Catcher's new plan for China aimed at cutting costs: analyst
December 27, 2013, 12:09 am TWN
TAIPEI--Catcher Technology Co. (可成科技), one of Taiwan's leading metal casing makers, is gearing up to cut costs through a new investment plan at a production site located in Suqian, in China's Jiangsu Province, an analyst said Thursday.
“It has been a trend for Taiwanese investors operating in China to move away from certain cities in southern China where labor costs have risen sharply recently,” KGI Securities analyst Eason Lee said.
“For Catcher, investing more in Suqian, where wages are relatively low, is expected to help the company achieve the goal of lowering production costs by 10 percent per year,” Lee said.
In addition, Lee said that as its clients have been moving north in China, the plan to invest more in Suqian is a way to provide buyers with better services through geographic proximity.
Lee's comments came after a Catcher board meeting approved a proposal a day earlier that the metal casing supplier will invest US$100 million, or about NT$3 billion, in the Suqian plant. The company said the investment plan has been made to tap the solid and increasing global demand for more mobile devices in 2014.