30th Apr 2014 08:57
LONDON (Alliance News) - Volex PLC said Wednesday that it was in discussions with Chinese mobile internet company Xiaomi Inc about data cables for its mobile-devices division, following its recent contract win with Xiaomi for power cables for its new audio-visual product range.
Volex provides power and data cabling products.
The company said that these discussions could lead to increase orders from Xiaomi, and it expects its relationship with Xiaomi to develop into a strategic partnership over the next few months. Volex began producing and delivering power cables for Xiaomi under its current contract in April, it said, which had resulted in revenue growth and improved utilisation at its Zhongshan facility in China.
Xiaomi posted revenues of over USD5.2 billion in 2013, and is expects to post revenues of more than USD16 billion in 2014.
"The innovative approach that Xiaomi has been taking towards product design and cosmetics made Volex the obvious partner in terms of cable design and production feasibility," said Xiaomi co-founder and Vice President Richard Wang in a statement.
Shares in Volex were trading up 9.2% at 105.41 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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