TCL expands production of mobile phones

BEIJING—One of the major Chinese producers of mobile handsets, TCL, plans to enlarge its manufacturing plant from 5,000 square meters to 80,000 square meters to increase its annual capacity to 10 million handsets at the end of 2002. Construction of the new factory will begin in September.
Zhang Zuhua, spokesman for the company’s mobile-phone department, told China Daily’s Business Weekly that TCL plans to sell 1.5 million mobile phones by the end of the year, and increase its sales from CNY320 million (US$38.7 million) last year to CNY2 billion (US$242 million) this year.
Many Chinese consider local brands to be unfashionable, but TCL hired South Korean actress Kim Hee Sun to help promote its image.
Competition in the Chinese handset market is fierce, with 17 original equipment manufacturers (OEMs) for foreign suppliers and 11 companies manufacturing local Chinese brands such as TCL, Haier, Eastcom, and Kejian.