Calnex agrees lucrative China Mobile deal
TECHNOLOGY firm Calnex is eyeing a multi-million pound boost to sales on the back of a deal to collaborate with China Mobile, the world’s largest network operator.
The Linlithgow-based maker of kits for testing mobile phone networks will work with the state-owned giant to help it appraise and select equipment used for future infrastructure across the country.
Speaking to Scotland on Sunday after First Minister Nicola Sturgeon attended the signing of the agreement, Calnex chief Tommy Cook said the deal could boost its sales by up to £3.2 million over the next three years.
He added: “It’s the culmination of many years of work, and China Mobile tries to lead the way by being an early adopter of new technology.
“If you can get in at the top of the food chain, it encourages everybody else to buy into these solutions, so working with China Mobile will really help us.
“Additional value will come when China Mobile’s suppliers start to buy our equipment, and this really is a stepping stone for the company getting to the next level in Asia.”
Cook, who highlighted the support provided by Scottish Development International in helping the firm get a foothold in the Chinese market, said the tie-up will also see Calnex, which has about 75 staff, boost its workforce by up to 12 people. All of its products are made in Scotland, at Kelvinside Electronics in Kilsyth.
Sturgeon said: “I am delighted to see Calnex being recognised for its work and seizing on the opportunities open in worldwide markets, like China, as it continues its development.”
The First Minister’s trade mission to China last week also saw her visit Shanghai’s Hongqiao airport to see a demonstration of video security technology developed by Edinburgh-based Indigo- Vision.
The company has a presence in six other facilities across China, where there were 202 airports at the end of last year, and Beijing is planning to grow that number to 260 within the next five years.
IndigoVision chief executive Marcus Kneen said: “There isn’t a more competitive market in the world than China. There are hundreds of very aggressive Chinese camera manufacturers, but we have a very robust product and software – and a strong and loyal team.”
Kneen said the Aim-quoted technology firm is now opening an office in Shanghai – its first in China – and is seeking to win more business in Macau, the gambling capital of the world, where it last year secured its first contract with a casino in the former Portuguese colony.
He added: “Nicola Sturgeon was the first government minister to visit one of our sites, so it was great to have her endorsing a Scottish technology company in China.”