Nam Tai Electronics, Inc.: new factory expansion update
Mar 28, 2006
Nam Tai Electronics, Inc. ("Nam Tai" or the "Company") (NYSE: NTE) provided an update on its acquisition of approximately 1.3 million square feet of land for future expansion.
The Company has recently entered into an official agreement with the Guangming Hi-Tech Industrial Park ("Industrial Park"), Shenzhen, PRC, for purchasing the new piece of land which is more than double the size of the land of the existing facilities. Completion of the land transfer is expected to be on or before the autumn of 2006.
In accordance with the original time table, the Company will commence its construction of new manufacturing facilities on the site by the end of 2006. It is expected that the first phase of construction will be completed in the summer of 2008 and the second phase of construction will be completed in the summer of 2010. The projected capital expenditures for the first phase of investment are over $150 million, including construction of the new facility as well as the purchase of machinery and productions lines.
"We are very excited to see that our factory expansion plan is on schedule. We believe the addition of these manufacturing facilities will be able to meet the Company's growth needs until 2015," said Mr. M.K. Koo, Chairman of Nam Tai. "This new project marks a key milestone in our future expansion, which also shows our long-term commitment to keep abreast of the rapid growth in the high-end electronic industry. Most importantly, it is in line with our business growth strategy to strengthen the Company's prospects and generate even better long-term returns to our shareholders."