Efore - Company Announcement

Efore to outsource manufacturing of China plant to Wuxi Hodgen Technology

Espoo, Finland, 2016-08-31 11:00 CEST (GLOBE NEWSWIRE) -- EFORE PLC  Stock
Exchange Release   August 31, 2016  at 12.00 


Efore Plc (Efore) and Wuxi Hodgen Technology Co Ltd (Hodgen) have finalized the
negotiations concerning the outsourcing of manufacturing as well as
manufacturing support functions at the Suzhou plant in China and have signed
today the master supply and asset agreements. 

Hodgen has extensive experience in contract manufacturing business and in
particular working with global companies such as Samsung, GE, Bosch, Siemens
and Whirlpool. Hodgen’s shares are listed on Shenzhen Stock Exchange. 

Both parties have agreed that required official permits and other practical
arrangements would be completed during September. The target is to finalize the
actions according to the agreement by the end of September. 

This agreement will enable Efore to increase focus on its core competency,
which is developing power solutions for its customers. This relationship will
also release capital allowing Efore to invest in its core business and also
facilitate structural changes. These actions will support Efore in creating
more suitable conditions to successfully compete in a ever increasing
competitive market. 

According to the agreement Hodgen will continue manufacturing in Efore’s
current production facility in Suzhou. Efore will remain responsible for the
quality of the delivered products as well as for the NPI (New Product
Introduction) process. 

This arrangement is a key part of Efore’s strategy and will allow Efore to
become a company focused on the product development of demanding power
products. At the same time the outsourcing will significantly reduce
operational costs. 

EFORE PLC

Jorma Wiitakorpi
President and CEO

For further information please contact Jorma Wiitakorpi, President and CEO,
tel. +358 40 175 8510,  or Queennie Cha, General Manager, Suzhou, tel. +86 139
061 366 36 at 12.30 – 13.30 Finnish time (EET) on August 31, 2016. 

DISTRIBUTION

Nasdaq Helsinki Oy
Principal media


Wuxi Hodgen Technology Co Ltd

Wuxi Hodgen Technology was founded in 1998 and listed on Shenzhen Stock
Exchange in 2011. After developing and expanding, the company transformed the
industry from a manufacturer to an enterprise focused on intelligent life.
Hodgen Technology consists of Interactive Data, Smart Home Appliance,
Intelligent Building and Online education. It has world-leading Research and
Development capabilities and state-of-art laboratory in Wuxi, China. It has
gained the qualification of BSH and Samsung global supplier. There are totally
1300 employees in the company. Revenue for 2015 was 106 MEUR and revenue for
2016 is estimated to be 135 MEUR.  www.hodgen-china.com 



Efore Group

Efore Group is an international company which develops and produces demanding
power products. Efore's head office is based in Finland and its R&D functions
are located in Finland, Sweden, Italy and China. Sales and marketing operations
are located in Europe, United States and China. In the fiscal year ending in
December 2015, consolidated net sales totalled EUR 89,9 million and the Group's
personnel averaged 887. The company's share is quoted on the Nasdaq Helsinki
Ltd. www.efore.com