Professional Documents
Culture Documents
Polymers for
Electronic Components
K. Cousins
Keith Cousins
July 2001
http://www.rapra.net
The right of Keith Cousins to be identified as the author of this work has been asserted by
him in accordance with Sections 77 and 78 of the Copyright, Designs and Patents Act
1988.
Contents
1 Introduction .................................................................................................................... 1
1.1 Background ............................................................................................................. 1
1.2 The Report .............................................................................................................. 1
1.3 Methodology............................................................................................................ 2
2 Executive Summary ....................................................................................................... 3
3 Review of Materials and Properties................................................................................ 9
3.1 Introduction.............................................................................................................. 9
3.2 Polymers for Electronic Components..................................................................... 10
3.2.1 Acrylonitrile-Butadiene-Styrene (ABS)............................................................. 10
3.2.2 Acetal Copolymer (POM) ................................................................................ 10
3.2.3 Polyarylamide ................................................................................................. 10
3.2.4 Liquid Crystalline Polymers (LCPs) ................................................................. 11
3.2.5 Polyamide (PA) ............................................................................................... 11
3.2.6 Polybutylene Terephthalate (PBT) .................................................................. 12
3.2.7 Polycarbonate (PC)......................................................................................... 12
3.2.8 Polyetheretherketone (PEEK) ......................................................................... 13
3.2.9 Polyetherimide (PEI) ....................................................................................... 13
3.2.10 Polyethylene Terephthalate (PET) ................................................................ 13
3.2.11 Polyethylene (PE) ......................................................................................... 13
3.2.12 Polypropylene (PP) ....................................................................................... 13
3.2.13 Polyphthalamide (PPA) ................................................................................. 14
3.2.14 Polyphenylene Sulfide (PPS) ........................................................................ 14
3.2.15 Polystyrene (PS) ........................................................................................... 14
3.2.16 PS-Modified Polyphenylene Oxide (PPO) ..................................................... 15
3.2.17 Polysulfone (PSU)......................................................................................... 15
3.2.18 Polytetrafluoroethylene (PTFE) ..................................................................... 15
3.2.19 Polyurethane (PU)......................................................................................... 16
3.2.20 Polyvinyl Chloride (PVC) ............................................................................... 16
3.2.21 Polyvinylidine Fluoride (PVDF)...................................................................... 16
3.2.22 Styrene-Acrylonitrile Copolymer (SAN) ......................................................... 16
3.2.23 Elastomers .................................................................................................... 16
4 Electronic Components ................................................................................................ 19
4.1 Enclosures............................................................................................................. 19
4.2 Batteries ................................................................................................................ 22
4.3 Cable Glands......................................................................................................... 23
4.4 Cable Ties and Markers......................................................................................... 23
4.5 Capacitors ............................................................................................................. 23
4.6 Coil Formers.......................................................................................................... 27
4.7 Connectors ............................................................................................................ 27
4.8 Heaters.................................................................................................................. 32
4.9 Membrane Keypads .............................................................................................. 32
4.10 Plugs and Sockets............................................................................................... 32
4.11 Printed Circuit Boards (PCBs) ............................................................................. 33
4.12 Relays ................................................................................................................. 37
4.13 Resistors ............................................................................................................. 37
3
1 Introduction
1.1 Background
The European plastics manufacturing industry employs more than 70,000 people and has
annual sales of over ELOOLRQ 0DQXIDFWXULQJ LQYHVWPHQW LV RI WKH RUGHU RI ELOOLRQ ZLWK
investment in research and development estimated at ELOOLRQ $FFRUGLQJ WR WKH
Association of Plastics Manufacturers (APME), total plastics consumption, including nonplastics applications (use of fibres or coatings in products which are not seen as plastics
products in their own right) was 38,803,000 tonnes in 1998. The percentage division by
end-use market is shown in Figure 1.1.
Building/Construction
45%
40%
Electrical/Electronic
35%
Agriculture
30%
25%
Packaging
20%
Large Industry
15%
10%
Automotive
5%
Other
Household/Domestic
0%
Source: APME
Large industry represents non-packaging uses including machinery not covered by other sections
and
the
key
and
Figures from the APME for 1998 show that 2,381,000 tonnes of plastics were used in the
European electronics and electrical sector. Plastics waste, weighing 675,000 tonnes,
accounted for less than 0.1% of the sectors waste by weight. Of this, plastics containing
halogenated compounds represented 11% of the total.
the automotive sector, with the increasing electronics content of new models
compared to predecessors, and
The growing use of contract electronics manufacturing is reviewed in this section, which
also identifies issues of significance in individual European markets.
Key trends and developments affecting the current and future use of polymers in
electronic component applications are considered in Section 6, including their use in
batteries, capacitors, transistors, displays, fuel cells and rapid prototyping processes.
Plastics recycling is also discussed.
The future outlook for the use of polymers in the components sector is reviewed in Section
7, and a selection of company profiles of the leading suppliers and consumers in this
sector is given in Section 8.
1.3 Methodology
This report has been compiled largely by the extensive use of desk research, the internet
and the Rapra Abstracts database. I would also like to express my thanks to the many
company and trade association representatives I met, mainly at trade exhibitions, and to
those companies who responded to my requests for information.
2 Executive Summary
Designers of electrical and electronic components have a wide choice of polymers at their
disposal and this report lists the most commonly used with brief notes on their properties.
Industry studies have shown the most popular polymers in Europe for electronic and
electrical applications, including wire and cable, to be polyvinyl chloride (PVC), which is
used mainly for cable sheathing but also used for cable clips, grommets and shrouds,
polyethylene (PE), acrylonitrile-butadiene-styrene (ABS), polystyrene (PS) and
polypropylene (PP).
PVC
25%
Other
31%
PP
12%
PE
19%
PS
13%
The telecommunications sector is seen as the most important growth element though
Universal Mobile Telecommunications System (UMTS) services will not make a
measurable contribution to the figures in 2001. The President of the EECA added his
belief that the automotive sector will remain the second strongest market for passive
components and will continue to grow. Further growth is to be found in the subcontracting
sector. Major growth in the mobile phone sector is tied to the successful launch of third
generation (3G) UMTS systems. However, the European Commission (EC) has criticised
the high cost of licences and lack of harmonisation in licence conditions from country to
country. The Commission believes that this could handicap the launch of 3G services
across Europe.
The customers for electronic components manufacturers can be categorised in four major
groups: catalogue distributors, contract equipment manufacturers (CEMs), original
equipment manufacturers (OEMs) and overseas distributors. It has been reported that
CEMs now account for between 35% and 40% of the component sales of some
distributors. However, with the total European components market reported to exceed
US$45 billion, the picture across Europe is that distributor sales accounted for only a
quarter of the business in 1999, the remainder going to OEMs. The picture is changing
dramatically and it is forecast that the distributor percentage will rise to 40% before the
end of the decade.
A growing number of electronic equipment suppliers have opted to sub-contract their
manufacturing operations to specialist contractors. These fall into two distinct categories:
the small specialist serving niche markets with an annual turnover of around US$5 million
and the major multinationals which move their volume business round the world, largely
favouring low labour cost countries notably in Asia, Eastern Europe and South America.
