MUNICH, Germany Component vendor Epcos AG expands its joint venture with Chinese capacitor manufacturer Xiamen Xindeco Co. The move enables the joint venture to significantly widen its product spectrum.
The parent companies agreed that Xindeco will include its entire manufacturing activities for aluminum electrolytic capacitors at the Xiamen location into the joint venture. Hitherto, only a relatively small partition of this production installation belonged to the Epcos (Xiamen) Co, the joint venture. In return, Epcos augments its capital contribution proportionally. The Munich, Germany, based component manufacturer holds - and will also hold after the transaction - 60 percent of the shares.
The move helps Epcos (Xiamen) to widen its product spectrum. While the company presently offers only relatively large capacitors with bolt connections, the move enables it to include also small electrolytic capacitors for use in small devices into its portfolio. The company serves almost exclusively the Chinese market, a company spokesperson explained.
The move is subject to approval by Xindeco shareholders and local authorities, the company said.