Aspocomp Group Plc: ASPOCOMP INVESTS EUR 10 MILLION IN ITS OULU PLANT AND STRENGTHENS ITS POSITION AS A TECHNOLOGY AND R&D PARTNER

Espoo,Finland, 2017-12-18 08:00 CET (GLOBE NEWSWIRE) --

Aspocomp Group Plc, Company Announcement, December 18, 2017 at 9:00 a.m.

PCB technology company Aspocomp will invest about EUR 10 million in new
technology at its Oulu plant. With these investments, Aspocomp is preparing for
growth in demand generated by the progress of digitalization worldwide, such as
the rise of 5G technology and AI applications. The investments will bolster the
company's position as a partner to the world's leading technology and
semiconductor companies. 

Aspocomp's investments have two main objectives: 1) to grow the company's new
customer segment, the testing of semiconductor components, by producing
high-tech PCBs to meet the testing and R&D needs of customers and 2) to
increase production capacity, especially to cater to rapidly rising demand in
the 5G and automotive industries. 

The first strategic objective of the investments, i.e., the growth of the
testing of semiconductor components  segment, is supported by the fact that
after the investments the company will be even better poised to provide highly
technologically advanced PCBs, which enable the testing of very demanding
semiconductor components. Due to the digitalization trend, semiconductors
require new features and even higher performance, which constantly steps up the
need for testing. Furthermore, rapid market launch is vital for customers,
which means that on-time PCB deliveries are critically important. 

"It is clear to us that the development and testing phases in which PCBs are
required will be increasingly challenging in the future. They involve a very
high level of technology. In this business, speed is service and it creates
demand. Moreover, PCBs suitable for testing are produced in volumes that are a
good fit for our Oulu plant, but not for Asian high-volume suppliers, which
means that our market position will be excellent after the investments," says
Mikko Montonen, CEO of Aspocomp. 

The second strategic objective of the investment, increasing capacity, will
bolster Aspocomp's position as a strategic partner to key players in the
automotive and telecommunications industries. 

"For instance, when autonomous cars become widespread, this will create
additional demand for our products, as will the common use of 5G technology. In
the case of autonomous cars, for example, there is no margin for delays in data
transmission, not even a millisecond, and this sets tough requirements for
components used for this purpose," says Montonen. 

Aspocomp's customers are the world's leading semiconductor and
telecommunications technology companies. 

Aspocomp's Oulu plant has operated in its current facility since 1992. It has
around one hundred employees. The investments will create more than 30 new jobs
at the company, most of them at the Oulu plant. The plant's production lines
produce the most challenging designs with the shortest lead-times in the
industry. 

The investments amount to EUR 10 million and will be made primarily in 2018 and
2019. They will improve the technological capabilities of the Oulu plant and
increase its capacity. The floor area of the plant will not be expanded, as the
additional capacity will be built inside the current facility. 

The investment is partly funded by cash flow from business operations and
partly by loan financing. 
When Q3 drew to a close at the end of September, Aspocomp's equity ratio
amounted to 71 percent and gearing was 5 percent. 

Aspocomp keeps its guidelines for 2017 unchanged. At the Capital Markets Day
last spring (www.aspocomp.com/cmd), CEO Mikko Montonen presented Aspocomp's
growth targets up to the year 2022: average annual net sales growth of ten
percent and an operating profit of at least seven percent. 

For further information, please contact Mikko Montonen, CEO,
tel. [phone], mikko.montonen(at)aspocomp.com.

ASPOCOMP GROUP PLC

Mikko Montonen
CEO

Aspocomp - a service company specializing in PCB technologies

A printed circuit board (PCB) is used for electrical interconnection and as a
component assembly platform in electronic devices. Aspocomp provides PCB
technology design, testing and logistics services over the entire lifecycle of
a product. The company's own production and extensive international partner
network guarantee cost-effectiveness and reliable deliveries. 

Aspocomp's customers are companies that design and manufacture
telecommunication systems and equipment, automotive and industrial electronics,
and systems for testing semiconductor components for security technology. The
company has customers around the world and most of its net sales are generated
by exports. 

Aspocomp is headquartered in Espoo and its plant is in Oulu, one of Finland's
major technology hubs. 

www.aspocomp.com