[Asia Economy Reporter Kim Heung-soon] KMH Hi-Tech, specializing in semiconductor parts and materials and data storage device (SSD·Solid State Drive) case production, announced on the 18th that it is preparing for mass production of SSD case products and packaging materials at its new production facility in Vietnam.
According to KMH Hi-Tech, the new local factory in Vietnam has completed equipment installation and is currently undergoing stabilization work. From the second half of this year, the company plans to actively utilize local infrastructure to expand parts production.
Lee Sang-guk, CEO of KMH Hi-Tech, said, "Although the schedule for securing the production system was delayed more than expected due to COVID-19, we have completed equipment installation and are finalizing stabilization work with support from headquarters. Moving forward, we will strive to secure overseas orders and increase sales by leveraging the new production base in Vietnam."
Meanwhile, KMH Hi-Tech's sales in the first quarter of this year recorded 19.2 billion KRW, a 23% increase compared to the same period last year. Operating profit was 500 million KRW, down 58% year-on-year. Net income was -900 million KRW.
A KMH Hi-Tech official explained the operating profit and net loss as "impacts from one-time costs such as stabilization of the new Vietnam factory and accounting costs including debt derivative valuation losses associated with stock price increases," adding, "We expect a clear improvement in operating profit in the second half of the year."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
