Deswell Industries, Inc. Announces Facilities Expansion
- Company Expands Capacity Of Its Kwanasia Electronics Assembly Division By Over 120% -
HONG KONG--(BUSINESS WIRE)--March 18, 1998-- Deswell Industries, Inc. (Nasdaq NM: DSWLF - news; the ''Company'') today announced that the
Company is expanding the production capacity of its Kwanasia electronics assembly operations by over 120%.
Deswell's electronics assembly subsidiary, Kwanasia Electronic Co. Ltd., has leased an additional 200,000 square feet of manufacturing space in Dongguan, China.
The newly leased space is adjacent to its existing Dongguan electronics assembly factory and metallic factory premises and will be used to accommodate the fast
growth of Deswell's electronics assembly business. The new production space is under construction and is expected to be fully operational by September 1998.
The newly leased factory is an independent premise comprising 200,000 square feet of manufacturing space and 100,000 square feet of ancillary employee living
space.
Mr. Richard Lau, Chief Executive Officer of Deswell, said, ''We are very pleased to lease this new factory space. The facility expansion was necessary to meet the
rapid increases in customer demand for our electronic products. The expansion increases Kwanasia's production capacity by over 120%. Furthermore, it enables
the Company to better centralize its operations and lower operating costs.''
The Company has completed the redemption of its outstanding Common Share Purchase Warrants on February 18, 1998. As a result of failure of two protect
claims, the final number of exercised Warrants was 896,649 with total gross proceeds of US$4,060,027. The balance of 11,275 Warrants that were not exercised
by February 17, 1998 were redeemed by the Company at $0.05 per Warrant. As a consequence, the Company issued an aggregate of 448,324 new Common
Shares and had 5,479,131 Common Shares outstanding on February 18, 1998.
Deswell manufactures injection-molded plastic parts and components and electronic products and subassemblies and metallic products for original equipment
manufacturers (''OEMs'') and contract manufacturers at its factories in the People's Republic of China. The Company produces a wide variety of plastic parts and
components used in the manufacture of consumer and industrial products; printed circuit board assemblies using surface mount (''SMT''), and pin-through hole
(''PTH'') interconnection technologies; and finished products such as telephones, telephone answering machines, sophisticated studio-quality audio equipment and
computer peripherals. The Company's customers include Mita Industries (H.K.) Limited, Nam Tai Electronics (Shenzhen) Co. Ltd., Inter-Tel Incorporated
[Nasdaq:INTL - news], Behringer spezeiller sudiotechnik GMBH, and Shakespeare (H.K.) Limited.
Contact:
Lippert/Heilshorn & Associates, Inc.
John Nesbett, ext. 121
212-838-3777
E-MAIL: jgn@lhai.com |
