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The European Electronic Manufacturing Services Industry 2015-2020

A Strategic Study of the European EMS Industry

The European EMS Industry 2015-2020

2

THE EUROPEAN ELECTRONIC MANUFACTURING

SERVICES INDUSTRY 2015-2020


Research Consultants: Andrew Fletcher, Peter Brent

First Edition Published: April 1993

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Fourth Edition Published: May 2000

Fifth Edition Published: October 2001

Sixth Edition Published: May 2003

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Tenth Edition Published: September 2011

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Fourteenth Edition Published: November 2016

ISBN: 1 905429 622

© Reed Electronics Research, England 2016

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Contents

1 Introduction 11

1.1 Scope & Methodology 11

1.2 Report Structure 12

2 Management Briefing 13

2.1 The European EMS Market 2015-2020 13

2.2 The Structure of the European EMS Industry 22

2.3 The Future for EMS in Europe 27

3 The European Market for Electronic Manufacturing Services 29

3.1 Introduction 29

The Political Context 29

The Economic Context 31

The Sociological Context 36

The Technological Context 38

The Legal and Environmental Context 39

3.2 The European EMS Market 41

3.2.1 Why outsource electronic manufacture to EMS? 41

3.2.2 Forecast for EMS Revenues by Country and Regions 42

3.2.3 North West Europe 44

3.2.4 Southern Europe 45

3.2.5 Central and Eastern Europe, North Africa and Middle East 46

3.2.6 European EMS Revenues by Country 47

3.2.7 EMS Revenues by Market Sector 49

3.2.7.1 Total Europe 49

3.2.7.2 Central and Eastern Europe, North Africa and Other 49

3.2.7.3 Western Europe 50

3.2.8 Sector Commentary 51

3.2.8.1 Aerospace & Defence 51

3.2.8.2 Consumer 53

3.2.8.3 Communication and Networks 55

3.2.8.4 Computer 56

3.2.8.5 Medical 58

3.2.8.6 Automotive 59

3.2.8.7 Control, Instrumentation and Industrial 62

3.3 A Strategic Analysis of the Major Trends Impacting the European EMS Market 63

3.3.1 The Major Trends and Issues for EMS at the Overall Market Level 63

The outsourcing of electronic production 63

OEMs and their markets 63

Production shifting to lower cost labour locations 63

Regionalisation 64

Globalisation 64

Economies of scale 64

Growing sectors for European EMS 65

Former production lost to Asia is returning to the west 65

The attraction of German speaking markets 65

3.3.2 Trends and Issues at the Company Level 66

Selling more services to the OEM 66

The EMS as “manufacturing expert” 67

The total cost of supply versus unit cost 67

Earlier involvement of the EMS 67

Increased manufacturing complexity 67

Does the EMS need to be physically close to its EMS customers 68

3.3.3 The Competitive Position for EMS in Europe 68


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3.3.4 Competition in Europe 68

3.3.5 Competitive Pressures in the European EMS Industry 71

Threat of new entrants 71

Rivalry of existing competitors 72

Pressure from substitutes 72

Bargaining power of buyers 72

Bargaining power of suppliers 73

Profitability 73

3.4 The Key Issues Facing the European EMS Industry 74

3.4.1 A Market with Low, or No Growth 74

3.4.2 The Management of Risk 75

Market risks 75

Commercial risks 75

Supply Chain risks 76

3.4.3 The Pressure on Price 76

3.4.4 The Assembly of Electronics and Testing 77

3.4.5 The Search for Profitable Growth 77

3.5 The Future for EMS in Europe 78

3.6 Strategies for the Future 78

Strategies for Group 1 companies 78

Strategies for Group 2 & 3 companies 79

Strategies for Group 4 companies 79

4 Major EMS Providers in Europe 81

4.1 The Role of the Global EMS 81

4.2 The Role of the European EMS 82

4.3 Acquisitions 84

4.4 Migration of Production to CEE/North Africa 87

4.5 Consolidation 87

4.6 Top Twenty European EMS Providers 88

4.7 Profiles of the Top Twenty EMS Companies in Europe, North Africa & Middle East 89

4.7.1 Foxconn 89

4.7.2 Flex 90

4.7.3 Jabil Circuit 97

4.7.4 Zollner Elektronik 102

4.7.5 Videoton 104

4.7.6 Scanfil 106

4.7.7 Sanmina 109

4.7.8 Asteelflash 112

4.7.9 Enics 115

4.7.10 Neways 118

4.7.11 éolane 121

4.7.12 Celestica 125

4.7.13 LACROIX Electronics 127

4.7.14 ALL CIRCUITS 130

4.7.15 Kitron 132

4.7.16 TQ-Group 136

4.7.17 Integrated Microelectronics International 138

4.7.18 Leesys 140

4.7.19 Kimball Electronics 141

4.7.20 BMK Group 143

5 The European EMS Industry by Country/Region 144

5.1 France 144

5.1.1 Electronics Industry Overview 144

5.1.2 EMS Market & Industry Trends 145


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5.1.3 The Leading EMS Companies in France 146

