Volex plc announced that it has formed a joint venture with Joinsoon Electronics Mfg. Co. Ltd. to engage in the development, manufacture and marketing of Volex-branded AC raw cables.

According to the agreement, Joinsoon and Volex will form a joint venture holding company in Taiwan with a manufacturing facility located in Guangdong, China. The joint venture will be named Volex-JEM Cable Precision (Dongguan) Co., Ltd. and expects to start production immediately on receipt of the necessary safety approvals. The agreement enables Volex to begin production of raw cable used to assemble power cables and will enable Volex to offer its customers a branded power cable complete with Volex safety certificates at a highly competitive price.

It is estimated it will take 12 to 18 months for the benefits of this joint venture to be fully reflected in Volex's cost structure. The agreement also envisages further future partnership between Joinsoon and Volex.