iPhone maker Foxconn takes stake in UK’s Bamboo

A subsidiary of China’s Foxconn Technology Group has acquired 20 percent of UK-based Bamboo Distribution. Bamboo is one of Europe’s leading providers of mobile phone and consumer electronics processing services, including distribution and fulfilment, data cleansing, reconditioning, recycling and resale.

Bamboo says it currently has revenues of over £30 million a year and it is aiming to treble this to £105 million by the end of 2017 through the partnership with Foxconn. The company operates in 22 countries and works closely with many of Europe’s leading mobile network operators, retailers and insurance companies.

Foxconn said its decision to invest in the company is based on a number of strategic factors, including Bamboo’s compliance with all environmental and data protection regulations, its 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. We demonstrated why we were the right choice to help drive Foxconn’s expansion into Europe. And 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 into 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, fulfilment and distribution capacity.

As part of the investment, US-based Paul Chou, vice president of Foxconn, joins Bamboo Distribution’s board of directors. Chou said: “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.”

@AntonySavvas