Japanese solder producer Harima Chemicals Group has announced the acquisition of the solder business of Henkel AG, Germany.
The acquisition is part of Harima’s global expansion plans, increasing their current revenue base in this sector from $43.5 million in 2021 to potentially more than $75 million, and significantly expanding its customer base.
In the announcement, Harima highlighted the common interests of both companies in the rapidly changing automotive sector, including high reliability solder alloys. Other emerging markets, including 5G telecommunications, are also significant new opportunities.
Harima is already a significant producer of solder paste, active in the automotive and communication equipment industries. Although Harima has operations in the US, Europe, and Asia, the acquisition of Henkel is seen as one that will greatly increase its global market share, particularly in the European automotive industry.
Henkel has a long history in adhesives through its Loctite brand, but it only moved into the solder industry in 2000 when it acquired Multicore, which was the world’s third largest solder producer at the time and the inventor of multi-core flux solder wires.
Although it has retained Multicore’s solder wire business, Henkel’s focus has been on high-end, value-added products linked to its adhesives expertise. As well as solder paste, Henkel produces conductive adhesives and other organic materials for components and electronics assembly. Since moving into the solder market, Henkel has pioneered many technical developments in the field, including no-clean flux technology and room-temperature stable solder paste, both important steps in improving cost efficiency and sustainability in the solder market.
Our view: This step marks a further consolidation in the relatively small solder industry after the acquisition of Kester by MacDermid Alpha in 2019. The strong technical base of both companies will help the industry meet the rapidly developing technology challenges ahead in electronics markets.