6th Jul 2016 09:36
LONDON (Alliance News) - Power and data cabling services company Volex PLC on Wednesday said it has agreed a joint venture with Taiwan-based Joinsoon Electronics Manufacturing Co Ltd under which the pair will make Volex-branded AC raw cables.
Volex and Joinsoon will form a joint venture holding company in Taiwan with a manufacturing facility located in Guangdong, China.
Volex said the deal will allow it to start production on raw cable used to assemble power cables and will allow it to offer a branded power cable to its customers at a "highly competitive price". It said the cost benefits from the joint venture should start to flow through in 12 to 18 months.
No financial details on the deal were disclosed.
"Today's announcement closes the gap between Volex and its major competitors. We are currently the only major power cable assembler without our own captive source of cable, and by partnering with one of the lowest-cost cable producers we can achieve a cost effective route to vertical integration, and significantly improve our cost structure in this highly competitive industry," said Volex Executive Chairman Nat Rothschild.
Volex shares were up 5.1% to 35.20 pence Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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