GEM News - May 2006

GEM Services Signs Agreement to Build A New Factory in Hefei, China

GEM Services today announced that they have signed an agreement with the government of Hefei, Anhui Province, to build a new assembly and test facility. This facility will be the vehicle for GEM's volume growth for the current decade and will be operated in parallel with GEM's other facilities.

The new facility will take advantage of the availability of both skilled line operators and qualified engineers inland from the previously developed coastal area of China, yet it is sufficiently close to the existing facilities to allow some common functions, cross-training and technology exchanges. A critical part of the selection was the availability of land in Hefei to be able build one factory and keep options on neighboring areas for further expansion to form a campus.