Deswell Industries Inc. acquires a majority interest in Kwanta Precision Metal Products Co., Ltd. - Investment To Expand Deswell's Manufacturing Capabilities -.HONG n. 1. A mercantile establishment or factory for foreign trade in China, as formerly at Canton; a succession of offices connected by a common passage and used for business or storage. KONG--(BUSINESS WIRE)--Oct. 30, 1996--Deswell Industries, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on NM: DSWLF, DSWWF) (the "Company") today announced that its electronic subsidiary, Kwanasia Electronics Co. Ltd. ("Kwanasia") has acquired a 64.9% interest in Kwanta Precision Metal Products Co., Ltd.("Kwanta") for total consideration of US$929,000 cash. Founded in 1991, Kwanta manufactures metallic molds and accessory accessory, in criminal law, a person who, though not present at the commission of a crime, becomes a participator in the crime either before or after the fact of commission. parts for use in audio equipment, copying machines and fax machines. Total sales for fiscal 1996 were US$1.6 million. Deswell expects to increase sales for the new subsidiary by approximately 200% to 250% in the full year following the acquisition, primarily through volume generated from Deswell's existing customer base. Currently, Deswell must solicit supply of metallic molds and parts from outside sources. Kwanasia expects to invest US$2.0 million in Kwanta over the next six months and a further US$0.5 million in the next six months thereafter for the purchase of new, state-of-the-art metallic tool making equipment and pressing machines, thereby increasing the subsidiary's overall production capabilities. Additionally, Kwanta will purchase new pressing machines to increase the mass production of metal parts and metal audio cabinets. Kwanta will also expand its current production facilities through the lease of a new 60,000 square foot facility. This new metallic operation plant in Dongguan, China, which is currently under construction, is expected to come on-line before the end of December, 1996. Richard Lau, the Chief Executive Officer of Deswell Industries, Inc., said, "This acquisition significantly accelerates Deswell's expansion. The addition of Kwanta vertically integrates our Company and further centralizes the manufacturing process for our customers while providing an important profit center for Deswell. The favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. results will be seen in the coming nine months." Deswell manufactures injection-molded plastic parts and components and electronic products and subassemblies for original equipment manufacturers ("OEMs") and contract manufacturers at its factories in the People's Republic People's Republic n. A political organization founded and controlled by a national Communist party. 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 (1) (Surface Mount Technology) See surface mount. (2) (Station ManagemenT) An FDDI network management protocol that provides direct management. Only one node requires the software. SMT - Station Management "), and pin-through hole ("PHT PHT Phenytoin (antiepileptic, Dilantin) PHT Pulmonary Hypertension PhT Pharmacy Technician PHT Post-Harvest Technology PHT Pattern History Table PHT Pressure Half Time PHT Public Health Trust ") interconnection in·ter·con·nect v. in·ter·con·nect·ed, in·ter·con·nect·ing, in·ter·con·nects v.intr. To be connected with each other: The two buildings interconnect. v.tr. 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, Behringer spezeiller studiotechnik GMBH, and Shakespeare (H.K.) Limited. CONTACT: Lippert/Heilshorn & Associates Inc., New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of John Nesbett, ext.101 212-838-3777 |
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