Manufacturing passive components in Europe is sustainable in the long term, according to the CEO of supplier Kemet.

Kemet has acquired ten manufacturing facilities in Europe, including two in the UK, in the last year, which makes Europe the largest manufacturing region for the US-based capacitor company.

“I expect China to kick back-in soon, but right now Europe is our largest region for manufacturing,” said Kemet CEO, Per-Olof Loof.

“Manufacturing is definitely sustainable in Europe. We have ten plants in seven European countries. We will do some reductions but will retain a significant presence here,” said Loof.

Loof said he is looking at least six years ahead, “I define eternity in this business as three years and so definitely for a couple of eternities,” said Loof.

This is significant because the volume manufacturing of passive components such as capacitors has typically moved to lower cost regions in Asia and South America.
The company acquired the manufacturing facilities when it bought the Epcos tantalum capacitor business, Evox Rifa and Arcotronics.

“The European market is focused on industrial and medical applications and here quality, not price is the issue,” said Loof.

Evox Rifa provided Kemet with a strategically important R&D centre for electrolytic capacitors at Weymouth in Dorset.

The European market is important to Kemet because of its strength in industrial applications. “For professional and industrial electronics Europe, Middle East and Africa represents 28 per cent of worldwide demand for capacitors compared with just 14 per cent for consumer,” said Loof.

According to Loof, the capacitor market is growing at a healthy rate of 15 to 20 per cent in volume terms and is also growing in dollar terms despite considerable price pressure.