Electronics Production | November 10, 2008
EPCOS in joint venture with Anhui Feida
EPCOS has signed an agreement with the Chinese company, Anhui Feida Industry Stock Co., Ltd. (Anhui Feida), to launch a joint venture under the name EPCOS (Anhui) Feida Electronics Co., Ltd. (EPCOS Feida).
The joint venture will develop and manufacture power capacitors for AC (alternating current) applications. Its products will thus be used especially in household appliances such as washing machines, dryers and refrigerators and industrial machinery such as air-conditioning systems and pumps. In all these applications, power capacitors are needed to start and operate electric motors. Subject to approval by the relevant authorities, EPCOS Feida should open for business at the start of 2009. Around 1300 employees will be transferred from Anhui Feida to the joint venture. Over the next three years, EPCOS Feida aims to generate sales totaling about EUR 100 million. With its capital investment EPCOS owns 60 percent of the shares in the joint venture. Anhui Feida, one of China’s leading makers of power capacitors for AC applications, is incorporating all of its business activities involving these products as a non-cash contribution. This contribution includes both a modern production facility and the associated local sales network. EPCOS Feida will be headquartered in Ningguo City, where its manufacturing operations will also be based. Ningguo City has a population of around 400,000 and is about 300 kilometers west of Shanghai.