Jite announces spin off of parts manufacturing
6/7/2010 11:37 AM - Canada NewsWire
TORONTO, Jun 7, 2010 (Canada NewsWire via COMTEX News Network) --
Trading Symbol: JTI
Jite Technologies Inc. ("Jite") announces that its board of directors has approved a plan for further reforming the manufacturing structure in its Shenzhen plant. The Company has proposed to spin off certain interests in its parts manufacturing divisions to employee ownership.
At present, the Company has reached agreements with two new companies, acquired by employees of the parts divisions, to sell a controlling interest in the parts production, one for tooling and plastic molding, and the other for screw manufacturing. The two companies will operate within Jite's facilities with Jite as their main customer while Jite has the rights to outsource the parts to other suppliers when necessary. Jite will concentrate on the assembly of the final product, product design, process control, and customer service. The size of the sold assets totals approximately $500,000. Jite's revenues will not be affected. The buyers are all arms length parties to the Company. As a result of this spin off, Jite should be able to reduce about 160 direct production employees and associated administrative staff.
"This is another step to guide Jite towards a more focused and professional product provider. Jite can put greater efforts in R&D to enhance its product design and process improvements," said Dr. Gang Chai, Chairman of Jite. "Management believes that this measure will further improve the profitability of the company."
About JITE
JITE designs and manufactures electronic and electrical connection devices for security, industrial control, automation, telecommunication, and power supply industries. JITE is head quartered in Toronto, Canada and carries out research and manufacturing operations in Shenzhen China at its ISO 9001 certified facility. For more information, visit JITE at
www.jitetech.com