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Electronics Production |
HTC halts production line
HTC Corp – the Taiwanese smartphone maker – has shut down production at one of its four main manufacturing lines, which makes up a fifth of its total capacity, to counter its cash flow issues.
The company is now outsourcing production as a sales drop is putting the company's cash flow under pressure, according to a Reuters report, citing sources with knowledge in the matter.
The company did respond to Reuters – after initially declining to comment – stating that it had not shut down, nor have any plans of selling any factory assets. Not giving any details, the company told Reuters, via an email that:
"Like any manufacturer, we do volume planning to optimize our lines, our manufacturing and production facilities.
Whether we are operating those facilities depends on market demand and our own expectations. When you have less demand you work with less facilities to optimize your costs. When you have demand, or bigger growth, you definitely have to activate all these facilities."
