SHENZHEN, CHINA — Deswell Industries Inc. added 30 injection molding machines and 40,000 square feet to its Jetcrown Industrial Ltd. unit in Shenzhen.
In the past 11/2 years, Jetcrown's plastics operations, in Shenzhen, have expanded by more than 95,000 square feet, bringing total production space to 225,000 square feet, according to a company news release. The new, 40,000-square-foot leased area is adjacent to the plastic unit's existing facilities.
For the year ended March 31, injection molded plastic components contributed about $18.7 million to Deswell's total sales of $30.6 million, according to the Hong Kong-based firm. Those sales represent a 35.3 percent increase over the year before. Its other sales come from the manufacture of electrical products and subassemblies in China.
At Shenzhen, Jetcrown molds casings for telephones, pagers, photocopy machines, calculators and toner cartridges for a handful of customers that include Inter-Tell Inc., which makes telephones, and Nam Tai Electronics (Shenzhen) Co., whose parent, Nam Tai, is a principal shareholder in Deswell. Another customer and maker of audio equipment, German firm Behringer Spezeiller Studiotechnik GmbH, owns 10 percent of Deswell's stock.
But the majority of the firm's stock — about 66 percent — is held by its executives: Chairman and Chief Executive Richard Lau, C.P. Li and C.W. Leung.
In 1995, Deswell raised roughly $7.2 million from its initial public stock offering, using $3 million to buy presses and tooling for Jetcrown. In April, Jetcrown installed a $1.2 million, large-scale injection press for molding casings for copiers and televisions.