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Product category: Embedded Computing and Control
News Release from: Kontron UK | Subject: Kontron Asia
Edited by the Electronicstalk Editorial Team on 14 March 2008

Alliance to leverage laptop buying power

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Main objective is to optimise its manufacturing costs for embedded computers using Quanta's purchasing and production conditions.

Kontron is setting up a joint venture with the Taiwanese company Quanta Computer, reckoned to be the world's largest manufacturer of laptops The Taiwanese listed company and its affiliates are acquiring a 21% stake in Kontron Asia, the production organisation of the Kontron Group with a production plant in Penang, Malaysia

Both parties have signed a relevant purchase agreement.

Kontron will retain both the operating management and majority control of the enterprise.

Both Kontron and Quanta expect to benefit equally from the advantages the partnership offers.

Kontron's main objective is to optimise its manufacturing costs for embedded computers using Quanta's purchasing and production conditions to achieve the cost leadership in purchasing and production in the embedded marketplace.

Quanta will benefit from diversifying its production capacities in the industrial market.

With over 40,000 employees globally, Quanta produces around 30% of worldwide laptops per year, and generated total revenue of over Eur 16 billion in 2007.

"Volumes are constantly rising in the high-growth embedded computer market, particularly for applications in the POI/POS, cash machine, infotainment, and gaming areas", says Kontron CEO, Ulrich Gehrmann.

"The new joint venture between Quanta and Kontron now allows Kontron to offer volumes of 100,000 embedded computer systems per year on a competitive basis".

Kontron began reorganising its sales structures in Asia as recently as the fourth quarter of 2007, entailing the installation of centrally managed sales.

Kontron aims to relocate additional production volume to Asia over the next few years; the aim is for 75% of all of Kontron's embedded computers to be manufactured in the joint venture by 2010.

Processes such as final configuration and the installation of software, however, which are highly knowhow critical, will continue to be performed at the European and American Kontron companies.

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