5.1.4 Profiles of the Leading EMS Companies in France 147

5.1.4.1 ALL CIRCUITS 147

5.1.4.2 Asteelflash 147

5.1.4.3 Cofidur 147

5.1.4.4 éolane 148

5.1.4.6 LACROIX Electronics 148

5.1.4.7 Matra Electronique 149

5.1.4.8 Novatech 149

5.1.4.9 Selha/EINEA 150

5.1.4.10 Tronico ALCEN 151

5.2 Germany 152



5.2.3 The Leading EMS Companies in Germany 155

5.2.4 Profiles of the Leading EMS Companies in Germany 156


5.2.4.2 bebro electronic 156

5.2.4.3 BMK Electronics 157

5.2.4.4 exceet Group 157

5.2.4.5 Katek 158

5.2.4.6 Leesys 159

5.2.4.7 manufacturing, logistics & services 159

5.2.4.8 Neways 160

5.2.4.9 Prettl Electronics 160

5.2.4.10 ROB Cemtrex 161

5.2.4.11 RSG Elotech 162

5.2.4.12 Sero 162

5.2.4.13 Tonfunk 163

5.2.4.14 TQ-Group 163

5.2.4.15 TURCK duotec 163

5.2.4.16 Zollner 164

5.3 Southern Europe 164



5.3.3 Leading EMS Companies in Southern Europe 167

5.3.4 Profiles of the Leading EMS Providers in Southern Europe 168

5.3.4.1 Celestica 168

5.3.4.2 Dinema 168

5.3.4.3 DM Elektron 168

5.3.4.4 Elemaster 169

5.3.4.5 Eutron 170

5.3.4.6 Flex 170

5.3.4.7 IKOR 171

5.3.4.8 Jabil Circuit 172

5.3.4.9 MW.FP 172

5.3.4.10 Selcom 172

5.4 Nordic Countries 173



5.4.3 The Leading EMS Providers in the Nordic Countries 176

5.4.4 Profiles of the Leading EMS Companies to the Nordic Countries 177

5.4.4.1 BB Electronics 177

5.4.4.2 Darekon 179


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5.4.4.3 Enics 179

5.4.4.4 GPV 180

5.4.4.5 Hadeland Produkter AS (HAPRO) 182

5.4.4.6 HANZA 182

5.4.4.7 HP Tronic 185

5.4.4.8 Inission 185

5.4.4.9 Kitron 186

5.4.4.10 LEAB 186

5.4.4.11 Norautron 187

5.4.4.12 NOTE 189

5.4.4.13 Orbit One 190

5.4.4.14 Sanmina 191

5.4.4.15 Scanfil 192

5.5 United Kingdom 192


5.5.2 UK EMS Market & Industry Trends 193

5.5.3 The Leading EMS Providers in the UK 194

5.5.4 Profiles of the Leading EMS Companies to the UK 195

5.5.4.1 Abaco Systems (Foundation Technology) 195


5.5.4.3 AWS Electronics 196

5.5.4.4 Axiom Manufacturing Services 198

5.5.4.5 Axis Electronics 199

5.5.4.6 Chemigraphic 199

5.5.4.7 Elite Electronic Systems 200

5.5.4.8 eXception EMS 201


5.5.4.10 JJS Manufacturing 203

5.5.4.11 Plexus 203

5.5.4.12 Raytheon 205

5.5.4.13 SMS Electronics 205

5.5.4.14 Sony Electronics Technology Centre 206

5.5.4.15 Stadium Electronics 206

5.5.4.16 Surface Technology International 208

5.5.4.17 TT Electronics-IMS 209

5.5.4.18 Ultra Electronics CEMS 211

5.6 Rest of West Europe 212



5.6.3 The Leading EMS Companies in the Rest of Western Europe 215

5.6.4 Profiles of the Leading EMS Companies in the Rest of Western Europe 216

5.6.4.1 BECOM 216

5.6.4.2 Benchmark Electronics 217

5.6.4.3 CCS Group (CCS Customer Care & Solutions Holding AG) 217


5.6.4.5 Cicor Technologies 219

5.6.4.6 cms electronics 220

5.6.4.7 Connect Group 220

5.6.4.8 Enics 222

5.6.4.9 Flex 223


5.6.4.11 Melecs 223

5.6.4.12 Neways 224

5.6.4.13 Sanmina 224


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5.6.4.14 Solid Semecs 224

5.6.4.15 SVI 224

5.6.4.16 Variosystems 225

5.7 Central and Eastern Europe (CEE), North Africa, Other 226

5.7.1 CEE Electronics Industry Overview 226


5.7.3 The Leading EMS Providers in CEE/North Africa 229

5.7.4 Profiles of the Leading EMS Companies in CEE/North Africa 231

5.7.4.1 Benchmark Electronics 231


5.7.4.3 Enics 232

5.7.4.4 Fideltronik 232

5.7.4.5 Flex 233

5.7.4.6 Foxconn 234

5.7.4.7 Integrated Microelectronics 234


5.7.4.9 Kimball Electronics 235

5.7.4.10 LACROIX Electronics 235

5.7.4.11 Melecs 235

5.7.4.12 Plexus 236

5.7.4.13 Sanmina 236

5.7.4.14 Scanfil 236

5.7.4.15 Videoton 237

5.7.4.16 Zollner 237

5.7.4.17 Other Companies 237

Elrad 237

HansaMatrix 237

SIIX 238

5.7.5 Leading EMS Providers in Israel 239

5.7.5.1 Profiles of the Leading EMS Providers in Israel 239

5.7.5.1.1 Flex 239

5.7.5.1.2 Nistec 239

5.7.5.1.3 PCB Technologies 240

5.7.5.1.4 RH Technologies 240

5.7.5.1.5 Sanmina 241

5.7.5.1.6 USR Electronic Systems 241

5.7.6 Leading EMS Providers in Turkey & North Africa 241

6 Directory of European EMS Manufacturing Locations 243

6.1 Algeria 243

6.2 Austria 243

6.3 Belgium 245

6.4 Bulgaria 247

6.5 Croatia 248

6.6 Czech Republic 248

6.7 Denmark 254

6.8 Estonia 257

6.9 Finland 260

6.10 France 264

6.11 Germany 274

6.12 Hungary 312

6.13 Ireland 316

6.14 Israel 318

6.15 Italy 320

6.16 Latvia 326


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6.17 Lithuania 326

6.18 Morocco 327

6.19 Netherlands 328

6.20 Norway 332

6.21 Poland 333

6.22 Portugal 339

6.23 Romania 339

6.24 Russia 343

6.25 Serbia 343

6.26 Slovakia 344

6.27 Slovenia 346

6.28 Spain 347

6.29 Sweden 350

6.30 Switzerland 356

6.31 Tunisia 361

6.32 Turkey 363

6.33 Ukraine 364

6.34 United Kingdom 364

7 Appendix 391

7.1 Top 50 EMS Providers in Europe 2015 391

7.2 Exchange Rates 394

Tables

Table 2.1 EMS Revenues for Western Europe and CEE/MENA 2015-2020 13

Table 2.2 Percentage of EMS Value by Region 2015-2020 13

Table 2.3 Major Acquisitions for the Top 50 European-Owned EMS Providers 2011-2016 24

Table 2.4 The Top 20 European EMS Companies 2015 27

Table 3.1 GDP Growth for Selected Countries 2015-2018 31

Table 3.2 European Automotive Emission Targets 41

Table 3.3 EMS Revenues for Western Europe, CEE/MENA and Other 2015-2020 43

Table 3.4 Percentage of EMS value by Region 2015-2020 43

Table 3.5 EMS for North West Europe (Nordic, UK, Germany and Benelux) 2015-2020 45

Table 3.6 EMS Revenues for France, Italy, Switzerland and Southern Europe 2015-2020 45

Table 3.7 EMS Revenues for CEE, North Africa and Middle East 2015-2020 47

Table 3.8 European EMS Revenues by Country 2015-2020 48

Table 3.9 Total Europe EMS Revenues by Market Sector 2015-2020 49

Table 3.10 CEE, North Africa and Other EMS Revenues by Market Sector 2015-2020 50

Table 3.11 Western Europe EMS Revenues by Market Sector 2015-2020 51

Table 3.12 Worldwide Device shipments by Device Type 2015-2018 57

Table 3.13 Car Manufacture in Western Europe by Region 2010-2015 60

Table 3.14 Manufacture of cars in total Europe by sub-region 2010-2015 60

Table 3.15 DACH EMS Revenues 2015-2020 66

Table 3.16 2015 European Sales Value by EMS Group 70

Table 4.1 Major Acquisitions for the Top 50 European-Owned EMS Providers 2011-2016 85

Table 4.2 The Top 20 European EMS Companies in 2015 88

Table 5.1 Summary of French Electronics Equipment Production 2014-2019 144

Table 5.2 French EMS Revenues 2015-2020 146

Table 5.3 The Leading Providers in France 2015 146

Table 5.4 German Electronics Equipment Production 2014-2019 153

Table 5.5 German EMS Revenues 2015-2020 154

Table 5.6 The Leading EMS Providers in Germany 2015 156

Table 5.7 Summary of Southern Europe Electronics Equipment Production 2014-2019 165

Table 5.8 Southern Europe EMS Revenues 2015-2020 167


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Table 5.9 The Leading EMS Providers in Southern Europe 2015 167

Table 5.10 Summary of Nordic Electronics Equipment Production 2014-2019 174

Table 5.11 Nordic EMS Revenues 2015-2020 176

Table 5.12 The Leading EMS Providers in the Nordic Countries in 2015 177

Table 5.13 Summary of UK Electronics Equipment Production 2014-2019 192

Table 5.14 UK EMS Revenues 2015-2020 194

Table 5.15 The Leading UK EMS Providers in the UK in 2015 195

Table 5.16 Summary of Rest of Western Europe Electronics Production 2014-2019 213

