Leatec to Construct New Factory in Kunshan for Automotive Electronics Products

Taipei, May 15, 2012 (CENS)--Leatec Fine Ceramics Co., a major upstream supplier of resistor substrates for passive components in Taiwan, recently kicked off its new-plant construction project in Kunshan, Jiangsu Province of China.

The firm said it would begin to prepare a 180-acre land area in the second half to house the new plant, which will be Leatec's major automotive-electronics production base.

Leatec is currently the largest supplier of chip-resistor substrates, supplying products to most major chip-resistor makers on the island. In recent years, the firm has been aggressively tapping into solar panel, LED, and automotive-electronics markets, so as to diversify operating risks and create its future business growth momentum.

The resistor substrate maker announced that its reinvested Chinese subsidiary (through an overseas subsidiary) has applied to the Investment Commission under the Ministry of Economic Affairs (MOEA) for remitting US$22.5 million to China to finance construction of the new factory in China.

Leatec said that the floor area of the scheduled factory will be about 180% larger than its existing plant in Kunshan. The firm is slated to kick off related works after obtaining the permission from Investment Commission.

To meet the needs in future operation, Leatec's new factory will focus mainly on ceramic substrates for automotive-electronics components, and production lines of the company's newly diversified products will also be moved to the new facility.

Leatec had consolidated revenue of NT$72.4 million (US$2.4 million) in April, up 12% month-on-month (MoM). Some institutional investors forecast that the company's sales revenue in May would continue to grow for the fifth consecutive month.