Tech Group expanding in Mexico, Asia
SCOTTSDALE, ARIZ. - Two Tech Group Inc. subsidiaries are expanding in Mexico and Asia.
Tech Group de Mexico SRL de CV is installing a Class 100,000 clean room for assembly at its plant in El Salto, Mexico, and expects to hire 24 people by this fall.
The clean room should be finished in June. Two major medical companies have committed to move production of key devices to Mexico and will require full contract manufacturing services.
The 42,000-square-foot plant near Guadalajara employs 88 and operates 24 presses with clamping forces of 55-300 tons.
``There are very few clean room molding and assembly operations in the interior of Mexico,'' Tom Podesta, vice president of sales and marketing for Tech Group Inc.'s health-care business, said in a news release. ``Over the past two years, we have seen additional requirements for clean room manufacturing in support of injection molding and contract assembly.
``As Mexico's economy expands, we anticipate continued growth in the consumer products sector.''
Meanwhile, Tech Group Asia has purchased the remaining 30 percent interest in subsidiary Chi Wo Plastic Moulds Fty Ltd., as the Chinese company prepares to move into a larger facility.
Singapore-based Tech Group Asia is paying about US$32.1 million (HK$250 million) in cash and stock over three years to buy the remaining stake. Tech Group Asia first acquired a majority stake in Chi Wo in 2000. The remaining stock was held by Chi Wo Managing Director Chi Hung Wong. Wong has been appointed a Tech Group Asia director.
Chi Wo is preparing to move into a new, 460,000-square-foot facility in Zhongshan, China, by the end of 2004. Chi Wo provides tooling, injection molding and contract manufacturing in southeast China.
Scottsdale-based Tech Group Inc. employs about 2,000 worldwide and has annual sales of about $130 million.
Gemplus shuts German plant, cuts jobs
LUXEMBOURG - A glut in European production capacity for laminated PVC personal cards has forced Gemplus International SA to close a plant, cutting as many as 180 jobs.
The Luxembourg company is switching production of the card blanks from Herne, Germany, to Havant, England. The Herne plant will close.
The rest of the work from Herne, comprising personalization of health-care and smart cards, will be transferred to Gemplus' second German operation in Filderstadt.
``As a result of changing demands in the marketplace, Herne's manufacturing and embedding activities have been witnessing a progressive decline,'' the company said in a news release.
Gemplus, which has supplied 4 billion cards - including 570 million smart cards last year alone - has 11 manufacturing sites and 17 card-personalization centers worldwide. Facilities include one plant in Montgomeryville, Pa.
The parent company reported 2003 sales of 749 million euros ($1.47 billion).
