HTC sells another manufacturing plant to boost its VR business
HTC has announced that it will selling its manufacturing facility in Shanghai for 630 million yuan ($91.17 million USD) to an undisclosed Chinese company. The company plans to use the cash from the sale to bolster its HTC Vive business unit since HTC is running low on cash after posting losses for the past seven consecutive quarters.
HTC’s production plant in Shanghai is capable of building roughly 2 million smartphone per month with a yearly capacity of 24 million devices. However, HTC only shipped 18 million units in 2015 and the totals from 2016 range from 10 to 12 million. In December of 2015, HTC sold its Taoyuan City plant which could build 2.5 million smartphones each month.
It’s not clear how much manufacturing capacity HTC still has, but the company still operates at least three facilities in Taiwan. In 2011, HTC’s factories built and shipped more than 45 million smartphones which drove investments to increase production capacity at its Taoyuan City and Shanghai facilities.