By Wee Hui Yi, Michelle Wee and Sandra Wong

CHEVON International (S) Pte Ltd is the silent leader in a specialised field relatively unknown to outsiders. But here's a clue: It can take the heat.

You may have wondered how machinery and vehicles run effectively despite heat being produced continuously. Or how extremely high temperatures can be effectively brought down to tolerable levels. Chevon provides the answer. It produces plate heat exchangers, radiators and oil coolers which help to prevent overheating. Its products span industries such as power generation, oil and gas, marine, locomotive, automobile, building and construction, pharmaceutical and air-conditioning.

Since it began operations in 1994, experience and the innate drive for excellence have led Chevon to become the leader in cooling equipment, with a remarkable group consolidated turnover of S$50 million in 2008. In addition, Chevon was a winner of the prestigious Enterprise 50 Award 2009, emerging as one of the top 50 most enterprising privately held local companies in Singapore.

The company's founders, Casey Lee and James Woo, had humble beginnings. Asked why he decided to set up a business after his graduation from NTU, Dr Lee replied: 'I needed more flexibility in my time management. For both my family and my religion. We also saw an opportunity in the industry that was just waiting to be capitalised on.' Since then, Chevon has overcome numerous adversities, from the major 1997 Asian financial crisis to the current economic crisis, only to emerge stronger.

Product innovation stemming from customer needs seems to be the source of pride and joy for Dr Lee. He speaks fondly of his breakthrough product. 'The remote radiator is extremely silent and greatly appreciated in residential areas. Gone are the days of the continuous churning of machinery as well as the perpetual frustration that had resulted from the racket.'

And then there are Chevon's pressure vessels. Working on feedback from its customers, these are engineered in conjunction with cooling considerations. This adds value in terms of performance to an otherwise ordinary vessel. As Dr Lee says: 'The customers' choice is always our preferred standard.'

Beyond this, Chevon's pressure vessels are also backed by global standards of quality assurance such as the ASME 'U' stamp, which is an industry recognition and certification to fabricate its very own pressure vessels. The company also has the ISO9001 quality management certification. Chevon goes to great lengths to ensure the shortest possible delivery time to meet its customers' needs. For example, products are fabricated in Singapore as well as in China. Why do this, given the high costs of land and labour here? Why not move all the production over to China or even India? Said Dr Lee: 'Only by locating in Singapore can we cut down our lead time from weeks to a few days!' This quick turnaround time, coupled with Singapore being a major shipping hub, is well worth the extra cost of investing in a plant in Singapore, to cater specifically to the needs of the Marine customers here. This ability to match up production followed by timely delivery secures Chevon a dependable supplier reputation.

Chevon does not believe in putting all its eggs in one basket. It has five manufacturing plants which have strategically been spread across China, Malaysia and Singapore. In addition, 11 sales offices and a loyal employee base of 500 across the same three countries ensure peace of mind. Work can go on even if there is turmoil in any single area.

Risk can also be diversified by expanding into new industries. But Dr Lee believes in a thorough understanding of the industry to choose the right 'eggs'. To Chevon, this includes determining the credit status and history of their potential customers. 'The company has a scientific system of credit risk management,' said Dr Lee.

Chevon works hard to refine and upgrade the skills of its employees. They are trained to handle different situations and scenarios. This approach to constantly improve employees' skills dovetails well with the government's vision in this area.

As far as top management goes, Dr Lee looks to empower Chevon's leaders to make strategic decisions. Dr Lee also encourages the bottom-up approach. As Stanley Tan, Chevon's senior manager of sales said, 'Things get done really quickly here. Anyone and everyone can speak to the CEO and offer a suggestion. Changes can be made within a day or even a couple of hours as compared to weeks in a multi-tiered company.'

Chevon's efforts to cultivate a dynamic and positive working environment can be seen from the company's trimester events as well. 'Just last year, we took our entire staff down to Tioman, Malaysia for a company trip as part of our trimester events,' Dr Lee explained. 'While we were there, an award was given to the 'best employee'. New staff members were also introduced to the rest.' Such events help employees to bond and help the company show its appreciation for their hard work.

'The future holds great prospects for us,' said Dr Lee confidently. For one thing, he pointed to the prospects of breaking into new renewable industries. 'Chevon's products are integral to many industries, and many more emerging ones to come. Whether high-speed trains, windmills, or even the nuclear energy sector, you name it and our product would play an integral role there' he added. 'Our main focus will still be on cooling equipment as its uses are plentiful in so many different areas.'

Apart from diversifying into different industries, Dr Lee also has plans to expand Chevon's footprint to other countries such as India and Vietnam, because of the strong demand in such emerging economies. With the world as its oyster, Chevon sees its future filled with limitless potential.

The writers are students of the NUS Business School

This article was first published in The Business Times.