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The Framatome Group, a connector producer, Thursday officially started construction on a US$35 million production facility in the city of Dongguan in the middle of the prosperous Pearl River Delta.
FCI (Dongguan) Ltd will be the French firm's largest production facility worldwide, according to Philippe Anglaret, chairman and chief executive officer of the Framatome Group.
Located in Shatian Town, of Dongguan, the wholly foreign-funded FCI (Dongguan) Ltd, which covers an area of 50,000 square meters, is expected to start production in the middle of 2001 and will employ up to 1,000 staff by 2003.
Motherboard connectors for personal computers and peripherals will be the first products made in Dongguan, Anglaret said.
The plant will be a fully integrated, high volume, low mix plant, featuring molding, stamping, assembly and plating facilities.
Seventy percent of its production will stay in China while the remaining 30 percent will be for export, Anglaret said.
"Low labour costs and ease of logistics, including transport and government help are all elements that have made this area attractive to us," Anglaret said.
Furthermore, local growth is 40 percent in real terms, so FCI must invest in facilities to meet the growing demand from its customers, Anglaret added.
FCI already has production facilities in Nantong, Jiangsu Province, and Qingdao, Shandong Province.
By the end of last year, FCI had invested US$8 million in China and expects to have invested US$60 million by 2003.
Another plant is being planned in northern China, Anglaret said.
Zhang Shunguang, vice-mayor of Dongguan, said FCI (Dongguan) Ltd will help make his city into one of the biggest connector production bases in China.
(China Daily 11/03/2000)
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