Last checked at 7 May 2014 07:00
7 May 2014
Volex supporting China 4G Infrastructure roll-out
Volex PLC, the global provider of power and data cabling solutions, is pleased to report that it is experiencing good growth in its order book within the higher margin Data Division due to the recently initiated roll-out of 4G mobile phone technology in China.
In recent years the Group has established a strong presence as a supplier to the expanding 4G mobile market as the new standard was introduced in territories such as the US. Volex supplies data cabling systems for the mobile phone base station masts, each of which requires up to 70 cables.
China Mobile, the world's largest mobile service provider, is rapidly expanding its superfast 4G mobile network and has recently announced its intention to provide 4G availability for the majority of the country within the next few years, potentially involving the installation of up to one million mobile phone base station masts.
Local Chinese telecom equipment manufacturers Huawei and ZTE are benefiting from this infrastructure upgrade as are European manufacturers, such as Alcatel Lucent, Nokia Siemens Networks and Ericsson. Four of these five OEM suppliers are significant customers of Volex and the Group has leveraged these existing relationships and increased its order book in China in advance of the 4G roll-out.
Christoph Eisenhardt, CEO of Volex, commented:
"We are pleased that the strength of our data and power cabling solutions in the telecoms sector is increasingly being recognised by our customers in China. The Telecom/Data-Centre sector represents approximately 15 per cent of the Group's total revenues and is a meaningful contributor to Group profitability.
Our customers value our flexibility in delivering high quality products and related services to this highly dynamic and innovative market, supported by our strong local presence in the different regions. These new developments in China bode well for our plans to deliver significant and sustainable growth over the next few years in the telecoms sector.
A key element of the Volex Transformation Plan is our strong focus upon sales growth in the different industrial sectors which is already delivering results. This is underlined by increased order intake across all regions and sectors."
For further information please contact:
Volex plc
Christoph Eisenhardt Chief Executive Officer +44 20 3370 8830
Nick Parker Chief Financial Officer +44 20 3370 8830
Tulchan Communications
Christian Cowley / James Macey White +44 207 353 4200