Reading time ( words)
Foxconn Technology Group, the largest contract electronics manufacturer worldwide, has acquired through its subsidiary a 20% stake in Bamboo Distribution, a UK-based mobile phone recovery, recycling and distribution company.
Foxconn's decision to invest in the company is based on a number of strategic factors, including Bamboo Distribution's compliance with all environmental and data protection regulations, the company's current and projected growth expectations, its operational capabilities and specialist knowledge of the mobile buy-back, reconditioning, distribution and recycling sectors.
Juney Mistiki, managing director of Bamboo Distribution, said, "This is an exciting time for us and a clear endorsement for our company. Foxconn recognised the value we are already providing our customers. Following extensive talks with Foxconn, we demonstrated why we were the right choice to help drive its expansion into Europe. Of course, this is a two-way agreement; our customers will immediately benefit from the direct access we now have to one of the most successful electronics manufacturing companies in the world."
Foxconn's investment in Bamboo Distribution follows the news earlier this year that the two companies had entered a new strategic partnership designed to strengthen Foxconn's position within the European market and open new revenue channels. Central to this agreement will be a new co-founded distribution centre providing services in the UK and Europe, which will increase Bamboo Distribution’s processing, fulfillment and distribution capacity.
As part of the acquisition, US-based Paul Chou, Vice President of Foxconn, joins Bamboo Distribution's board of directors. Chou has been part of Foxconn for over 13 years, helping to set up and manage operations globally to support the expansion of various Foxconn businesses. He will bring a wealth of knowledge and experience to Bamboo Distribution and will coordinate the integration of opportunities for the businesses.
Chou said, "Bamboo Distribution offered us the ideal gateway to the European market, the company was a natural fit. It was clear from our discussions that the company's customers have complete confidence in Bamboo Distribution's services and its operations contain the capacity required to take advantage of the growth predicted in the sector. Our investment will enable us to gain a strong foothold in Europe through an established provider that is well respected in the industry."