Compal Electronics Inc (仁寶), one of the leading contract electronics makers in Taiwan, has announced plans to build a factory in Poland to target automotive electronics clients.
In a statement posted on the Taiwan Stock Exchange, the company yesterday said that it is planning to invest more than NT$500 million (US$15.4 million) to build a factory in Poland, the first time the company is to extend its manufacturing to the European market.
Through its Poland-based subsidiary CGS Technology (Poland) Sp. z o.o., Compal is planning to spend about NT$77.7 million to acquire a parcel of land in Czeladz, Poland, and spend an additional 12.29 million euros (US$13.31 million) to build the plant, bringing the total investment to more than NT$500 million, the company said.
Photo: Fang Wei-chieh, Taipei Times
The company said it is already running an after-sales service center in Poland, and the investment in the European country is aimed at catering to the automotive electronics market.
The investment is part of the company’s efforts to meet regional demand in Europe, it said.
It expects construction of the facility to be completed by the end of the second quarter of next year, with production slated to begin by the end of the year, Compal said.
The new plant is expected to start generating sales in 2026, it added.
Automotive electronics is among Compal’s major businesses, but its products also include handheld devices, wearable gadgets, laptop and desktop computers, Internet of things applications, servers and healthcare equipment.
Compal’s automotive electronics customers are vehicle manufacturers based in Europe, and sales in the business are expected to grow at a double-digit pace this year, market analysts said.
Local news media cited unnamed sources from Compal as saying that the company did not rule out expanding its production in Poland beyond automotive electronics by taking into account customers’ needs.
Compal had focused on Vietnam in terms of overseas investments in the past, but it wants to be closer to its customers in Europe, local media reported.
Capital expenditure to meet overseas investments is expected to range between NT$7 billion and NT$8 billion this year, little changed from last year, they reported.
Compal has intensified its efforts in automotive electronics development, and the company last year started to produce automotive electronics items in a plant in Mexico, which has begun to post sales.
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