Growth in the world contract manufacturing market is exemplified by the 67.5% rise from
ELOOLRQ LQ WR ELOOLRQ LQ RI ZKLFK (XURSH DFFRXQWV IRU -DSDQ
accounts for 18%, America accounts for 31% and South East Asia accounts for 28%.
Wall thicknesses are frequently less than 1 mm so the polymer must have good melt
flow properties during the moulding process without sacrificing performance in other
respects.
Having designed the wall thickness to be less than 1 mm, the resulting product must
have the necessary mechanical strength to fulfil its design purpose. Within the normal
parameters of wear and tear products, made from plastics will have a service life of
between five and twenty years though many will have been discarded or replaced by
then.
The need to solder components calls for the material to have high thermal stability
since the temperature of solder baths is around 270 C and the reflow soldering
process involves brief exposure to high temperatures.
The material must be resistant to any chemicals which may splash on or immerse the
component. These typically include hydraulic oils, cleaning agents and lubricants.
In view of the occasional need for sliding components to work within an enclosure,
such sliding should not produce dust and so good tribological qualities are required.
These qualities can be varied by the selective use, for example, of additives and
modifiers, such as polytetrafluoroethylene (PTFE) powder, silicone oil or molybdenum
disulfide. PTFE is banned as a lubricant in some areas because of the Blue Angel
environmental standard. The Blue Angel environmental standard is linked to ISO
14001:1996 (Environmental management systems-Specification with guidance for
use). The Blue Angel is a symbol modelled on the United Nations environment
symbol which dates back to 1972. Environmentally-friendly products are awarded and
carry the symbol for three years. The symbol is awarded by a non-governmental jury
on payment of a fee.
Humidity may be a problem in some instances because some polymers are subject to
hydrolytic degradation, which results in embrittlement.
9
3.2.3 Polyarylamide
This product family, available as IXEF from Solvay, includes some of the stiffest
thermoplastics available and which are claimed to have properties almost equal to metal.
Applications include growing use in mobile phones where, despite the case getting
smaller and lighter in weight, there is still a need for stiffness in order to protect the
contents.
IXEF is also used in other applications where extra stiffness and precision are needed
notably connectors, switches, housings, motor end frames and telecommunications parts.
10
11
13
14
15
3.2.23 Elastomers
Elastomers used for connector insulators include polychloroprenes, silicones,
fluorosilicones and heat-setting compounds which enable the special characteristics of
flame resistance, low toxicity and low smoke, for example, to be incorporated.
Polychloroprene is used as spacer material and also for washers where its sealing
qualities, good resistance to cracking, rotting, oils and petrol and its good low-temperature
flexibility may be beneficial in specific applications.
16
Fortron PPS with nitrile or acrylate rubbers after pre-treatment or silcone rubber
without pre-treatment, and
17
18
4 Electronic Components
Components are allocated an ingress protection (IP) number, laid down in IEC 60529:
2001-02 (Degrees of protection provided by enclosures (IP code)), which denotes their
protection against the ingress of foreign bodies or water as per Table 4.1.
Table 4.1 Component IP number
(defined by selecting the first digit from the first column and the second digit from
the third column)
First
Second
Degree of Protection
Degree of Protection
Digit
Digit
No protection against accidental
0
contact, no protection against
0
No protection against water.
intrusion of solid foreign bodies.
Protection against contact with
any large area by hand and
1
Protection against water drips.
against large solid foreign bodies
1
with diameter greater than 50
mm.
Protection against contact with
Protection against water drips
the fingers, protection against
2
2
large solid foreign bodies with
(up to an angle of 15)
diameter greater than 50 mm.
Protection against tools, wires or
similar objects with diameter
Protection against diagonal
3
greater than 2.5 mm. Protection
3
water drips (up to angle of 60)
against small foreign bodies with
diameter greater than 2.5 mm.
As above but with diameter
Protection against splashed
4
4
greater than 1 mm
water from all directions.
Full protection against contact.
Protection against water spray
5
5
Protection against interior
from all directions.
detrimental dust deposition.
Total protection against contact.
Protection from temporary
6
Protection against intrusion of
6
flooding.
dust.
Protection against temporary
7
immersion.
Protection against water
8
pressure.
Source: IEC 60529: 2001-02
4.1 Enclosures
Portable electronic equipment of all types is invariably packaged within an enclosure,
which may be an off the shelf standard design or a customised special. The requirements
of the application, and price, will determine the selection of suitable polymers and a
selection of these is shown in Table 4.2.
19
21
4.2 Batteries
Polymers are use in battery construction in three distinct ways. The polymer may be part
of the electrochemical operation of the battery as in the case of the new lithium-ion
technology. The polymer may be used in the manufacture of the battery separators, used
in traditional cells to provide physical separation of the positive and negative plates whilst
permitting electron flow through the electrolyte. The third function is as a battery container
material which must resist chemical attack by the electrolyte and give the container
mechanical strength.
Lithium-ion polymer batteries are rechargeable and offer significant advantages over lead
acid and silver zinc batteries in terms of both weight and power. The batteries may be
moulded into the shape most applicable to the end product and so are likely to prove
particularly attractive to manufacturers of mobile phones, hand-held computers and other
physically small electronic products.
Lithium-ion polymer batteries are being selected by the US Navy to power its underwater
vehicles because they offer a longer cycle life than silver zinc types and this leads to a
lower lifecycle cost. Major advantages over lead acid types are a substantially improved
energy density and freedom from gassing during the charging process.
A wide variety of battery separator materials are on offer including PVC, PE and PE
including a small natural rubber content of approximately 20%.
22
4.5 Capacitors
Capacitors, which enjoy the status of the fastest growing sector of the passive electronic
components markets, are available in a wide variety of shapes, sizes and chemical
composition. Capacitor safety has recently been addressed by a new industry initiative
sponsored by the EECA, the European Passive Components Industry Association
(EPCIA) and the main interference suppression capacitor and filter manufacturers in
Europethe ENEC Group. The members will use a single European safety mark, known
as the ENEC Mark, which is being introduced in 2001. The scheme will provide the
European platform and support for the initiative. Similar initiatives are planned for other
passive products including chokes. Speciality polymers are used in solid aluminium
electrolytic capacitors. Polymers used in capacitor design include:
Metallised Mylar
Mylar polyester film is a product of the 50:50 joint venture, dating from 31 December
1999, between DuPont and Teijin Limited. DuPont Teijin claims to be the worlds leading
supplier of PET and polyethylene naphthalate (PEN) polyester films and also supplies
Melinex polyester film.
Metallised PC
This category includes extended foil wound, non-inductive types with Mylar tape outer
wrapping and specially formulated conductive epoxy end fill to maximise heat exchange.
Switch mode power supply applications are available with a choice of axial and tab
terminations with a grounded copper shielding option. In these applications 50 V dc, 75 V
dc and 100 V dc versions are available in capacities ranging from 1 F to 50 F.
