(Alliance News) - Satellite communications equipment provider Global Invacom Group PLC on Tuesday said one-off costs from the closure of its Shanghai, China operations could exceed USD10.5 million.
The company decided to relocate Shanghai manufacturing operations to Philippines in the first half of 2020. The decision was driven by increased production costs in China and US tariffs on Chinese products, the company said.
Global Invacom added: "The board wishes to clarify that the closure of the Shanghai operations is ongoing and will only be completed around June 2020. Subject to audit and the final review of the board, the group expects the non-recurring losses related to the Shanghai closure to range between USD9.5 million and USD10.5 million."
Shares in the company closed 7.7% lower at 6.00 pence each in London on Tuesday.
By Eric Cunha; ericcunha@alliancenews.com
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