LONDON Passive electronic components group Epcos is continuing its deal making in the Far East and has established a joint venture with Chinese group Beijing Jones Co. Ltd. to manufacture EMC filters.
Epcos (Munich, Germany) says it already has a 20 percent market share in Europe for EMC filters and expects the joint venture, Epcos-Jones (Beijing), will significantly increase its share of the Asian market as well.
It claims to be the second largest producer of the parts globally, with the available market valued at about $400 million.
“With the joint venture we will step up our presence in the fast-growing Chinese EMC market”, said Epcos President and CEO Gerhard Pegam. “We can thus make better profit from the significant growth potential of local Chinese manufacturers. This cooperation also enables us to extend our product portfolio in low-cost EMC filters for applications in entertainment electronics.”
In September, Epcos set up a joint venture with Chinese conglomerate Xiamen Xindeco Co., Ltd. to manufacture aluminum electrolytic capacitors.
The German company will have a 55 percent stake in Epcos-Jones and the filters made at the plant, targeted at telecommunications equipment, consumer electronics gear and peripherals, will be marketed exclusively by Epcos.
The venture will be headquartered in the Economic and Technical Development Zone of Beijing. The Chinese partner has manufacturing facilities there and in Suzhou in the Yangtze basin. In addition to EMC filters, Beijing Jones makes a variety of EMI shielding materials and die cut products for mobile phones.
Europe remains the pacemaker for the EMC filter buisness and accounts for more than two thirds of the total EMC market. China, however, is expecting the greatest growth rates with annual increases in the double-digit percentage range.