Rakon officially opens new Chinese factory

Facility in Chengdu will produce high-end components

The opening of Rakon’s new US$35 million facility in Chengdu, China, was marked at a media and analyst conference at the company’s Auckland headquarters today.

The factory, which produces crystals and temperature-compensated crystal oscillators for smartphones and other consumer devices, was officially opened at a ceremony in Chengdu yesterday.

Speaking via teleconference from Chengdu at the local conference, Rakon managing director Brent Robinson noted that the company chose Chengdu, rather than the longer-established special economic zone of Shenzhen, because of Chengdu’s rising status as China’s tech hub.

“The mayor of Chengdu’s strategy is to make it the leading technology park in China,” Robinson noted.

“Lenovo is there – this is the place to be in China.”

The Chengdu factory, operated in partnership with joint venture partner George Ye, has 70 staff, and this figure is anticipated to rise to 120 by October.

The facility is located close to Foxconn’s giant manufacturing plant, which produces Apple devices. The 2.8 sq km Foxconn factory employs 60,000 staff, a figure which is projected to rise substantially, and Robinson says the presence of so many tech staff can only be good for Rakon in the long run.

The components made at Rakon’s Chengdu plant are geared to optimising the performance of smartphones and other devices by accurately reading and responding to slight variations in the temperature inside the devices.

Rakon reported a net profit after tax of $8.48 million for the year to March 2011.

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