Sharechat Logo

Rakon acquires 40% of China's Timemaker in production JV

Thursday 17th July 2008

Text too small?
Rakon, the New Zealand supplier of crystal oscillators for global positioning systems, said it will take a 40% stake in Timemaker Crystal Technology as part of a plan to ramp up production in China.

Shenzhen-based Timemaker is the world's largest supplier of high-spec quartz crystal blanks, a key component of crystal oscillators and resonators, Rakon said in a statement. The two companies formed a joint venture to make components for consumer products including GPS cellular phones starting next year. No price was disclosed.

Rakon expects to invest between NZ$45 million and NZ$70 million in China in the next five years to increase output. The deal marks the second such JV for Rakon, after its February announcement of a production alliance with India's Centum Electronics Ltd. in Bangalore. Rakon owns 49% of that JV.

"Having a presence in China will give us greater access to this market, putting us on the doorstep of our customers," managing director Brent Robinson said. "Our investment in Timemaker allows us to take greater control of our overall supply chain."

Shares of Rakon rose 3.5% to NZ$2.69. The stock has dropped 45% this year.

Timemaker began in 1996 and has annual production capacity for 200 million wafers and 10 million components, according to its website.

By Jonathan Underhill

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Rakon's Robinson brothers sell shares to fellow directors Mogridge, Irvine
Sale of Rakon's Chinese factory better than liquidation
Rakon's Robinson brothers to sell recently purchases shares after breaching Takeovers Code
Rakon founders buy 367,000 shares after Chinese factory sell-down
Rakon sells 80 percent of Chinese factory to reduce debt
No savings this year for Rakon's manufacturing shift to China, grand plan coming in July
Rakon cuts annual earnings guidance again, matching market expectations
Rakon cuts full-year guidance on delayed sales, thinner margins
Sluggish first half pushes Rakon to $3.96M loss
Rakon to cut 60 NZ jobs as it shifts manufacturing to China, India