Kontron AG is founding a joint-venture with the Taiwanese company Quanta Computer. The Taiwanese listed company and his affiliates are acquiring a 21% stake in Kontron Asia, the production organization of the Kontron Group which included its production plant in Penang, Malaysia. Kontron AG will retain both the operating management of, and a voting right majority in, the enterprise. Kontron AG's main objective is to optimize its manufacturing costs for embedded computers using Quanta's purchasing and production conditions to achieve the cost leadership in purchasing and production in the embedded market place. Quanta will benefit from diversifying its production capacities in the industrial market.
With over 40,000 employees globally, Quanta produces around 30% of worldwide laptops per year, and generated total revenue of over EUR 16 billion in 2007. Kontron launched a reorganization of its sales structures in Asia as recently as the fourth quarter of 2007, entailing the installation of centrally managed sales. Kontron AG aims to relocate additional production volume to Asia over the next few years; the aim is for 75 percent of all of Kontron's embedded computers to be manufactured in the Joint Venture by 2010. Processes such as final configuration and the installation of software, however, which are highly know-how critical, will continue to be performed at the European and American Kontron companies.