Oct 21 2009
NIVS IntelliMedia Technology Group, Inc., ("NIVS" or the "Company") (NYSE Amex: NIV), a consumer electronics company that designs, manufactures and sells intelligent audio and visual products, today announced that the Company has begun construction on Phase II of its factory in Huizhou ("Phase II"), which will include a new manufacturing facility and dormitory.
Phase II's manufacturing facility, adjacent to Phase I, will span approximately 500,000 square meters and will be dedicated to designing and making super thin LEDTVs, HD LCDTVs and 3G cell phones under the NIVS brand name and intended for distribution in China's domestic market. The expected production capacity will be 2 million TV sets and 1.5 million phones per year. Construction is scheduled to be completed during the second quarter of 2010, and the manufacturing facility is expected to be operational later that same quarter.
The project is estimated to cost approximately RMB120 million (US$17.6 million), half of which will be used for construction and infrastructure, and the other half of which will be used for the purchase and installation of equipment, which will feature state-of-the-art production technologies. The Company intends to finance the project's costs entirely with cash and earnings from operations.
Mr. Tianfu Li, CEO and Chairman of NIVS, commented, "We're very excited about this new manufacturing facility. This large and powerful facility will help us to keep up with our growing LCDTV and 3G cell phone businesses, which are set to become part of our core business on top of audio products. We believe that we have sufficient capital for the project even without additional financing, as we have been successful in collecting our accounts receivables from old customers and shortening payment terms for our new customers. This Phase II expansion reflects strongly on our ability to execute on our growth objectives and our sound business model. At the completion of Phase II, we expect to more than double our production capacity, which should provide us with a solid platform for sustainable, long-term growth as we steadily march towards our long-term goal of eventually becoming a household name brand in China."
Source: NIVS IntelliMedia Technology Group, Inc.