Source: SinoCast China IT Watch
Time: November 23, 2006
Title: "BenQ Reduces Staff in Shanghai"

Summary: "BenQ Corp will reduce about 400 jobs by the end of this year at its Shanghai mobile phone unit... About 50 percent of the more than 800 workers at the handset plant in Jinqiao in Pudong New Area will be laid off, BenQ said."

Reasons:

• ""We have to do this to improve efficiency and finish the reorganization of our handset business," BenQ said in the statement without providing more details."

BenQ's plans after the reduction:

• "BenQ will set up a new mobile phone manufacturing facility in Shanghai as it consolidates major production capacity in the city."
  • "The new factory, to be located in Pudong's Jinqiao Export and Processing Zone, is expected to open in the second quarter of next year. When it begins operations, more than 80 percent of BenQ Mobile's global manufacturing capacity will move to Shanghai from Taiwan, Germany, and Suzhou, Jiangsu Province, said Danny Yao, general manager of BenQ China's communications division."
• "BenQ will launch 15 to 20 new phone models next year with the "BenQ-Siemens" co-brand in China compared with about 10 in 2006."
• "BenQ will expand its distribution channel to 3,000 stores nationwide from about 1,000 at present"

Quote:

"We have to be closer to clients, and Shanghai brings us a fantastic logistics infrastructure system and favorable tax policies," Danny Yao, general manager of BenQ China's communications division