L.L. Knickerbocker Opens New Sourcing and Quality
Assurance Facility in China
Company Consolidates Three Far East Operations Into One for Sourcing of
LLK Brands
"Greater Efficiency, Reduced Costs and Higher Margins," says Chairman &
CEO
LAKE FOREST, Calif.--(BUSINESS WIRE)--Feb. 5, 1998-- The L.L. Knickerbocker Co. Inc.
(NASDAQ:KNIC - news) today announced effective Feb. 9, 1998, it will consolidate its Taiwan,
Hong Kong and China offices which closed at the end of January into one new operation for sourcing
and quality assurance in ShenZhen, China.
The company's Thailand operation which manufactures all of LLK's fine jewelry will shift
non-jewelry-related products over to the newly consolidated China operation, reducing its need for
outside sourcing and quality assurance contracts. Completion of the new silver manufacturing facility
in Bangnan, Thailand is expected by the end of March. By expanding the Thailand facility to include
silver jewelry, the company is granted an additional three years of tax-free status.
''We have two distinct business groups which require specialized knowledge,'' said Louis L.
Knickerbocker. ''Our Thailand operation is key to our ability to manufacture jewelry for sales
throughout the world. New program development will place greater emphasis on this area of our
company, as the year progresses. Our Thailand operation will continue to increase in scope and
importance to our organization.''
He added, ''Our China operation will focus our Far East employees on the expansion of non-jewelry
multi-product lines and allow them to focus on communicating, sampling, costing, sourcing,
manufacturing and quality control, which are all critical stages of product development.''
The new operation in China, with David Hsia as its general manager, will function as a liaison
between LLK's U.S. offices and the Far East Manufacturing partners, which represents
approximately 90 percent of its total manufacturing business relative to dolls, bears, vinyl, and other
product forms.
Hsia, a native of Taiwan, four-year employee of Georgetown with 14 years industry experience, will
report to Nancy O'Donnell, recently named vice president of Inventory Planning and Purchasing for
LLK. Full-scale consolidation has begun and will continue into the second quarter, with results
expected in the third and fourth quarters.
Combining the L.L. Knickerbocker and Georgetown Collection sourcing operations will allow the
company to be more efficient, increase production efficiency gained by consolidating volumes, reduce
excessive overhead costs and build stronger vendor relationships, resulting in increased margins.
Robert L. West, newly appointed chief operating officer of LLK, said: ''The realigning of our
sourcing to focus on broadening our multiple lines of products will maximize efficiencies throughout
the organization. Our emphasis on decreasing operating costs, while improving purchase power and
on-time performance, will help the company compete in a highly competitive marketplace.''
O'Donnell commented with, ''The consolidation process which began in the first quarter of 1997 is
expected to be completed in the second quarter. We have already seen the results in better service to
our customers and higher margins.''
The L.L. Knickerbocker Co. Inc. is a diverse company, consisting of a collectible products division,
a jewelry division and an investment division. The company markets all of its products worldwide.
Through its investment division, it has a 50 percent interest in Arkenol Asia Inc., a 35 percent interest
in Pure Energy Corp. and a 31 percent interest in Ontro Inc.
For more information visit The L.L. Knickerbocker Co. web site: www.knickerbocker.com.
This news release contains forward-looking statements within the meaning of the Securities Act of
1933, as amended, and the Securities Exchange Act of 1934, as amended, which involve risks and
uncertainties, including, but not limited to, economic, competitive, governmental and technological
factors affecting the company's operations, markets, products, services and prices, and other factors.
The company's actual results could differ materially from those projected in the forward-looking
statements as a result of the factors described herein.
__________________________________________________________
................... Bob |
