Global tech firm Ribbon announces production underway at Thai plant
US-based tech company Ribbon Communications says it is now manufacturing IP Optical items in Thailand.
Ribbon, a global provider of real-time communications technology and IP optical networking, said it was seeking a stronger foothold in the region.
The move to set up a Thai plant stemmed from Thailand's rapid digital transformation, Sam Bucci, Ribbon's executive vice president and chief operating officer, said at Thursday’s press conference.
Thailand's thriving digital economy is expected to reach $53 billion in 2025 with a 15% compound annual growth rate, and to double to $100 billion-$165 billion in 2030, according to Google's e-Conomy SEA Report 2022.
Bucci said the production line at the Thailand plant has been running for two months now.
The plant will be expanded to become a manufacturing hub to meet global demand for the company’s products, he added.
"We now only have three manufacturing centres worldwide, and Thailand is one of them," he said. He declined to give further details on the Thailand expansion but promised updates as soon as production capacity, employee count, and investment value were finalised.
He said the Thai plant will reduce structural costs of networking, improve security, boost agility, and accelerate network transformation.
Demand was rising from the region's service providers and enterprises for seamless high-bandwidth networking equipment and seamless connectivity solutions as they embrace 5G networks to improve speed, agility, security, and economics, he added.
“We are deeply committed to their success and the combination of our on-site manufacturing with this extended footprint will help lay the foundation for the next phase of our growth and underpin our ambitions in the region for years to come,” he said.
Ribbon is the only company in the market that offers IP plus optic synergy solutions via a single piece of equipment, making it affordable, Bucci said.
He highlighted Ribbon's open architecture system, which allows the company's tools to work and connect with any other network seamlessly, distinguishing Ribbon from competitors.
Ribbon recently announced first-quarter revenue of $186 million, up from $173 million in the same period last year. It marked the company's third consecutive quarter of double-digit YoY growth in its IP Optical Networks segment.
Bookings in this segment increased by 1.6 times during the quarter, driven by strong demand in India and emerging markets in Asia, the Middle East, Africa, and Europe.
In 2022, the company generated 7% revenue growth YoY, with Cloud & Edge sales up 4% on the strength of 62% higher sales to enterprises, and IP Optical Networks sales up 13%.