Table 5.17 Rest of West Europe EMS Revenues 2015-2020 214

Table 5.18 Summary of CEE Electronics Production 2014-2019 227

Table 5.19 CEE EMS Revenues 2015-2020 228

Table 5.20 Top 15 EMS Providers in CEE in 2015 230

Table 5.21 CEE Manufacturing Locations for the Leading EMS Providers 230

Table 5.22 The Leading EMS Providers in Israel in 2015 239

Table 5.23 The Leading EMS Providers in North Africa 242

Table 7.1 Top 50 EMS Providers in Europe 2015 391

Table 7.2 Top 50 European Owned EMS Providers based on Global Sales 2015 393

Table 7.3 Exchange Rates 394

Figures

Figure 2.1 EMS Revenues for Western Europe and CEE/MENA 2015-2020 13

Figure 2.2 Percentage of European EMS Revenues by Region 2015-2020 14

Figure 2.3 West European EMS Revenues by Market Sector 2015-2020 15

Figure 2.4 CEE/MENA EMS Revenues by Market Sector 2015-2020 15

Figure 2.5 European Computer Production 2000-2019 16

Figure 2.6 European Mobile Phone Production 2009-2015 17

Figure 2.7 European Medical Equipment Production 2012-2019 20

Figure 2.8 European Control & Instrumentation Production 2012-2019 20

Figure 2.9 The Percentage of 2015 Sales by Region for the Group 1 EMS Companies 22

Figure 3.1 The PESTLE Context 29

Figure 3.2 BRIC Economies GDP Growth 2007-2020 32

Figure 3.3 ASEAN Economies GDP Growth 2007-2020 33

Figure 3.4 GDP Growth for Selected Countries at Constant Prices 2007-2020 33

Figure 3.5 Inflation for Selected Countries 2007-2020 34

Figure 3.6 Central Government Net Debt for Selected Countries 2007-2020 34

Figure 3.7 Gold, Platinum & Silver Commodity prices 2006-2016 35

Figure 3.8 Average Price of European Brent Crude Oil 2000-2016 35

Figure 3.9 Birth Rate for EU and Selected Countries 1960-2014 37

Figure 3.10 Life Expectancy 2008-2060 38

Figure 3.11 EU Power Mix 2000-2015 40

Figure 3.12 EMS Revenues for Western Europe, CEE/MENA and Other 2015-2020 43

Figure 3.13 Percentage of European EMS by region 2015-2020 44

Figure 3.14 EMS Revenues for North West Europe 2015-2020 45

Figure 3.15 EMS Revenues for Southern Europe 2015-2020 46

Figure 3.16 EMS Revenues for CEE, North Africa, and Other 2015-2020 47

Figure 3.17 Total Europe EMS Revenues by Market Sector 2015-2020 49

Figure 3.18 CEE, North Africa and Other EMS Revenues by Market Sector 2015-2020 50

Figure 3.19 West European EMS Revenues by Market Sector 2015-2020 51

Figure 3.20 European Mobile Phone Production 2009-2015 54

Figure 3.21 Percentage Growth in the European White Goods Market Q1 2011-Q3 2016 54

Figure 3.22 Mobile Subscriptions by Region & Technology – Millions 55

Figure 3.23 Mobile Subscriptions by Region & Technology - % 56

Figure 3.24 European Computer Production 2000-2019 58


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Figure 3.25 European Computer Production by Region 2015 58

Figure 3.26 New Car Registrations in EU 28 and EFTA Countries to September 2016 60

Figure 3.27 DACH EMS Revenues 2015-2020 66

Figure 3.28 Strategic Space Analysis of the Four Groups of EMS Providers 69

Figure 3.29 European Sales Value by EMS Group 70

Figure 3.30 Five Force Representation of the EMS Industry 71

Figure 3.31 Actual; EMS sales (Base Year) of Western Europe and CEE/North Africa and Other 74

Figure 4.1 The Percentage of 2015 Sales by Region for the Group 1 EMS Companies 81

Figure 4.2 The Percentage of French EMS Revenues by Leading Manufacturer 2015 83

Figure 4.3 The Percentage of German EMS Revenues by Leading Manufacturer 2015 83

Figure 4.4 The Percentage of Southern Europe EMS Revenues by Leading Manufacturer 2015 84

Figure 4.5 The Percentage of Nordic EMS Revenues by Leading Manufacturer 2015 84

Figure 4.6 The Percentage of UK EMS Revenues by Leading Manufacturer 2015 85

Figure 5.1 French Electronics Equipment Production 2009-2019 - Annual Growth (%) 144

Figure 5.2 French Electronics Equipment Production by Segment 2014-2019 145

Figure 5.3 French EMS Revenues 2015-2020 146

Figure 5.4 German Electronics Equipment Production 2009-2019 - Annual Growth (%) 152

Figure 5.5 German Electronics Production by Segment 2014-2019 153

Figure 5.6 German EMS Revenue 2015-2020 154

Figure 5.7 Southern Europe Electronics Equipment Production 2009-2019 - Annual Growth (%) 165

Figure 5.8 Southern Europe Electronics Production by Segment 2014-2019 166

Figure 5.9 Southern Europe EMS Revenues 2015-2020 167

Figure 5.10 Nordic Electronics Equipment Production 2009-2019 - Annual Growth (%) 173

Figure 5.11 Nordic Electronics Equipment Production by Segment 2014-2019 175

Figure 5.12 Nordic EMS Revenues 2015-2020 176

Figure 5.13 UK Electronics Equipment Production 2009-2019 - Annual Growth (%) 192

Figure 5.14 UK Electronics Production by Segment 2014-2019 193

Figure 5.15 UK EMS Revenues 2015-2020 194

Figure 5.16 R of Western Europe Electronics Equipment Production 2009-2019 - Annual Growth (%) 212

Figure 5.17 Rest of Western Europe Electronics Production by Segment 2014-2019 213

Figure 5.18 Rest of Western Europe EMS Revenues 2015-2020 215

Figure 5.19 CEE Electronics Production 2000-2019 226

Figure 5.20 CEE Electronics Equipment Production by Country 2015 227

Figure 5.21 CEE Electronics Equipment by Product 2015-2019 227

Figure 5.22 CEE EMS Revenues 2015-2020 229


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1 Introduction 1.1 Scope & Methodology

This is the fourteenth edition of the European Electronic Manufacturing Services Industry report and updates the

thirteenth edition published in December 2015. Although building on the database of information which has been

gathered since the publication of the first edition in 1993 the new report has been fully revised with increased

emphasis being placed on analyzing the EMS providers, the countries and market sectors in which they operate

and the key trends which will impact the industry in the period to 2020.

As in the previous reports, EMS is defined as electronic manufacturing offered as a service to other companies. It

does not include the in-house activities, which also provide an EMS service. The production of printed circuit

boards is to some extent included, since some EMS companies have acquired PCB production capabilities and

all are often involved in the design aspects of the PCB layout when offering design services as part of the EMS

activity.

The generation of the market numbers has been completed using both a ‘bottom up’ approach where details of

EMS companies have been accumulated from the very large to the very small companies, and a ‘top down’ view

of published data from variety of sources. Statistical information which was obtained from government

departments, trade associations, company annual reports and various other publications, and in particular the

Yearbook of World Electronics Data, was combined with data obtained from individual companies, to evaluate the

state of the market and future developments. The previous report along with data from RER’s database were

used as a base point in evaluating market developments during the interviews with key personnel of a cross

section of EMS companies. Further information was obtained by Questionnaires in personal and telephone

interviews.

