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Fulfillment/Logistics News
Omni-ID Establishes New China Subsidiary and Manufacturing Facility for RFID Tags
Qingdao facility aimed at increasing RFID tag production capacity, improving quality and time to market for top supplier of passive UHF tags

Quote from Omni-ID President and CEO Tom Pavela

Foster City, CA — August 5, 2009 — RFID tag supplier Omni-ID has set up a new subsidiary in Qingdao, China, with the goals of increasing the company's tag production capacity and improving time to market and quality, the company has announced.

The subsidiary, Omni-ID High Science & Technology Co., Ltd., will be based within the Qingdao Export Processing Zone (QDEPZ) and will include a manufacturing facility. Omni-ID said that setting up the subsidiary will allow Omni-ID to take control of its own supply chain.

The establishment of this subsidiary is a result of increased market demand for Omni-ID's specialty passive RFID tags, the supplier said. The Omni-ID subsidiary will be solely dedicated to the production, assembly and QA of Omni-ID's passive UHF RFID product line of tags and services, including a rapid product prototyping capability.

"The significant adoption of our RFID tags and resulting rapid growth for Omni-ID has opened the door for our further expansion," said Tom Pavela, president and CEO of the company. "Establishing the manufacturing facility in Qingdao is a strategic move for even greater control over our supply chain and product development, so that Omni-ID can bring to market RFID solutions that rapidly, flexibly and cost effectively serve our customers and partners."

Located in the heart of the Qingdao Export Processing Zone within the Chengyang district, the Qingdao site offers a cost-effective location and a logistics infrastructure with close proximity to an international airport, one of the largest seaports in the world and around-the-clock customs processing, Omni-ID said. The establishment of its new subsidiary in China is a part of the company's brand and global expansion strategy to meet RFID market requirements and growth.

"As a national model district for science and technology development, Chengyang is an exceptional place for innovative, technology companies like Omni-ID to invest and produce high tech products" said Li Guixi, vice district governor of Chengyang Municipal Government.

"Omni-ID's plans of initiating a subsidiary to manufacture its products in Qingdao, China, is seen as a strategic move toward not only expanding its presence and business capabilities within the Asia-Pacific region as a whole, but also as a thrust towards strengthening its in-house capabilities of product development, quality management and better flexibility to cater to a myriad of customer requirements swiftly," said Richard Sebastian, automatic identification-RFID research analyst at Frost & Sullivan. "This is testament to Omni-ID's success in the RFID ecosystem in producing specialized passive UHF tags which has seen the company grow by leaps and bounds over the last 24 months."