United Time Technology Co., Ltd. [NASDAQ: UTME] revealed that United Time Technology Co., Ltd. (UTime SZ) and People’s Government of Jiangnan District in Nanning City inked an investment agreement on the formation of the production line of smart telecom devices (the Nanning Production Base). As per the agreement. UTime SZ has confirmed its plan to build production facilities to create smart telecom devices in Nanning, China.
The Chairman and CEO of the Company disclosed that in the beginning, the firm intend to establish the Nanning Production Base just to robustly expand the Company’s new generation of smart telecom devices. But the firm has decided to take the advantage of the geographical position of Jiangnan District of Nanning City and the industrial cluster effect.
United Time Technology Co., Ltd contemplates that it can use the Nanning Production Base for many purposes. The main purpose of the firm is to cut costs, enhance efficiency, and reinforce its research and development (R&D) and production capabilities.
Furthermore, UTME is planning to invest about RMB150 million to establish and run the Nanning Production Base. Moreover, the firm is planning to deploy 6 Siemens Series D surface mount lines, 8 mobile phone assembly lines, and 2 or 3 smart wearables production lines in the planned new plants covering around 20,000 square meters.
In addition, UTME also intends for a new generation of smart wearables to roll off the production line at the Nanning Production Base. In return for this investment, the Jiangnan Government confirmed to offer certain economic rewards to UTME to back its operations at the Nanning Production Base. It has been expected that the building of the new production base enabled UTME to enhance its ecosystem in the industry chain in a changing economic landscape and offer global customers cost-effective smart telecom products in a way that’s more stable and reliable.