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Can consumer electronics manufacturing, which has experienced wholesale shifts to the Far East over the past two decades, become profitable in North America again? Dynascan Corp. is looking for an answer.
For virtually all of its 27 years, Dynascan has been content in its role as a marketer of telephones and other audio equipment produced to its specifications in the Orient by other companies. But suddenly, Dynascan is hinting that it may try its own hand at manufacturing, perhaps in the U.S.
Jerry Kalov, Dynascan's president and chief executive, revealed at the recent annual meeting that the company is in the early stages of a manufacturing study. The weakness of the dollar on currency markets has encouraged the study, he said.
Moreover, in the wake of two sizable acquisitions over the past 16 months, Dynascan's volume is rapidly reaching a point at which in-house production would become cost-effective.
"We could put a heavy load on our own factory if we had one," Mr. Kalov said. "The problem is that we have no manufacturing expertise at the company. If we were to decide that we wanted to go ahead, we'd have to either agree to a joint venture with an established maker of electronics or acquire somebody with the necessary expertise."
The latter may be more likely, considering Dynascan's stated goal of acquiring at least one company a year with $25 million in sales or more.
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