23
Metallised PP
These designs utilise a non-inductive, extended foil winding with Mylar tape outer
wrapping. Manufacturers offering this technology, with its self-healing properties, include
Electronic Concepts (USA), Ducati Energy (Italy), BC Components International (the
Netherlands) and Evox Rifa (Sweden), which has production plants in Finland and
Indonesia.
The PP dielectric separates the electrodes and is able to surround holes created in the
electrodes by power spikes. This maintains the insulation and helps to prevent short
circuits thus prolonging the life of the capacitor. Capacitor performance deteriorates with
time as the number of holes increases.
24
PS
PS acts as an extremely loss dielectric material with low loss dielectric absorption. It offers
good long-term stability, with very high insulation resistance and a small negative
temperature coefficient. The capacitor construction involves the use of extended foil radial
PS in a flame retardant epoxy resin case. High-performance, low-cost, axial PS types are
also available, e.g., from LCR Components.
Other Types
25
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The polymer technology is claimed by Hitachi to offer a more stable dielectric layer which
can reduce the necessary level of voltage derating to 20% with consequently better space
utilisation. At the manufacturing stage, a forming voltage is applied to the tantalum chip to
produce a layer of tantalum pentoxide on its surface. The capacitors operating voltage is
defined as a percentage of the forming voltage and so 20% derating means that the
operating voltage is 80% of the forming voltage. In other types of tantalum capacitor, the
operating voltage is much less than the forming voltage and this represents far greater
deration.
These capacitors have improved capacitance retention at high frequency. One reason is
that the resistivity of manganese dioxide is at least 160,000 times that of tantalum.
Furthermore, the use of conductive polymers delivers the desired capacitor self-healing
properties without the undesirable ignition failure mode. The two main self-healing
theories are that localised heating leads to the evaporation of the polymer at that point
leading to a breakdown in the connection there. The second theory put forward is that
polymer absorbs oxygen and creates a high resistance at that point as would be the case
with a manganese dioxide cathode. The manufacturing process involves building up the
polymer thickness by repeated dipping and drying.
The mobile telecommunications boom led to lengthening delivery times for tantalum
electrolytic chip capacitors. The lead time immediately prior to Christmas 2000 was six
months but the market downturn early in the New Year brought this figure down to
between two and three weeks.
There is a world shortage of tantalum and demand in 2000 exceeded supply with some
users seeking ceramic and other alternatives. One alternative to tantalum is the closely
related element niobium, which in contrast is abundant and inexpensive. Epcos claims to
be the first manufacturer to launch capacitors using niobium. These new designs are
claimed to offer superior volumetric capacitance with greater capacitance in a smaller
space. In high denominations, 100 F for example, the niobium version is said to be
capable of providing between two and three times the capacitance possible from a
tantalum version, in the same package volume.
Sanyo recently claimed an industry first with the launch of a new family of aluminium
electrolytic capacitors with hybrid cathode electrolytes produced by adding
electroconductive polymer to the cathode electrolyte. The American NIC Components
Corporation offers Surface Mount Specialty Polymer Solid Aluminium Electrolytic
Capacitors to replace multiple tantalum chips in high current power supplies and voltage
regulator applications.
Polymers which are normally insulators can become electrically conductive, and suitable
for use in capacitors, by appropriate doping. These polymers include, for example,
polyacetylene and polypyrrole where the polymer is employed as a cathode instead of
manganese dioxide. This also reduce the capacitors ESR.
Passive elements may be manufactured using conductive polypyrrole formulations. These
formulations, which may include photoinitiators, solvents and additives to give flexibility,
can be used along with the methods of the invention to form passive circuit elements
including capacitors, resistors and inductors in multichip modules or printed wiring boards.
26
4.7 Connectors
In 1999, the EU connector market grew by approximately 3% in value and 8% in volume
indicating a fall in unit costs. This is largely due to the distinct trend from customised to
standard off-the-shelf products.
A wide range of polymers is used in electrical connectors. The criteria used by a leading
connector manufacturer for polymer selection include:
dielectric strength,
water absorption,
radiation resistance,
resistance to hydrocarbons.
Military standard connectors from Nanonics have recently been redesigned to utilise new
high temperature LCP insulator material. The new interconnection system is reported to
have passed MilPrf 83513 level qualifications and is said to be ideal for applications where
space, weight and reliability are critical. The polymers temperature stability has been
selected to withstand in-line, pick-and-place, surface mount technology (SMT) solder
processing and is rated for applications from 200 C to +225 C.
The end use of the connector has a strong influence on polymer selection. For example,
the heavy duty, environmentally sealed Buccaneer design range from Bulgin
Components, which offers IP68 sealing and is rated at up to 600 V ac or dc with a current
carrying capacity of up to 32 A per pole, is made from a UL94 V-0 rated PA with impact
resistance and flame retardant properties. UL94 V-0 rated flame retardant PA 66 is also
used by other connector manufacturers.
Edge connectors for printed circuit boards are often used; the connector housings are
typically made from PBT or PC. The US connector manufacturer, ITW, opts for
syndiotactic PS (SPS) or PPS insulation.
The German connector manufacturer, Wago, a PA 66 user for forty years, now employs a
modified version which is free of halogens, fluorocarbons, chlorinated hydrocarbons,
silicone, asbestos, cadmium and formaldehyde. It has a CTI of 600 V, according to the
IEC 112 standard, and so it is possible to reduce the air and creepage distances thus
making smaller components possible. An average moisture content is 2.5% (absorbed
from the surrounding atmosphere).
The material will not corrode and has a FV-2 self-extinguishing rating according to UL 94.
It is temperature stabilised to permit continuous operation at 105 C according to the IEC
216 standard parts 1 and 2. The short-term upper temperature limit is approximately 170
C for grey, dark grey, orange, red, blue and green/yellow designs and 200 C for the light
grey version. The lower temperature handling limit is 35 C with a mechanically stressfree storage temperature of 50 C.
The basic stabilisation provides sufficient protection against ozone or ultraviolet light over
many years of service life. Other inherent protection exists against adverse, notably
tropical, weather conditions, earth bacteria and termites. The material is also resistant to
fuel, most oils, fats and detergents.
The Buccaneer connector is made by Bulgin Components, a medium-volume
manufacturer of connectors, switches, battery holders, fuseholders, indicators and filters
with an annual output of up to 20 million pieces from a range of 3,000 products. Bulgins
fuseholders are made from UL94 V-0 flame retardant PA and glass-filled polyester
materials which achieve an ac breakdown voltage of at least 2 kV and an insulation
28
29
30
31
4.8 Heaters
This most unusual application involves the enclosure of thin, radiant heating, electric
elements within dielectric, high temperature resistance silicone rubber, which is able to
withstand temperatures of up to 200 C. The heaters, manufactured by FlexHeat use
printed circuit board technology to etch the elements photochemically with precision. This
permits exact watt densities and powers to be defined to a customised size and level of
heating for virtually any application. The flexible heaters can be wrapped round the object
to be heated with hot and cold zones as required. Rapid heating is possible because of
the high thermal mass of the heaters.
