BenQ Corporation has announced it will split its branded and manufacturing businesses apart.
Under the proposed changes, the manufacturing arm will be renamed Jia Da Corporation, while the remaining company will keep the BenQ masthead. The decision is subject to approval from shareholders, which are scheduled to meet June 15. The date for the proposed spin off is September 1.
While the plans are not expected to have much of an affect on the business locally, managing director, Philip Newton, said it would free up more funds to spend on marketing, brand development and partner relationships.
"It will essentially take the pressure off the branded business. The amount of money it takes to run a branded and a manufacturing business is very different," he said.
"We will all still form a part of the same group, but now we will run on our merit, which means the branded business won't be laboured with costs of manufacturing."
BenQ brand-related global sales, marketing departments and related R&D units, Lifestyle Digital Centre and part of the Advanced Technology Centre will be transferred to the new BenQ business. Newton said the split would also give it more flexibility to determine what type of products the market needs.
"We can now go to the factory and say 'we need you to make this for us'. If they can't do it, then we can take it to another factory that can," he said. "It gives us a great deal of flexibility in terms of developing product for our markets, which is fantastic. Whereas before we just got what we were given; this is no longer the case."
Newton said BenQ planned to strengthen its product portfolio in coming months by adding new LCD TVs and digital cameras.
