Movidius scores €19m deal with Chinese consumer electronics giant
Pictured visiting Keen's operations in China today: Paul Costigan, Chief Operations Officer, Movidius; Arthur Wang, Chairman, Keen High; Minister for Jobs, Enterprise and Innovation Richard Bruton TD and Frank Ryan, CEO, Enterprise Ireland
Dublin multimedia electronics firm Movidius has signed a partnership deal valued at €19m with Chinese electronics manufacturing player Keen High Technologies. The deal will see the companies collaborate on high volume production of consumer electronics products.
The deal was announced amidst a trade delegation visit to China led by the Minister for Jobs, Enterprise and Innovation Richard Bruton TD.
The deal is expected to generate over US$25 million (€19 million) in revenues over the next three years. Volume shipments are already underway to USA, Japan, Russia, Europe and China.
Keen High is one of the major DMS (design manufacturing service) manufacturers who provide "NEW" consumer electronic products manufacturing service in China. Keen High's headquarters is located in Shenzhen city center and the factory is in Fu-Yong, BaoAn, near Shenzhen Airport.
Keen employs over 2,300 people and group turnover in 2009 was US$150m and US$170m in 2010. Keen High is listed on Taiwan's Emerging Stock Market, stock number 3651 and has works with many international brands.
“Today’s announcement shows what is possible for Irish companies in China,” Minister Bruton said.
“As I have said before, a powerful base of indigenous exporting businesses will be key to building a sustainable recovery.
“My hope is that with the right policies, we can build on this announcement to develop the export-led growth and jobs this Government is determined to achieve,” Bruton said.
The two companies will present the latest products at the Hong Kong Electronics Fair from 13 to 16 April at the Hong Kong Convention and Exhibition Centre.
“Our ultra low power Myriad media processing platform has enabled us to develop novel products for both the mobile and consumer markets,” Paul Costigan COO and VP Asia Pacific at Movidius explained.
“With their vast experience in mass producing consumer products, Keen High is a great manufacturing partner for us in bringing these products to market for customers around the world,” Costigan said.
The deal with Keen is the latest in a slew of major deals signed by Movidius in recent months. Last month we reported that Movidius had signed a major deal with Japanese consumer electronics giant Toshiba to develop a high-resolution 3D system for high-end smartphones.
In November we reported that Movidius secured Series C funding of US$9m from existing shareholders including Celtic House Venture Partners, Capital E, Emertec Gestion and AIB Seed Capital Fund.
Combined with previous investment rounds, this brings the total investment raised by Movidius to more than US$30m.
Yesterday RTE Dragons Den star Sean O’Sullivan urged that Ireland becomes China’s gateway to Europe in the same way that Ireland had become America’s gateway to Europe in turn building up an impressive coterie of technology and pharmaceutical inward investment projects over the past 30 years.
“Cooperation with Movidius, creates a new and innovative product category for Keen High,” Wilson Huang Group General Manager of Keen High Technologies said.
“We believe it will be a next growth point in 2012,” Huang added.