VTECH Holdings is planning an industrial city of about 100 hectares in southern China, to share with its suppliers and tenants from the electronics industry and to ease crowding at its cordless telephone plant in Dongguan, Guangdong province.
Financial managing director William Ho Mook-lam said the company was still looking for a suitable location but would invite interested mainland parties to participate.
''The project aims to concentrate our suppliers at one place to reduce both the time and cost of materials delivery,'' Mr Ho said.
VTech also produces cellular mobile telephones in Yuen Long through Technophone Manufacturing (HK), a venture with Nokia Mobile Phones.
VTech chairman Allan Wong Chi-yun said US$3 million would be spent to expand Yuen Long production lines by 50 per cent in the next fiscal year.
''Telecommunication products account for about 10 per cent of the group's overall turnover, worth $75 million in the 1993 fiscal year,'' he said.