BenQ to run only one handset making plant

BenQ is closing all of its existing handset production bases and will concentrate handset manufacturing at its new plant in Shanghai, China, according to industry sources.

Construction of the new plant in Shanghai started in March 2006. It is expected to start volume production in the third quarter of 2007 with a monthly capacity of 1.8 million units, and it will become BenQ's sole handset manufacturing base, the sources said.

BenQ has been revamping its strategy for the handset market after making huge losses from its acquisition of Siemens' handset division. Having shut down its handset plants in Taiwan, Mexico, and Germany, BenQ is in the process of ending handset production at its present plant in Suzhou, China, the sources said. Its handset plant in Brazil will also stop operation, the sources added.

BenQ to run only one handset making plant