Businessweek

KEMET Corporation, together with its subsidiaries, manufactures and sells capacitors worldwide. The company’s product offerings include tantalum, multilayer ceramic, solid and electrolytic aluminum, and film and paper capacitors. The company manufactures a line of capacitors in different sizes and configurations using various raw materials. Its product line consists of approximately 250,000 distinct part configurations distinguished by various attributes, such as dielectric (or insulating) material, configuration, encapsulation, capacitance level and tolerance, performance characteristics, and packaging. Segments The company is organized into three segments: the Tantalum Business Group, the Ceramic Business Group, and the Film and Electrolytic Business Group. Tantalum Business Group The Tantalum Business Group manufactures solid tantalum and aluminum capacitors. In February 2012, the company acquired KEMET Blue Powder Corporation, which is the production location for tantalum powder in the western hemisphere. The Tantalum Business Group's product portfolio, process, and materials technology, global manufacturing base and on-time delivery capabilities allow the company to serve a range of customers in a group of end markets, including computing, telecommunications, consumer, medical, military, automotive, and general industries. Ceramic Business Group The Ceramic Business Group offers a line of multilayer ceramic capacitors in various sizes and configurations. The company's primary markets include medical, industrial, defense, and aerospace. Its other significant end markets include computing, telecommunications, automotive, and general industries. Film and Electrolytic Business Group The Film and Electrolytic Business Group produces film, paper and wet aluminum electrolytic capacitors. In 2011, the company completed the acquisition of KEMET Foil Manufacturing, LLC, which manufactures etched foils utilized as a core component in the manufacture of electrolytic capacitors. Film and Electrolytic also operates a machinery division located in Sasso Marconi, Italy that provides automation solutions for the manufacture, processing and assembly of metalized films, film/foil and electrolytic capacitors; and designs, assembles, and installs automation solutions for the production of energy storage devices. The Film and Electrolytic Business Group primarily serves the industrial, automotive, consumer, and telecom markets. Customers The company’s customer base includes electronics original equipment manufacturers, including Alcatel-Lucent USA Inc., Apple Inc., Bosch Group, Cisco Systems, Inc., Continental AG, Dell Inc., Hewlett- Packard Company, International Business Machines Corporation, Intel Corporation, Motorola, Inc., Nokia Corporation, and TRW Automotive; electronics manufacturing services providers, including Celestica Inc., Flextronics International LTD, Jabil Circuit, Inc., and Sanmina-SCI Corporation); and distributors, including TTI, Inc., Arrow Electronics, Inc., and Avnet, Inc. It has operations in the United States; Mexico; the Asia Pacific; and Europe. Research and Development For the period ended March 31, 2012, the company's research and development expenses were $29.4 million. Competition The company’s major global competitors include AVX Corporation; Matsushita Electric Industrial Company, Ltd. (Panasonic); Murata Manufacturing Co., Ltd.; NEC TOKIN Corporation; Sanyo Electric Co., Ltd.; Taiyo Yuden Co., Ltd.; TDK-EPC Corporation; WIMA GmbH & Co., KG; and Vishay. Environmental and Regulatory Compliance The company is subject to various North American, European, and Asian federal, state, and local environmental laws and regulations relating to the protection of the environment, including those governing the handling and management of certain chemicals and materials used and generated in manufacturing electronic components. The company has adopted the Electronic Industry Code of Conduct. The Electronic Industry Code of Conduct is a code of conduct that addresses various aspects of corporate responsibility, including labor, health, and safety, the environment, and business ethics. The company supports the position of the Electronic Industry Citizenship Coalition (EICC), the Global e-Sustainability Initiative (GeSI), the Electronic Components, Assemblies and Materials Association (ECA), and the Tantalum-Niobium International Study Center (TIC) in avoiding the use of conflict minerals which directly or indirectly finance or benefit armed groups in the Democratic Republic of Congo or adjoining countries, in line with full compliance to the EICC's Electronic Industry Code of Conduct. History The KEMET Corporation’s operations began in 1919 as a business of Union Carbide Corporation (Union Carbide) to manufacture component parts for vacuum tubes. It entered the market for tantalum capacitors in 1958 as one of approximately 25 United States manufacturers. In 1969, the company began production of ceramic capacitors as the United States manufacturer, and opened its first manufacturing facility in Mexico. In 2003, the company expanded operations into Asia, opening its first facility in Suzhou, China. In 2007, the company acquired the tantalum business unit of EPCOS AG (EPCOS). In 2008, the company entered into markets for film, electrolytic, and paper capacitors.