BenQ`s operations and plans in SA will not be impacted by the demise of its German mobile phone subsidiary, says local MD Zane Oostendorp. "It is business as normal," he adds.
BenQ last week decided to "discontinue capital injection" into the former Siemens facility. The move aims to "stem unsustainable losses" at its German factories and R&D facilities.
The German subsidiary is considering filing for insolvency protection, a statement said.
"BenQ Mobile GmbH & Co OHG`s operations in Germany, including Munich, Bocholt and Kamp-Lintfort, may be affected. Other subsidiaries in Brazil and other locations are reviewing their financial position. BenQ will continue its branded mobile business in selected markets leveraging its existing R&D and manufacturing operations in Asia," said the company.
In June, Oostendorp announced BenQ was investing R6 million in SA following the withdrawal of the loss-making Siemens mobile phone brand from the country last year - and BenQ`s subsequent acquisition of Siemens` mobile phones division last October.
He said the company`s strategy would "initially aim for the mid- to high-end cellular market in SA, although we will introduce entry-level handsets later in the year".
Oostendorp late yesterday confirmed that the money was still being invested and the plans announced in June were unfolding to schedule.
Related story:
BenQ pulls plug on mobile business
Share
