Huawei to sign with Rakon in $69 million deal

Letter of intent to be signed in Wellington today

Rakon has done a large deal with Chinese company Huawei Technologies which targets a quadrupling of Rakon sales to Huawei over the next five years, to US$56 million ($69.33 million).

A letter of intent will be signed today at a ceremony at New Zealand Trade and Enterprise’s office, attended by Huawei deputy chairman Ping Guo.

Huawei will use the Rakon’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 NZTE in helping facilitate the deal, and the 2011 trade mission to China that was a catalyst for the enhanced relationship with Huawei.

“This is a significant partnership for Huawei, with Rakon providing crucial electronic components,” a Huawei spokesman says in a press statement.

“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.”

Rakon designs and manufactures frequency control solutions. The company targets markets that 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 exceed 2100, including joint ventures in India and China.