The premises include factory and dormitory buildings, as well as 240,000 sf of land in Cheung On, Dongguan from the local government unit. Deswell has been leasing the property through a third-party lease since Oct. 1, 1998.
The lease commitment was to be for 10 years but now will end next month, when the acquisition is scheduled to close. Company officials say the acquisition will save $600,000 in annual rental expenses.
Deswell manufactures injection-molded plastic parts and components, electronic products and subassemblies, and metallic products for original equipment manufacturers and contract manufacturers at its factories in the People's Republic of China. The Company's customers include Kyocera Mita Industrial Co. (H.K.) Limited, Epson Precision (H.K.) Ltd., Inter-Tel Incorporated, Digidesign Inc., Vtech Telecommunications Ltd., Peavey Electronics Corporation and Emerson.
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