Hon Hai's PC plant in Czech Republic starts producing earnings

Taipei, Jan. 6, 2003 (CENS)--Hon Hai Precision Industry Co. reported sharp rise in the output of personal computers at its European production base in Czech Republic to meet customers' demand on the European market.

Hon Hai, a leading high-tech group thriving on computer connectors and other information technology products, said its Czech plant turned out over two million sets of PCs in 2002. The significant gain started generating profits for the company's business operations in Europe.

Chief executive Terry Tai-ming Kuo of Hon Hai has recently renewed the supply contract with Carly Fiorina, chief executive officer of Hewlett-Packard, to consolidate the orders placed by both HP and Compaq Computer.

Before the merger of Compaq and HP, Hon Hai had been a major partner of Compaq in its global expansion, including on the European market.

Hon Hai plans to invest between US$300 million and US$600 million of new capital in the Czech plant for the next seven years. The investment will expand the production capacity to seven million PCs each year and make it the world's largest assembly plant.