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OKI and Avio Ink Agreement on Transfer of PCB Business
July 14, 2016 | Business WireEstimated reading time: 1 minute
OKI has entered into an agreement with Nippon Avionics Co., Ltd. to transfer Avio’s printed circuit board business to OKI. The two companies will start negotiations on technologies and facilities transfer and a range of certifications from October 1, 2016 with a view to completing the business transfer by March 31, 2018. Most of Avio’s printed circuit board business will be transferred to OKI Printed Circuits and OKI Circuit Technology, both are the OKI’s EMS business sites, who will continue the transferred business.
In 1964, Avio started its advanced technology and high reliable printed circuit board business mainly for aerospace equipment and semiconductor inspection equipment which requires advanced certification and high reliability. In light of recent environmental changes, Avio had been repositioning its printed circuit board business. Avio highly regards OKI’s EMS business because it has promise, technical capability for realizing high reliability and a track record of manufacturing a wide variety of products in small quantities. In addition, the business transfer enables ensuring the continuity of the supply of printed circuit boards to existing customers and realizing greater sophistication; in conclusion, Avio reached agreement with OKI.
Announced on November 12, 2013, OKI's ‘Mid-term Business Plan 2016’ with fiscal year 2016 as the final year, positions high-end EMS drawing on its advanced production technologies and quality control capabilities as a growth area. Launched in 1965, OKI's printed circuit board business has won renown for its large, multilayer boards based on its prominent technologies, including aerospace equipment and measuring equipment which requires advanced technology and high reliability. To create a growth of its EMS business, OKI decided the business transfer from Avio to enhance its niche and high value-added large and multilayer printed circuit board business.
OKI will further strengthen Avio’s advanced and high reliable technology as well as continuing to supply printed circuit boards to Avio’s existing customers. The business transfer will generate synergy effect in printed circuit board business for high-end products which OKI has great advantages. OKI seeks to be a market share leader on a large and multi-layer printed circuit board market and mark 48 billion yen in EMS business in 2016 as well as expanding integrated production from printed circuit boards through assembly of final products.
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