Content area
Full Text
VTech Communications Ltd. has decided to double the size of its Donnguan, China, manufacturing plant to keep up with strong demand for consumer electronics products.
VTech's contract manufacturing division, based in Hong Kong, is preparing to take on more business from its principal customers- midsize North American and European OEMs that want their products made in low-cost China.
By the end of the year, VTech's division, which makes microwave control boxes, power supplies, radio modules, and satellite receivers, will expand its Donnguan operation to 400,000 sq. ft., from 200,000 sq. ft.
The presence of larger EMS companies such as Celestica, Elcoteq, Flextronics., and Jabil in Donnguan and surrounding Chinese cities bodes well for local manufacturers, said Andy H.K. Leung, general manager of VTech's contract manufacturing division.
"Most of the larger EMS companies are not taking business away [from us]," Leung said. "They're bringing business into the area. We've...