(Sharecast News) - Power and data transmission products manufacturer Volex announced a major new contract win on Thursday, with an unnamed "leading global North America-based" automotive manufacturer.
The AIM-traded firm said it would be supplying advanced electric vehicle (EV) power products from its manufacturing facility in Tijuana, Mexico.
It said the contract was expected to generate more than $30m in annual revenue, with full production set to begin in 2024.
The new contract followed Volex's decision to invest in doubling the capacity of its Tijuana site.
With the new contract win, Volex said it would have four sites involved in the manufacture of EV products in Mexico.
Volex added that it was continuing to invest in its sites and its global footprint, including significant new capacity in India, Poland, and Indonesia, expanding production capabilities to meet the increased demand from customers looking for more localised supply chain partners.
"As a trusted manufacturing partner for many of the world's leading electric vehicle brands, this latest contract win is yet another endorsement of Volex's positioning within the EV charging sector," said executive chairman Nat Rothschild.
"In addition, we have successfully expanded beyond Mode 2 EV charging cables, or 'grid cords', onto specialised 'on car' connectors, complex high-voltage assemblies and wire harnesses for use inside the vehicle, increasing our total sales opportunities in the EV market.
"As we continue securing opportunities across our global production footprint, this new contract demonstrates that Volex is the preferred choice for customers who want to localise their manufacturing footprint to enhance resilience in their supply chains."
At 1154 BST, shares in Volex were up 3.81% at 249.15p.
Reporting by Josh White for Sharecast.com.
Volex (VLX)