ST. LOUIS -- Viasystems Group, once the largest PCB maker in North America, will shutter its remaining circuit board plants outside Asia while adding even more capacity in China.

The company will spend $60 million toward expanding its China operations. These funds will primarily be used to further expand its Chinese PCB production capabilities and enhance its technological capabilities.

Viasystems spent $75 million in China in 2003 and 2004. When the latest expansion comes online, Viasystems will have increased its production capacity in China by 70% over the past three years.

In 2004, Viasystems was the largest manufacturer of PCBs in China, with sales of approximately $343 million, the company said.

"This expansion of our capacity and manufacturing capabilities in China responds to the increasing demands of our customers for high-tech, high-quality, low-cost products and services," said chief executive David M. Sindelar, in a statement.

Viasystems will close its remaining board facilities in Canada and the Netherlands.

"The continued shift of the printed circuit board industry to more cost-efficient regions, coupled with the technological advancement of our Chinese facilities has led to the underutilization of our facilities in Canada and the Netherlands," said Timothy L. Conlon, president and chief operating officer. The plants generated less than 9% of its total revenue in 2004, Conlon said.

Viasystems purchased the plant in Canada as part of its acquisition of Circo Craft. Cisco Systems is believed to be a customer of Viasystems' Netherlands plant, known as Mommers.

"We believe that due to the advanced technological capabilities that exist in our Chinese facilities today, a significant portion of these revenues can be produced in our Chinese operations. The closures will allow Viasystems to focus our efforts and capital investments on the fastest growing region in the printed circuit board market."

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