USI Expands Presence in Eastern Europe

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Universal Global Electronics Co. Ltd, a wholly owned subsidiary of EMS firm Universal Scientific Industrial (Shanghai) Co. Ltd (USI), has entered into an equity transfer agreement with ChungHong Electronics (Suzhou) Co. Ltd, intending to acquire its entire 60% stake in its Polish subsidiary Chung Hong Electronics Poland SP.Z.O.O. in Eastern Europe for RMB78 million. It is also stipulated in the agreement that within six months after the audit of financial statement of the Polish subsidiary for the year ended 2020, Universal Global Electronics can acquire the remaining stake in the subsidiary at 10 times the static P/E ratio.

In line with its 2018 expansion strategy, USI has expanded its presence in a new sector after signing a joint venture agreement with Qualcomm in Brazil, and memorandum of understanding for a joint venture with Cancon. According to the statistics of MMI, USI ranked 16^th among global electronic manufacturing service providers in 2017. After the completion of the acquisition, the company will have a production base in Europe, thereby expanding its footprint in the region.

According to C.Y. Wei, president of USI, the company now has a global customer base, with production bases mainly in Shanghai, Kunshan, and Shenzhen in China; Taiwan; and Mexico. The company plans to initially deliver automotive electronics products in Poland, and then roll out its industrial and server businesses in the medium and long term.