Tuesday, November 6, 2012

Logic that’s tough to argue with….

Rakon plans to cut up to 60 jobs in New Zealand as part of plans to shift production to China.

The electronics company says some its crystal manufacturing output, which is used in mobile phones, can be made cheaper in its Chengdu plant.

Rakon's shares slumped to a low of 38 cents in August. Investors have been unhappy since the company reported its second annual loss in three years in May.

Managing director Brent Robinson said 60 of the 430 jobs at Rakon will go by early next year, but research and product development will remain here.

He said the move will help Rakon take advantage of a global growth in demand for smart wireless devices, and save $10 million per year, with 70% of that happening by April next year.

The company's shares rose 10%, or 4 cents, to 45 cents each on Tuesday.

Copyright © 2012, Radio New Zealand

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