OKI and Avio Sign Agreement on Transfer of Printed Circuit Board Business

July 7, 2016 | By Business Wire News

TOKYO

OKI (TOKYO:6703) today announces that OKI entered into an agreement with Nippon Avionics Co., Ltd. (“Avio” hereinafter) on a transfer of 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.

[Overview of Avio] (As of March 31, 2016)

Name: Nippon Avionics Co., Ltd.
Address: Gotanda Kowa Bldg., 1-5, Nishi-Gotanda 8-chome, Shinagawa-ku Tokyo, Japan
Lines of business:	1.	Development, design and sales of data processing systems
	2.	Manufacture and sales of electric equipment such as data processing equipment, aviation equipment, communication equipment, image processing equipment, manufacturing equipment, medical equipment, electric measuring equipment, etc.
	3.	Manufacture and sales of electronic devices and parts such as printed wiring boards, hybrids IC’s etc.
Number of employees: 1,014

About OKI Electric Industry (OKI)

Founded in 1881, OKI Electric Industry is Japan’s leading telecommunications manufacturer in the Info-telecom field. Headquartered in Tokyo, Japan, OKI provides top-quality products, technologies, and solutions to customers through its info-telecom systems and printer operations. Its various business divisions function synergistically to bring to market exciting new products and technologies that meet a wide range of customer needs in various sectors. Visit OKI’s global website at http://www.oki.com/.

Notes:

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