ZAMA and Elrad establish joint venture for electronic components
ZAMA Corporation and the Elrad International Group have established a joint venture for the manufacture of electronic assemblies. The two companies signed a joint venture agreement which was subsequently officially approved by the relevant antitrust authorities. The joint venture will operate under the name ZE Electronic Manufacturing Service Ltd. ZAMA holds 51 percent of the shares, the remaining 49 percent are held by Elrad. The companies have agreed not to disclose financial details of the transaction.
With the increase of people's environmental awareness around the world, the demand for battery-powered outdoor tools is increasing significantly. In recent years, apart from continuing to provide global customers with diaphragm carburetors and precision machining parts, ZAMA has also gradually accumulated know-how in development and manufacturing of electronic parts. In 2013, ZAMA launched solenoid valve products, and ZAMA will start mass production of cables harness in April this year.
At the same time, Elrad has extensive experience in the field of electronic electromechanical assemblies, providing products and services to customers in different industries around the world. This time ZAMA and Elrad have established the joint venture to maximize their expertise and experience advantages and provide customers with more value-added electronic products and services. The new company is scheduled to start operations at ZAMA's Philippine production site in Santo Tomas in Batangas province at the end of 2021. In the medium term this will lead to the creation of more than 175 new jobs.
About ZAMA Corporation
ZAMA Corporation is a wholly owned subsidiary of the STIHL Group and the world's largest manufacturer of diaphragm carburetors. To date, the ZAMA Group includes sites in Japan, Hong Kong, China, the Philippines and the U.S. The company supplies carburetors, oil pumps and other precision parts to various manufacturers of chainsaws and garden tools. With a workforce comprising more than 2,400 employees, ZAMA annually manufactures more than 15 million carburetors in some 350 different variants, 6 million oil pumps and high precision machining parts.
About Elrad International
Elrad Group has more than twenty years of experience as a supplier in the development and production of electronic and electromechanical assemblies for various industries. As a system supplier, Elrad Group is involved in several or all stages of the development process for electronic assemblies on behalf of its customers. The goal is mass production of these assemblies or fully assembled products. The company employs more than 1,800 people at four locations worldwide (among others in Slovenia).