Tyco Electronics to expand production
By Jiang Jingjing (China Daily)
Updated: 2006-06-20 11:22
Tyco Electronics, one of the world's leading electronic components
manufacturers, will launch two new facilities in China by next March in a bid to
reinforce its production base in the country.
The new facilities are the
electronics firm's second manufacturing plant in Kunshan of East China's Jiangsu
Province, which will be established in November; and the expansion of its
Shanghai Raychem plant, which will be completed next March, company officials
revealed recently.
Tom Lynch, Tyco Electronics' chairman and chief
executive officer, said China's fast growing economy has given the firm the
confidence to expand.
"In the past, many foreign firms came to China to
set up their manufacturing facilities because of the low labour costs. Now, they
are attracted by the huge local market demand. This is the same for Tyco
Electronics," Lynch said during the opening ceremony of the company's second
plant in Qingdao last week.
"We need to strengthen our presence to better
serve this market," he said.
The new factory in Qingdao, with an initial
investment of US$20 million, is focused on the manufacture of electrical
terminals and connectors for the industrial and commercial industries.
An additional investment of US$30 million will be injected into the
plant in the next three years.
The facility covers 23,400 square metres
and will initially employ about 2,000 people.
"This new manufacturing
plant, together with our existing Qingdao factory, which we opened six years
ago, will enable us to better serve the rapidly growing local market," said
Juergen Gromer, vice-chairman and president of Tyco Electronics.
Gromer
said that the facility will also be able to provide support to the firm's
customers in China building electrical and electronic products for export around
the world.
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