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Electroglas, Inc. Message Board

  • BonThomme BonThomme Aug 22, 2002 1:02 PM Flag

    A Question

    Hi All,

    I've just heard the anecdotal stuff about the move to Hong Kong, and I'm curious about how this relates to the new facility in San Jose. If HQ is moving to HK, and manufacturing to Singapore, is the San Jose facility kaput?

    If this is the case, shouldn't they have figured this out before sinking all the money into the new facility? Given the current availability of office/manufacturing space, are we going to take a bath trying to unload it? Will this at least free up the 40M of restricted cash?

    (For the record, I've been long, and continue to be long, but am a little puzzled by this turn of events).


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    • BonThomme,

      My take on all this is that two situations arose here. One was a recognition of China as a vast market waiting to buy, and as a locale for inexpensive production. Hence the Hong Kong move.
      Two, management made a miscalculation as to the longevity of the tremendous surge in demand for semiconductors that came about through the telecommunications build up and gottahaveone computer frensy over the last ten years. Thus, San Jose facility.
      As for San Jose, what is the building's function? R&D?
      Just my thoughts.