Avalon forms JV with Zollner for PCBA manufacturing in India
Zollner Elektronik AG (Zollner), a leading European electronics manufacturing services (EMS) company, and Avalon Technologies (Avalon) today announced the formation of a joint venture (JV) for PCBA, box-build and system integration manufacturing in India. The JV will serve customers across geographies in sectors including Health Care & Life Sciences, Test & Measurement, Rail and other Industrial verticals.
Under the terms of the arrangement, Zollner will initially hold 51% and Avalon will hold 49% of the JV. Beginning three years after the start of commercial production at the JV's manufacturing facility, Avalon will have an option, subject to certain conditions, to acquire an additional 2% stake, taking its shareholding to 51% and making it the majority shareholder in the JV. This structure lets Zollner lead the JV's early operations, drawing on its manufacturing and engineering experience, while giving Avalon a clear route to increase its ownership as the business matures.
The JV brings together Avalon's established manufacturing capabilities, supply chain relationships and operating footprint in India with Zollner's engineering expertise, international customer relationships and full product lifecycle capabilities (from R&D through production and after-sales service) built over more than six decades of serving strategic, high-reliability industries. The partners intend to leverage these complementary strengths to create a differentiated manufacturing platform in India, accelerate scale, and help global customers build more resilient and diversified supply chains.
The JV will manufacture Printed Circuit Board Assemblies (PCBA), box-build and system integration products in India. It will initially focus on serving the India operations of established customers. Beyond its role as an equity partner, Avalon will also supply the JV across several of its core capabilities ? cable wiring and harness, magnetics, plastics, sheet metal and machining ? expanding Avalon's participation across the value chain and creating an additional recurring revenue opportunity as the venture scales.