Asustek spins off contract manufacturing operations

Taiwanese company Asustek has restructured its operations, splitting its business into three separate units.

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By  Michele Howe Published  July 5, 2007

Taiwanese company Asustek has restructured its operations, splitting its business into three separate units.

The world's top computer motherboard maker, better known as Asus, announced this week that from January its contract manufacturing operations will be spun off from its own branded products, with the contract manufacturing then divided into two different entities.

The PC-related component of its contract manufacturing business will go under a unit called Pegatron, while the casing, modules and non-PC products will come under its Unihan unit.

Asustek's branded business will continue to operate under the name Asustek.

The firm said the change was aimed at making it more competitive.

"Asustek is aiming to boost our branded and contract manufacturing businesses. Therefore we are actively restructuring and dividing our work forces based on expertise to increase overall competitiveness," it said in a statement.

A spokesperson for Asustek in the Middle East said the restructuring would not affect the company's regional operations.

"There will be nothing changed in the near future. We are established by the sales and marketing group from the Asus headquarters and this head office will still remain in Asus's own brand business," he said.

Asustek has operated in the Middle East for approximately six years. It has offices in Dubai, Saudi Arabia and Iran, and employs around 20 people in the region.

In addition to motherboards, the firm produces graphic cards, optical drives, PDAs, notebook computers, networking products, mobile phones, computer cases, computer components and computer cooling systems.

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