Technology company Rakon (RAK) signs a letter of intent with Chinese Huawei Technologies Co. Ltd. The deal targets a quadrupling of Rakon’s sales to Huawei over the next five years to USD56 million.
Rakon’s product range, advanced technology and competitiveness were significant factors for Huawei, who will use the company’s frequency control products in its handsets, smart devices and infrastructure programmes.
Rakon Managing Director, Brent Robinson, says the company had been working closely with Huawei for some years. “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.”
He credits the assistance of Trade Minister, Tim Groser and NZ Trade and Enterprise in helping facilitate the deal and the 2011 trade mission to China that was a catalyst for the enhanced relationship with Huawei.
The signing ceremony, held at NZTE’s Wellington office, was attended by Mr. Ping Guo, Huawei Deputy Chairman and the Letter of Intent signed by Mr. Fuhai Yao, Huawei President of Global Procurement.
“This is a significant partnership for Huawei, with Rakon providing crucial electronic components,” a Huawei spokesman said.
“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.”
NZTE Chief Executive Peter Chrisp congratulates Rakon and Huawei on their partnership: “I’m pleased to congratulate Rakon and Huawei on their announcement today. Successful global partnerships are key to the growth of New Zealand companies internationally.”
“Rakon’s advanced technology tells a great story for New Zealand, and their commitment to China and the potential it offers is a good example of what a long-term approach can deliver,” Mr Chrisp says.
Rakon is a global high technology company that designs and manufactures world leading frequency control solutions. Rakon products are at the forefront of enabling connectivity, faster and more reliably.
Rakon is the chosen partner for many of the world's leading electronics manufacturers’ and biggest technology brands.
Rakon targets markets that demand high performance and reliability and have high-growth potential, such as GPS for positioning, navigation devices, smart phones and tablets, 4G telecommunications infrastructure and space satellites.
Rakon’s global staff numbers are over 2100 including JVs in India and China.
Since 2006 Rakon has transitioned to become one of the largest global providers of frequency control solutions and has built a world class R&D and global manufacturing platform in NZ, UK, France, India and China; offering a complete and diversified product portfolio into multiple high growth markets.
Huawei is a leading global information and communications technology (ICT) solutions provider. Through its dedication to customer-centric innovation and strong partnerships, it has established end-to-end advantages in telecom networks, devices and cloud computing. Huawei is committed to creating maximum value for telecom operators, enterprises and consumers by providing competitive solutions and services. Our products and solutions have been deployed in over 140 countries, serving more than one third of the world’s population.