Forward looking forecasts are constructed from the last full reported year (2015) and include known information

to date on EMS activities such as collaborations, mergers, acquisitions and closures. These forecasts also

include information from EMS and other companies on their expectations for growth in the coming years.

For sales to individual sectors such as computer, communications, medical etc., we have used information from

the companies themselves either in the main from published accounts, from their websites or from other known

information about plant specialization, number of employees, quality awards etc..

Annual reports, company brochures and corporate literature were collected from 230 EMS companies. Where

information of a confidential nature was obtained, this was used solely to evaluate market trends in product and

end-user sectors. In addition a further 800 plus companies, primarily the smaller national EMS providers, were

checked for the directory.

The consultants also visited trade shows including Electronica 2016 and Productronica 2015 in Munich; New

Electronics (UK) 2016, Southern Manufacturing (UK) 2016 and SMT & Hybrid 2016 in Nuremberg, Germany, and

Electronics and Automation, Utrecht (Netherlands) 2015. In addition we have attended conferences and meetings

at evertiq TEC 2016 and Tech UK 2015.

Where applicable local currencies have been converted to Euro values. The forecasts assume constant Euro

values and those used in the report are given in the Appendix.

Original Design Manufacturers (ODM) and Electronic Manufacturing services (EMS)

The key differentiator between the two types of organisations is that ODM’s own intellectual property (IP) as well

as providing electronic manufacturing services. The EMS is considered to only provide the manufacturing

services. In Asia, there are large manufacturing services companies who also own intellectual property in the

products that are sold as branded products by the OEM. Whilst there are companies in Europe that do offer the


12

ODM service and state that ODM sales have been made, it is frequently not separated from the overall sales in

Europe in its published form.

Given the difficulty in separating out specific ODM sales data, we have incorporated this within the total EMS

sales. From the research and interviews we have undertaken, we would estimate that the total ODM element is

less than 5% of the total EMS values and mainly within the top 20 companies. The ownership of IP such as in the

ODM model by EMS companies appears to be reducing in frequency and value over the last few years.

The printed circuit board industry is in the main, considered as component manufacturing rather than EMS. Some

activity is included in the valuation, as major EMS companies have acquired PCB operations. The manufacture of

PCBs requires considerable investment in plant and process technology, not directly related to the assembly

technology. There are a few PCB companies, which are able to supply volume manufacture and all types of

PCBs, such as multilayer, fine pitch, flexi-rigid, etc. However, the relationship between the EMS company and the

PCB manufacturer is of prime importance since the layout of the PCB is part of the design phase of the product.

1.2 Report Structure

Following Section 2, the Management Briefing, Section 3 provides a detailed analysis of the trends impacting the

industry in the period to 2020. EMS revenues are provided for individual countries and split by region. A figure for

the European EMS market by sector is also provided. Again, for this edition, the report has also analyzed the

trends impacting the four principal groups of EMS company;

Global.

Multinational European.

Sub-regional.

National.

Section 4 provides profiles of the Top 20 EMS providers in Europe and North Africa/Middle East with an estimate

of their sales for 2015. The structure of the industry and a summary of the latest developments are also provided.

Section 5 provides a breakdown by country and region. For each section an overview of the electronics industry

is provided along with a summary of the key factors impacting the EMS industry. For each country or region we

have outlined the role the global ‘Group 1’ companies are playing, a ranking of the Top 10 in 2015 along with

profiles of the leading EMS companies in that area.

Section 6 is a directory of over 1,300 manufacturing locations for over 1000 companies. The directory is split by

country. Companies who are focused solely on the production and assembly of cable and wire harnesses are not

covered within the directory.

For this edition we have again provided a ranking of the Top 50 EMS providers in Europe based on 2015

revenues in Section 7.

We have also ranked the Top 50 European-owned EMS companies based on their current structure and

estimated global revenues in 2015.


13

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g to manage s

increase on th

y in the Eurozo

0

500

000

500

000

500

000

500

000

500

201

orth West Eur

2015A

Figure 3

ope

ues for Franc

2015A

ve both contin

mproving but t

mpleted before

successive qu

he first quarter

one and a mem

15A 2

The Europea

ope (Nordic,

2016E

3.14 EMS Reven

ce, Italy, Switz

2016E

nued their pos

the unemploym

e these countr

arters of real g

r modest incre

mber of the G

016E

Nordic U

an EMS Indust

45

UK, Germany

2017F

nues for North W

zerland and S

2017F

sitive growth fo

ment rates rem

ries are well an

growth with th

ease of 0.3%.

7 and G8 grou

2017F

UK Germany

try 2015-2020

y and Benelu

2018F

West Europe 20

Southern Eur

2018F

ollowing the re

main high and

nd truly out of

hat for the seco

This is a conc

ups, and clear

2018F

Benelux

0

ux) 2015-2020

2019F

015-2020

rope 2015-202

2019F

ecession in 20

there is still s

difficulty. The

ond quarter be

cerning positio

rly a major eco

2019F

0

2020F

20

2020F

008/9 and the f

some econom

e economy in I

eing revealed

on for the third

onomic power

2020F

finances

ic

Italy is still

in August

d largest

r on the


48

a CAAGR of 1.7% which is modest and reflects a slow increase from the moribund performance of the last 3

years and also the competitive situation which is having a downward pressure on prices.

Table 3.8 European EMS Revenues by Country 2015-2020

2015A 2016E 2017F 2018F 2019F 2020F CAAGR

Austria

Belgium

Denmark

Finland

France

Germany

Ireland

Italy

Netherlands

Norway

Portugal

Spain

Sweden

Switzerland

UK

Total West Europe

Bulgaria

Czech Republic

Estonia

Hungary

Israel

Lithuania

Poland

Russia & Ukraine

Romania

Slovakia

Slovenia

Turkey

Algeria

Morocco

Tunisia

Other

Total CEE & NA

Total Europe Note: Totals subject to computer rounding.

1

1

2

2

3

€Millions

Table 3.1

Euro Mi

Aerospac

Consume

Commun

Compute

Medical

Automotiv

Control &

Other

Total

3.2.8 Se

3.2.8.1 A

Aerospac

In a recen

worldwide

under 13

15 years.

between

act as hu

interconti

the need

worldwide

0

500

1000

1500

2000

2500

3000

11 Western E

llions

ce & Defence

er & Mobile

nications

er

ve

& Industrial

ector Comm

Aerospace & D

ce

nt industry pre

e. They estim

trillion, from a

. Airbus furthe

these Mega c

ubs and in turn

inental connec

for over 33,00

e flying fleet. F

2015A

Europe EMS R

2015A

Figure 3.19 W

mentary

Defence

esentation, (Fe

ate that by 20

around 6 trillio

er report that th

cities which wi

n will be the de

ctions. Industr

00 new aircraf

For its part, Bo

The Europea

2016E 2

Revenues by

2016E

West European E

ebruary 2016)

29 the total R

n in 2014, effe

he 47 worldwi

ll see the mos

estination of ve

ry forecasts by

ft over 100 sea

oeing is foreca

an EMS Indust

51

2017F 2018

Market Secto

2017F

EMS Revenues

), Airbus re-ex

Revenue Passe

ectively recog

de Mega Citie

st growth in pa

ery many fligh

y Airbus indica

at capacity be

asting that in t

try 2015-2020

8F 2019F

or 2015-2020

2018F

s by Market Sec

xamined the pr

enger Kilomet

nising a doub

es in 2014 will

assenger traffi

hts from smalle

ate that worldw

efore 2036 effe

the period bet

0

2020F

2019F 2

ctor 2014-2019

rospects of fut

res (RPK) wo

ling of the wor

reach 75 by 2

c. Of course t

er cities and la

wide demand

ectively doubli

ween 2016 an

2020F CA

ture air travel

uld approach

rld air travel m

2024 and it is

these mega ci

arge towns to

for air travel w

ing the existin

nd 2035, the w

AAGR

just

market in

air travel

ties will

make

will create

g

worldwide

Whilst the

at the bou

customer

Table 3.1

Euro Mil

Group Sa

Group Sa

Number o

Figure 3.

companie

The Grou

European

The othe

America

Commun

among th

Instrumen

Total Eur

have grow

this 2016

criteria fo

and have

cost cent

Some offer a

as conformal

ere is some de

undaries of th

r sectors.

