Smiths acquires microwave firm

London-based Smiths Group has announced the purchase of Allrizon Tongguang, a Shanghai-based communications equipment firm, for an undisclosed cash sum.

Allrizon focuses on the design and manufacture of radio frequency (RF) filters and related products for the wireless telecommunications infrastructure market. In calendar year 2007, Allrizon posted sales of £5.3m.

Paul Cox, group managing director of Smiths Specialty Engineering, said: ‘This acquisition effectively adds to Smiths Interconnect’s footprint in China where some 70 per cent 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.’

The global wireless communications market for RF filters and systems is estimated to be £700m and is forecast to grow by around seven per cent annually to 2011. Growth rates are said to be even higher in China itself.