Tuesday June 20, 10:02 am Eastern Time|
Company Press Release
Deswell Industries, Inc. Announces Second Phase of Expansion for New Dongguan Plant
HONG KONG--(BUSINESS WIRE)--June 20, 2000--Deswell Industries, Inc. (NASDAQ NM Symbol: DSWL - news) today announced that it has recently leased a 70,000 square foot factory that will increase Deswell's mold making capacity by approximately 40% in the first year and 100% 18 months after production commences in November 2000.
The factory, which will be situated next to Deswell's new Dongguan facility, will house 35 sets of plastic injection molding machines and advanced mold making automation equipment. This major expansion will also include the introduction of a ``24 hour standard parts tool making automation line'' to better service customers. The total investment for this second phase of the Dongguan expansion will total approximately $5 million.
The Company also announced that it is on track to commence production at the existing Dongguan facility in July 2000 as previously announced.
Mr. Richard Lau, chief executive officer of Deswell, said, ``Upon completion of Phase I and II expansions, Deswell shall have a total of 80 sets of new injection molding machines in Dongguan this year. With the advanced technology and 24 hour automation, we anticipate substantial growth as we continue to expand our mold making division.''
Deswell manufactures injection-molded plastic parts and components, electronic products and subassemblies, and metallic products for original equipment manufacturers (``OEMs'') and contract manufacturers at its factories in the People's Republic of China. The Company produces a wide variety of plastic parts and components used in the manufacture of consumer and industrial products; printed circuit board assemblies using surface mount (``SMT''), and pin-through hole (``PHT'') interconnection technologies; and finished products such as telephones, telephone answering machines, sophisticated studio-quality audio equipment and computer peripherals. The Company's customers include Kyocera Mita Industrial Co. (H.K.) Limited, Epson Precision (H.K.) Ltd., Namtai Electronics (Shenzhen) Co. Ltd., Inter-Tel Incorporated, Vtech Communications Ltd. and Shakespeare (H.K.) Limited.
To learn more about Deswell Industries, Inc., please visit the Company's web site at www.deswell.com