| Press Center |
| Corporate |
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| BenQ Announces Discontinuation of Funding for its
German BenQ Mobile Phone Subsidiary
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| 2006-09-28 |
TAIPEI, TAIWAN, 28 September, 2006 – To stem unsustainable losses at BenQ's mobile operations, BenQ Corporation's board of directors convened today and resolved to discontinue capital injection into BenQ Mobile GmbH & Co OHG, its German mobile phone subsidiary. The subsidiary is considering filing for insolvency protection.
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.
"Since October 2005, we have committed and invested an inordinate amount of capital and resources into our German mobile phone subsidiary. We have worked alongside our German colleagues from the beginning and were able to achieve quite a number of milestones," expressed K.Y. Lee, BenQ Corporation Chairman. "Despite the progress achieved in reducing cost and expenses, widening losses have made this very painful decision unavoidable," continued Mr. Lee.
BenQ emphasized that adjustments to its mobile operations do not change the company's unwavering commitment to its branded business and focus on providing integrated manufacturing services. |
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