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Wednesday, July 25, 2001
Ritek plans to invest in CD-R subsidiary in China

"...Ritek announced that it plans to establish a subsidiary in China to produce CD-Rs and optical-communication products by injecting funds of nearly US$2.5 million. Although the investment is relatively small compared with the company's production scale in Taiwan, it expects to expand the scale after a review of the initial investment results.

Senior officials from Ritek said the production site of the company's Chinese subsidiary would be located in Kunshan Export Processing Zone in Jiangsu province. The subsidiary is designed to produce CD-Rs in the initial stage and gradually expand into the field of optical-communication products. To ensure production goes smoothly and to develop local marketing channels, Ritek revealed it is considering setting up the firm in the form of a joint venture with a Chinese partner. If everything goes to plan, the plant is scheduled to begin production in early next year.

The new material subsidiary will be located in Miaoli, south of Hsinchu. It aims to produce major packaging materials and CD jewel cases for CD-Rs and CDs. At present, the packaging material subsidiary is still under construction. After completion, Ritek is expected to move all of its packaging and chemical-material production lines into the new plant..."

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