16 2015 Euro

lions

ales

ales as % of T

of companies

29 below show

es in each gro

up 1 companie

n EMS revenu

r five compan

and do derive

nication sector

hese five since

ntation, Medic

ropean EMS r

wn over the la

6 report we ad

or this section.

e established m

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full service, fr

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pean Sales V

Total

ws this tabula

oup becomes c

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es had combin

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ies, Foxconn,

e much of their

rs. In fact, Fox

e the remainin

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evenues of th

ast few years b

ded four comp

Companies i

manufacturing

acture and also

The Europea

om design to

mbrane keyboa

ap between th

pace (Figure 3

Value by EMS

Group 1

14003

51.2

6

r data differen

clearer.

re 3.29 2015 Eu

ned revenues

unique among

Flex, Jabil, C

r global and E

xconn’s strateg

ng four all deriv

al sectors.

e Group 2 com

both in terms o

panies to this

n Group 2 hav

g operations in

o at the reque

an EMS Indust

70

product after

ards, etc.

he four groups

3.28), either g

S Group

Group

3 44

2 16

6

ntly and the co

uropean Sales V

of Euro 14,00

g this group in

Celestica and S

uropean turno

gy of only con

ve some of th

mpanies amou

of European E

group from G

ve traditionally

n other parts o

est of long term

try 2015-2020

care, whilst ot

s, it is clear tha

geographically

p 2 Gro

89

6.4

22

omparison of g

Value by EMS G

03 million in 20

n that it does n

Sanmina are a

over from Con

centrating on

e income from

unted to Euro

EMS revenues

roup 3 since t

y offered a bro

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m customers w

0

thers provide a

at the compet

or in the expe

oup 3 G

3335

12.2

49

group revenue

Group

015, represent

not pursue bus

all headquarte

sumer, Comp

3C sector bus

m the Automot

4,489 million

s and in terms

hese compan

oad range of s

oth as a result

who have them

a specific serv

tition between

ertise they offe

Group 4

5526

20.2

+950

e to the numbe

ting 51.2% of

siness in the 3

ered in Asia or

puter and

siness is quite

tive, Control &

and in genera

s of total globa

ies now fulfil o

services to the

of searching f

mselves estab

vice such

them is

er in their

Total

27353

100

+1000

er of

the total

3C sector.

r North

e singular

&

al they

al sales. In

our

eir clients

for lower

blished

4 Majo

4.1 The

The Grou

European

terms of

market in

Czech Re

Zollner, t

proportio

North Afr

9.4%. Zo

launching

OEMs in

establish

to meet t

customer

Flex, the

In 2014,

the Nordi

its presen

of the agr

Although

Jabil Circ

estimated

company

In 2015, S

marked c

PC opera

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

% of Sales

or EMS Pro

Role of the

up 1 Global EM

n manufacturin

revenues. Fo

n 2015, annou

epublic in 201

Fig

he leading ind

n of productio

rica and expan

ollner, as part o

g production in

both North an

ed in 2011. Th

he demands o

rs.

world’s secon

Flex sold its p

ic region to the

nce in Italy fol

reement Flex

it is reported

cuit’s Europea

d 76% of sales

y’s aftermarket

Sanmina’s rev

contrast to Fle

ations in Hung

%

%

%

%

%

%

%

%

%

%

%

oviders in

Global EMS

MS providers

ng operations

oxconn, with a

nced addition

5, the two site

igure 4.1 Percen

digenous Euro

on undertaken

nds globally. In

of its “local for

n Costa Rica i

nd South Ame

he opening of

of customers i

nd largest EMS

plant in Paderb

e Swedish com

lowing the pur

has entered in

that the comp

n EMS activiti

s in 2015. The

t services divis

venues from it

ex, Jabil and C

gary to Foxcon

The Europea

n Europe

S

with a strong f

now located i

26% share of

al investments

es in the count

ntage of 2015 S

opean EMS pro

in Germany h

n 2015, sales

r local” strateg

n December 2

rica and will s

a new plant in

n the Asian m

S provider, ha

born, Germany

mpany Orbit O

rchase of Alca

nto a five-year

pany is looking

ies are today f

e company’s p

sion to iQor in

ts Western Eu

Celestica. How

nn.

an EMS Indust

81

focus on high

in CEE/North

f the European

s at its princip

try accounting

Sales by Region

rovider, also re

has declined a

from its opera

gy is also expa

2014. The new

support the co

n China in 201

market as well

as in recent ye

y to the Germ

One in Novem

atel-Lucent’s m

r renewable c

g to reduce he

focused on its

presence in Eu

n April 2014

uropean opera

wever part of th

try 2015-2020

volume produ

Africa domina

n and a 43% s

pal European m

g for 17% of th

n for the Group 1

emains comm

as the compan

ations in Hung

anding its glob

w plant will pro

mpany’s exist

14 expanded Z

as offer low co

ears scaled ba

an equity fund

mber 2015. The

manufacturing

ontract to sup

eadcount at the

s operations in

urope has also

ations account

his can be exp

0

CEE/

West

ucts and with t

ate the Europe

share of the C

manufacturing

he overall Euro

1 EMS Compan

itted to Europe

ny utilises it op

gary and Roma

bal presence w

ovide a cost-o

ing site in the

Zollner’s prese

ost manufactu

ack its activitie

d 4K Invest an

e company ho

site in Trieste

ply optical pro

e site.

n CEE which a

o been impact

ed for 40% of

plained by the

NA

t Europe

the majority of

ean EMS indu

CEE/North Afri

g operations in

opean EMS re

nies

e although the

perations in CE

ania increased

with the compa

optimized solut

USA which w

ence in Asia a

uring for Europ

es in Western E

nd its remainin

owever, has ex

e in June 2015

oducts to Alca

accounted for

ted by the sale

f the total and

decision to di

f their

stry in

ca EMS

n the

evenues.

e

EE and

d by over

any

tion for

was

allowing it

pean

Europe.

ng plant in

xpanded

5. As part

tel-Lucent

an

e of the

in

vest its

It is expe

companie

manufact

will be a k

4.3 Acq

A numbe

complime

the Top 5

Other55%

Other56%

Figure 4.

Figu

No

Orbi

ected that there

es look to exp

turing operatio

key factor in g

uisitions

er of the lar

entary skills a

50 European-o

4 The Percenta

ure 4.5 The Per

otes: Scanfil incl

it One includes

e will be an in

and their cust

ons. The abilit

generating new

rger Europea

nd services a

owned EMS c

The Europea

Ce

age of Southern

rcentage of Nord

ludes reported r

reported revenu

crease in the

tomer base bu

y to offer a low

w business (se

an EMS com

nd to expand

ompanies are

an EMS Indust

84

elestica5%

Orbit One7%

Europe EMS R

dic EMS Reven

revenues for Pa

ues for Flex whi

number of for

ut at the same

w cost manufa

ee Section 4.4

mpanies have

their manufac

e summarised

try 2015-2020

Sanm7%

Revenues by Le

nues by Leading

artnerTech for th

ich was acquire

reign-based sa

time utilise th

acturing capab

4).

used acquis

cturing footpri

in Table 4.1.

