REL: 1158 HRS Rakon Limited
GENERAL: RAK: Rakon Crystal Chengdu Opens
Rakon (RAK) opened its new US$35 million facility in western China yesterday,
marking a significant step in the company's global expansion that will see it
supply China's fast-growing domestic market, as well as international
markets, with high precision, high quality frequency references.
China currently accounts for over 55% of Rakon's existing production and the
expansion of manufacturing operations in China will help fulfill the
requirements of that country's rapidly developing consumer market.
Rakon plans to invest further over the next two years to meet expected growth
in demand. It will have capacity to produce up to 400 million units per
year, compared to Rakon's New Zealand facility which, at peak production,
produces 180 million frequency control products per year.
The new factory located in Chengdu's High-tech Industrial Development Zone,
is a joint venture with leading quartz blank company Timemaker, which holds a
15% stake in the company.
Brent Robinson, Rakon Managing Director, said the Chinese plant would provide
significant additional capacity, at a lower cost base, for the high volume
"We are grateful for the support from the Chengdu authorities. Our Chengdu
plant is of strategic importance for our expansion in China and complements
our first joint venture with Timemaker in Shenzhen and Chengdu."
Rakon holds several records for its technology, including being the first to
develop the 0.5ppm TCXO and most recently the world's smallest Oven
Controlled Crystal Oscillator (OCXO). The company maintains a technology and
market leadership position with an over 50% market share in non-cellular GPS,
60% in personal navigation devices and 80% in EPIRB.
Justin Maloney, Marketing Manager
+64 9 571 9323
+64 21 467 466
End CA:00211199 For:RAK Type:GENERAL Time:2011-07-12 11:58:20