Smiths closes on two acquisitions

The purchase of Allrizon Tongguang, a Shanghai-based communications equipment firm, from private owners for an undisclosed cash sum will complement and extend Smiths Interconnect's microwave business. It focuses on the design and manufacture of radio frequency (RF) filters and related products for the wireless telecommunications infrastructure market. In 2007, Allrizon posted sales of £5.3 million. Paul Cox (pictured), Group Managing Director of Smiths Specialty Engineering, said: the acquisition added to Smiths Interconnect's footprint in China where some 70% of the world's wireless telecommunications infrastructure equipment is made. "Allrizon offers first-class technology, providing new channels to market and enhanced relationships with the rapidly growing Chinese telecoms manufacturers. Combined with Interconnect's existing activity in Shanghai, Allrizon will expand our manufacturing base and create a microwave centre of excellence aimed at securing business with both indigenous and international manufacturers that operate within China," he added. Within China, Allrizon is a technology leader in its chosen field with a 40-strong engineering team among its 282 employees. The global wireless communications market for RF filters and systems is estimated to be £700 million and is forecast to grow by around 7% annually to 2011. Growth rates are even higher in China itself. And following necessary regulatory clearances, the Texas company Fiberod has also joined the group. It is a manufacturer of fibre-glass sucker rods - a light-weight alternative to the traditional steel rods used for the artificial lift of oil and gas from reservoir. In 2007, Fiberod reported sales of £12 million ($25 million). Paul Cox said Fiberod complements the CDI oilfield products and services company bought by Smiths' John Crane business less than a year ago. The new acquisitions would extend the reliability of artificial lift systems which can pump oil from depths of more than 10,000 feet.