Balda AG / Key word(s): Joint Venture
Joint Venture with AVY from Taiwan for the manufacture of punched metal and
aluminium/magnesium die-cast components creates in-house resources for
mobile phone metal parts.
Bad Oeynhausen – Balda AG adds metal form parts to its production portfolio
of housing components. The specialists in precision plastic parts will
produce punched metal parts and die-cast components in a joint venture with
Taiwanese company AVY Precision Technology Inc. AVY is part of the ABICO
Group, and already produces metal housing parts for digital cameras at its
Chinese plants in Suzhou and Dongguan. The contract signed today secures
for Balda 60 % of the shares in the new joint venture with a registered
capital of 100,000 US dollars. The contractual partner is the Balda Holding
Company in Singapore. Initially the enterprise will use existing production
capacity at AVY. Investment in own plants is only intended once the volume
of orders is sufficient.
‘Balda is adding to its skills and competencies in an ideal manner with
this new joint enterprise,’ explains CEO Joachim Gut. ‘We are now in a
position to offer high-quality metal housing parts, e.g. for the
Infocom-market, along with the plastic components of our core business.’ He
said that AVY contributes its experience from the camera sector and already
has suitable production facilities, as well as business relationships with
all the key Japanese and Korean camera manufacturers, such as Samsung and
Canon. The proximity of the production facility in the Chinese city of
Suzhou is also a logistical advantage. Balda has been operating its own
production plant there since 2001.
‘The new joint enterprise starts on the basis of the decades of experience
of Balda and the ABICO Group. As a result we do not expect any expensive
learning processes,’ says Gut. ABICO (Ability Enterprise Co., Ltd.), AVY’s
parent company, has been manufacturing optical products for over 40 years.
‘AVY will continue to enjoy exclusivity for its traditional business in the
camera sector. The joint venture will have exclusivity in Asia for all
other markets,’ explains Balda’s CEO.
Initially the joint enterprise will not set up any production facilities of
its own. For the initial orders the joint venture is buying in production
capacity at the AVY plants in Suzhou and Dongguan. ‘Only when we have
secured an appropriate volume of orders worth at least 10 million euros,
will we invest in any plants of our own,’ says Gut. Then investment of
around 10 million euros over 12 to 18 months is to be anticipated.
Bergkirchener Straße 228
D-32549 Bad Oeynhausen
Phone: +49(0)5734 922-2706
Fax: +49(0)5734 922-2691
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Company: Balda AG
Bergkirchener Str. 228
32549 Bad Oeynhausen
Phone: +49 (0) 57 34 / 9 22-0
Fax: +49 (0) 57 34 / 9 22-2604
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart
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