估計以1000 ndash 1500 HKD 手錶好賣之後實際是1500 ndash 3000 HKD 的手錶好賣

Environmental consideration by the Watch and Clock Industry- 環保綠色生產仍國際性問題

- 香港已有廠家於開發時想出避免一些無必要的清洗的污染工 序取消此做法環保也減少成本

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

RC TRITEC AG

RC TRITEC AG

Successful stories cases

Internal China Sales (Demand + Supply = Price)- 香港鐘錶在國內市場方面早年已推十大品牌在國內試點推廣

- 開始估計以1000 ndash 1500 HKD 手錶好賣之後實際是1500 ndash 3000 HKD 的手錶好賣

Environmental consideration by the Watch and Clock Industry- 環保綠色生產仍國際性問題

- 香港已有廠家於開發時想出避免一些無必要的清洗的污染工 序取消此做法環保也減少成本

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

RC TRITEC AG

Successful stories cases

Internal China Sales (Demand + Supply = Price)- 香港鐘錶在國內市場方面早年已推十大品牌在國內試點推廣

- 開始估計以1000 ndash 1500 HKD 手錶好賣之後實際是1500 ndash 3000 HKD 的手錶好賣

Environmental consideration by the Watch and Clock Industry- 環保綠色生產仍國際性問題

- 香港已有廠家於開發時想出避免一些無必要的清洗的污染工 序取消此做法環保也減少成本

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

Successful stories cases

Internal China Sales (Demand + Supply = Price)- 香港鐘錶在國內市場方面早年已推十大品牌在國內試點推廣

- 開始估計以1000 ndash 1500 HKD 手錶好賣之後實際是1500 ndash 3000 HKD 的手錶好賣

Environmental consideration by the Watch and Clock Industry- 環保綠色生產仍國際性問題

- 香港已有廠家於開發時想出避免一些無必要的清洗的污染工 序取消此做法環保也減少成本

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

LESSONS

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

Expectation before Tsunami

Most Big Swiss companies work in silos and do not wish to co-operate with foreigners

Swiss material-supplierswatch-components are not so willing to co-operate with Hong Kong watch companies

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

Expectation after TsunamiLarge swatch group does not wish to co-operate with Hong Kong companies and small local companies in Switzerland They wish to monopolize the industry

ETA is part of the group Already announced that supply of movements will be stopped in 2012

Some small Swiss companies are willing to explore and identify opportunities

Even the local governments are willing to see co-operations between these small companies and external companies such as Hong Kong companies

These small companies are very specialized detail-minded and professional

Working with them can create a lot of opportunities for these small companies and Hong Kong companies

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

Mode of co-operations among different Swiss companies

Tend to be very specialized and not attempt to do everythingPay attention to every single detail with PASSION from design to final assembly

Components and Technology suppliers are cooperating closely in the watch supply chain

Spend a lot of development on Micro-fabrication deburring surface-finishing micronano imaging with precise measurements

Design house (mechanical movement housing strap etchellip)

Found very few all-in-1 companies and they only work on very high-end products for branded watch suppliers such as Swissatec Sarl selling some 60 unique watches over a period of 10 years with an average unit price of 11 million SFr (HK$ 7 million)

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

Cultural Differences

Japan- Focusing on Technology- Focusing on Functionalities

Switzerland- Leading the fashion and trend- Focusing on art and craft- Focusing on uniqueness (special movement

accuracy etchellip)- Focusing on tailor-making special needs of

customers

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

Do we see the Industrial trendTrends awareness- Business- Merging- teaming up with reliable supplier with Good manufacturing

practices (short lead time and high quality)

Materials development- Special Alloy- Basic SteelSurface finishing- Polishing- Plasma- fine grinding of micro and macros parts- Coating

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

The futureMany customers especially those who keep abreast of developments in the industry are keen to find and buy the watches that use new materials

We have found the interest in new materials new technology and new innovation to be outstanding from our customers says Jaeger-LeCoultres Lambert

The use of some materials can be seen as a marketing ploy but Gerald Gentas Roden points out that his company will continue to look for interesting new materials if they add something to the watch New materials are important only if they add to the design or the overall quality of the product he says No gimmick is a key phrase

Interest in new materials from consumers is coming from young people as well according to Hublots Biver These customers are used to cutting-edge materials in other products so they look for them in the timepieces they buy The young generation of successful entrepreneurs is looking for watches with new materials he says This concept connects them to their future rather than to the past of their parentsldquo

Watch companies will never stop searching for better and more innovative ways of doing things and that includes finding the best new materials Whether its to improve the shock absorbance of a watch or to make a fashion statement the watch companies will continue to push the limits of metallurgy and manufacturing

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

Where do Hong Kong stand

Mid market and high volume with better profit marginNiche marketUpgradable Technology BaseFlexible Mentality and adaptable to changesRelative Low cost productionHigh Quality managementSuggestion The Hong Kong watch and clock industry must made up their minds to position themselves in the near future

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

Opportunities for Hong Kong Productivity Council

HKPC can help enable technologies of tailor-making alloy and setting up of gold-recycling lines for vertical integration

Researching for (or searching for) the available technologies from Europe andor Japan and transferring them to the needy Hong Kong watch companies

