Media reports state that Delta Electronics is suspending its plans to invest approximately $50 million to build a plant in Chennai, India, due to the global economic slowdown. The company also confirmed plans to downsize operations in Thailand and lay off 400 workers.
Delta Electronics Executive Director Anusorn Muttaraid was quoted as saying, "We think that the project is not viable to invest in for the time being given the current market conditions. But it does not mean we are canceling it. The project, which would produce telecoms and computer parts, might be feasible to resume later."
Anusorn predicted that a global slump in the electronics industry would continue through the first two quarters of 2009 before bottoming out in the third, after which a recovery would be seen in the high-end of the market.
Delta will apparently proceed with a previous plan to spend over $8 million to acquire land and build a final assembly facility for low-end electronic components in India. Delta Power Solutions currently operates two plants in India. The Rudrapur facility in Uttarakhand state manufactures telecom power supplies and UP units, while the Pondicherry plant in Tamil Nadu state produces telecom power supplies and magnetic components.
Delta announced that its consolidated sales revenues for December 2008 totaled NT$8,207 million, representing a 21% decrease as compared to NT$10,399 million for December 2007 and a 24% decrease as compared to NT$10,775 million for November 2008. The company’s cumulative consolidated sales revenues from January to December in 2008 were NT$142,645 million, a 9% increase as compared to NT$130,614 million for the same period in 2007.
