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Demand for smart wireless devices continues - Rakon

Wednesday 30th March 2011

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Technology manufacturer Rakon says significant growth in demand is continuing for its products used in smart wireless devices, such as smart phones and tablet PCs.

A new Chinese plant was due to open in July that would in particular help meet the demand from the smart wireless device market, with the demand growth expected to continue, Rakon said today.

By the time the facility opened, US$45 million would have been invested in it, with plans to spend more in the following two years to meet expected growth in demand.

The plant would have capacity to produce up to 30 million crystals per month, compared to Rakon's facility in this country which, at peak production, produced 15 million frequency control products per month.

Rakon managing director Brent Robinson 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," Robinson said.

"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."

The increased use of smart wireless devices was putting pressure on telecommunications networks, which was helping drive investment into networks and contributing to increased demand for Rakon's products across its entire business, he said.

In the past year, Rakon had increased capacity in this country and Britain, and late last year also expanded into a second factory in India to cope with increased demand in the telecom infrastructure market, where it was predicting more increases in volume in the next year.

Radon shares were up 4c to $1.09 in mid morning trade.



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