26th Jun 2019 12:45
(Alliance News) - Power cables company Volex PLC on Wednesday said it has bought Hong Kong-based Ta Hsing Industries Ltd for USD5.5 million cash, as part of a plan to integrate suppliers into the company for improving operational and manufacturing efficiencies.
Ta Hsing currently supplies power cables to Volex and other customers from its main manufacturing site in Shenzhen, China, where Volex also maintains a factory.
"The acquisition marks an important step in our development from an assembler of power products reliant on third parties for critical components to a more vertically integrated and efficient producer. In addition, it will help us bridge gaps in capabilities, services and footprint," said Girish Gopinath, chief financial officer of Volex's Power Cord division.
Volex said the acquisition will bring in-house design and manufacture of power cables and result in-house production of PVC resin, a key component of power cord production.
Shares in Volex were trading 1.3% higher at 96.25 pence each on Wednesday afternoon.
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