Europe EMS telegram No. 2-2021

  • Neways Electronics International N.V. Eindhoven / NL has received a non-binding, conditional indicative proposal from VDL Groep BV (“VDL”), a major shareholder of Neways, to acquire all outstanding shares in Neways’ capital. The indicative offer price is EUR 12.50 (with dividend) in cash for each Neways share. In order to better evaluate the indicative proposal, Neways starts talks with VDL. It is currently uncertain whether talks will lead to a conditional agreement on a public offering for all outstanding shares in Neways’ capital and, if so, at what price and under what conditions. After the announcement, the Neways share rose from EUR 10.90 to EUR 12.15 and has now reached a price of EUR 12.65. The VDL Groep, a family company with headquarters in Eindhoven, had already taken over the Dutch EMS company tbp electronics with 133 employees and an annual turnover of approx. 30 million euros in December 2020.
  • The 19th EMS Day was postponed to September 2nd due to the uncertain pandemic situation in June. As in the previous year, the event will take place in the Mainfrankensaele in Veitshoechheim north of Wuerzburg, as the hygiene concept can be ideally implemented there and a face-to-face event can therefore take place safely. As in the last few years there will be a lecture by in4ma. There will be a joint evening event the evening before, provided that the official requirements allow this at the time. Make a note of the appointment early enough and reserve a seat. Last year, unfortunately, some late registrations had to be rejected because the hygiene concept stipulates a participant limit. You can go on vacation afterwards, as the Oktoberfest is canceled.
  • The IPC held its 2nd EU Executive Forum as a video conference on March 24th, 21st. The Executive Forum is specifically aimed at executives in the electronics industry. Interested parties can put themselves on the invitation list for the future at: philippeleonard@ipc.org
  • The TOP 20 of the European EMS Industry 2020 have been determined and will be published this week at EMSNow. In4ma sponsors will receive the list together with this telegram as an email.
  • The Swedish Hanza Group, to which Hanza GmbH In Solingen belongs (formerly Ritter Elektronik), has published the results for the first quarter of 2021. Sales in the first quarter of 2021 reached SEK 567.4 million (EUR 56.07 million) and thus 5.3% less than in the same quarter of the previous year when they generated SEK 599.1 million (EUR 56.07 million) . Due to changes in the exchange rate, it was only minus 0.2% in euros. The net profit in Q1 21 was 1.6%.
  • The Swedish Inission Group has also published its quarterly results Q1 21 of SEK 231.75 million (EUR 22.9 million). In Q1 2020 sales were 5.1% higher at SEK 244.2 million (EUR 22.89 million). Here, the change in the exchange rate has converted the negative result into a minimal positive in euros. The net profit decreased in Q1 21 to 0.8%.
  • Let’s stick with the quarterly results and take a look at Finnish Incap Oy. Incap reported quarterly sales of 37.7 million euros, an increase of 55.1% as of Q1 2020, and that was purely organic. The net profit in the first quarter of 21 was 12.2%. Accordingly, the share rose from EUR 26.70 (April 21, 21) to EUR 39.90 (April 29, 21) and is now at EUR 37.20 (May 7, 21). Incap is currently expanding the two existing factories in India and will complete this in Q4.21. At the same time, a third factory is being built in India, which will have an additional 8,500 m² and will open in Q2 22.
  • The EMS Scout, digital buying guide for the OEM industry for pre-selecting a qualified EMS production service provider, has started successfully www.ems-scout.de in German for D-A-CH. Activities are currently focused on introducing the EMS Scout to the OEM industry. The bilingual version with an extension to other countries is currently being planned.
  • Enics has concluded the talks with the works council at the Swiss plant in Untersiggenthal / Turgi. Production is to be relocated by mid-2022, with essential parts going to the plant in Västerås / S. 125 employees are expected to be affected. A service center is to remain in Untersiggenthal.
  • Thomas Michels, managing partner of the German printed circuit board manufacturer Ilfa, has become President of TCLAD Europe, the offshoot of the American specialty laminate manufacturer TCLAD Inc. (formerly Bergquist) and has thus also gained access to the currently hotly contested base material market.
  • The Belgian Connect Group has bought the Spanish EMS provider IKOR with plants in Spain, Mexico and China from the German EBM-Papst, which is also a customer. Connect Group is entering the global EMS business and will even overtake TQ-Systems based on sales in 2020, but will definitely end up among the TOP 20 in Europe in 2021.
  • Smaller EMS companies are also increasingly thinking about inorganic growth. Some EMS companies are currently looking for companies to take over. Unfortunately, there are hardly any offers compared to demand. In4ma is happy to forward offers.
  • Data4PCB, Mr. Michael Gasch, has compiled some facts on the subject of price increases in the printed circuit board and in the basic material under the title “This can’t be true”. In the meantime he has also published an article on this in Elektronikpraxis. Interested parties can request the leaflet “This can’t be true” at info@data4pcb.com.
  • Katek successfully completed its IPO on May 4, 2021. The opening price of the share was EUR 27.90. In the first week, an average of 1700 files were traded daily.
  • On April 30, 2021, the EMS service provider SERO GmbH, Rohrbach / D acquired Solid Semecs B.V. with retroactive effect from January 1, 2021. fully taken over in the course of a share deal. Semecs is a Dutch company whose production plant is located in Vráble, Slovakia, and generates around € 70 million with around 460 employees. Semecs also operates an engineering center in Uden (NL) and sales offices in Mosbach, Munich and Slagelse (DK). Sero has around 210 employees and generates sales of almost 80 million euros. Together, Sero will be among the TOP 10 German EMS manufacturers, will be able to expand its product range and strengthen its purchasing position.
  • The CEO Bo Lybaek of the Danish GPV has published the quarterly results. Sales increased to 741 million DKK (99.63 million euros) in Q1 21, which is 9.1% compared to Q1 20 (679 million DKK / 90.88 million euros). In euros, the increase was even 9.6%.
  • Tin prices hit an all-second high this week at USD 32,400 / ton on the London Metal Exchange. This naturally raises the question of how purchasing should behave. In the communication between in4ma and an expert, Dan Mutschler from MTM Ruhrzinn, he advises not to speculate on lower prices, regardless of the price, but on security of supply.