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Blonder Tongue looks to China

Thu, 11/10/2005 - 7:00pm
Jeff Baumgartner, CED

Broadband equipment supplier Blonder Tongue Laboratories said it will begin to manufacture products in China via a 50/50 partnership with Master Gain International Industrial Limited of Hong Kong.

Blonder Tongue said the move should decrease manufacturing costs and help the vendor with its entry into the Asia Pacific cable market. In finer points, Blonder Tongue said it eventually expects to see cost savings of $4 million to $5 million through reduced costs for labor and materials. The company estimates it will save about $1 million in 2006.

Master Gain is contributing $5.85 million to the joint venture, and Blonder Tongue is putting in 1 million shares of its common stock. Master Gain also has an option to buy up to 500,000 shares of Blonder Tongue.

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