0

Flex15%

Elem13

Selcom12%

Scanfil11%

E

Kitr9%

mina%

ading Manufact

g Manufacturer 2

he first half of 20

d in November

ales or engine

heir existing do

bility, whether

sitions to en

nt. Major acq

master3%

Enics10%

ron%

turer 2015

2015 015

2015

eering offices a

omestic desig

in Europe or

nter new mar

uisitions since

as

n and

in Asia,

rkets add

e 2011 for


88

Recent acquisitions have also enabled companies to enter the Top 50 ranking the most notable Orbit One’s

acquisition of Flex’s Swedish manufacturing operations, and fellow Swedish company Inission’s 2016 acquisition

of Onrox and in the case of Selha push the French company’s pro-forma revenues over Euro 140 million

following the purchase of the former Alcatel-Lucent operations EINEA.

A number of companies, both small and large, have closed following bankruptcy. However, the number is

relatively small, especially when considering the current market situation of flat growth and increasingly tight

margins. In 2016, the US company Cemtrex acquired the insolvent German company Periscope. Previously

Flex’s manufacturing facility in Paderborn the company has been renamed Rob Cemtrex Automotive GmbH and

is part of Cemtrex’s Electronics Manufacturing Services Division which was formed in 2013 following the

acquisition of the bankrupt German company ROB Group in 2013.

Probably the most notable bankruptcy in recent years was the collapse of Elcoteq in 2011. At its peak the

company had revenues of over Euro 4.2 billion in 2006 of which Euro 2.5 billion were in Europe. The former Top

20 European EMS provider SRI filed for insolvency in 2012 and is now majority owned by the fellow German

company the TQ Group.

Consolidation whether through acquisition or bankruptcy will continue to change the structure of the European

EMS industry over the next five years and across all industry Groups. However, in the period to 2020 we do not

envisage that there will be a mass exodus of companies.

4.6 The Top Twenty European EMS Providers

The top 10 companies had an estimated European turnover of Euro 15,642 million in 2015, representing 57% of

the total European market while the top twenty accounted for 65.5%.

Table 4.2 The Top 20 European EMS Companies in 2015

Company Estimated European

EMS Revenues 2015

(Euro Million)

Foxconn

Flex

Jabil Circuit

Zollner

Videoton

Scanfil

Sanmina

Asteelflash

Enics

Neways

éolane

Celestica

LACROIX Electronics

ALL CIRCUITS

Kitron

TQ Group

Integrated Microelectronics Inc

Leesys

Kimball Electronics

BMK Group Note: Scanfil’s revenues includes PartnerTech’s sales for the first half of 2015


118

Enics Global Sales 2011-2015

Euro millions 2015 2014 2013 2012 2011

Sales 505 451 417 391 377

4.7.10 Neways

Overview

Neways Electronics International NV, with headquarters in Son, The Netherlands, provides electronic

manufacturing services primarily to companies in the industrial, automotive, medical and semiconductor sectors.

Neways has operating companies in the Netherlands, Germany, Slovakia, the Czech Republic and China and in

2015 reported turnover of Euro 374.1 million. At the end of 2015, Neways had a total of 2,530 employees of

which 1,875 were located in Western Europe, 460 in Eastern Europe and 195 in Asia.

Neways strategy is to target specific areas of the professional EMS market with the focus on small and medium-

sized batches with a relatively large knowledge component and high-added value. Emphasis is increasingly being

focused on the expansion of the company’s life cycle management activities and taking on the responsibility for

the entire project management from development to batch production and further development of advanced

components, assemblies and complete systems.

In April 2014, Neways Electronics International announced it has signed a letter of intent to acquire 100% of the

outstanding shares of the German EMS provider BuS Holding GmbH (BuS Group), the deal being finalised with

effect from the 11th July. The combination of Neways and BuS Group represented a strong strategic fit. The

acquisition of BuS Group has significantly strengthened its overall EMS market position and in particular its

exposure to the important German market and the automotive sector.

The BuS Group was a privately held (family-owned) EMS provider active across the whole of Germany. The

Group consisted of two operating companies in Germany (Riesa and Erfurt) and one operating company in the

Czech Republic (Decin). The company had a total staff of 900, including 50 developers. Based on preliminary

annual accounts, the company generated sales of around Euro 106 million in 2013.

BuS Group’s customers are mainly found in the automotive industry but also in industrial electronics, medical

technology, rail and aviation markets.

Within the Group the Western European companies focus on complex high value added products. Activities

range from development, prototyping and engineering to high-grade specialised batch production of complex

electronic components, systems assembly, after-sales services and maintenance. The Neways operating

companies in Slovakia, the Czech Republic and China, produce on behalf of the Neways companies in Western

Europe and produce larger more stable production rums. In addition, the companies are increasingly delivering

direct to OEMs in Eastern Europe and Asia. To support its low-cost activities Neways has invested in advanced

production lines.

Neways is looking to reinforce its position as a one-stop provider and life-cycle manager. To achieve this, the

company is increasing the scale of its development branch, prototyping and ready-made systems (specifically

box-build).

Manufacturing Operations

At the end of 2015 Neways had nine operating companies in Western Europe, three in Eastern Europe and two

in Asia. In addition, the company has a sales and service operation in Singapore to support existing and new


119

companies in the region. In Western Europe the companies, to maximize their added value, work in physical

proximity to – and in close partnership with – their customers.

Neways Advanced Applications, based in Son, The Netherlands, specialises in the development,

engineering/prototyping, PCB/product assembly and system assembly. The main markets served include

medical and semiconductor fabrication equipment. The company was formerly Stork Electronics which

was acquired in July 2004. The company is developing its NPI activities and to reduce costs increasing

its cooperation with Neways Wuxi in China.

As part of the company’s restructuring of its operations on the 1 January 2010 Neways Electronic

Assemblies and Neways Industrial Systems merged under the Neways Industrial Systems name. The

company specialises in engineering/prototyping, PCB/product assembly and system assembly. The plant

serves both external customers and other Neways operating companies..

Neways Leeuwarden BV, based in Leeuwarden, The Netherlands is engaged in engineering/prototyping

and PCB/product assembly. Key markets include telecoms, defence and control systems.

At the beginning of 2006 the development department of Neways Advanced Applications and the

operating company Hoyte merged to form Neways Technologies. Based in Son, The Netherlands the

company specialises in development, engineering/prototyping and life cycle management/EMR.

Neways Cable & Wire Solutions is located in Echt, Netherlands and is engaged in

engineering/prototyping and cable production/assembly. The company was formed through the merger of

Neways Heerlen and Si-Lectron at the beginning of 2006. Actual batch production takes place largely in

Slovakia at Neways Slovakia.

Neways Micro Electronics, is located Echt, and is focused on engineering/prototypes and the

development and production of microelectronics.

Neways Neunkirchen GmbH, Neunkirchen, Germany is engaged in engineering/prototyping and

PCB/product assembly for primarily German OEMs in sectors such as automotive and industrial.

