- Press Releases
USI Intends to Invest in New Facility in Hai Phong City, Vietnam
(2019-12-19, Shanghai）USI (SSE: 601231), a global electronics designer and manufacturer, announced the company intends to establish a new production base in Southeast Asia for the needs of business expansion and industrial globalization with a view to meet demands from overseas customers. The 16th meeting of the fourth board of directors of the Company deliberated and passed the establishment of a wholly-owned sub-subsidiary in Hai Phong City, Vietnam (hereinafter referred to as the "Vietnamese Subsidiary") to invest US$ 42 million in the construction of a new facility through the wholly-owned subsidiary Universal Global Technology Co., Limited.
After multiple investigation and demonstration, USI has decided to acquire land-use right covering an area of approximately 65,000 square meters in the Deep C Industrial Zone in Hai An District, Hai Phong, Vietnam for its Vietnamese Subsidiary to build new facilities (Phase I and II), and reserve a land of 35,000 square meters to meet the potential needs of customers in the future. The investment scale and plan for Phase II will be determined separately according to the needs of customers and company development.
The Deep C Industrial Zone jointly developed by Belgian developers and the municipal government of Hai Phong, Vietnam since 1997 covers a total area of over 2,000 hectares. So far, it has attracted more than 70 manufacturers to invest over US$ 3 billion in establishing facilities here.
USI began to accelerate expansion since 2018 by acquiring a Polish-based subsidiary, strategically investing in Memtech and a new plant in Huizhou, and planning to acquire French-based Asteelflash. The proposed investment in the new facility in Vietnam is matching with the Company's strategic development plan and is an important action for the global presence of the Company as well. Furthermore, it facilitates the Company to meet demands from overseas customers, and take advantage of Vietnam's labor costs, tax incentives and geographical position to reduce production costs of the Company, and enhances its profitability and competitiveness.
USI (SSE: 601231), Universal Scientific Industrial (Shanghai) Co., Ltd., provides design, miniaturization, material sourcing, manufacturing, logistics and after services of electronic devices/modules for brand owners. USI is a member of ASE Technology Holding (TWSE: 3711, NYSE: ASX) and has many years of experience in the electronics manufacturing services industry and leverages the industry-leading technology of ASE Group, which enables USI to offer customer diversified products in the sectors of wireless communication, computer and storage, consumer, industrial, and automotive electronics worldwide. USI has a sales service network in America, Europe and Asia, and manufacturing sites in Mainland China, Taiwan, Mexico and Poland. For more information, please visit USI at www.usiglobal.com.