NOTE acquires manufacturing capacity in China
"I am very pleased that we are now establishing a strategic partnership with Ionics EMS, one of the leading EMS providers in Asia. What we get through this acquisition is cost-effective manufacturing capacity in China and Asia. The factory is new (2005) and there are now trained, skilled staff in place as well as new machinery. We intend to utilise this unit for both existing and new customers. We already have customers in both the telecoms and industrial segments who need manufacturing in China and Asia. This investment also strengthens our role as a long-term partner to our larger customers," says Arne Forslund, President and CEO of NOTE.
"For the current year, this will have a marginal effect on both turnover and profit, but already in 2008 we will have a positive effect thanks to the fact that we can move production to Asia. To this should be added the new customers that we expect to attract with this acquisition. The factory has a production capacity equivalent to about SEK 500 million per year and the current capacity utilisation is less than SEK 100 million. This acquisition is fully in line with our long-term strategy to establish manufacturing capacity in cost-efficient countries. We can now address customers with a focus on the growing Asian market", summarises Arne Forslund.
"This deal gives us a strong link to the European market with our ODM expertise (our own customised products) and we see great opportunities to develop the business relationship with NOTE," says Lawrence C. Qua, CEO and Chairman of Ionics EMS.