These contracts see Volex provide cable assemblies to the Indian telecoms market via its Chennai manufacturing facility, and also delivering products through its two Indonesian factories for Huawei's telecoms customers in its South Pacific region.
With its burgeoning telecoms market serving a population of over 1.1 billion across a large land mass, India presents a significant opportunity to both Volex and Huawei. The import regulations in place in India made it vital for Huawei to partner with a supplier which has local manufacturing expertise coupled with regional knowledge. With a successful working relationship already in place, Volex presented the ideal opportunity through its facility in Chennai to help Huawei meet the needs of its Indian customers.
Indonesia is the fourth most populous country in the world, also resulting in a significant market opportunity for Volex. Huawei required a supplier that adhered to its stringent quality requirements, and with factories in Batam and Jakarta, Volex was well placed to provide Huawei with a flexible and timely supply of high-quality cable assemblies. Huawei's Indonesia centre also covers 30 other countries in the Asia-Pacific region.
Commenting on the new relationships, Conway Hui, Global VP, Telecoms and Datacoms at Volex, states, "Volex continues to demonstrate its strong relationship with Huawei as its global cable assembly vendor of choice. Volex's manufacturing capabilities are well suited to support the needs of Huawei's customers in these significant markets. Huawei plans to have its Indonesia operation become the major logistics centre for the South Pacific region, in much the same way as Huawei's Hungary Logistic Centre is for Europe, Russia and North Africa. Having commenced supply to Huawei Europe last year, we are delighted to secure this business to work with Huawei in this region, and our Batam and Jakarta factories are ideally located to meet Huawei's short lead times."
Hui continues, "Volex is also in an ideal position with our Chennai facility to assist in Huawei's plans to capitalise on the growing Indian telecoms market. And this agreement includes the supply of fibre optic solutions, further extending the product portfolio we are supplying to Huawei."
Volex will supply Huawei Indonesia and Huawei India with subscriber, trunk, and power cable assemblies from its regional factories, and high speed fibre optic cable assemblies will also be supplied from the factory in India.
Hui adds, "Volex's global credentials continue to stand it in good stead with Huawei, demonstrating the company's capability to support the telecom solutions vendor across many regions. Huawei requires consistently high quality products across all its operations and Volex provides a high level of service together with competitive pricing."
Ray Walsh, CEO at Volex Group, comments, "These additional partnerships with Huawei in India and Indonesia are further evidence of Volex's focus on the telecoms arena and the continued trust shown by one of our most important customers. This contract win will support the Company's ongoing revenue growth. Huawei trusts in our product-design expertise, our manufacturing know-how, and our flexible global supply footprint."