Kingston to Start Manufacturing Overseas

Kingston Technology Corp. said Tuesday that it will begin manufacturing overseas for the first time later this year as part of a plan to speed delivery of its computer memory products to foreign customers.

The move is a strategic departure for the company, which has traditionally subcontracted with a handful of Southern California companies for all of its manufacturing work.

Peggy Kelly, a spokeswoman for the company, said that international sales account for about 35% of Kingston’s revenue, and that percentage is expected to reach 50% within five years. The company hopes to speed delivery of products to those customers by setting up manufacturing facilities alongside existing shipping operations in Europe and Asia.

The company’s European base in England, for instance, is expected to add 100 manufacturing employees this year.

“We need to be ready with products in their time zones as they need them,” Kelly said. Kingston has set aside $40 million to begin buying machinery and testing equipment as part of the expansion program.

Kingston also recently expanded into a 200,000-square-foot building in Fountain Valley adjacent to its existing headquarters. The new building houses Kingston’s shipping department as well as its first in-house manufacturing line.

Kelly said the bulk of the company’s manufacturing work will continue to be handled by subcontractors.