Balda gets into the production of metal components

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.

(PresseBox) ( 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.

Experienced partner

"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.

Step-by-step investment

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.
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