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Kontron shifts production focus on Asia

Posted: 04 Jul 2008 ?? ?Print Version ?Bookmark and Share

Keywords:Malaysia facility? Asia production? computer system?

In a move to improve further production cost and taking total control of production, embedded computer systems provider Kontron AG has acquired 100 percent of its production location in Penang, Malaysia.

According Kontron CEO Ulrich Gehrmann, the step allow contacts with Asian customers to be intensified as manufacturing capacities in comparably expensive locations such as North America will continue to be gradually discontinued, and relocated to Asia.

At the same time, the purchase of the remaining shares will enable the Quanmax joint venture with Quanta Computer Inc. to concentrate largely on favorable purchasing terms and on the supply chain. The intention is to secure an additional strong JV partner with the aim of further raising purchasing volumes, while at the same time reducing Kontron's leadership in the joint venture with the aim of equal entitlement of the partners.

"Besides cost leadership, and our own production, we are also continuously raising our direct involvement in what continues to be a highly profitable Asian market," Gehrmann said.

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