New Zealand electronics manufacturer Rakon has reported a net loss of $3.96 million for the half-year to September 30.
The outsourcing of low-cost manufacturing, which will slash 60 jobs and make savings of $10 million a year, affected the overall result. Revenues were also down 5.5 per cent for the same period last year, reports Fairfax’s Business Day.
"Our manufacturing facilities in China and India are now well established which will enable us to reduce costs we have been carrying through the transition and allow us to improve earnings and continue to invest in growth,” managing director Brent Robinson said in a statement.
The company said it was now well-positioned to build its position in the Chinese market.
"Rakon is a leading supplier not only to the well-recognised names but also to the leading Chinese brands,” said Robinson.
“Rakon's RCC (Rakon Crystal Chengdu) facility is operating well. Capacity will increase with the planned movement of two high volume lines from NZ and additional new capacity in the new year."