AVX Corporation
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AVX Corporation is an American manufacturer of
electronic component An electronic component is any basic discrete electronic device or physical entity part of an electronic system used to affect electrons or their associated fields. Electronic components are mostly industrial products, available in a singula ...
s headquartered in
Fountain Inn, South Carolina Fountain Inn is a city in Greenville and Laurens counties in the U.S. state of South Carolina. The population was 10,416 at the 2020 census, up from 7,799 in 2010. It is part of the Greenville-Mauldin-Easley Metropolitan Statistical Area. ...
. It is the largest industrial employer in
Horry County, South Carolina Horry County ( ) is the easternmost county in the U.S. state of South Carolina. As of the 2020 census, its population was 351,029. It is the fourth-most populous county in South Carolina. The county seat is Conway. Horry County is the centra ...
, with almost 1000 workers in
Myrtle Beach Myrtle Beach is a resort city on the East Coast of the United States in Horry County, South Carolina. It is located in the center of a long and continuous stretch of beach known as the " Grand Strand” in the northeastern part of the state. It ...
and
Conway Conway may refer to: Places United States * Conway, Arkansas * Conway County, Arkansas * Lake Conway, Arkansas * Conway, Florida * Conway, Iowa * Conway, Kansas * Conway, Louisiana * Conway, Massachusetts * Conway, Michigan * Conway Townshi ...
. AVX has 9,900 employees and operates in the United States,
Europe Europe is a continent located entirely in the Northern Hemisphere and mostly in the Eastern Hemisphere. It is bordered by the Arctic Ocean to the north, the Atlantic Ocean to the west, the Mediterranean Sea to the south, and Asia to the east ...
and
Asia Asia ( , ) is the largest continent in the world by both land area and population. It covers an area of more than 44 million square kilometres, about 30% of Earth's total land area and 8% of Earth's total surface area. The continent, which ...
. AVX is a subsidiary of Kyocera Electronics Corporation. 2012 sales were $1.545 billion. Capital expenditure for the year 2010 was at a five-year low of $28.888 million 34.6% lower than the year before and sixty percent less than in 2008, earnings per share grew 78.7% even though total sales fell (although revenue grew with each successive quarter since April 2009) As of October 1, 2021, the company changed their name to KYOCERA AVX Components Corporation and will use the KYOCERA AVX as the business brand.


Products

AVX has three business units. Passive Components includes electrical components for automotive braking,
cell phone A mobile phone or cell phone is a portable telephone that allows users to make and receive calls over a radio frequency link while moving within a designated telephone service area, unlike fixed-location phones ( landline phones). This radio ...
s,
copier A photocopier (also called copier or copy machine, and formerly Xerox machine, the generic trademark) is a machine that makes copies of documents and other visual images onto paper or plastic film quickly and cheaply. Most modern photocopiers us ...
s,
hearing aid A hearing aid is a device designed to improve hearing by making sound audible to a person with hearing loss. Hearing aids are classified as medical devices in most countries, and regulated by the respective regulations. Small audio amplifiers ...
s, and
locomotive A locomotive is a rail transport, rail vehicle that provides the motive power for a train. Traditionally, locomotives pulled trains from the front. However, Push–pull train, push–pull operation has become common, and in the pursuit for ...
s. KED Resale sells Kyocera products including
ceramic A ceramic is any of the various hard, brittle, heat-resistant, and corrosion-resistant materials made by shaping and then firing an inorganic, nonmetallic material, such as clay, at a high temperature. Common examples are earthenware, porcela ...
and
tantalum capacitor A tantalum electrolytic capacitor is an electrolytic capacitor, a passive component of electronic circuits. It consists of a pellet of porous tantalum metal as an anode, covered by an insulating oxide layer that forms the dielectric, surrounded ...
s. Connectors are used in the automotive and
medical Medicine is the science and Praxis (process), practice of caring for patients, managing the Medical diagnosis, diagnosis, prognosis, Preventive medicine, prevention, therapy, treatment, Palliative care, palliation of their injury or disease, ...
industries. Major customers of AVX include
Motorola Motorola, Inc. () was an American multinational telecommunications company based in Schaumburg, Illinois. It was founded by brothers Paul and Joseph Galvin in 1928 and had been named Motorola since 1947. Many of Motorola's products had been ...
,
Nokia Nokia Corporation is a Finnish multinational corporation, multinational telecommunications industry, telecommunications, technology company, information technology, and consumer electronics corporation, originally established as a pulp mill in 1 ...
and
Robert Bosch GmbH Robert Bosch GmbH (; ), commonly known as Bosch (styled BOSCH), is a German multinational engineering and technology company headquartered in Gerlingen, Baden-Württemberg, Germany. The company was founded by Robert Bosch in Stuttgart in 188 ...
. As of 2011, nearly half of the company's sales are made in Asia.


