Epcos will terminate the business activities in the field of double-layer capacitors (UltraCap) by March 31, 2007. The company hopes that the termination will improve earnings by about EUR 4 million per year. The outlook for successful high-volume marketing of double-layer capacitors has deteriorated increasingly - so the companies informations. Improvements in rival low-cost battery technologies, for example, have hindered the deployment of UltraCaps in a number of large-volume applications. Termination of UltraCap activities will result in the loss of around 35 jobs at Epcos' Heidenheim, Germany plant. Withdrawal from the UltraCap business will likely incur one-time costs in the single-digit million euro range.

The sale of Epcos ' loss-making tantalum capacitors business to Kemet was already successfully closed when operations were transferred in April of this year. In addition, a cooperation agreement was signed with Taiyo Yuden in August. will make EPCOS more competitive and broaden its spectrum of ceramic capacitors for the fast-growing automotive electronics market.