MUNICH, Germany Passive component manufacturer Epcos AG (Munich, Germany) has signed an agreement with Anhui Feida Industry Ltd to launch a joint venture for developing and producing power capacitors for AC applications.
In the joint venture Epcos will own 60 percent of the shares. The new company will bear the name Epcos (Anhui) Feida Electronics Co, Ltd. Its products will be used especially in white goods appliances such as washing machines, dryers and refrigerators as well as industrial machinery. In all these applications, power capacitors are required to start and operate electric motors.
The launch of the joint venture is subject to approval by the relevant authorities. Its business is scheduled to start early 2009. According, to an Epcos press release, about 1300 employees will be transferred from Anhui Feida to the joint venture. The company is expected to achieve sales of about 100 million (about $130 million) over the next three years.
Epcos Feida will be headquartered in Ningguo City, about 300 kilometers west of Shanghai.