BenQ Signs Agreement to Sell Handset Factory

Taiwanese manufacturer BenQ has signed a memorandum of intent (MoI) to sell its plant in northern Brazil that produces mobile phone handsets, BenQ said in a statement.

The Taiwanese company signed the MoI to transfer control of the factory and research center in the Amazon state capital of Manaus to businessmen Enzo Monzani and Conrado Will, owners of the local retail clothes chain Zoomp.

The contract to transfer the assets and use the brand is in the process of being signed, the statement on May 11 said. The value of the deal has not been disclosed.

The president of BenQ's unit in Manaus, Denise Santos, has said its employees will continue to work as normal and there would be no job losses, a BenQ spokesperson told BNamericas.

Despite good handset sales in Brazil, mainly in the retail market, the problems BenQ has been experiencing worldwide have impacted the Brazilian unit, the statement said.

BenQ has posted losses of almost US$1bn worldwide from the handset unit since the company took over the handset division of Germany's Siemens in 2005.

Speculation that BenQ might close the Manaus plant mounted last year when a local trade union official said the company had fired 310 employees at the plant.

BenQ posted global revenues of US$13bn in 2006."

Posted to the site on 15th May 2007