History

AVX began in 1972 making ceramic capacitors as a subsidiary of Aerovox Corporation, a company founded in 1922 as Radiola Wireless Corporation, which made radios. In June 1973, AVX became the parent company when assets of Aerovox were sold. That same year, Marshall D. Butler, who played a major role in the company's growth, became chairman and
CEO A chief executive officer (CEO), also known as a chief executive or managing director, is the top-ranking corporate officer charged with the management of an organization, usually a company or a nonprofit organization. CEOs find roles in variou ...
. Butler had cofounded Alloys Unlimited Inc. in 1957, which was sold to London-based Plessey Co. in 1970; Butler stayed for several years as president of the Plessey subsidiary. With his experience in the
semiconductor A semiconductor is a material with electrical conductivity between that of a conductor and an insulator. Its conductivity can be modified by adding impurities (" doping") to its crystal structure. When two regions with different doping level ...
field, Butler decided AVX should emphasize multilayer ceramic capacitors (MLCCs), used in the rapidly expanding
integrated circuit An integrated circuit (IC), also known as a microchip or simply chip, is a set of electronic circuits, consisting of various electronic components (such as transistors, resistors, and capacitors) and their interconnections. These components a ...
field. Butler sold two other divisions and started a five-year plan. The company's $20 million investment and careful analysis of the market resulted in 1979 sales of $95 million and dominance of the market; the goal, based on 30 percent annual growth, had been $83 million. AVX added operations in Europe, but moving into Japan proved more difficult because of Japan's protected home market. The company's license would not let it sell in Japan, but Kyocera Corporation could sell its products in the United States. Kyocera CEO
Kazuo Inamori was a Japanese philanthropist, entrepreneur, Zen Buddhist priest, and the founder of Kyocera and KDDI. He was the chairman of Japan Airlines. Inamori was elected as a member into the National Academy of Engineering in 2000 for innovation i ...
agreed with Butler that the situation needed to be changed, and Kyocera ended the unfair provision. In 1979 AVX started a Japanese subsidiary. During the 1980s, growth continued, with 1984 sales reaching $234 million. But that year, it became clear that
computer A computer is a machine that can be Computer programming, programmed to automatically Execution (computing), carry out sequences of arithmetic or logical operations (''computation''). Modern digital electronic computers can perform generic set ...
manufacturers had bought more capacitors than needed, and a slowdown began in the industry. AVX continued to grow through new product research and buying other companies. By the end of the decade sales reached $450 million. In the late 1980s, the European operations of AVX represented one-fourth of sales. AVX wanted to manufacture parts for Kyocera, which had only 2 percent of its sales in Europe and hoped to increase that before the
European Community The European Economic Community (EEC) was a regional organisation created by the Treaty of Rome of 1957,Today the largely rewritten treaty continues in force as the ''Treaty on the functioning of the European Union'', as renamed by the Lisbo ...
made that more difficult. Inamori wanted to buy AVX rather than partner with the company. After a $267 million
stock Stocks (also capital stock, or sometimes interchangeably, shares) consist of all the Share (finance), shares by which ownership of a corporation or company is divided. A single share of the stock means fractional ownership of the corporatio ...
purchase, AVX has operated as part of Kyocera Corp. since January 18, 1990. Butler retired as CEO in 1993 but remained on the
board of directors A board of directors is a governing body that supervises the activities of a business, a nonprofit organization, or a government agency. The powers, duties, and responsibilities of a board of directors are determined by government regulatio ...
. Benedict P. Rosen, an employee since the company's start, became the new CEO. By 1995, sales reached almost $1 billion after significant growth for
personal computer A personal computer, commonly referred to as PC or computer, is a computer designed for individual use. It is typically used for tasks such as Word processor, word processing, web browser, internet browsing, email, multimedia playback, and PC ...
s and cell phones. At the same time, the automotive,
home appliance A home appliance, also referred to as a domestic appliance, an electric appliance or a household appliance, is a machine which assists in household functions such as cooking, cleaning and food preservation. The domestic application attached to ...