Applications invariably involve the creation of localised optimum working conditions for a
device when the ambient environmental temperature is too low. The silicone cover of the
heaters provides a moisture, chemical and ozone resistant electrically insulated barrier.
Peel-and-stick adhesive backing can be used to attach the heater to the device to be
heated. The heater may be sandwiched between, attached or even vulcanised to the
surface to be heated. Standard types are available for those users who do not need a
customised design.
32
Zone 1 is where an explosive mixture of gas, vapour or dust is likely to occur during
normal operation.
Zone 3 is where an explosive mixture of gas vapour or dust is not likely to occur
during normal operation and, if it occurs, it will only exist for a short time as in the
case of a leak.
Zone 22 is when a cloud or layer of combustible dust is present for short periods.
34
35
36
4.12 Relays
In the selection of plastics materials for use in relays, invariably compliant with UL94 V-0,
low degassing properties are required. The requirement arises because some polymers
are inherently hygroscopic and so must be dried thoroughly before use. Other polymers
may absorb gases during the manufacturing process and these may be subsequently
released by the mouldings used as actuating combs, base plates, coil elements and
housings of the finished sealed relays. The sealing prevents the ingress of polluting gases
from the environment. However, the long-term reliability of the relay would be affected if
moisture, for example, were to be released by the plastic components and corrode the
relay contacts.
Pickering reed relays use a polybutadiene polyol inside with an epoxy exterior though
silicone rubber is sometimes employed.
4.13 Resistors
The main polymer use in chip resistors relates to the encapsulation material, which is
frequently PA but may be epoxy resin. Silicone rubber encapsulation, which provides a
cushioning layer to isolate the resistive element from external stresses, and polymerised
moisture protection layers are two other uses of polymers in resistors. Encapsulated
resistor capacitor (RC) networks utilise epoxy/anhydride conformal body material.
Conformal implies a coating of uniform thickness as would be obtained by a dipping
process for example.
Small wire-wound resistors are made by winding the resistance wire round a proprietary
bobbin and then encapsulating it in silicone rubber over which an epoxy shell is moulded.
Other resistor formats use foil elements with Kapton insulation coated with epoxy enamel.
An interesting development in variable resistor design is the use of a conductive polymer
as the resistive element of the design. The polymer used is effectively a thick film ink
similar to the cermet (ceramic/metal) compounds which are also used in variable resistors.
Conductive polymers are superior to cermet in respect of their dynamic noise
characteristic but have inferior moisture resistance, temperature coefficients, power
dissipation and wiper current capacities. The temperature coefficient and power handling
capabilities of wire-wound resistors are higher of course.
The cost of conductive polymers is low and they offer minimal contact resistance variation
coupled with a long rotational life (i.e., several million operating cycles). There is virtually
no friction or wear, even after a few million operating cycles of the wipers movement over
the resistive element, due to the polymers surface which is smoother than that of cermet.
The user has a choice of a wide range of resistance values and tapers.
Further benefits of the conductive polymer design include essentially infinite resolution,
good high frequency operation (because of its low inductance due to the flat design) and
absence of a coil. In conclusion, the limitations include low wiper current ratings, low
power capabilities and a moderate temperature coefficient.
37
38
4.15 Sensors
Sensors enable equipment operating conditions to be measured and monitored. Some
types of thermocouples are inherently fragile and may be mounted on a temporary PA film
carrier, which is tough, flexible and dimensionally stable with a continuous rating of 230 C
and peeled off prior to installation. Other models are constructed on an insulated PA
carrier. Housings may be made from glass-filled PA, PBT, PC or ABS.
Temperature sensors are non invasive and can be attached to either flat or curved
surfaces. Platinum resistance temperature detectors may be used to measure the
temperature of items with a low mass where it is importance that the sensor itself does not
affect the temperature being measured.
Occasionally permanent magnets are needed in sensor applications. Ferriflex from
Groupe Carbone Lorraines Ugimag subsidiary is produced from hexaferrite bonded into
an elastomer which may be NBR for continuous use at 100 C or EPDM for continuous
use at 75 C.
General-purpose sensors for air flow temperature measurements may be encased in
black ABS housings. However, sensors in relatively heavy polyester cases are selected
for applications requiring a delayed time response as in process controls for refrigeration
and heating. Should small size, low cost, versatility and fast response be required then
durable epoxy encapsulation should be selected. The size of the assembly will governed
by the choice of thermistor and wire size. Sensors with polyacetal housings are
considered excellent for environmental controls and applications involving temperatures
below 100 C. PA pipe sensors are used in environmental and water heating/cooling
systems.
Some sensors have to operate in harsh chemical environments and the German
manufacturer, Hans Turck GmbH & Co., KG, is offering capacitive sensors made from
PVDF for such applications. These are claimed to reliably detect all metallic and nonmetallic materials including water, metal, wood, glass, cardboard, plastic, concrete block,
glue, thin wire, silicon wafers and numerous other materials.
Ticona has supplied its two-shot Vectra LCP for sunlight sensor holders. The grade used
for the first shot is able to be permanently metallised and the second shot employs a high
flow capacity grade.
In an interesting new application under development at the University of Illinois, USA,
fibre-optic sensors are being promoted for the detection of faults in train wheels and
railway tracks (including buckling). They can also be used to detect the presence and
speed of trains passing over the tracks. Such sensors already monitor pedestrians
approaching road crossing points.
The operating principle is that fibre compression limits the light from a laser source
reaching a photodetector along sensitive optical fibres attached to the rail track. The
University has developed three types of fibre-optic sensors including a twisted pair of
optical fibres sandwiched between two metallic plates and held in place with an epoxy
filler. The second type is constructed around a coil of polymer optical fibre and the third
type involves the use of single-mode optical fibre in a more complex design incorporating
optical polarisers, quarter-wave plates laser diodes and photodetectors.
The benefits of optical fibres include their immunity to electromagnetic interference.
Optical sensors and couplers are often encapsulated in PC housings.
39
4.16 Switches
Outdoor switches and sockets must withstand severe weather and other adverse
environmental conditions. Suitable protection can be secured by installing high impact,
chemical and UV resistant housings. Hagers IP56 rated Ashley range incorporates a
specially developed gel seal and will withstand dust, heavy seas or even water jets. Other
materials used include glass-filled phenolic resins, thermosets and thermoplastics.
Indoor applications are less demanding and Bosch-Siemens uses Ticona Hostaform
polyacetal in its domestic appliance switches. Ticona also supplies Vectra LCP for use in
miniature short stroke switches where its high flow capacity confers high production safety
standards.
Typical materials for normal switches and fuseholders include PA 6, glass-filled PPA and
PC where transparency is required. Heat-resisting and self-quenching (UL94 V-0)
materials include diallylphthalate (DAP) and PSU.
Miniature switches mounted on printed circuit boards variously use glass fibre reinforced
PBT, PA, LCPs, high-temperature PPS as base materials and glass fibre reinforced POM,
glass fibre reinforced PBT and PA as actuator materials. Polyester film is used to provide
a top seal with epoxy employed as a potting material.
