(Yicai) Sept. 1 -- Kinwong Electronic, one of the world’s main suppliers of printed circuit boards, plans to invest CNY700 million (USD96.4 million) in a new production base in Thailand to better serve overseas clients and deal with the adverse impact of possible changes in the global economic and trade environment.

To be built in phases depending on market needs and business progress, the base will be located in an industrial park in Prachinburi province, the Shenzhen-based company said in a statement yesterday, without revealing any further details.

Many other Chinese PCB producers, including Huizhou China Eagle Electronic Technology and Aohong Electronics, have also set out plans for factories in Thailand in response to the shifting global supply chain landscape. China Eagle announced a CNY550 million investment plan at the end of last year, while Aohong unveiled a CNY600 million plan this June.

Kinwong’s new base will boost its ability to supply overseas markets, better meet the orders of foreign clients, and effectively boost the firm’s resilience to risk, it said.

Kinwong was the world's 16th-largest PCB supplier by shipments last year, having 11 plants across five production bases in China. Its products are used in a diverse range of goods such as auto electronics, telecoms equipment, industrial control systems, medical gear, and consumer electronics.

Exports accounted for about 40 percent of Kingwong’s CNY10.1 billion (USD1.4 billion) revenue from PCBs last year, with a gross profit margin of nearly 28 percent, its annual earnings results showed. The margin on its products sold in the Chinese market was 13.5 percent.

Kinwong's shares [SHA: 603228] closed up 0.6 percent at CNY21.57 (USD2.97) each in Shanghai today.

Editor: Futura Costaglione