and medical industries needed electronic components, and advanced electronic systems needed capacitors as well. AVX also sold Kyocera products worldwide and helped the company start operations in Mexico and
Indonesia Indonesia, officially the Republic of Indonesia, is a country in Southeast Asia and Oceania, between the Indian Ocean, Indian and Pacific Ocean, Pacific oceans. Comprising over List of islands of Indonesia, 17,000 islands, including Sumatra, ...
. Kyocera helped AVX start manufacturing connectors. In 1995, Kyocera sold one-fourth of AVX for $557 million, which more than returned the company's investment in AVX, even though Kyocera still owned three-fourths of the company. AVX used the money to enter the connector business and increase its manufacturing of ceramic and tantalum capacitors. The boom in the capacitor industry once again proved temporary, after customers bought more products than they needed. But in 1998, personal computers and cell phones contributed to more growth, as did newer electronics in cars. At the same time, material prices went up, and an
Asian currency crisis The 1997 Asian financial crisis gripped much of East and Southeast Asia during the late 1990s. The crisis began in Thailand in July 1997 before spreading to several other countries with a ripple effect, raising fears of a worldwide economic meltd ...
added to AVX's troubles. Layoffs resulted, but by 2000 the company was doing well again, adding operations in
El Salvador El Salvador, officially the Republic of El Salvador, is a country in Central America. It is bordered on the northeast by Honduras, on the northwest by Guatemala, and on the south by the Pacific Ocean. El Salvador's capital and largest city is S ...
and the
Czech Republic The Czech Republic, also known as Czechia, and historically known as Bohemia, is a landlocked country in Central Europe. The country is bordered by Austria to the south, Germany to the west, Poland to the northeast, and Slovakia to the south ...
(Lanškroun). By the end of fiscal 2001, AVX had 26 plants in 12 countries, 21,000 employees, and sales of $2.6 billion. But a
recession In economics, a recession is a business cycle contraction that occurs when there is a period of broad decline in economic activity. Recessions generally occur when there is a widespread drop in spending (an adverse demand shock). This may be tr ...
put an end to the good times, and revenues dropped to $1.25 billion; employee numbers totalled 12,500. Production moved to the Czech Republic in the late 1990s and China from 2005 onwards. The industry situation appeared to improve by 2004, though AVX still lost money. In April 2009 the company decided to close a number of its smaller worldwide factories including its flagship manufacturing plant in
Paignton Paignton ( ) is a seaside town on the coast of Tor Bay in Devon, England. Together with Torquay and Brixham it forms the unitary authority, borough of Torbay which was created in 1968. The Torbay area is a holiday destination known as the Engli ...
, England following the credit crunch in an effort to reduce costs and remain financially viable for shareholders. On December 3, 2009, AVX announced it would move corporate headquarters to
Greenville, South Carolina Greenville ( ; ) is a city in Greenville County, South Carolina, United States, and its county seat. With a population of 70,720 at the 2020 United States census, 2020 census, it is the List of municipalities in South Carolina, sixth-most pop ...
, with about 150 jobs leaving the Myrtle Beach area. The company planned no change to manufacturing in Conway and Myrtle Beach. In 2011, AVX announced plans to tear down the original Myrtle Beach plant built in 1949 and updated in 1985, with manufacturing operations continuing at a nearby location on the same land. The demolition took place in 2015. In 2018, AVX closed an electronic component manufacturing plant in
Olean, New York Olean ( ) is a Administrative divisions of New York#City, city in Cattaraugus County, New York, United States. Olean is the largest city in Cattaraugus County and serves as its financial, business, transportation and entertainment center. It is ...
. The plant has been on the EPA
Superfund Superfund is a United States federal environmental remediation program established by the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA). The program is administered by the United States Environmental Pro ...
site list since the early 1980s. It is the suspected source of a plume of
trichloroethylene Trichloroethylene (TCE) is an organochloride with the formula C2HCl3, commonly used as an industrial metal-degreasing solvent. It is a clear, colourless, non-flammable, volatile liquid with a chloroform-like pleasant mild smell and sweet taste.
(TCE) that leached into the East Olean aquifer.