EAO employs self-extinguishing PEI for actuator casings selecting polymethyl
methacrylate (PMMA) or PC for the lenses of its pushbutton switches.
4.17 Terminals
Crimped terminals are a popular way to terminate cables. The choice of polymer for the
terminals themselves will be governed by environmental circumstances. Normally PVC is
used but high-temperature applications will call for PA or PC insulators.
Terminal blocks are made from glass-fibre reinforced PA, polyester or PE. PA 6/66 may
be self-extinguishing to UL94 V-2 whereas a brown glass filled PA could conform to UL94
V-0. The latter material is better suited to operate at elevated temperatures. PA 68 is also
used.
Camden Electronics, which claims to be the prime UK source of PCB terminal blocks uses
UL94 V-0 flame retardant Lexan PC with an operating temperature range from 20 C to +
125 C and a short-term temperature tolerance of 160 C.
41
42
43
no border hold-ups because customs clearance is carried out in the company, and
44
The February 2001 EPCIA newsletter reports on the Associations General Assembly
which took place in January 2001, where the President stated that the 40% sales growth
was clearly driven by tantalum and ceramic multilayer capacitors with price increases due
to the strength of the US dollar, the palladium price and the excess of the demand. The
President went on to forecast continued growth in 2001 with growth in the second quarter
questionable. There was also a question mark over the development of the US dollar.
However, he saw a possible restart of demand in the second half of the year; he
estimated overall growth in 2001 to be within the band 5% to 10%.
The telecommunications sector is seen as the most important growth element though
UMTS services will not make a measurable contribution to the figures in 2001. The
President added his belief that the automotive sector will remain the second strongest
market for passive components and will continue to grow. Further growth is also to be
found in the subcontracting sector. However, the universal, and serious, concern from
passive component manufacturers relates to the ongoing price increases in almost all raw
materials. Polymer manufacturers have been imposing price increases due largely to the
rise in the cost of oil.
The customers for electronic components manufacturers can be categorised in four major
ways as catalogue distributors, CEMs, OEMs and overseas distributors. It has been
reported that CEMs now account for between 35% and 40% of the component sales of
some distributors. However, with the total European components market reported to
exceed US$45 billion, the picture across Europe is that distributor sales accounted for
only a quarter of the business in 1999, the remainder going to OEMs. The picture is
changing dramatically and it is forecast that the distributor percentage will rise to 40%
before the end of the decade.
Some CEMs and OEMs show a marked lack of enthusiasm for the assembly of
electromechanical components, which may be more time consuming and less amenable
to automated processes than printed circuit board assembly. The fitting out of enclosures
with cables and connectors, fans and heaters, front panels and backplanes, adds another
customer sub-category where pioneers include Radiatron Engineering Design Solutions
(REDS) and Time 24 (which has 320 employees and has seen its turnover grow annually
by around 38% to its current figure of over 11 million).
Business-to-business e-commerce polymer operations have started with the Omnexus
collaboration between leading thermoplastics suppliers including BASF, Bayer,
45
46
Table 5.1 EU electronic components market by product sector, 1998 and 1999
Austria
Belgium
France
Germany
Italy
Netherlands
Spain
Sweden
United
Kingdom
Rest of EU
TOTAL EU
1999
10
0.98
0.83
6.34
13.55
2.53
1.17
1.31
2.30
10
1.03
0.85
7.20
14.99
2.39
1.29
1.41
2.43
Growth
1999/1998
(%)
5.1
2.4
13.6
10.6
(5.5)
10.3
7.6
5.7
9.48
10.92
15.2
(2.4)
6.3
20.8
21.6
5.6
5.79
44.28
6.52
49.03
12.6
10.7
1.4
(0.3)
15.3
13.4
19.7
17.7
13.3
11.4
7.6
5.8
1998
Country
Consumer
1999/1998
(%)
4.5
(2.0)
3.3
(5.6)
1.1
8.7
7.6
(4.6)
Automotive
1999/1998
(%)
0.0
1.2
8.5
15.7
4.1
0.0
11.2
13.7
EDP
1999/1998
(%)
4.6
2.7
29.1
19.8
(8.2)
11.1
(4.2)
(18.3)
Telecom
1999/1998
(%)
4.7
5.2
14.3
10.6
(6.6)
11.7
3.0
7.8
Industrial
1999/1998
(%)
4.5
2.8
13.0
3.6
(7.0)
10.6
13.4
2.0
Table 5.2 EU electronic components market by component type, 1998 and 1999
Growth
1999
1998
Electronic components
1999/1998 (%)
[ 9
[ 9
Active components
27.98
31.79
13.6
Passive components
4.75
4.96
4.4
Electromechanical components
11.55
12.28
6.3
Source: EECA 1999 Industry Report
47
48
5.3 Telecommunications
One of the major businesses driving the market at the present time is mobile
communications where the world market for telephone handsets is said to have grown
from an estimated figure of 280 million units in 1999 to a projected figure of more than a
billion in 2004 rising still further to reach 1.34 billion in 2006. This figure may not be
achieved because some sectors of the industry have detected a slowing down of the pace
of expansion. Passive component manufacturer Epcos put the market size into
perspective when it stated in its 2000 Annual Report that the volume of the mobile phone
market was four times that of the entire computer market.
One factor stimulating demand for mobile phones is the trend of users to upgrade to the
latest technologies. Industry sources expect a user to replace his mobile phone every
eighteen months or so. A typical mobile phone handset, with an approximate 50%
polymer content, will contain approximately 500 discrete components of which around 200
will be passives. There are also around 200 passive components in a notebook computer
with a conventional colour television set containing approximately 400 passive
components.
Productivity improvements have been achieved by applying a hard coating to the tools
used for injection moulding. Balzers claims that the service life of an ABS telephone
handset moulding tool increased from approximately 150,000 shots to 700,000 without
wear when a coating of Balinit A was applied. Balzers claims that the tool and reworking
costs amounted to ZLWK DQ DGGLWional gain of twenty production days.
The growth in demand for telephone handsets has forced manufacturers to invest in stateof-the-art assembly operations using multi-axis robots which, unlike traditional pick-andplace operations, can be readily re-programmed to accommodate design changes.
Robots currently load and unload injection moulding machines as well as being utilised for
gasket and display protection tape positioning, display window assembly, inspection and
cover handling. One of the leading robot manufacturers, Stubli Unimation, has increased
its production of RX robots, used by handset and other manufacturers, to over one
thousand machines per annum.
