Boston, MA 10/21/2013 (wallstreetpr) – Manufacture of optical subsystems for telecommunication, Finisar Corporation (NASDAQ:FNSR) has informed the regulators that it had opened a new production facility in Chinese district of Wuxi, located in Jiangsu Province. This 0.5 million square feet facility would be used for manufacturing of parallel as well as tunable transceivers, optical sub assemblies which are used in high end VCSELs, etc. The interesting part about this facility is that it is in close proximity to company’s Shanghai plant.
Highlighting the importance of this development, Executive Chairman of this 2.5 billion dollar market capitalization company, Jerry Rawls said that his company would continue to invest in building up manufacturing facilities as per the demands of the local markets. He also said that company believed in competencies of local people and has decided to employ a management team and employees selected from local population instead of bringing them from company headquarters. It should also be noted that Finisar is one of the very few companies operating in this industry which can boast of having their own production facilities. And with its presence well established in multiple countries like Malaysia, California, Sweden and China, it seems quite evident that company’s long term vision is to become a global player with geographical reach all over the world. Company management has also been quite vocal about its worldwide manufacturing strategy which intends to have high production volume at cheap costs.
Company’s shares have been in a continuous uptrend after hitting a low of $12 in May this year. The stock currently trades at $25 and seems well capable of reaching higher levels as revenues from new facility would also start showing up in P&L statements from next quarter onwards. The stock reacted positively to the news of this opening of a new production facility and closed with gains of close to 6%.