BuS Elektronik, Riesa, Germany offers a complete range of manufacturing services from design through

to logistics from a 19,000 sq m facility. In 2013, BuS Elektronik acquired Software + Systems Erfurt. The

move strengthened the company’s development capabilities. Founded in 1990, Software + Systems

Erfurt employed 40 people and focused on the rail, aviation, automotive and medical markets.

Neways Slovakia (formerly Q-Nova), based in Nova Dubnica, Slovakia specialises in PCB/product

assembly, cable production/assembly and system assembly. The company, which is split into two

divisions the PCBA division and the Cable & Wire division, produces mainly for other Neways operating

companies in the Netherlands and Germany. Increased outsourcing to Neways Wuxi will be necessary to

ensure the company remains competitive.

BuS Elektronik has a low cost operation in Dcen, the Czech Republic focused on PCB/product assembly.

Neways Micro Electronics China (formerly Ximec Electronics Co Ltd), Wuxi, China was set up in 1995

and is mainly engaged in batch production of hybrids and microelectronics for Neways Micro Electronics.

A new flagship line was installed in 2011.

Neways Wuxi Electronics, based in Wuxi, China, specialises in electronics assembly of PCBs. The

company is increasingly working with other Neways operating companies to serve existing Neways

customers in the form of both deliveries to Europe and to the Asian market. To meet the same standards

as other Group companies Neways Wuxi relocated to a new 7,200 sq m facility in mid-2009.


120

At the beginning of 2013 Neways announced it was terminating the independent activities of its operating

company Neways Electronics Echt (NEE). The decision was prompted by the continuing volatility in the EMS

market at the time and the ensuing persistent imbalance in the capacity utilisation within the Neways group.

Located in Echt, the Netherlands, NEE specialised in the development, assembly and testing of high-grade

industrial control electronics and reported annual turnover of around Euro 15 million. All NEE activities, including

the entire inventory of machines, has been moved and redistributed to the other Neways operating companies.

In November 2013, following a major fire in September, Neways announced it would terminate production at

Neways Electronics Production GmbH (NEK) in Kassel, Germany. NEK had been a subsidiary of Neways since

1996 and was specialised in engineering/prototyping and PCB/product assembly. Following the fire NEK’s

production activities were relocated to other Neways’ manufacturing facilities the company making the decision to

close the plant on financial and operational complications associated with rebuilding the facility.

Company Developments

As part of its on-going Next Generation project, Neways introduced its new ERP system at its operating company

Neways Advanced Applications in 2015. The implementation of the new system will subsequently be phased in

per operating company. The new ERP system will encourage the desired closer cooperation between the

Neways operating companies, and therefore a more efficient deployment of staff and resources across the group.

In 2015, Neways started the implementation of its group-wide improvement programme ‘Up to the next level’,

which will further reinforce Neways’ positioning as a one-stop provider in the EMS market.

In 2015, Neways announced it was reallocating the operational activities of Neways Micro Electronics (NME) in

China to the company’s existing facility in Echt, The Netherlands as part of the company’s improvement

programme launched in mid-2015. Prior to the transfer the company will under-go an automation process in Echt.

NME specialises in the development and production of hybrid micro-electronics and the assembly and testing of

client-specific modules.

Activities not relocated to Echt will be transferred to Neways’ other Chinese subsidiary Wuxi Electronics. The

move will affect 65 employees in China although the company will try to retain some jobs by transferring a

number of them the remaining facility in the country.

Neways will also improve the efficiency of Neways Cable & Wire Solutions (NCWS), the operating company that

develops, produces and delivers high-quality cable systems for professional applications. Taking into account the

current turnover development and a more efficient organisation, some 15 jobs were lost at the beginning of the

year. Neways is taking a one-off provision of Euro 2.7 million. The decision to change/reorganise the operational

activities of NME and NCWS will make a positive contribution to the efficiency of the Neways organisations and

result in structural cost savings.

In 2015, Neways looked at utilising its operations in China to serve existing customers of the BuS Group. As a

result trial production started for a number of Western European customers in 2016 for which the Asian market

offers interesting sales possibilities. This is expected to lead to regular production in 2017.

Neways sees significant potential in China, in particular for the automotive sector and building management

systems. The company also expects to see a significant increase in demand from Chinese OEMs.

Neways is also witnessing increase demand in the US for ‘local for local’ services and is looking initially offering

engineering support.

Neways Financial Highlights – Year-end December

Neways has reported net turnover of Euro 374.1 million in 2015, an increase of 21% compared to the Euro 308.6

million reported in 2014. In the first half, this growth was due entirely to the consolidation of BuS Group. Sales in

the second half 2015 were at the same level as the first half of the year, and 6% higher than in the second half of

2014. Growth in the second half, compared with the second half of 2014, was realised by a combination of the

Neways operating companies and BuS. At year-end 2015, the order book stood at Euro 167.6 million, compared


121

with Euro 155.9 million at year-end 2014. Due in part to the acquisition of BuS Group, the order book was more

evenly and more broadly spread across the various sectors in which the company is active.

Sales by Market

Euro millions 2015 2014 2013 2012 2011

Industrial 142 118 96 103 100

Semiconductors 67 62 69 71 82

Telecom 5 4 3 4 6

Medical 57 59 64 68 65

Automotive 88 55 23 20 20

Defence 9 8 6 4 7

Other 6 3 4 4 4

Total 374 309 265 274 284

Leading Financial Indicators

Euro millions 2015 2014 2013 2012 2011

Net Sales 374.1 308.6 265.0 274.3 283.9

Net income/(loss)* 6.2 5.3 4.7 0.4 5.2

Employees (average) 2593 2288 1909 2052 2170

Note: * Excludes exceptional items

For the first nine months of 2016, Neways reported net turnover of Euro 294.4 million 3.1% higher than the Euro

285.6 million reported for the same period a year earlier. Sales in the third quarter of 2016 were Euro 96.5 million

and compared to the same level for the same period a year earlier, with higher sales contributions from

Semiconductor, Automotive and Defence sectors, offset by a lower contribution from Medical. For the first nine

months order intake was solid and increased by 8.8% year on year. The order book stood at Euro 184.6 million,

compared to Euro 161.8 million at end-September 2015 with a book-to-bill ratio of 1.06. The year-on-year

increase in the order book was largely due to new orders in the Automotive, Semiconductors and Defence

sectors and reflects a longer term visibility. Similar to last year the company is seeing increased short term

volatility in the order book as customers are more stringent in inventory control towards the end of the year.

4.7.11 éolane

Overview

éolane employed around 3,200 people and had estimated sales of Euro 360 million in 2015 and offers a

complete range of manufacturing services for the entire product life cycle. European EMS revenues in 2015 were

estimated at Euro 310 million.

The company, which is 100% owned by Financière de l’Ombrée, significantly expanded its operations through

the acquisition at the end of July 2010 of fellow French EMS Group NCF. Subsequent acquisitions of the

insolvent Lagassé Communications and Industries in Douarnenez, France and Berlin, Germany, the former

Elcoteq sites in Tallinn, Estonia and Bangalore, India and in 2014 the French engineering and design company

Bengale électronique and the Berlin based EMS company SysCom electronic GmbH have further expanded the

company’s manufacturing footprint.

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185

5.4.4.7 HP Tronic

With headquarters in Ljungby, Sweden, Hörberg Petersson Tronic AB (HP Tronic), is a contract manufacturer

primarily focusing on the design and production of industrial control, wiring harnesses and test systems for OEMs

serving a broad range of markets such as energy, ventilation and air handling, healthcare, packaging, food and

beverage processing, professional white goods and heavy duty vehicles. In 2015, the company had consolidated

sales of SEK 348 million (Euro 37 million) and compared to SEK 238 million in the prior year and on average

employed 196 people during the year.

