By Li Panpan
(JW Insights) Sep 5 -- Kinwong Electronic, one of the world's main suppliers of printed circuit boards, plans to invest RMB700 million ($96.4 million) in a new production base in Thailand to better serve overseas clients and deal with the adverse impact of possible changes in the global economic and trade environment, Yicai Global reported on September 1.
The new base will be located in an industrial park in Thailand’s Prachinburi Province and it will be built in phases depending on market needs and business progress, the Shenzhen-based company said in a statement on August 31, without revealing any further detail.
Many other Chinese PCB producers, including Huizhou China Eagle Electronic Technology and Aohong Electronics, have also set out plans for factories in Thailand in response to the shifting global supply chain landscape. China Eagle announced a RMB550 million ($75.63 million) investment plan at the end of last year, while Aohong unveiled a RMB600 million ($82.51 million) plan this June, said the Yicai Global report.
Kinwong's new base will boost its ability to supply overseas markets, better meet the orders of foreign clients, and effectively boost the firm's resilience to risk, it said.
Founded in 1993 and listed on the main board of the Shanghai Stock Exchange in 2017, Kinwong was the world's 16th-largest PCB supplier by shipments last year, having 11 plants across five production bases in China. Its products are used in various goods such as auto electronics, telecom equipment, industrial control systems, medical gear, and consumer electronics.
Exports accounted for about 40% of Kingwong's RMB10.1 billion ($1.4 billion) revenue from PCBs last year, with a gross profit margin of nearly 28%, its annual earnings results showed. The margin on its products sold in the Chinese market was 13.5%, reported Yicai Global.