Hong Kong-based Highway Holdings Ltd announced last week it has received approval from one of its European customers for assembly manufacturing of one series of electric synchronous motors at the company’s subcontracting facility in Myanmar.
The company said assembly production, which was approved following testing and quality control evaluation, has started and finished products are being shipped directly to the customer’s factory in Germany.
Nasdaq-listed Highway Holdings produces products for original equipment manufacturers – from parts and components to sub-assemblies and finished products. Its manufacturing facilities are located in Shenzhen, China.
“The assembly of these motors in Myanmar complements our component manufacturing operation in China and enables us to realise meaningful cost-savings and a competitive advantage, while maintaining the highest quality standards,” said Roland Kohl, chairman, president and chief executive officer of Highway Holdings.
Kohl said he expects the customer’s entire line of synchronous motors will be assembled in Myanmar by September 2014, at the latest.
He added that this is Highway Holdings’ second major customer to utilise its capabilities in Myanmar, with strong expectations that additional businesses will transition assembly work to the company’s operation in this country to take advantage of the significant cost benefits.
“We appreciate our customer’s confidence in our capabilities and support; and, we are gratified that this more than 10-year relationship continues to flourish.”