The Swedish plant is supported by a low cost manufacturing facilities in Suzhou, China (2009) and Pune, India

(2011).

On the 1 June 2015, HP Tronic announced it had acquired Tetra Pak Processing Systems’ control panel

manufacturing in Lund, Sweden. The business was sold as a going concern and has continued to operate from

its existing premises in Lund, managed as a part of the HP Tronic Group activities in Sweden. The two

companies have also entered into a Supply Agreement related to the ongoing supply of control panels to Tetra

Pak’s Lund-based operations.

5.4.4.8 Inission

Inission provides tailored production and logistics services in the field of advanced industrial electronics. The

Group reported revenue of Euro 30 million in 2015, the company employing on average 198 employees at its

operations in Sweden and Estonia. Formerly EDC, the company changed its name to Inission in June 2011, a

move which brought together under a single brand EDC and FABEC, the fellow Swedish EMS provider EDC

acquired two years earlier.

Through the listing, which raised SEK 20 million before issue costs, the company will have greater flexibility in

pursuing acquisitions, which have already played an important role in the development of the group and which

will continue to be a key part of the company’s future growth strategy.

In 2011, Inission acquired Stockholm based EMS Triab the company having revenues of around SEK 30 million

and 20 employees.

In December 2012, the company acquired MikroMakarna. Located in Pajala, Sweden, MikroMakarna had 25

years-experience in the EMS industry from design and prototyping through to series production, test and

logistics. Sales were around of SEK 70 million with the company employing 36 people.

In August 2015, Inission announced it had acquired the Swedish company Montronic AB. Located in Sösdala,

Sweden Montronic offers both prototype and series production and had sales of SEK 28.5 million in 2014, the

company employing 25 people.

In May 2016, Inission completed the acquisition of fellow Swedish company SKEAB Elektronik in a deal valued at

SEK 17.3 million. Renamed Inission SKEAB the company had annual sales of approximately SEK 40 million and

employed 28 people.

In June 2016, Inission announced its largest acquisition to data through the purchase of fellow Swedish group

Onrox. The Onrox Group, which reported sales of SEK 286 million and a loss after financial items of SEK 8

million in 2015, consisted of Onrox Group Malmö AB and Onrox Group Borås AB. Onrox Group Malmö AB also

owns the Danish sales company Onrox ApS.

The purchase price for the acquisition of Onrox Group amounted to SEK 40 million with the entire amount paid in

cash on the date of the transaction. The purchase price was partly funded by a bank loan and partly by its own


186

means including part of the company’s shareholding in the Finnish EMS provider Incap (prior to the acquisition

Inission held a 41.3% stake in Incap which has been reduced to 40%).

Onrox also owned properties in which operations are conducted in Borås and Malmö. These properties have

been sold simultaneously. Both properties were acquired by Acrinova whose core business is property

management. Current management in Onrox Malmö and Onrox Borås have been retained.

Onrox, which was owned by Midway Holdings, was itself formed through the merger of Onrox with fellow

Swedish company Eribel in 2015.

Following the acquisition of Onrox, Inission immediately entered into a feasibility study to look at the cost and

operational benefits of merging its existing unit in Sösdala into the acquired Malmö site. As a result, the Sösdala

site will be transferred to Malmö in early 2017. In October 2016, Inission announced it has changed the name of

Onrox Malmö to Inission Malmö AB. Inission has also changed the name of the Danish sales subsidiary to

Inission København ApS.

In July 2016, Inission announced it would invest in a new SMT line based around Siemens machines at Onrox’s

Borås site. The new line was scheduled to be operational by late summer 2016. With the new line capacity will be

increased by at least 40%, making it easier to handle short lead times. It will ease pressure at the site following a

recent large order which has required the company moving to three shifts.

Further developments were announced in August 2016 with the decision by Inission to relocate its operations in

Göteborg to the Borås site.

Inission annual sales in 2016 are forecast to be around SEK 610 million the group employing approximately 340

people.

5.4.4.9 Kitron

Kitron is the largest Norwegian EMS provider and ranked 15th in Europe. The company has manufacturing

operations in Norway and Sweden which are supported by low-cost sites in Lithuania and China. Kitron as part of

its expansion into new markets and to support key customers established a manufacturing site in the US and a

sales office in Germany.

For further information please see Section 4.7.15.

5.4.4.10 LEAB

The LEAB group, with sales of around Euro 37 million in 2015, is one of the leading EMS providers in Sweden

the group consisting of the parent company Lövanger Elecktronik AB, Lövanger Elektronik Uppsala AB

(ElektronikProduckter), Wintech and LEAB Eesti ÖU in Tallinn, Estonia. The group offers a complete range of

manufacturing services from development, industrialisation and prototypes to full scale production to aftermarket

services.

Lövanger Elecktronik AB operates a 5,000 sq m facility in Lövanger and is certified to ISO 9001, ISO 13485, ISO

14001 and IRIS. The company operates two SMT lines and has three wave soldering machines and one

selective wave soldering machine. In April 2014, LEAB established a new industrialisation centre in Lövanger.

Since opening the centre has managed to halve the time from first prototype to series production.

In May 2016, LEAB announced it was investing in a new SMT line from Mycronic. The line will provide the

company with increased capacity as well as the flexibility to handle short-lead times, small series and fluctuations

in production.


274

Company Name: Tech Power Electronics

Address: ZI Les Plaines, 39570 Courlaoux, France

Tel: +33 3 63 84 00 08

Fax: +33 3 84 25 26 10

Website: www.techpowerelectronics.com

Company Name: Tronico ALCEN

Address: 26 rue du Bocage, 85660 Saint-Philbert-de-Bouaine, France

Tel: +33 2 51419135

Fax: +33 2 51419427

Website: www.tronico-alcen.com

Tronico ALCEN

Address: 34 rue Gustave Eiffel, 38000 Grenoble, France

Tel: +33 4 76 22 48 19

Note: Design

Company Name: Viapaq

Address: 1 rue de Clairefontaine, 78120 Rambouillet, France

Tel: +33 1 34 57 59 00

Website: www.viapaq.com

Note: Formerly Continental

Parent Company: Varova, Netherlands

6.11 Germany

Company Name: A 2000 Industrie-Elektronik GmbH

Address: Bohmattstrasse 2-4, 77948 Friesenheim, Germany

Tel: +49 7821 9647 0

Fax: +49 7821 9647 22

Website: www.a2000elektronik.de

Company Name: A Staiger GmbH

Address: Konrad-Buchmann Str 11, 72365 Ratshausen, Germany

Tel: +49 7427 93190 0

Fax: +49 7427 93190 24

Website: www.a-staiger.de

Company Name: a.p. microelectronic GmbH

Address: Konigstr. 416, 32427 Minden, Germany

Tel: +49 571 40451

Fax: +49 571 4045299

Website: www.ap-micro.de

Company Name: ACD Elektronik GmbH

Address: Engelberg 2, 88480 Achstetten, Germany

Tel: +49 7392 708 0

Fax: +49 7392 708 190

Website: www.acd-gruppe.de

Company Name: AEMtec GmbH

Address: James-Franck Str 10, 12489 Berlin, Germany

Tel: +49 30 6392 730 0

Fax: +49 30 6392 7302

Website: www.aemtec.com

Parent Company: exceet, Luxembourg

The European Electronic Manufacturing Services Industry 2015-2020


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