Consolidation amongst the significant battery manufacturers continues to shape the industry, particularly across Europe. Johann-Friedrich Dempwolff, Vice President Sales OEM/OES, VB Autobatterie GmbH, said: “If you look back to 1990, in Germany there had been 10 battery producers. In the UK there were at least 5 producers. In France there had been various. In Italy there had been through 50 very smaller businesses. All this has dramatically altered over the final decade. There are only some powerful players left inside the marketplace.”
“The end result of tighter environmental requirements, collectively with other legislation, has been the closure of plants in Western Europe along with a transfer on the Far East, particularly China, and to super-plants,” stated Lucas Batteries’ David Haseler. “We have recently announced the closure of our Birmingham [UK] factory for production, and will be sourcing from organizations in Asia. Our advantage is the fact that these are company-owned plants that will permit us to preserve a near manage in excess of supply and top quality.”
Right now, four valve regulated lead-acid battery producers – of which three are American — have emerged as world-wide gamers: Johnson Controls, Delphi, Exide Technologies and Yuasa. These four firms collectively control 55% with the worldwide market. Johnson Controls lately signaled its intention to buy Delphi’s worldwide battery company for $212.five million. Yuasa lately merged with Japan Storage Battery, forming GS Yuasa Corp. Yuasa holds an 8% share in the global lead storage battery marketplace although Japan Storage Battery has a 6% share. Their mixed market share of 14% ranks them in 3rd spot inside the global marketplace.
The flood of imported batteries from tiger economies (such as China, Thailand, Indonesia and Malaysia) is also posing a really serious challenge to European manufacturers. That has become a double-whammy for UK-based supplies since the imported units are particularly cheap due to the weak dollar. Perversely, the Asian manufacturers have driven up the price of lead due to the fact their consumption of it really is so large. The price of oil is also driving up the price of polypropylene utilized in battery manufacture. [Read more...]