Taiwan-based appliance maker Sampo Corporation announced it has made an agreement with Quanta Computer Inc., a Taiwan information technology company, to enter the European market.
Quanta said its plant in Hungary would contract manufacture G-Hans Sampo-brand LCD and plasma TVs for Sampo at the start of 2006 and will set up a new production line in the Hungary plant with annual production capacity to reach 60,000 TVs.
Sampo said the cooperation with Quanta would be able to help it save a 14 percent import tariff in selling products to the European market and estimated it would sell 60,000 G-Hans Sampo LCD TVs next year.
Chen Sheng-wang, executive vice president of Sampo, said the company would concentrate on development of own-brand products as the profit margin generated from contract manufacture of LCD TVs has dropped to 7 percent and may fall to 5 percent by 2006. Sampo estimated it would gain a 10 percent profit margin in promoting own-brand products via its own distribution channels.
Sampo said it estimates NT $4 billion (approx. U.S. $125 million) in sales of LCD and plasma TVs to the U.S. market and another NT $500 million (approx. $15.6 million) to the European and the Middle East markets this year.
Chen said Sampo has set a sales goal of U.S. $100 million in 2008 from the projected U.S. $20 million next year in the Europe, the Middle East and India markets. He said his company has set Europe as one of its most important export markets next year with its cooperative partner G-Hans Group responsible for sales there. (China Economic News Service)
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