NAI, a Troy-based manufacturer of global connectivity solutions for high-performance systems used in the industrial technology, telecom, and medical industries, Wednesday announced the opening of a manufacturing facility in Suzhou, China. The plant is slated to open Sept. 1.
“China’s growing economic development will bring more business opportunities to NAI,” says Bill Miller, vice president of sales and marketing. “We are committed to growing our business in China by investing in people, product, and process.”
The new plant will be located next door to the company’s old plant in Suzhou. However, the new plant is legally a separate business that is considered within China, while its current 126,200-square-foot manufacturing plant is considered outside China because it is located in a duty-bonded zone that allows it to trade in U.S. dollars. The new operation within China will be called NAI Communication Technology Innovation (Suzhou) Co. Ltd. and will conduct business in local Ren Min Bi currency.
Because they are in a duty-bonded zone, NAI must import goods, clear customs, and exchange U.S. currency to Ren Min Bi currency to conduct business with domestic Chinese companies from their current plant. Processing these orders takes several weeks lead-time. The new facility will eliminate these extra steps for domestic customers and reduce customer lead times.
Both facilities will offer the same products and have the same capabilities to make the products. Chinese workers will operate the new facility, and hiring will begin soon after the facility opens.
The investment represents a long-term commitment to improve supply chain operations and processes in China and is important to growing NAI’s business in China.
NAI is a global company in the manufacturing of advanced mission-critical and high-reliability fiber optic and copper cable assemblies and harnesses.