Ichia to set up plant in Eastern Europe

Taipei, Oct. 27, 2004 (CENS)--Taiwan's Ichia Technologies Inc., a leading cell-phone parts maker, plans to set up a new plant in Eastern Europe to directly supply products to customers there, according company chairman C.Y. Huang.

Up to now, Ichia has established plants in many nations, including Taiwan, Mexico, mainland China and Malaysia.

Huang said that Ichia's plant in Suzhou, Jiangsu Province, mainland China has started the second-stage expansion project on a 200-hectare plot. Ichia had a total revenue of NT$4 billion (US$117.99 million at US$1: NT$33.9) last year, up 83% from the previous year, which is expected to jump 82% further to NT$7.3 billion (US$215.34 million) this year.

Ichia has continuously scored sales records in the past eight straight months and posted earnings per share (EPS) of NT$3.91 (US$0.12) for the first three quarters.

With a vision to be the world's best supplier of cell-phone parts, Huang said that two of his company's product lines, including rubber keypads and flexible printed circuit boards (FPCs), have turned profitable, while businesses for optical-lens module and aluminum-magnesium housing are also picking up. The chairman revealed that Ichia will consider to invest in the production of other kinds of cell-phone parts next year.

In addition to the expansion at its Suzhou plant, Ichia is planning to set up a new FPC plant in Guangdong Province, mainland China and a keypad facility in another nation.

According to Huang, Ichia's major cell-phone parts products include both mechanical parts and electrical-machinery devices. Customers demand for the former has become increasingly urgent, leading to drastic reduction in delivery time, Huang explained, a situation which has prompted Ichia to set up plants close to major customers worldwide.

Huang said that details for the eastern-Europe plant project will be mapped out early next year.

Ichia has recently raised NT$5 billion to NT$6 billion (US$147.49 million to US$176.99 million) of capital via corporate-bond issuance. Huang said that the money will be sufficient for his company's overseas deployment in the coming several years.