Chairman of notebook battery maker Simplo Technology, Sung Fu-Hsin, at a forum in China, has said labor shortages in 2011 are expected to be very serious, but Simplo's new plant in Chongqing will be able to start production in August 2011, with its maximum monthly capacity to reach two million units.
Sung pointed out that the IT industry, facing labor shortages and a rising Taiwan exchange rate, will still face many challenges in 2011, but he is confident about Simplo's potential for growth and expects its revenues to continue to rise. Simplo is also set to focus on expanding its client base to bring up its overall revenues to minimize the impact on gross margin from exchange rates and product prices and is set to earn a profit worth the same amount as its capital in 2011.
As for the labor shortages at its plants in coastal areas of China, Sung pointed out that the company has already reached an agreement with the Chongqing government and will send students hired in Chongqing to its coastal plants for training to solve the issue. After the company's Chongqing plants start production, Sung expects the costs saved from labor and transportation will be able to cover the losses from the rising Taiwan exchange rate.