Kenmec to spin off EMS business in 2010
Kenmec Mechanical Engineering, a supplier of automated factory equipment and thin-film-transistor panel manufacturing equipment, plans to spin off its EMS business as a subsidiary with an initial capital of NT$600-1,000 million (US$18.5-30.8 million) in mid-2010, according to the company.
The revenue ratio of Kenmec's EMS unit, which used to be at below 50%, climbed to 56% outperforming its equipment unit for the first fourth months of 2009, according to the company's financial report issued in May. Kenmec has expanded its EMS business to cover Blu-ray Disc (BD) players and touch panels, and recently tapped the smartphone and white-box netbook markets.
Kenmec said its EMS unit has landed an order for a Chunghwa Telecom (CHT) smartphone, with shipments slated for October. The division has also secured orders for white-box netbooks from VIA Technologies.
In addition, Kenmec estimated revenues generated from the BD player segment may contribute around NT$100 million to its total revenues in 2009. The company is positive about the segment's growth in 2010, and will add MediaTek to its supply chain.
Kenmec began shipping Blu-ray products to ODM customers in China in the third quarter, and said 75% of its full-year shipment goal (20,000 units) would be fulfilled in the fourth quarter, according to previous reports. Kenmec currently uses Broadcom chips in its BD players.
As for touch panels, Kenmec expects the new product line to contribute NT$200 million to its 2009 revenues. It began EMS production of touch panels in mid-July.
Kenmec currently has 33 SMT production lines in eastern China, and 14 in Taiwan.
The revenue ratio of Kenmec's EMS unit, which used to be at below 50%, climbed to 56% outperforming its equipment unit for the first fourth months of 2009, according to the company's financial report issued in May. Kenmec has expanded its EMS business to cover Blu-ray Disc (BD) players and touch panels, and recently tapped the smartphone and white-box netbook markets.
Kenmec said its EMS unit has landed an order for a Chunghwa Telecom (CHT) smartphone, with shipments slated for October. The division has also secured orders for white-box netbooks from VIA Technologies.
In addition, Kenmec estimated revenues generated from the BD player segment may contribute around NT$100 million to its total revenues in 2009. The company is positive about the segment's growth in 2010, and will add MediaTek to its supply chain.
Kenmec began shipping Blu-ray products to ODM customers in China in the third quarter, and said 75% of its full-year shipment goal (20,000 units) would be fulfilled in the fourth quarter, according to previous reports. Kenmec currently uses Broadcom chips in its BD players.
As for touch panels, Kenmec expects the new product line to contribute NT$200 million to its 2009 revenues. It began EMS production of touch panels in mid-July.
Kenmec currently has 33 SMT production lines in eastern China, and 14 in Taiwan.
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