WELLINGTON - United States Nasdaq company Digital Microwave is turning to low-cost New Zealand to boost production of wireless products used for voice, data and video transmission.
The company is one of the world's largest independent suppliers of wireless, broadband, and mobile cellular networks.
DMC-NewZealand, formerly MAS Technology, was acquired by Digital Microwave in 1998 when the company was downsized.
But DMC-New Zealand has since started to grow again.
A new facility has added 950 sq m to the company's fivebuilding complex.
Digital Microwave, which in 1998 laid off 27 staff, closed three overseas offices and cut revenue forecasts, has resumed expansion of its 140 staff.
"We have demonstrated that we can compete on a worldwide level, and have grown this world-class business from where it all started, right here in Lower Hutt," said Robert Schlaefli, DMC-New Zealand's general manager.
The company has 50 engineers working on research and development in Lower Hutt and expects to employ a further five this year.
The new facility is a "process-flow" operation rather than an automated mass-production plant. It does the final stage of assembly and checking, but a partner in Australia does a lot of the company's mass assembly work.
Most of the production is exported to Latin America, Africa and Asia Pacific.
The cheaper cost of labour in New Zealand, as compared with the United States, is an attraction for the company.
Although it has to look overseas for certain skills, New Zealanders make up the majority of staff.
The parent company reported global revenue of $US300.5 million ($626 million) for its financial year ending March 31, 2000, up 27 per cent on the previous year.
Net profit was $US12.1 million, compared to a loss of $96.7 million the previous year.-NZPA
New life for wireless firm
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