Viasystems to close PCB plants in Canada, Netherlands.

St. Louis -- Viasystems Group, once the largest PCB maker in North America, will shutter its remaining circuit board plants outside Asia, the firm said in March. Meanwhile, the company will spend $60 million toward expanding its China operations. These funds will primarily be used to further expand its Chinese PCB production capabilities and enhance its technological capabilities.

Viasystems (viasystems.com) spent $75 million in China in 2003 and 2004. When the latest expansion comes online, Viasystems will have increased its production capacity in China by 70% over the past three years.

In 2004, Viasystems was the largest manufacturer of PCBs in China, with sales of approximately $343 million, the company said.

The additions, coupled with reported customer approvals of its China plants, will permit Viasystems will close its remaining board facilities in Canada and the Netherlands. "The continued shift ... to more cost-efficient regions, coupled with the technological advancement of our Chinese facilities has led to the underutilization of our facilities in Canada and the Netherlands," said Tim Conlon, president and COO. The plants generated less than 9% of the company's total revenue in 2004, Conlon said.

Viasystems purchased the plant in Canada as part of its 1996 acquisition of Circo Craft. Cisco Systems (cisco.com) is believed to be a customer of Viasystems' Netherlands plant, known as Mommers.

"We believe that due to the advanced technological capabilities that exist in our Chinese facilities today, a significant portion of these revenues can be produced in our Chinese operations," Conlon said. "The closures will allow Viasystems to focus efforts and capital investments on the fastest growing region in the printed circuit board market."

Edited by Mike Buetow