Munich, Dec 11, 2008 AEST (ABN Newswire) - EPCOS (FRA:EPC)(OTC:EPCYY), one of the world's leading manufacturers of electronic components, modules and systems, has signed an agreement with the Chinese company, Anhui Feida Industry Stock Co., Ltd. (Anhui Feida), to launch a joint venture under the name EPCOS (Anhui) Feida Electronics Co., Ltd. (EPCOS Feida).
The joint venture will develop and manufacture power capacitors for AC (alternating current) applications. Its products will thus be used especially in household appliances such as washing machines, dryers and refrigerators and industrial machinery such as air-conditioning systems and pumps. In all these applications, power capacitors are needed to start and operate electric motors.
Subject to approval by the relevant authorities, EPCOS Feida should open for business at the start of 2009. Around 1300 employees will be transferred from Anhui Feida to the joint venture. Over the next three years, EPCOS Feida aims to generate sales totaling about EUR 100 million.
With its capital investment EPCOS owns 60 percent of the shares in the joint venture. Anhui Feida, one of China's leading makers of power capacitors for AC applications, is incorporating all of its business activities involving these products as a non-cash contribution. This contribution includes both a modern production facility and the associated local sales network.
EPCOS Feida will be headquartered in Ningguo City, where its manufacturing operations will also be based. Ningguo City has a population of around 400,000 and is about 300 kilometers west of Shanghai.
Tapping new applications and customers
An increasing share of the global demand for household electronics is being serviced by products made in Asia in general and China in particular. The new joint venture will strengthen EPCOS' presence in precisely these growing markets. EPCOS Feida thus gives EPCOS the chance to broaden its customer base and tap new AC applications for power capacitors from a low-cost manufacturing base.
Moreover, the joint venture will strengthen EPCOS' position in Asia's growing market for power generation and distribution. The joint venture creates conditions that will enable EPCOS to supply both local and locally based international customers with power capacitors faster and at lower cost than in the past.
About Anhui Feida
The Anhui Feida Group & Co., Ltd. is one of China's largest local suppliers of power capacitors for AC applications. In addition to these products, the company also manufactures carbon tubes for use in road construction and molds for use in car tire production. In fiscal 2007, Anhui Feida generated revenues of about EUR 25 million from the sale of power capacitors for AC applications.
Contact
Heinz Kahlert
heinz.kahlert@epcos.com
Tel. +49 89 636-21321
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