Hong Kong-based contract manufacturer Highway Holdings Ltd. has acquired a mold-making shop in Ping Hu, China, to boost its plastics division.
HHL, which supplies plastic and metal parts to electronics manufacturers including Canon Inc. and Konica Minolta Holdings Inc., said the toolmaking factory complements its acquisition last year of Golden Bright Plastic Manufacturing Co. Ltd. Golden Bright is a Hong Kong-based injection molder with a factory in mainland China.
HHL said Feb. 8 it bought the mold-making operation from Kyoei Engineering Co. Ltd. of Soja, Japan, and signed a cooperation agreement with Kyoei. The tool shop had been a joint venture between Kyoei and the former owners of Golden Bright, with the Japanese firm being the majority owner.
The Feb. 8 agreement gives HHL full control of the operation, and allows Kyoei to use the equipment in exchange for providing some staffing.
The toolmaking operation has five computer numerically controlled toolmaking machines, one CNC measuring machine and an electric injection molding machine.
The tool shop is located next to the former Golden Bright operation in Ping Hu.
``The transaction will also enable our plastics division to establish a similar high-end customer base, as the company already has in its metal operation,'' said Roland Kohl, HHL's chief executive officer and president.
The company said it has four manufacturing facilities in China, including a 450,000-square-foot campus in Shenzhen. It has about 1,500 employees and sales offices in Europe, the United States and Central America.
In 2006, it exited some lower-margin businesses making its own single-use cameras, clocks and watches, and sold its Kienzle brand of clocks, to focus on original equipment manufacturing and design for other companies, HHL said in filings with the U.S. Securities and Exchange Commission.
The company had US$25.8 million in sales for the year ended March 31.