(Reuters) - Electrical cable supplier Volex Plc said on Thursday it had moved some of its production out of China in response to U.S. import tariffs on Chinese goods imposed by President Donald Trump’s administration.
The shift in production raised costs for the company but that was offset by gains from acquisitions, Volex said as it reported an 88% jump in underlying operating profit for the full year.
Volex makes most of its cables for its power cord division in China. The unit accounts about half of its revenue.
“However, all the Group’s facilities throughout the world can be utilised to manufacture power cord products if required,” Volex said.
Tensions between Washington and Beijing have sharply intensified, with both countries slapping higher tariffs on each other’s goods, prompting many companies to reconsider their operations in China.
U.S. shoemaker Crocs Inc said on Tuesday it would aim to cut the volume of its China production for its home market by more than two-thirds over the next year.
Volex, whose cables are used in consumer electronics and electric vehicles, did not specify which manufacturing functions it had moved out of China.
The United States has already imposed 25% tariffs on $250 billion worth of Chinese goods and could further levy tariffs on another $325 billion across a range of items.
Reporting by Pushkala Aripaka in Bengaluru; editing by Gopakumar Warrier and Saumyadeb Chakrabarty