Stihl-Elrad: a joint venture for electronic components


Zama Corporation, a subsidiary of Stihl, and Elrad International Group have formed a joint venture for the manufacture of electronic components. Both companies signed the relevant agreement, completing the transaction after receiving the green light from the competent antitrust authorities. The joint venture operates under the name ZE Electronic Manufacturing Service Ltd. ZAMA holds 51% of the shares, Elrad the remaining 49%: the companies have agreed not to disclose the financial details of the transaction.
STIHL and the Elrad Group have long been in close cooperation. “For Stihl, the joint venture represents an important part of our strategy for battery products,” underlines Martin Schwarz, Head of Production and Materials Management at Stihl. "In this way, we strengthen our expertise in electronics and specifically increase our degree of production autonomy and value creation". Scott Faude, Elrad Group partner, adds: “We are delighted to be able to expand our collaboration with Stihl through this joint venture and to be able to continue our journey of growth together”. The new company is expected to start operating from the end of 2021 at the Zama production site in Santo Tomas, in the province of Batangas, in the Philippines. More than 175 new jobs will be created in the medium term.
For many years, Stihl has focused heavily on a varied range of products, from petrol to battery-powered ones, and has consistently pursued the strategy for battery-powered products. This rapidly expanding segment already contributed to 15% of the Stihl Group's turnover in 2019. In 2019, an own highly automated production line for battery packs was started up at the headquarters in Waiblingen. Stihl was thus able to develop solid know-how in the battery sector. With its battery packs, Stihl supplies customers directly, responding to the ever increasing demand for battery products.


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