Target's strategy for the next few years is a continued growth of our technical skills, a deeper realization of our service commitment and a more practical task specialization in our production facilities. We will achieve these goals by investing in new equipment and facilities, by continuing to hire outstanding personnel and providing ongoing training for our staff, and by continuing to live by our commitment to service and to our philosophy.
In order to further the goal of task specialization and help our factories create a better sense of purpose and identity, we are spinning off our operations into separate business units. These business units will be divisions of Target International. We began this strategy two years ago when we spun off our precision machining operation into a separate facility called Xiongyi Precision Metalworking Co., Ltd. This move has been a resounding success: the facility is independent and vertically-integrated, and carries the specialized equipment necessary to excel in its primary industry, the precision machining of metal stock and metal castings. Its technical staff are experts in machining and the assembly and usage of machined parts. The next step in this strategy is our new die casting facility, which will be called Xiongzhi Lighting Industrial Co., Ltd. We are in the final stages of infrastructure work now, and have already begun pouring metal in the new facility. Our casting operations and tool & die departments will move in to the new facility in phases as we approach the end of the year, and our new Wagner powder coating line will come on stream. Next, design and production engineering support and customer service will devolve from Target International to Xiongzhi in early 2008. We will move die cast luminaire assembly from our main facility to Xiongzhi in 2008 as well. Xiongzhi will thus become independent and vertically-integrated in the same way that Xiongyi is. Xiongzhi has nearly double the capacity of our old casting facility, much of it comprised of newer and more efficient equipment. Its technical staff are expert in the production of casting dies and castings, and the assembly of die cast luminaires. Our commercial/architectural and high-end decorative luminaire production will remain at Target Zhongcun Assembly. This facility is the seat of our wet-spray painting and chemical finishes work, and we will also expand our sheet metal cutting and bending capabilities through further equipment and expertise investments in 2008. Its technical staff, supported by Target design and production engineers and customer service, maintain high proficiency in the design and manufacture of commercial/architectural and decorative luminaires.
As these skill consolidation and investment projects are completed, the newly re-organized facilities will feel a distinct sense of purpose and develop their unique identities and specialized knowledge in order to service Target's clients in the best possible way.
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