Litigation

In 2007,
Myrtle Beach Myrtle Beach is a resort city on the East Coast of the United States in Horry County, South Carolina. It is located in the center of a long and continuous stretch of beach known as the " Grand Strand” in the northeastern part of the state. It ...
property owners near the AVX plant filed suit, claiming
trichloroethylene Trichloroethylene (TCE) is an organochloride with the formula C2HCl3, commonly used as an industrial metal-degreasing solvent. It is a clear, colourless, non-flammable, volatile liquid with a chloroform-like pleasant mild smell and sweet taste.
(TCE) used at the plant until the 1980s has polluted their neighborhood and lowered property values. Another lawsuit claimed the pollution had stopped a
condominium A condominium (or condo for short) is an ownership regime in which a building (or group of buildings) is divided into multiple units that are either each separately owned, or owned in common with exclusive rights of occupation by individual own ...
development in the area. A consultant for one of the land owners, Horry Land Co., discovered the pollution in 2006 while doing environmental testing prior to development of a portion of the land. In 2009, AVX claimed
Myrtle Beach Air Force Base Myrtle Beach Air Force Base was a United States Air Force base located near Myrtle Beach, South Carolina. Early history On 16 October 1939, Myrtle Beach Town Council agreed that the community "is in dire need of a modern municipal airport". The ...
caused at least part of the pollution, and the company added the
Air Force An air force in the broadest sense is the national military branch that primarily conducts aerial warfare. More specifically, it is the branch of a nation's armed services that is responsible for aerial warfare as distinct from an army aviati ...
to one of several lawsuits. A geologist for AVX claims the pollution could be cleaned up in five years and Horry Land is not entitled to compensation, while the consultant for Horry Land claims there is no way to tell how long cleanup will take, since AVX has been trying to clean up its own pollution for 28 years. On February 22, 2010, U.S. District Court Judge Terry Wooten ruled that evidence in the Horry Land suit showed the plaintiffs were entitled to a trial. On February 23, 2011, the trial began in
Florence, South Carolina Florence is a city in and the county seat of Florence County, South Carolina, United States. It lies at the intersection of Interstates 20 and 95 and is the eastern terminus of the former. It is the primary city within the Florence metropol ...
. In May 2011, Wooten ruled that AVX caused the pollution, and county property records show that AVX purchased 21.5 acres of
contaminated land Contaminated land contains substances in or under the land that are definitively or potentially hazardous to health or the environment. These areas often have a long history of industrial production and industrial farming. Many sites may be affect ...
for $4.6 million. AVX appealed Wooten's 2011 decision on whether the Air Force should help with the cost of cleanup. S.C. DHEC stated in a March 13, 2012 letter that pollution in some areas came from AVX, but in one area another source was responsible. AVX argued that the government's expert, who said groundwater from the base flowed away from the polluted areas, was not qualified to testify about groundwater. The findings could influence an upcoming
class-action lawsuit A class action is a form of lawsuit. Class Action may also refer to: * ''Class Action'' (film), 1991, starring Gene Hackman and Mary Elizabeth Mastrantonio * Class Action (band), a garage house band * "Class Action" (''Teenage Robot''), a 2002 e ...
by property owners. On October 25, 2012, ''
The Sun News ''The Sun News'' is a daily newspaper published in Myrtle Beach, South Carolina, in the United States. It serves the Grand Strand region of South Carolina. History The ''Myrtle Beach News'' was founded as a weekly in 1935 by brothers-in-law ...
'' reported that a panel of federal appeals court judges had indicated that they would not overturn a lower court's ruling, thereby granting the electronics components manufacturer a new trial on its groundwater contamination case. AVX claimed that Wooten made a legal error in its 2011 trial by allowing an unqualified expert witness to testify. On July 22, 2013, a jury was selected for the second of three lawsuits regarding pollution on land owned by JDS Development of Myrtle Beach LLC, which asked for damages and lost income from condominiums that were never built. AVX counters that the
economic downturn In economics, a recession is a business cycle contraction that occurs when there is a period of broad decline in economic activity. Recessions generally occur when there is a widespread drop in spending (an adverse demand shock). This may be tr ...
caused the failure of the Southern Pines project, and blames the Air Force for part of the pollution. The suit was filed in 2008 and the trial was scheduled for 2012, but insufficient jurors led to a delay. The jury awarded $500,000 in actual damages and $250,000 in punitive damages to JDS, but AVX wanted that amount reduced to no more than $397,500, claiming JDS did not provide "expert testimony" to support its views, or evidence Southern Pines would have been a success. On October 8, 2014, it was announced that AVX agreed to pay $1.2 million to the owners of 42 properties with TCE contamination. Property owners still needed to approve the settlement, which attorney Gene Connell called "reasonable". The agreement would mean the dismissal of a class-action suit filed nearly seven years earlier. Documents filed August 5, 2015 show that property owners could sue AVX after a majority of the S.C. Supreme Court reversed a decision by Circuit Court Judge Benjamin Culbertson to dismiss their case. The ruling allows the determination of whether the facts of the case will result in a "stigma damages" policy.


References


External links


Company website
{{Authority control Companies formerly listed on the New York Stock Exchange Electronics companies of the United States Manufacturing companies based in South Carolina Kyocera Companies based in Greenville, South Carolina Electronics companies established in 1972 American companies established in 1972 American subsidiaries of foreign companies Capacitor manufacturers 1990 mergers and acquisitions