LONDON Passive component specialist Epcos (Munich, Germany) has set up a joint venture with Chinese conglomerate Xiamen Xindeco Co., Ltd. to manufacture aluminum electrolytic capacitors.
Epcos, which is Europe’s leading manufacturer of aluminum electrolytic capacitors, will hold a 60 percent stake in Epcos (Xiamen). Production from the venture is targeted at meeting the rapidly growing local demand for such capacitors from a low-cost manufacturing location.
The companies will focus on aluminum electrolytic capacitors with screw terminals, for which Epcos claims to be the world leader. The products will be sold exclusively through Epcos sales channels.
Such capacitors are used in applications that require high currents – for example in industrial drives and power supplies for IT and telecommunications gear, such as base stations for mobile telephony or in data centers.
Xiamen Xindeco Co., Ltd. has been producing electrolytic capacitors since the late 1990s at plants in Xiamen, Fujian Province, and in Jiangxi, Jiangxi Province. The group has been listed on the Chinese Stock Exchange in Shenzhen since February 1997.
In fiscal 2004 Xindeco had sales of approximately 240 million Euros ($295 million) and has just over 2000 employees.