NZ’s Rakon strikes deal with HuaweiAugust 20 - 10am 10
Rakon has agreed a deal with Chinese company Huawei Technologies, quadrupling its sales to US$56m over the next five years.
A letter of intent, to be signed today at the New Zealand Trade and Enterprise’s office, will confirm the deal with the Auckland-based company.
After working closely with the company for some years, Huawei says it will use Rakon’s frequent control products in its handsets, smart devices and infrastructure programmes.
“The letter of intent recognises the greater scale and breadth of our product range, validates our commitment to a strategy of globalisation and our investment in operations in China,” says Brent Robinson, Rakon managing director.
Founded in 1967, Rakon hopes to see the full effect of the deal by 2017, during a year that has so far saw the company’s full-year earnings before interest, tax, depreciation and amortisation fall 47% to $13m.
“This is a significant partnership for Huawei, with Rakon providing crucial electronic components,” Huawei says.
“Huawei’s supply chain is truly global, with only the most impressive and competitive suppliers selected.
“Rakon’s success is testament to New Zealand’s ability to produce world-leading products and innovations.”