Technology company Rakon (RAK) will today sign a letter of intent with Chinese Huawei Technologies Co. Ltd. The deal targets a quadrupling of Rakon''s sales to Huawei over the next five years to USD56 million.
Rakon's product range, advanced technology and competitiveness were significant factors for Huawei, who will use the company'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 NZ Trade and Enterprise in helping facilitate the deal and the 2011 trade mission to China that was a catalyst for the enhanced relationship with Huawei.
The signing ceremony, held at NZTE's Wellington office, will be attended by Ping Guo, Huawei Deputy Chairman and the Letter of Intent signed by Fuhai Yao, Huawei President of Global Procurement.
"This is a significant partnership for Huawei, with Rakon providing crucial electronic components," a Huawei spokesman said.
"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."
NZTE Chief Executive Peter Chrisp congratulates Rakon and Huawei on their partnership: "I'm pleased to congratulate Rakon and Huawei on their announcement today. Successful global partnerships are key to the growth of New Zealand companies internationally.
"Rakon's advanced technology tells a great story for New Zealand, and their commitment to China and the potential it offers is a good example of what a long-term approach can deliver," Chrisp says.