Rakon expanding to meet growth in global data

30 March 2011, Auckland, New Zealand

Rakon expanding to meet growth in global data

Technology manufacturer Rakon says the company is continuing to experience significant growth in demand for its products into smart wireless devices (smart phones and tablet PCs) and that it is anticipating that this growth will continue.

This increase in demand is contributing to the company's enthusiasm for its China expansion, where a new plant is on track to open in July this year, which in particular will to help service the fast growing smart wireless device market.

Rakon's project will see $US45 million invested by the time the facility opens with plans to invest further over the following 2 years to meet expected growth in demand. It will have capacity to produce up to 30 million crystals per month, compared to Rakon's New Zealand facility which, at peak production, produces 15 million frequency control products per month

Brent Robinson, Rakon Managing Director, said the Chinese plant would provide significant additional capacity, at a lower cost base, for the high volume consumer products.

"We've had significant success in recent times in increasing our market share in what is a highly competitive and growing market," said Mr Robinson. "The China facility has been planned for quite some time to deal with this and it will give us the cost and capacity base we need to be successful in profitably supplying this sector."

"In addition the increased use of smart wireless devices by consumers is putting pressure on the telecommunications networks which are struggling to handle the amount of data being transmitted. This is helping drive investment into networks and in turn contributing to increased demand for our products across our entire business."

"Over the past twelve months we have increased capacity in the NZ and UK and late last year we also expanded into a second factory in India to cope with the increase in demand for our products in the telecom infrastructure market and we are predicting further increases in volume there over the next 12 months."

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