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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
A Strategic Study of the European EMS Industry
Research Consultants: Andrew Fletcher, Peter Brent
First Edition Published: April 1993
Second Edition Published: June 1996
Third Edition Published: October 1998
Fourth Edition Published: May 2000
Fifth Edition Published: October 2001
Sixth Edition Published: May 2003
Seventh Edition Published: June 2005
Eighth Edition Published: August 2007
Ninth Edition Published: August 2009
Tenth Edition Published: September 2011
Eleventh Edition Published: November 2013
Twelfth Edition Published: November 2014
Thirteenth Edition Published: December 2015
Fourteenth Edition Published: November 2016
ISBN: 1 905429 622
© Reed Electronics Research, England 2016
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in
any form or by any means, electronic, mechanical, photo-copying, recording or otherwise, without prior consent
of the copyright owner.
Whilst every care is taken to ensure that the data published in this report are accurate, the Publishers cannot
accept responsibility for any omissions or inaccuracies appearing or for any consequences arising therefrom.
Reed Electronics Research
Harvard House
Grove Technology Park
Wantage, Oxon OX12 9FF
United Kingdom
Tel: +44 (0) 1235 227310
Fax: +44 (0) 1235 420515
Website: www.rer.co.uk
The European EMS Industry 2015-2020
3
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
The European EMS Industry 2015-2020
4
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
The European EMS Industry 2015-2020
5
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
5.2.1 Electronics Industry Overview 152
5.2.2 EMS Market & Industry Trends 153
5.2.3 The Leading EMS Companies in Germany 155
5.2.4 Profiles of the Leading EMS Companies in Germany 156
5.2.4.1 Asteelflash 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
5.3.1 Electronics Industry Overview 164
5.3.2 EMS Market & Industry Trends 166
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
5.4.1 Electronics Industry Overview 173
5.4.2 EMS Market & Industry Trends 175
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
The European EMS Industry 2015-2020
6
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
5.5.1 Electronics Industry Overview 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
5.5.4.2 Asteelflash 196
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
5.5.4.9 Jabil Circuit 202
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
5.6.1 Electronics Industry Overview 212
5.6.2 EMS Market & Industry Trends 214
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
5.6.4.4 Celestica 218
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
5.6.4.10 Jabil Circuit 223
5.6.4.11 Melecs 223
5.6.4.12 Neways 224
5.6.4.13 Sanmina 224
The European EMS Industry 2015-2020
7
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
5.7.2 EMS Market & Industry Trends 228
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
5.7.4.2 Celestica 232
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
5.7.4.8 Jabil Circuit 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
The European EMS Industry 2015-2020
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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
The European EMS Industry 2015-2020
9
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
The European EMS Industry 2015-2020
10
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
The European EMS Industry 2015-2020
11
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
The European EMS Industry 2015-2020
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.
The European EMS Industry 2015-2020
13
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on a like for li
countries of Ge
European EMS
ries.
015-2020
2019F
ENA 2015-2020
from 2014 on
panies now ha
rating to these
uring plants in
on of predomin
2019F
2020F
ke basis, was
ermany, Franc
S production v
2020F
0
n a like-for-like
aving manufac
e installations
CEE/MENA i
nantly 3C pro
2020F
s
ce and
values are
e basis but
cturing
at a
s a result
ducts by
Table 3.5
Euro Mi
Nordic
UK
Germany
Benelux
3.2.4 So
Table 3.6
Euro Mi
France
Switzerla
Austria
Italy
Southern Note: * Port
Spain an
of both co
restructur
struggling
as a 0% i
economy
1
1
2
2
3
3
4
4
€Millions
5 EMS for No
llions
y
outhern Euro
6 EMS revenu
llions
and
n Europe*
tugal and Spain
d Portugal hav
ountries are im
ring to be com
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
The European EMS Industry 2015-2020
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
tres of manufa
full service, fr
coating, mem
egree of overl
eir strategic s
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
cal or Industria
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
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3335
12.2
49
group revenue
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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
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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
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er in their
Total
27353
100
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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
The European EMS Industry 2015-2020
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
The European EMS Industry 2015-2020
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
The European EMS Industry 2015-2020
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.
The European EMS Industry 2015-2020
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
The European EMS Industry 2015-2020
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.
éolane is split into the following business areas:
Electronic Solutions.
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The European EMS Industry 2015-2020
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
The European EMS Industry 2015-2020
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.
The European EMS Industry 2015-2020
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
A Strategic Study of the European EMS Industry
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