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FPCB Report: Mektron Suffers First Loss

Post:2014.05.23 Hits:511

 FPCB Report: Mektron Suffers First Loss

Research and Markets has announced the addition of the Global and China FPCB (Flexible Printed Circuit Board) Industry Report 2014 report to their offerings. The world's largest FPCB company, Mektron, suffered its first loss since its establishment, due to three main reasons: HDD and ODD markets contracted; the company began to intervene in the price war; and the company's 45% output came from China where RMB appreciation and rising labor costs eroded profits. Mektron has increased the capacity in Taiwan, and Panasonic has also invested US $100 million in building a new FPCB base in Taiwan. The gross margin of South Korea's largest FPCB company Interflex fell by nearly 50% in 2013, and its operating margin plummeted from 6.2% to 1.2%. The only FPCB company in the United States, MFLEX, whose manufacturing bases were in Mainland China also faced loss for the first time. Fast-growing companies such as Flexcom and BHflex transferred their main production bases to Vietnam. Hon Hai Group's ZDT obtained more orders from Apple with the advantages of the parent company, so that its profit margin went up substantially. ZDT's main base is located in Shenzhen, but it has also transferred part of its bases to low-cost regions: its second base is in Qinhuangdao, and the third base is in Huai'an.