TAIPEI – Hann Star has temporarily stopped production at its 1A plant in China. The measure comes after significant November losses.

Netbook and notebook orders dropped by 25% and 53% respectively when compared to October figures. The company reported a loss of NT$6 million (US$181,430) for the month. A 30% decline in netbook sales for December and a utilization rate of 50% is predicted.

The temporary closure is expected to reduce personnel expenses by 40% and increase the gross margin 1 to 2 percentage points. The facility is planned to reopen in mid-February.