NUINTEK Expands Orders from European Automakers, Mulls Capacitor Capacity Expansion

[Financial News]  NUINTEK is considering bolstering its production capacity as supplies of automotive capacitors to European automakers expand. With actual supply volumes rising beyond simply securing more orders, the company is weighing both improvements to existing production lines and additional equipment investments.
According to NUINTEK on the 23rd, orders and supply volumes for automotive capacitors among its European automaker customers have recently increased. The specific supply volumes agreed upon with customers have not been disclosed.
Capacitors are key automotive electrical components used in the power-conversion systems of electric and hybrid vehicles. NUINTEK primarily produces automotive capacitors and metallized film. As demand for eco-friendly vehicles and power-electronics components grows, particularly in Europe, automotive capacitors are emerging as a core growth driver for the company.
Revenue from automotive capacitors also increased in the first half of this year compared with the same period a year earlier. The metallized film business is likewise growing, helping support the company's earnings base alongside its automotive and power capacitor businesses.
The production-side response is drawing particular attention. NUINTEK is working to improve the efficiency of its existing production lines and optimize equipment operations in response to increased supplies to European automakers. If the upward trend in orders continues, the company plans to consider expanding production capacity and adding equipment in stages.
Industry watchers say the key issue is whether the actual order volume and higher capacity utilization will translate into improved earnings. If supplies to automakers expand steadily, the company could reduce its fixed-cost burden and improve profitability.
A NUINTEK official said, "Orders and supply volumes for automotive capacitors to European automaker customers are steadily expanding," adding, "We will improve production efficiency and supply capabilities while focusing on stabilizing earnings and enhancing profitability, centered on automotive capacitors." 


[email protected] Kim Kyung-ah Reporter