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Kontron,Quanta signs joint venture agreement

Posted: 10 Mar 2008     Print Version  Bookmark and Share

Keywords:embedded computers 

Embedded computer systems provider Kontron AG has signed a joint-venture agreement with Taiwan's Quanta Computer Inc.

Under the agreement, Quanta and its affiliates are acquiring a 21 percent stake in Kontron Asia Inc., Taipei. Kontron Asia is the production organization of the Kontron Group which includes its production plant in Penang, Malaysia. Kontron will retain both the operating management of, and a voting right majority in, the enterprise.

Kontron targets to optimise its manufacturing costs for embedded computers using Quanta's purchasing and production conditions. With the agreement, Quanta will be able to diversify its production capacities in the industrial market.

"Volumes are constantly rising in the high-growth embedded computer market, particularly for applications in the POI/POS, cash machine, infotainment, and gaming areas. The new joint venture between Quanta and Kontron now allows Kontron AG to offer volumes of 100,000 embedded computer systems per year on a competitive basis," commented Kontron CEO, Ulrich Gehrmann.

Kontron launched a reorganisation of its sales structures in Asia as recently as Q4 07, entailing the installation of centrally managed sales, with the aim of achieving higher EBIT margins in this region. In addition, Kontron aims to relocate additional production volume to Asia over the next few years; targeting to have 75 percent of all of Kontron's embedded computers to be manufactured in the JV by 2010. Processes such as final configuration and the installation of software, however, which are highly know-how critical, will continue to be performed at the European and American Kontron companies.

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