On the heels of decisions made separately by other Taiwanese contract manufacturers such as Foxconn, Quanta, and Inventec to set up new plants in Chongqing of Sichuan province, China, Taiwanese Compal announced on June 17 that the company will set up a new notebook PC facility in Chongqing, China, Taiwan's Economic Daily reported on June 18, adding that the plant is slated for production in 2011.Aside from its Chongqing base, Compal has another notebook PC production bases located in Kunshan of Jiangsu province, China, with relatively large production capacity in comparison with its new Chongqing base. With hiking labor costs in coastal cities of China, Compal stated that the company will gradually shift its operations to inland China, while continuing its overseas expansion plans focusing on Europe, Middle and South America such as Brazil, and Southeast Asia such as Thailand, according to the same source.

 

Meanwhile, one of Compal's rivals Inventec recently announced that the company is slated to begin the mass production at its new Chongqing base in November 2010, Taiwan's United Evening News reported. Inventec stated that the company has been persuading its parts and components suppliers in to move to Chongquing as well, so as to lower shipping costs. Further details regarding the capacity of the plant, however, were not yet known.