World semiconductor sales grew by 18% from US$136 billion in 1998 to US$160 billion in
1999 with more rapid growth projected in 2000. Sales grew fastest in Asia with sales in
Europe rising at around 10% per annum. However, there has been a sales slowdown in
2001 with memory chip sales particularly affected. Nokia is also seeking to secure
leadership of the 3G Wideband Code Division Multiple Access (W-CDMA) infrastructure
market with a 35% targeted market share. Nokia is working towards a 3G system launch
50
BT Cellnet
One2One
Orange
Vodafone
Total
Market share
(%)
25.7
20.7
25.4
28.2
100
51
52
54
55
57
5.5 IT
Other growth areas for electronic component usage include computers, including laptop
versions whose sales will increase as prices come down. GE Plastics made a study of
fifteen laptop models to identify their design features. GE found that the average wall
thickness had dropped from 2.0 mm to 1.5 mm. The results of the study showed a
measurable but moderate reduction in impact strength as a result of the reduction. The
decline in impact performance was less for unfilled PC/ABS than for glass-filled PC.
Manufacturers are continuously searching for ways to produce thinner, lighter and
cheaper laptops. Compaq prefers to use parts moulded from amorphous PC or PC/ABS
which do not normally need to be painted thus producing cost savings. Sometimes
processing problems necessitate painting for cosmetic reasons but Compaq has reached
58
60
61
62
64
Flextronics, SCI
C-MAC, MCMS
Celestica
APW, Flextronics
Elcoteq, Flextronics, SANM, SCI
APW, ACT, C-MAC, Flextronics, Sanmina, SCI, Solectron
APW, C-MAC, Elcoteq, Flextronics, Solectron
Benchmark, Flextronics, Jabil, JIT, Natsteel, SCI
ACT, APW, Benchmark, Celestica, C-MAC, Flextronics, IBC, MSL,
Sanmina, SCI, Solectron, SMTC
APW, Flextronics, Jabil
SCI
Jabil
Flextronics
Solectron
MSL, SCI
Benchmark, Flextronics, SANM, SCI, Solectron
Flextronics
APW, Benchmark, Celestica, C-MAC, EMS, Flextronics Jabil, Mion,
Plexus, Remploy, Sanmina, SCI, Solectron
65
66
67
68
6.3 Supercapacitors
Research is proceeding into the use of conducting polymers in ultracapacitor, also known
as supercapacitor, applications. The capacitors will act like batteries to deliver high pulses
of power and store energy. Typical cell capacitance values are 2,700, 100 and 8 farads at
a cell voltage of 2.3 volts with modules rated at 100 farads, 56 volts. The claimed
advantages for the use of intrinsically conducting polymers in electrochemical capacitors
rather than carbon-based or mixed metal oxide electrodes may be summarised as follows.
They have extremely long operating lives of at least ten years, comprising at least
500,000 charge/discharge cycles and energy densities several orders of magnitude higher
than conventional electronic capacitors. They also have power densities significantly
higher than those of batteries.
Epcos claimed in its 2000 Annual Report that currently it was the only manufacturer
making double-layer ultracapacitors in volume.
Supercapacitors have minimal contact resistance because the conducting polymers can
be synthesised directly on to the current collector. The electrode material can be formed
as thick films, powders or sub-micron coatings, the last of which offer the possibility of
diffusion times of the order of microseconds.
Electrochemical capacitors operate on the basis of the known concept of doping and
undoping of polymer electrodes. This concept is used to promote the fast and efficient
shuttling of the ions between the polymer and the double layer created at the
electrode/electrolyte interface. The anions and cations involved in these double-layered
electrochemical types are contained within the electrolyte. Conducting polymers are
invariably used in the case of solid electrolytes. Some designs utilise liquid electrolytes
which are usually in aqueous or organic solution. The difference between electrochemical
and conventional electronic capacitors is that ions perform the charge transfer in the
former type and electrons in the latter type.
The employment of large surface areas, which can be increased by adopting multilayer
designs, and the high intrinsic conductivity of the material confer both high power and high
energy density. A further benefit is the ability to produce conducting polymers on a large
scale at relatively low cost.
Drawbacks experienced with the current generation of electrochemical capacitors, when
compared with conventional electronic capacitors, are their relatively high ESR and their
loss of capacitance when called upon to supply very short duration bursts of high current.
Ions move relatively slowly from anode to cathode and so a finite time is required for the
nominal device capacitance to be established; this is measured after a delay of one
second. On the other hand, electrons are relatively fast moving and so the charge transfer
is considered to be instantaneous.
BestCap totally solid, high conductivity, proton polymer electrolyte electrochemical
designs from AVX Ltd., have addressed these drawbacks and allow high current, short
duration pulses to be delivered with a minimal voltage drop. These non polar types are
available in very thin formats, down to less than 0.7 mm, and have low leakage currents
less than 0.05 A/mF. The capacitance range extends from 40 mF to 500 mF.
Other new polymers which have been developed during the last decade include Topas,
the cyclic olefin copolymer (COC) from Ticona. The polymers properties include rigidity,
very high moisture barrier effect, good stability to hydrolysis, excellent chemical resistance
69
70
72
73
75
76
6.7 Recycling
Polymer recycling is not a feature of the components industry; reprocessed materials may
lose their UL rating. However, the European Confederation of Telecommunications
Manufacturers (ECTEL) is operating a voluntary take back scheme in collaboration with
four network operators. The scheme accepts mobile phones for recycling at shops
displaying the schemes logo. The returned items are separated into handsets, batteries,
chargers and other accessories for recycling. The European Union and Norway intend to
introduce a compulsory take back scheme.
The recycling objective is for materials to be capable of being reprocessed five times and
still retain their UL rating. Added pigments should be suitably V-0 qualified. IEC standards
are growing in importance vis--vis UL standards. However, the products of European
companies must have UL approval to be sold in the US market. In practice, this means
that even components sold to the European subsidiaries of US parents for assembly into
products sold by hose companies in Europe must also be UL approved. Some
applications may call for compliance with German VDE, Canadian CSA or other
standards. Buyers should be aware that some lower quality polymer materials and
mouldings may be spuriously offered in Europe as having UL approval. This practice can
occur due to the lack of policing of the UL standard in Europe.
The use of polymer additives should also be taken into account when taking
environmental considerations into account. Flame retardancy often involves the inclusion
of brominated flame retardants and a 1997 study for the APME revealed that only 2.5%
(103,000 tonnes) of plastics electrical and electronics waste contained halogenated flame
retardants. This waste tends to comprise printed circuit boards and small electronic
components such as coil formers and capacitor housings.
On 13 June 2000, the European Commission published its latest issue of the proposal for
the Directive on Waste Electrical and Electronic Equipment (WEEE) which seeks to
establish high recycling targets for certain categories. Such figures are not feasible if
several polymers are combined in the same product because of the costs involved in
dismantling. Consequently, it is unrealistic to expect significant recycling savings in the
small components sector. The WEEE draft proposals, which involve separate collection
and selective treatment of all components containing halogenated flame retardants, is
considered to be neither practical or economical because of increasing integration and
miniaturisation in the electrical and electronic sector.
The requirement to remove hazardous substances was originally part of the WEEE but
was subsequently detached and established as a separate directive. It includes the
requirement to phase out lead, mercury, cadmium, hexavalent chromium, halogenated
flame retardants and other hazardous substances by 1 January 2008. Lead-free solders
are currently being introduced and should be universally employed before 2008. The
77
78
79
80
7 Future Outlook
7.1 Optical Applications
The growing use of fibre-optic cables has stimulated the demand for ancillary components
to facilitate connections and other requirements.
