Bonso Electronics: New Factory Expansion
Monday September 11, 8:30 am ET
TORTOLA, British Virgin Islands, Sept. 11 /Xinhua-PRNewswire-FirstCall/ -- Bonso Electronics International Inc. (Nasdaq: BNSO - News) announced today that the Company has recently entered into a Letter of Intent with the Xincheng Industry Park, XinXing, PRC to acquire approximately 100,000 square meters of land for future expansion. Under the terms of the letter of intent the cost of the land is approximately US$760,000 with 30% due upon signing of the final contract which is expected to be before the end of October 2006, and the balance to be paid in 2007 when the land transfer is completed. Bonso will acquire the land under a 50 years lease that is expected to be renewable.
This new piece of land is more than triple the size of the land upon which the Company's existing facilities are located in Shenzhen, PRC. It is expected that the land transfer will be completed in 2007 and the first phase of construction of the new manufacturing facilities will be completed in 2009. The projected capital expenditure for the first phase of investment is approximately US$8m.
"This new project marks a key milestone in our future expansion, which also shows our long-term commitment to direct our cash flow towards growing our asset base and strengthening our competitive position for the long term. Most importantly, it is in line with our business strategy to drive sustained growth and enhance shareholder value." said Mr. Anthony So, Chairman of Bonso.
About Bonso Electronics
Bonso Electronics designs, develops, manufactures, assembles and markets a comprehensive line of telecommunications products, electronic scales and weighing instruments and health care products. Bonso products are manufactured in the People's Republic of China on behalf of customers primarily located in North America and Europe. Company services include product design and prototyping, production tooling, procurement of components, total quality management, and just-in-time delivery. Bonso also independently designs and develops electronic products for private label markets. For further information, visit the company's web site at bonso.com .
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