LONDON MEDER electronic AG has acquired a reed sensors and relays manufacturing plant on a 1,700-acre site in Shanghai, China.
MEDER (Rafz, Switzerland), which has been designing and manufacturing in Asia for over 15 years, says the acquisition has an annual production capacity of over 10 million reed products and 150 employees.
The Chinese facility MEDER-GHL Electronic Co. Ltd. is MEDER’s fifth manufacturing plant and will help boost the company’s total production capacity from 80 million units to more than 90 million units in 2008.
MEDER set up its Asian sales headquarters in Hong Kong in 2002 and until now production was by three contract manufacturers in China but its has now decided to set up its own factory.
As a result its has established a joint-venture with its long-standing subcontractor in Shanghai, GHL International. For the last seven years GHL has provided assembly of reed Rrelays and reed sensors. MEDER says around $1.5million has been invested in the alteration and upgrading of buildings, equipment and IT.
Major processes performed at the Shanghai plant will include plastic injection molding, assembly and testing operations.