Mitsui aims to triple output after setting up new plant

Mitsui High-tec (Hong Kong) is investing more than $100 million in a new facility at Tseung Kwan O which it believes will more than triple its production.

The company is one of the world's largest suppliers of leadframes for integrated circuits (IC), producing about 100 million pieces annually at its Kwun Tong factory. The leadframes are part of IC components used in the production of computers, appliances, mobile phones and television sets among others.

Last year, Mitsui had sales of about $120 million and was forecasting an increase of 10-12 per cent this year.

Terence Cho, administration and personnel manager for Mitsui, said the company was investing between $100 million and $120 million in the new facility and hopefully would take up occupancy by next October.

He said the 8,000-square-metre facility would be complete by 2002. Mitsui is one of 19 companies that have purchased land on the 96-hectare estate.

'We have been at our existing facility for 24 years and it is fully occupied. The new building will give us a high [six-metre] ceiling which we need for our new production line,' Mr Cho said.

'The extra space gives us room to add additional equipment, to have greater floor loading capacity and to provide us with a good transportation network allowing us to fulfil our future expansion plans.' He said the company chose Tseung Kwan O because of inexpensive land, easy transportation access, proximity to customers and suppliers and the need for space.