EPCOS Expands Activities in China

August 13, 2007 by Jeff Shepard

EPCOS AG and Chinese conglomerate Xiamen Xindeco Co., Ltd. (Xindeco) are expanding their joint venture, EPCOS (Xiamen) Co., Ltd. (EPCOS (Xiamen)). The two partners have agreed to this move subject to approval by the relevant authorities and by Xindeco’s shareholders meeting. Launched at the end of 2005, the joint venture manufactures aluminum electrolytic capacitors and is headquartered in Xiamen, 350 kilometers northeast of Hong Kong.

Within the framework of the expansion, Xindeco will transfer its entire aluminum electrolytic capacitor production facility in Xiamen to the joint venture, thereby significantly broadening the latter's product portfolio. For its part, EPCOS is increasing its capital investment and will therefore continue to hold 60 percent of the shares in the joint venture.

The Xiamen-based joint venture company enables EPCOS to serve the fast-growing Chinese market from a low-cost production base. Capacitors produced by the company are sold exclusively by EPCOS. Xindeco benefits above all from EPCOS’ comprehensive technological expertise and its global sales network.

Up to now, EPCOS (Xiamen) has produced aluminum electrolytic capacitors that are used in industrial electronics applications with high currents, such as variable speed drives for machine tools. The integration of the additional product segments of Xindeco will enable the joint venture to tap into new application fields in industrial electronics and especially in markets for lighting systems and consumer electronics. Aluminum electrolytic capacitors store electrical charges and filter or regulate currents and voltages in electronic circuits. Their very broad range of voltage and capacitance levels makes them one of the most versatile types of capacitor available. These products are deployed in every area of electrical and electronic engineering. Models and designs vary considerably depending on the application.

Xiamen Xindeco Co., Ltd., is a conglomerate whose extensive product portfolio has included aluminum electrolytic capacitors since the end of the 1990s. The company operates capacitor production facilities at Xiamen in the province of Fujian and at Jiangxi in the province of Jiangxi. Xindeco ranks as one of the largest manufacturers of aluminum electrolytic capacitors in China. The Xindeco Group has been listed on the Chinese Stock Exchange in Shenzhen since February 1997. In fiscal 2006, the group had approximately 2400 employees and posted sales of around EUR 550 million.