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March 6, 2008 |
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FLEXTRONICS: To Ramp Up Notebook Production Capacity Flextronics International Ltd. plans a scale expansion project to ramp up its OEM/ODM production capacity for notebook PCs after it completes the acquisition Taiwan-based Arima Computer's notebook unit at the end of March 2008, DigiTimes reports, citing unknown sources. According to the report, Arima's current plant in Wujiang, China has a production capacity of four million notebooks a year, although the company shipped only 800,000 notebooks in 2007. However, the report relates, annual production capacity of the Wujiang plant can be expanded to as high as 10-12 million notebooks should there be enough orders. Sources told the news agency that Flextronics definitely has to ramp up the output of the Wujiang plant in order to reach an economy of scale. In addition, Flextronics is also doing a feasibility study to set up a new notebook plant in southeast China, India or Vietnam for better logistics deployment, the report relates. However, the sources stated that Flextronics has not yet fixed a timetable for its notebook expansion plan and also has yet to decide whether to give priority to ramp up output at the Wujiang plant or to build a new plant, the report adds. About Flextronics Headquartered in Singapore, Flextronics International Ltd. (NasdaqGS: FLEX) -- http://www.flextronics.com/ -- is an Electronics Manufacturing Services provider focused on delivering design, engineering and manufacturing services to automotive, computing, consumer digital, industrial, infrastructure, medical and mobile OEMs. Flextronics helps customers design, build, ship, and service electronics products through a network of facilities in over 30 countries on four continents including Brazil, Mexico, Hungary, Sweden, United Kingdom, among others. * * * Flextronics International Ltd. continues to carry Moody's Investors Service's "Ba1" probability of default and long-term corporate family ratings with a negative outlook. The company also carries Standard & Poor's Ratings Services' "BB+" long-term local and foreign issuer credit ratings with a negative outlook. |
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