Gems TV Holdings says it will fully outsource its gemstone jewellery supply, in a move aimed at reducing operating costs, increasing supply chain efficiency and improving manufacturing flexibility.

Gems TV has used outsourced suppliers for a proportion of its inventory since inception, and has recently enjoyed higher profit margins from outsourced products. The company will be working with major suppliers in countries such as Thailand, India and China.

Gems TV will cease the majority of the manufacturing operations at its factory in Chanthaburi, Thailand from Feb 1.

Affected employees will be given severance benefits in line with Thai law.

This development will not have any material impact on the net tangible assets and earnings per share of the company for the financial year ending 30 June 2010.