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© Hanza Electronics Production | January 13, 2020

Hanza to phase out production unit in China

Swedish manufacturer, Hanza, says that it has decided to close down its unit in Ma'anshan, China.

At the same time, the business unit in Suzhou, China, will be widened in close customer cooperation, the company states in a press release. Hanza estimates that the closure of the unit will cost approximately SEK 3 million (about EUR 284’000). However, the company's previous financial assessment remains despite this decision. The Swedish company announced earlier this fall that operations in China would be adapted, as Hanza sees a broadened customer need as a result of the expansion into the German market. Hanza says that it has reached an agreement with one of the its major German customers to move some production from Germany to the facility in Suzhou, China. At the same time, Hanza has decided to discontinue operations in Ma'anshan, China, to concentrate operations in China to Suzhou instead. Operations in Ma'anshan have had a negative impact on the Group's earnings in 2019; something that the company is now looking to change as it expects that the closure of the unit and the development of Suzhou will have a positive impact on the group's profitability.
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January 23 2020 4:22 pm V15.4.2-2