HTC sells Taoyuan City factory to Inventec
In an effort to reduce overhead costs, HTC has sold its Taoyuan City factory and land to Inventec for $174 million. HTC’s Taoyuan City factory was temporarily closed in the fall of 2013 due to a decline in sales of HTC phones. At the time, HTC’s factory in Taoyuan City accounted for one-fifth of HTC total production capacity.
The sale of the facility to Inventec is expected to be finalized in the spring of 2016. While Inventec will take control of the building, HTC’s employees will be relocated to three other HTC factories within Taiwan.
Back in August of this year, HTC kicked off an internal reorganization which saw more than 2,000 HTC employees lose their jobs as a cost cutting measure. Selling the Taoyuan City factory will help HTC save money by reducing facility operation costs and the company’s property tax liability.