Motech sells factory in Tainan

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Taiwanese cell manufacturer Motech Industries has agreed to sell its 44,657.84m2 facility in Tainan City, in Taiwan’s Anding District, to Wistron NeWeb Corporation, a Taiwanese manufacturer of wireless communication products.

“The transaction price was … approved by the board of directors based on the appraisal report by Evermore Valuation Firm,” said Motech, in a filing with the Taiwan Stock Exchange.

The company said the value of the transaction is estimated at around TWD980 million ($31.7m).

The cash injection will probably be used by the company to implement its production allocation plan, which has so far seen the lay-off of 300 foreign production workers in mid-September, and to a further workforce reduction of 2% a week later.

“Under [a] rapidly changed and uncertain market situation, Motech has to move forward, making the adjustments, and some painful decisions,” said Motech at the time.

The manufacturer had announced plans to scale back capacity in late August, when it said it would shut its production line in Suzhou, China, due to “environmental” issues, and in response to “industry market needs”.

According to its Q1 2018 financial report, released in May, Motech has a cell production capacity of 3.6 GW, 1.7 GW of which is in China.

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