Rakon is pleased to announce two significant strategic milestones, further validating and demonstrating the momentum of its global strategy.
Aerospace and Defence facility expansion in France supports $75m+ backlog
The completion of an expansion and new cleanroom at Rakon’s Aerospace and Defence R&D and manufacturing facility in France enables the company to ramp up production capacity to meet its multi-year order backlog currently valued at over NZ$75m. It also positions Rakon to deliver on its fast-growing pipeline.
Chief Executive Sinan Altug says: “Over the past three financial years, the Aerospace and Defence segment has delivered year-on-year double-digit revenue growth. We have a significant contracted backlog for this segment, the largest in Rakon’s history, and a robust multi-year pipeline supported by contracts that are typically signed 1 to 3 years ahead of delivery – providing long-term visibility.
“Currently, that pipeline is limited only by our rate of capacity expansion, which is why we are making strategic investments that extend Rakon’s technology leadership, and provide a substantial lift in capacity to meet fast-growing demand,” says Altug.
Managing Director, Aerospace and Defence, Chloé Gautrin says: “The fast-growing demand for Rakon’s cutting-edge products is driven to a significant extent by the rapid expansion of commercial Low-Earth-Orbit (LEO) satellite constellations and government Space and Defence programs.
“We have a number of different subsystem and component products that fill important niches within Aerospace and Defence, serving an addressable market exceeding NZ$1 billion in 2025. These products often carry higher margins, reflecting engineering intensity, qualification requirements, and limited competition able to deliver the same product specifications and performance,” says Gautrin.
Rakon has already secured significant wins for its subsystem products and is strongly positioned for similar LEO constellation opportunities, including a recent multi-million dollar contract win to supply the next stage of a mega-constellation for a major player in the direct-to-device, space-based cellular broadband industry.
$3.5m+ grant under Indian Government Scheme
Rakon has been approved under the Government of India’s Electronics Component Manufacturing Scheme (ECMS) and allocated a minimum grant of NZ$3.5m to invest in its Indian operations.
The ECMS is a landmark initiative to drive revenue and value-chain growth within India’s hi-tech electronics manufacturing sector. The grant underscores Rakon’s position as a strategically important technology manufacturer within India, as well as the company’s commitment to invest in the growth of its Indian operations.
Altug said: “The strategic view and leadership shown by the Government of India to support and catalyse its electronics and semiconductor industries is very encouraging. The grant will enable a further acceleration of our ongoing strategy to transfer key product lines and latest proprietary technologies into our Indian facility – to realise key benefits including improved overhead structure, extended product lifecycles and competitive product costs.”
In October, Rakon announced the completed ramp-up for volume production of its Mercury+™ product line in India. This product line, transferred from New Zealand, contains high volume, cutting-edge products for Telecommunications and AI & Data Centre applications. The on-schedule delivery of this milestone, and the cost benefits already being delivered, provides important validation of the company’s strategy to invest in its Indian manufacturing facility.