SHENZHEN -- A pair of Nam Tai Electronics expansion projects continue to be delayed due to government foot-dragging and a dispute over land rights.

The company continues to battle local government in Shenzhen over property that has been paid for but not approved for delivery. The EMS company purchased the land use rights five years ago and additionally compensated farmers occupying the land. However, local government has not yet indicated when the land will be released, due to a dispute with farmers who originally owned the land.

In Wuxi, Nam Tai is attempting to obtain use rights for approximately 500,000 sq. ft. of raw land adjacent to the company's contract assembly  manufacturing facility for dorms, research laboratories, testing and training centers and additional production facilities. Despite repeated indications the local Wuxi government "strongly supports" the planned expansion, the project was again delayed last quarter over "recently identified" zoning and environmental regulations.

Nam Tai in a statement called the projects "critical to the company's future growth and both depend upon the prompt action and cooperation of the local PRC government."

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