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Flextronics expands manufacturing in China

Staff -- Purchasing, 5/20/2004

Flextronics says it will increase its manufacturing capacity in China by over 40% over the next 12 months because of growing demand for electronics equipment.

The company says it will add 2.1 million square feet of extra capacity over the next year. It currently has about 5.2 million square feet of manufacturing capacity at its Chinese facilities. Flextronics makes cell phones and video game systems in China.

About 60% of Flextronics' Asian production capacity is in China. The rest of its Asia production is in Malaysia, Japan and India.

In Zhuhai in Southern China, Flextronics will add 1.2 million square feet of capacity. That includes a 500,000 square foot logistics hub, and a 700,000 square foot factory that will make plastic injection moldings and metal stamping, processes used in making electronics.

Flextronics will also start building a plant in Shenzhen, southern China, in September. The 200,000 square foot facility will produce tools from which plastic molds are made. The facility will be completed next year. In Shanghai, Flextronics will open a 700,000 square foot manufacturing facility in August or September, which will be used for electronics assembly.

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