Optical Communication Products Inc. (OCPI), a manufacturer of fiber optic components, announced an agreement with SAE Magnetics (H.K.) Limited (SAE), a wholly-owned subsidiary of TDK Corporation, which will enable the Company to manufacture certain of its product lines in China commencing in the summer of 2007. OCP will maintain its existing manufacturing facilities in Woodland Hills, California, and Hsinchu, Taiwan, but will reduce these workforces once manufacturing at SAE begins.
Philip F. Otto, CEO, OCP, said, "Our partnership with SAE enhances our ability to serve our customers by dramatically expanding our manufacturing capacity while providing the high-performance products these customers require. With the acquisition of GigaComm in August 2006, we entered Japan, the world's most advanced telecommunications market, and took a leading position in the fiber-to-the-home optical components market. Now, we plan to move into high-volume production in China to augment our proven capabilities in short-run, specialized applications,” he added, “This transition is a key element in OCP’s long-term strategy to increase revenues and improve financial performance. Manufacturing in Asia will enable us to increase our manufacturing capacity and flexibility, while simultaneously reducing costs. We will continue to fulfill low-volume, fast-delivery requirements from our facilities in the US. With this step, we will now build on this core strength, adding manufacturing flexibility and faster product development as vital components of our strategy."
OCP