Optical fibre is moving into the car, the home, small offices and into consumer products.
Polymer optical fibres (POFs) are cheaper than glass and are easier to manufacture and
use although their maximum effective operating length is of the order of a few hundred
metres. POFs offer the prospect of being able to employ simple low-cost, moulded plugs
to make rapid connections. One contributory factor to the simplicity is the fact that POF
has a diameter of up to 1 mm, which is around eight times the diameter of a standard
single mode silica fibre. POF is more tolerant of connection misalignment than silica.
The automotive use of optical fibre networks has been pioneered by DaimlerChryslers
Mercedes subsidiary in its S-Class cars where it is offered as an optional extra. POF
automotive application benefits include resistance to vibration. DaimlerChrysler is a
member of the Media Oriented System Transport (MOST) consortium, whose members
also include the Becker Group and BMW, which has developed an optical bus standard
for automotive use.
Polymers used date back to the DuPont introduction of PMMA in the 1960s. Since then
the introduction of perfluorinated graded-index (PFGI) has enlarged the transmission
window with lower losses and dispersion. In 2000, Asahi, a leading plastic fibre supplier,
launched its new Lucina POF which incorporates its Cytop transparent perfluorinated
polymer. According to Asahi, Cytop has the same properties as conventional
fluoropolymers with the bonus of much higher optical transparency.
An indication of the importance of the new technology is provided by the November 2000
opening of the Polymer Optical Fibres Application Centre (POFAC) at Nuremberg in
Germany, which has received funding of approximately DM 4.75 million from the Bavarian
government. The centre is reported to be involved in the support of construction projects
to demonstrate and pilot POF systems. POFAC will also measure the characteristics of all
types of POF, components and systems.
Confirmation of growth in the optical sector is provided by Alcatel Optronics, a leading
supplier of optoelectronic components which reported a sales increase of 144.1% from
1999 to 2000, up from PLOOLRQ WR PLOOLRQ 7KH LPSRUWDQFH RI UHVHDUFK DQG
development is underlined by expenditure of PLOOLRQ RI VDOHV
One interesting joint development, by the Information and Communications University and
ZenPhotonics in Korea, involves the use of polymer planar lightwave circuits in variable
optical attenuators. The light entering the device from a singlemode waveguide then feeds
into a multimode waveguide via a taper. The application of a voltage to an electrode in the
multimode region lowers the refractive index of the polymer using the thermo-optic effect
to excite higher order modes which are subsequently filtered out as they pass through
another taper into an output single mode waveguide. Polymers have been chosen in
preference to silica because of their low power requirements and ease of manufacture.
The low power requirement is illustrated by the ability of 80 mW input power to give 30 dB
attenuation at 1,550 nm.
81
Class 1 with a maximum output power of 100 mW and a working distance of 100
metres,
86
8 Company Profiles
AVX
PO Box 867
Myrtle Beach
South Carolina 29578
USA
AVX is a subsidiary company of the Japanese Kyocera Corporation. Between January
1990 and August 1995 AVX was wholly owned by the Kyocera Corporation. On 15 August
1995, Kyocera sold 39,300,000 AVX common shares (22.9%) with a further 4,400,000
common shares sold in a public offering. In February 2000, a further 10,500,000 AVX
common shares were sold by Kyocera whose stake is now approximately 70%.
With approximately 18,000 employees worldwide, AVX, with 26 manufacturing facilities in
12 countries, is a leading company in the passive components and interconnection
products industry. Total net sales reported in 2000 were $1.63 billion, up from $1.25 billion
the previous year, with gross profit up to $340.5 million in 2000 from $167.4 million in
1999. European markets accounted for 26% of AVX sales with 32% of sales going to
Asian markets.
The company claims that, on any given day, the majority of the worlds telephone users
could be using an AVX component adding that it is possible for a mobile phone to contain
more than 400 component parts! The telecommunications applications sector is the major
user and accounts for 36% of sales followed by contract equipment manufacture (19%),
information technology hardware (18%) and instrumentation (13%). Other user sectors
include consumer (4%), military/government (4%), automotive (3%) and medical (3%).
During the fiscal year 2000, AVX acquired TPC, the former Passive Component Division
of the French conglomerate Thomson-CSF, which brought with it French manufacturing
facilities as well as production plants in Brazil, Malaysia and Taiwan. The companys
largest plant is the tantalum capacitor manufacturing plant at Lanskroun in the Czech
Republic. Other labour-intensive plants are located in El Salvador, Mexico and Northern
Ireland.
BASF AG
D-67056 Ludwigshafen
Germany
BASF enjoys the status of being Germanys and the worlds number one chemical
company. In March 2001, BASF, which has around 105,000 employees worldwide,
reported total sales of ELOOLRQ LQ XS IURP WKH ILJXUH RI ELOOLRQ UHFRUGHG
in 1999. Operating income rose by more than 15% to ELOOLRQ %$6) KDV SURGXFWLRQ
facilities in thirty-eight countries and maintains contact with customers in a hundred and
seventy nations. The group comprises the BASF AG parent company at Ludwigshafen as
well as the network of 133 subsidiaries and sixteen joint ventures in which BASF has an
equity stake in excess of 50%.
BASF is structured into segments of which the Plastics & Fibres Segment comprises
styrenic polymers, engineering plastics, polyurethanes and fibre products. Plastics &
Fibres is the largest BASF segment and accounts for approximately 29% of group sales.
87
88
89
90
91
92
93
94
95
96
% growth
53
66
78
36
The global nature of the Epcos business is clearly illustrated by the list of the companys
manufacturing sites (Table 8.2), often chosen to take advantage of low wage economies.
Gravatai Brazil
Malaga, Spain
Singapore
Singapore
Nashik, India
Szombatheley,
Hungary
Tokyo, Japan
Szombatheley,
Hungary
Xiaogan, China
Wuxi, Japan
Capacitors
Heidenheim,
Germany
Evora, Portugal
Ferrites
Munich, Germany
Bordeaux
Kalyani, India
Sumperk, Czech
Republic
Zhuhai, China
Zhuhai, China
Source: Epcos Annual Report, 2000
Amongst the companys successes was its tripled sales of tantalum capacitors, to
approximately 1.5 billion annually, which propelled it from seventh position to fifth position
worldwide with market leadership in Europe. Epcos also claims European market
leadership in aluminium electrolytic capacitors, EMC components, ferrites, film capacitors
and microwave ceramics. Global leadership is claimed in the fields of power capacitors,
surface acoustic wave filters, surge arrestors, thermistors and varistors. Products less
than three years old now account for more than 70% of Epcos sales.
