LISTING candidate Daiwa Associate Holdings will boost its production of rectifier diodes by eightfold in China, funded by a flotation on the Hong Kong stock exchange.
President Herman Lau Tak-wan said the electronics components maker had appointed Nomura International as the financial adviser but refused to give details of the listing plan.
He said the company would use the proceeds to establish a factory in Dongguan, Guangdong province, where it had a plant manufacturing variable resistors and semi-fixed resistors.
The new factory would focus mainly on the production of rectifier diodes, widely used in consumer electrical and electronic appliances, he said.
The new plant would allow Daiwa to raise its production capacity of rectifier diodes to 80 million units from the 10 million now produced in a joint-venture manufacturing facility in Zhaoqing.
''We hope to achieve an oligopoly position in this field, as we enjoy in the market of variable resistors,'' he said, citing Daiwa's market share of more than 50 per cent of those resistors.
The company's another manufacturing facility in Zhaoqing, which makes small signal transistors, also serves as a technology-intensive manufacturing base.
