SCHRAMBERG, GERMANY — Schweizer Electronic AG has concluded negotiations to sell around 57% of the shares in Schweizer Electronic (Jiangsu) Co., the company's subsidiary located in Jintan, China, to WUS Printed Circuit.

WUS currently holds approximately 13% of SEC and will hold 70% of the shares in SEC upon closing of the transaction.

In a release from the company, Schweizer said the SEC will continue to be an essential part of the company's strategy despite the changed shareholdings, and the move will allow Schweizer to work with WUS to advance the production of chip embedding ((p²-pack) and printed circuit boards at the Jintan site.

Schweizer said the reorganization also means a transition to a "Fab Light Concept" for the company, which includes a stronger focus of the company on the development of new high-tech printed circuit boards and embedding technologies, a better penetration of the mobility market with a focus on Europe and North America, the development of new market segments and the expansion of the service portfolio.

"The transaction will also significantly strengthen SCHWEIZER's financial solidity and reduce risks by significantly reducing fixed costs. This step is also in line with the politically changing global environment. In addition, we expect the intensified strategic and operational cooperation with WUS to leverage valuable synergy potentials in the areas of procurement, financing and administration for the Chinese location, which will further improve the competitiveness of SCHWEIZER technologies," the release said. "Furthermore, we will pursue a close cooperation with WUS in the Asian and Chinese markets in order to benefit from the exceptionally good networking of WUS, especially in the mobility segment. As a result, we expect greater visibility and penetration of our p² Pack technology in the dynamically growing e-mobility market in China."

WUS intends to carry out a capital increase at the Jintan site, which will provide the SEC with sufficient funds to fully secure further growth investments and will increase WUS' stake in the SEC to approximately 80%.

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