Israeli company Payton Planar, a subsidiary of listed company Payton Industries, will set up a plant for manufacturing planar transformers for communications products and cellular telephones, together with a group of Taiwanese investors. This emerges from an agreement signed by the two parties. The $8.2 million plant will be set up in Taiwan, and its products will be marketed to Nokia and Ericsson, among others.
Payton Planar is traded on the Brussels stock exchange, and controlled (66%) by Payton Industries, which is traded on the Tel Aviv Stock Market (TASE) at a company value of $11 million. The group has plants in Israel, the US and India.
The plant will be set up through Payton Asia, a subsidiary jointly owned in equal parts by Payton Planar and Taiwanese company Simicom, which represents a group of Taiwanese investors.
Under the agreement, $7 million of the overall sum invested in setting up the plant ($8.2 million) will be used to buy a plot of land including a 2,000 sq. m. industrial structure. $1.2 million will be used for working capital and equipment. Payton Planar and the Taiwanese investors will equally share the investment.
Payton will invest $600,000 from its own resources and another $3.5 million will be invested through a loan from the Taiwanese investors represented in Simicom.
Published by Israel's Business Arena on 17 August, 2000