Notebook case maker Catcher suspends Hungary investment project

Notebook and handset case maker Catcher Technology has decided to suspend its plans to set up a magnesium-alloy case plant in Hungary, citing deteriorating investment conditions in the country, the company said on June 26 after a board meeting.

The company is evaluating the possibility of setting up the new plant in a number of locations but has not yet finalized the plan, said the company, noting that the establishment of the new plant would be implemented in line with the new deployment of it major clients.

Since notebook maker Compal Electronics, one of the major clients for Catcher, is planning to invest as much as US$500 million to built a production base in Vietnam, Catcher is likely to re-locate its new plant to Vietnam once Compal decides to go ahead with its Vietnam investment project, according to market sources.

In line with Catcher's suspension of its investment plan in Hungary, Catcher will re-locate a lump sum of US$52 million originally designated to for the company's investments in Eastern Europe for other purposes, including transferring US$11.2 million to strengthen the financial operations at its parent company in Taiwan, US$12.3 million for the purchase of new equipment and US$28.5 million for the purchase of materials from overseas, said the company.