Avalon Technologies gains after forming JV with European EMS firm Zollner
The JV will serve customers across geographies in sectors including health care & life sciences, test & measurement, rail and other industrial verticals.
As an electronics and mechatronics service provider, Zollner Elektronik AG is the leading provider in the field of EMS in Europe. Established in 1965 as a one-man operation, the family-owned company has developed through organic growth into a global player with over 12,500 employees at 26 locations worldwide, and is among the most eminent international EMS providers.
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 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.
Kunhamed Bicha, chairman and managing director, Avalon Technologies, said: This JV is strategically significant for Avalon. It expands our access to customers, opens new verticals and advances our capabilities in highly complex manufacturing. Just as importantly, it is fully consistent with the strategy that has built Avalon: high-mix, high-complexity products, long product lifecycles, trusted customer relationships and disciplined, profitable growth.
Zollner brings more than six decades of engineering expertise, global customer relationships and full product lifecycle capabilities. Avalon brings an established India manufacturing platform, a strong local supply chain and integrated capabilities across the value chain.
Avalon Technologies is a fully integrated electronics manufacturing services (EMS) company, delivering end-to-end box build solutions in India, with a focus on high-value, precision-engineered products.
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