Hon Hai ventures into auto wire-harness biz via acquisition

Taipei, Feb. 17, 2005 (CENS)--Taiwan's Hon Hai Precision Ind. Co. Ltd. Has wholly acquired Antec Eelectric System Co., Ltd., a leading maker of automobile wire-harness products, as its first official step to enter the auto-parts field.

Hon Hai, the world's No. 1 maker of barebone PCs, connectors and game consoles as well as the largest private manufacturer in Taiwan, announced last year its determination of expanding its businesses from 3C (computer, communication, and consumer electronics) into 6C (plus channel, car and content). Antec, an original equipment (OE) wire harness supplier to many local automakers and the company, is expected to have revenue of about NT$1.2 billion (US$37.85 million at US$1: NT$31.7) this year, up 20% from about NT$1 billion (US$31.55 million) in 2004.

Hon Hai acquired 100% of Antec's shares for NT$370 million (US$11.67 million), or NT$17.91 (US$0.56) per share. Through the acquisition, industry sources said, the Hon Hai Group has formally stepped into the auto-parts line.

Antec currently turns out several major products, including automobile wire harnesses, battery cables, in-car entertainment (multimedia) systems, security systems and electro-luminescent (EL) panels. The company was established in 1969 and now employs a total of 431 people at two plants in Taiwan.