Trading Symbol: JTI
TORONTO, June 7 /CNW/ - Jite Technologies Inc. ("Jite") announces that its board of directors has approved a plan for further reforming the manufacturing structure in its Shenzhen plant. The Company has proposed to spin off certain interests in its parts manufacturing divisions to employee ownership.
At present, the Company has reached agreements with two new companies, acquired by employees of the parts divisions, to sell a controlling interest in the parts production, one for tooling and plastic molding, and the other for screw manufacturing. The two companies will operate within Jite's facilities with Jite as their main customer while Jite has the rights to outsource the parts to other suppliers when necessary. Jite will concentrate on the assembly of the final product, product design, process control, and customer service. The size of the sold assets totals approximately $500,000. Jite's revenues will not be affected. The buyers are all arms length parties to the Company. As a result of this spin off, Jite should be able to reduce about 160 direct production employees and associated administrative staff.
"This is another step to guide Jite towards a more focused and professional product provider. Jite can put greater efforts in R&D to enhance its product design and process improvements," said Dr. Gang Chai, Chairman of Jite. "Management believes that this measure will further improve the profitability of the company."
JITE designs and manufactures electronic and electrical connection devices for security, industrial control, automation, telecommunication, and power supply industries. JITE is head quartered in Toronto, Canada and carries out research and manufacturing operations in Shenzhen China at its ISO 9001 certified facility. For more information, visit JITE at www.jitetech.com.
This press release contains forward-looking statements which reflect the Corporation's current expectations regarding future events. The forward-looking statements involve risks and uncertainties. Actual results could differ materially from those projected herein. Although we believe that our expectations are based on reasonable assumptions, we can give no assurance that our expectations will materialize.
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) has reviewed or accepts responsibility for the adequacy or accuracy of this release.
SOURCE JITE TECHNOLOGIES INC.
For further information: For further information: Ms. eXavier Peterson or Dr. Gang Chai, Chairman, Tel: (416) 366-7420, Fax: (416) 366-7421, email: firstname.lastname@example.org