Evox Rifa AB
PO Box 945
S-391 29 Kalmar
Sweden
The parent company, Evox Rifa Group Oyj, was established on 1 November 2000 when it
was floated by Finvest Oyj on the Helsinki Stock Exchange as a result of the division of
Finvest into four separate companies, the other three companies being Finvest Oyj, eQ
97
PLOOLRQ IURP PLOOLRQ LQ ZLWK D RSHUDWLQJ SURILW RI PLOOLRQ
compared with an operating loss of PLOOLRQ LQ 7KH \HDU SURILW EHIRUH
extraordinary items was PLOOLRQ FRPSDUHG ZLWK D PLOOLRQ ORVV WKH SUHYLRXV \HDU
Owing to the favourable market situation, the order backlog of Evox Rifa Group Oyj grew
to PLOOLRQ DW WKH HQG RI WKH \HDU FRPSDUHG ZLWK PLOOLRQ DW WKH HQG RI
1999.
Evox Rifa designs, manufactures and markets capacitors and produces approximately
800 million capacitors a year. It is the largest manufacturer of capacitors in Scandinavia
and the sixth largest in Europe, with targeted market areas in North America, Europe and
Asia. It has carefully chosen its customer segment to form the foundation for its growth.
The strongest increase in year 2000 net sales, compared to the previous year was 43% in
Asia, with a significant increase also taking place in Europe and North America due to the
introduction of new products and distribution channels. The net sales from paper
capacitors increased the most, by almost 68 %, of all the product groups. There was also
significant growth in the other main product groups compared to the previous years, i.e., in
film and electrolytic capacitors as well as in inductive components.
The Evox Rifa Group Oyj had 1,504 employees at the end of the fiscal year 2000 of whom
1,256 were production workers and 248 were office staff. There was an average of 1,406
employees during the fiscal year, of whom 1,164 were production workers and 242 office
staff. The employee numbers were increased to satisfy the need for increased capacity
caused by high demand and order backlog.
In its outlook for the year 2001, the company commented that the instability of the markets
has continued since the beginning of 2001 with no signs of it ending. The cuts to
excessive inventories started in the USA with revisions to given forecasts as well as
rescheduling of orders. The company anticipates that its growth will exceed the growth of
the market. Its expectations are based on current market forecasts and the good reception
of new products.
Evox Rifa manufactures film, paper and electrolytic capacitors with film types accounting
for 50% of output, paper capacitors accounting for 23% of output and aluminium
electrolytic types the remaining 27%. Evox Rifa forecasts annual market growth in the film
capacitor sector, stability and lack of growth in the paper capacitor sector and rapid, but
not quantified, growth in the aluminium electrolytic sector.
98
99
100
This business sector comprises the production and sale of base chemicals, petrochemical
building blocks and polyolefins globally. In order to strengthen the business it has been
reduced from over 21 business areas to 11 business areas. Some businesses have been
sold and others closed.
One of the major developments has been the agreement with BASF to create the 50:50
joint venture Basell, a global polyolefins business which immediately became one of the
worlds leading producers combining the businesses of Elenac, Montell and Targor.
In addition, Shell has been negotiating the sale of the Resins and Versatics business to
Apollo Management and the sale of Kraton Plymers to Silverwood Holdings. Shells
strategy is to focus on petrochemical building blocks and high volume polymers whilst
maintaining an emphasis on enhancing the portfolio, meeting customer needs, reducing
costs and engaging and developing people. In March 2001, Shell completed the sale of its
Kraton polymers business to Ripplewood Holdings. The sale of the groups PET
businesses to the Mossi and Ghisolfi Group was completed in June 2000. Earlier, in
February 2000, the Carilon polymer was withdrawn from the market after Shell failed to
find a buyer for the business.
The general-purpose rubber business was sold to Dow Chemicals in June 1999, and the
PS business to Nova Chemicals Corporation in October 1999. Shells PVC and VCM
assets in the Netherlands and France were sold in December 1999.
The Raigi SAS subsidiary, a French manufacturer of epoxy and urethane resins systems,
was reported in January 2001 to be subject to a management buy-out.
Solutia Europe
270-272 avenue de Tervuren
B-1150 Brussels
Belgium
Solutia was spun off from the St. Louis, Missouri-based, Monsanto company on 1
September 1997. The companys origins date back 100 years and it now has 11,000
employees and more than 30 manufacturing sites across the world. Sales revenue in
101
Ticona GmbH
D-65926 Frankfurt am Main
Germany
Ticona was formed in 1961 as a joint venture of Hoechst AG and the Celanese
Corporation of America. Hoechst acquired Celanese in 1987 and, following subsequent
restructuring, established Celanese AG in 1999 as a separate company within which
Ticona operates independently. It is now the technical polymers business of Celanese AG
with a worldwide workforce of around 2,400 and production, compounding and research
facilities in Germany (Frankfurt-Hchst, Kelsterbach and Oberhausen), the UK (Milton
Keynes and Telford), USA and Brazil. Group sales, excluding discontinued operations, in
1999 totalled PLOOLRQ 7LFRQDV &HODQHVH SDUHQW HPSOR\V DURXQG 13,900 people at 32
production plants in eight countries and reported 1999 sales of ELOOLRQ (XURSHDQ
sales account for 33% of Celaneses turnover.
102
103
Sales
Sales by sector
Petrochemicals & Plastics
Intermediates & Performance Polymers
Specialities
Operating income*
Operating income by sector*
Petrochemicals & Plastics
Intermediates & Performance Polymers
Specialities
Investments
* excluding non-recurring items
** +16% excluding inks, sold year-end 1999
*** +17% excluding inks
% Change
+ 20
8.0
5.3
7.5
1.6
5.5
4.6
7.2
1.19
+ 45
+ 15
+ 4**
+ 34
0.55
0.48
0.62
1.4
0.16
0.46
0.57
1.67
+ 244
+4
+ 9***
- 16
TT Group plc
Clive House
22-28 Queens Road
Weybridge
Surrey KT23 9XB
United Kingdom
The TT group is unusual in so far as it is both a major contract electronics manufacturer
(AB Electronic Assemblies Limited and Welwyn Systems Limited) and a major
manufacturer of passive electronic components including connectors (AB Connectors),
PCB manufacture (Prestwick Circuits), resistors (AB Mikro-electronik, Austria,
International Resistive Company Inc., USA, Welwyn Components Limited, UK), and
sensors (AB Automotive Inc., USA, and AB Elektronik GmbH, Germany).
On 8 January 2000, the group agreed to buy BI Technologies, from Emerson Electric Inc.,
for a 39.7 million cash consideration. BI Technologies manufactures inductors, resistors,
sensors and trimmers with factories at Fullerton in California, Mexicali in Mexico,
Glenrothes in Scotland and Kuantan in Malaysia. The acquisition will expand the groups
sales penetration in the Far East and also provides the group with two well-established
low labour cost operations in Malaysia and Mexico.
Group sales turnover was 612.4 million in 1999 and the BI Technologies acquisition is
reported to have a 1999 turnover of 57.1 million with operating profits of 3.6 million.
However, the group plans to dispose of its packaging and other non-core activities.
Declining TT profits of 38.0 million, down from 65.0 million, are partially attributed to the
strength of sterling against the euro.
104
105
107
108
ISBN: 1-85957-281-2