Phase II’s manufacturing facility, adjacent to Phase I, will span approximately 500,000 square meters and will be dedicated to designing and making super-thin LEDTVs, HD LCDTVs and 3G cell phones under the NIVS brand name and intended for distribution in China’s domestic market, according to the company.

The expected production capacity will be 2 million TV sets and 1.5 million phones per year.

Construction is scheduled to be completed during the second quarter of 2010, and the manufacturing facility is expected to be operational later that same quarter, according to the company.

NIVS estimates that the project will cost U.S. $17.6 million. The company intends to finance the project’s costs entirely with cash and earnings from operations.

“At the completion of Phase II, we expect to more than double our production capacity, which should provide us with a solid platform for sustainable, long-term growth as we steadily march towards our long-term goal of eventually becoming a household name brand in China,” said Tianfu Li, CEO and chairman of NIVS.