Act as a facilitator to help Industry to matchappropriate business to the right partner

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

Keep building on our strong foundationHong Kong is one of the worldrsquos major exporters of Watch amp Clock

Since the past few months the whole world has been going through one of the largest financial tsunamis in years Global economic uncertainty is inevitable due to the rising value of RMB value and the fluctuating oil prices currency exchange rates etc All these unclear factors make running business at the Pearl River Delta Area extremely challenging It is time that we must strengthen through upgrading of both technologies and management in order to optimize production processes for long term businesses

Meanwhile making good use of new technologies to innovate products and improve product quality to further add values of the products

Taking advantages of our well-built OEM basis we may focus more on OBM businessTherefore investments on design markets development product promotions and retail channels are vital factors for Brand Building and OBM business

To sustain continuing development and healthy growth of watch industry it would be necessary for Hong Kong Watch manufacturers to prepare for the worst which has yet to come in this volatile business environment

We are still optimistic that our watch practitioners would eventually overcome the current challenges through focusing their dedication and experiences in international marketing product knowledge and innovation coping with the trend of industrial upgrade and company re-structuring

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip

Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient

Careful design through bold innovations and the deployment of new materials and technologies will certainly help

Thank YouhellipMaterials Processing Unit Head Dr Chung Nin KO

Watch amp Clock Team Members Dr Kinny LK YeungDr Wai Yin LODr Christopher CHANMr Bob ChanMr Wilson SIUMr Samuel WongMr Kwai Laun TSE

• Slide Number 1
• Why Are We Here
• Hong Kong Watch and Clock Business Now and Then
• Global Watch Business Situation in the past 12 months
• More suppliers to be trained and trainedhellip
• Business Growth of Global Brands from 2003-2007
• Suppliers - Vertical integration
• A generation of new workshops
• Production production production
• Existing situation of Hong Kong Watch amp Clock Industry
• Understanding Impacts of Financial Tsunami
• Any opportunities
• Upcoming challenges
• Innovations World Trend
• Application of various new materials innovative products
• Carbon Fibre for watches
• Carbon Fibre for watches
• Innovative watch ndash a lubricant free watch from Jaeger-LeCoultre
• Jaeger - Lecoultre
• Slide Number 20
• A high-tech Exterior ndash transparent dial to reveal the heart of where the technology is
• Watch suspension mounting
• Mechanical automatic movement Jaeger-LeCoultre Calibre 988C
• New materials new solutions
• Ultra light alloy ndash Mg and Al
• Ultra light alloy ndash Mg and Al
• C1 COSC-Certified CHRONOGRAPH by Concord FREAK by Ulysse Nardin
• Ulysse Nardin is concentrating on manufacturing movement parts in silicon
• New materials unique watches
• Non Magnetic materials for movement components
• Another movement design
• Innovative mechanical movementwithout any lubricant
• New materials in mechanical movements
• Mainspring barrel in mechanical movement grease replaced by graphite powder
• Balanced wheel design in mechanical movement
• Balance wheel design in an optimized mechanical movement
• Contribution to accuracy by the balance spring in a mechanical movement
• Tourbillon made from light alloys
• Application of various new processing technologies
• Current development worldwide Mimotec SA (Sion Switzerland)
• MEMS Technology ndash DRIE Process
• MEMS Technology ndash LIGA Process
• LIGA is a process in micro-technology that was developed in the early 1980s at the Karlsruhe Nuclear Research Centre
• UV-LIGA Process
• LIGA for components in mechanical movements
• Photochemical machining
• How HKPC help the industry to meet the challenges
• HKPC help industry connect to the worldhellip
• Visit of Japan Clock amp Watch Association (Oct 2008)
• ISO Management Structure
• ISO amp National Committee in Japan
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114
• Current Status of ISOTC114Established International Standards
• Current status of ISOTC114 International Standards under Deliberation
• Study Mission to Switzerland for Watch Industry (鐘錶業瑞士考察團)
• D1 Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Titanium Engineering SA
• Metalor Technologies SA
• Metalor Technologies SA
• D2 - BUMOTEC SA
• BUMOTEC SA
• BUMOTEC SA
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• Exhibition EPHJ 2008
• D3 - Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Ineltec Sagraverl
• Slide Number 77
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• Swissatec Sagraverl
• D4
• Crevoisier SA
• Slide Number 85
• CSM Instruments SA
• CSM Instruments SA
• Polyservice AG
• Polyservice AG
• Polyservice AG
• Recomatic SA
• Recomatic SA
• Recomatic SA
• D5 mb-microtec AG
• RC TRITEC AG
• RC TRITEC AG
• RC TRITEC AG
• Successful stories cases
• Slide Number 99
• Expectation before Tsunami
• Expectation after Tsunami
• Mode of co-operations among different Swiss companies
• Cultural Differences
• Do we see the Industrial trend
• The future
• Where do Hong Kong stand
• Opportunities for Hong Kong Productivity Council
• Keep building on our strong foundation
• Watches and Clocks can be made to be more customersrsquo centric trend leading longer lasting and more energy efficient Careful design through bold innovations and the deployment of new materials and technologies will certainly helpThank Youhellip