Espoo, Finland, 2016-08-31 11:00 CEST (GLOBE NEWSWIRE) --
EFORE PLC Stock Exchange Release August 31, 2016 at 12.00
Efore Plc (Efore) and Wuxi Hodgen Technology Co Ltd (Hodgen) have finalized the negotiations concerning the outsourcing of manufacturing as well as manufacturing support functions at the Suzhou plant in China and have signed today the master supply and asset agreements.
Hodgen has extensive experience in contract manufacturing business and in particular working with global companies such as Samsung, GE, Bosch, Siemens and Whirlpool. Hodgen’s shares are listed on Shenzhen Stock Exchange.
Both parties have agreed that required official permits and other practical arrangements would be completed during September. The target is to finalize the actions according to the agreement by the end of September.
This agreement will enable Efore to increase focus on its core competency, which is developing power solutions for its customers. This relationship will also release capital allowing Efore to invest in its core business and also facilitate structural changes. These actions will support Efore in creating more suitable conditions to successfully compete in a ever increasing competitive market.
According to the agreement Hodgen will continue manufacturing in Efore’s current production facility in Suzhou. Efore will remain responsible for the quality of the delivered products as well as for the NPI (New Product Introduction) process.
This arrangement is a key part of Efore’s strategy and will allow Efore to become a company focused on the product development of demanding power products. At the same time the outsourcing will significantly reduce operational costs.
EFORE PLC
Jorma Wiitakorpi
President and CEO
For further information please contact Jorma Wiitakorpi, President and CEO, tel. +358 40 175 8510, or Queennie Cha, General Manager, Suzhou, tel. +86 139 061 366 36 at 12.30 – 13.30 Finnish time (EET) on August 31, 2016.
DISTRIBUTION
Nasdaq Helsinki Oy
Principal media
Wuxi Hodgen Technology Co Ltd
Wuxi Hodgen Technology was founded in 1998 and listed on Shenzhen Stock Exchange in 2011. After developing and expanding, the company transformed the industry from a manufacturer to an enterprise focused on intelligent life. Hodgen Technology consists of Interactive Data, Smart Home Appliance, Intelligent Building and Online education. It has world-leading Research and Development capabilities and state-of-art laboratory in Wuxi, China. It has gained the qualification of BSH and Samsung global supplier. There are totally 1300 employees in the company. Revenue for 2015 was 106 MEUR and revenue for 2016 is estimated to be 135 MEUR. www.hodgen-china.com
Efore Group
Efore Group is an international company which develops and produces demanding power products. Efore's head office is based in Finland and its R&D functions are located in Finland, Sweden, Italy and China. Sales and marketing operations are located in Europe, United States and China. In the fiscal year ending in December 2015, consolidated net sales totalled EUR 89,9 million and the Group's personnel averaged 887. The company's share is quoted on the Nasdaq Helsinki Ltd. www.efore.com