TORONTO (Aug. 12, 1:35 p.m. ET) — Electronics supplier Jite Technologies Inc. is buying back a tooling and molding operation it spun off last year, because of problems completing that sale.
Jite struck a deal in June 2010 to sell 60 percent of its molding and tooling plant in Shenzhen, China, to companies owned by its employees. It announced Aug. 11 that it will buy back the division because increased cost for labor and raw materials meant that the new owners could not raise enough money to ensure they could meet payment terms of a loan.
The move ensures that Jite, which makes connectors and other electronic parts, will have no interruption in supplies, the company said in a news release.
Jite has its headquarters in Toronto, but manufacturing in China, both in Shenzhen and at a new plant in Kunshan that opened in December. It listed C$20.1 million (US$20.3 million) in sales for fiscal 2010.