CIRTEK Holdings Philippines Corp. (Cirtek) is exploring opportunities in China and Taiwan as part of diversifying its supply chain amid challenges brought by the coronavirus disease 2019 (COVID-19) pandemic.
In a statement on Tuesday, the listed electronics manufacturer said its manufacturing capacity is currently limited to 60% due to local restrictions brought by efforts to mitigate the spread of the virus.
Even when the quarantine is lifted, it said its capacity is expected to rise only to 70% as social distancing measures will still be observed.
To still sustain the increasing demand for its products, Cirtek has resorted to tapping contract manufacturers in China that have resumed operations since its quarantine measures were lifted in March.
“As part of Cirtek’s business continuity and expansion plans, it is in talks with an additional contract manufacturing partner in China as well as qualifying a new Taiwan facility in response to supply chain diversification and business resiliency plans moving forward,” it said.
Cirtek has remained operational while parts of the country were put under an enhanced community quarantine since mid-March as it was exempted for being export-oriented.
The company is engaged in manufacturing various technology products used in communications, consumer electronics, power devices, computing, automotive and industrial sectors, which are exported across Europe, United States and Asia.
Aside from expansion to China and Taiwan, Cirtek also said it was looking to play a key role in the rollout of fifth generation (5G) technology in the United States, as its wholly-owned subsidiary Quintel USA, Inc. launched a new generation of antennas for the advanced network.
The product is the 12-port dual diplexed antennas, which Cirtek said would help telco operators in the US in introducing 5G services across the country.
“From an equipment maker’s perspective, large innovations can be achieved in terms of spectrum efficiency and densification in pushing the network envelope through specialized techniques and these are what Quintel’s new product (is) all about,” Quintel President Michael Stephen Liu was quoted in the statement as saying.
Cirtek posted profits of $4.46 million last year, slightly higher than the $4.41 million it saw in 2018. Its shares in the stock exchange gained P1.12 or 15.01% to P8.58 apiece yesterday.— Denise A. Valdez