Fortec uses Egypt to avoid tariffs
Fortec in Germany is offering European companies a route into the US to minimise potential tariffs.
The company, which develops and packages industrial displays for embedded systems as well as power supplies, is combining local manufacturing in the United States with the strategic pre-assembly of electronic components in Egypt.
This provides a cost-effective pathway for the electronics industry to supply the US market, says Ulrich Ermel, Chief Operating Officer of Fortec Elektronik AG and Managing Director of FORTEC Integrated. “Our global manufacturing strategy protects our customers from unforeseen customs charges and ensures a competitive pricing structure in the long term,” said Ermel.
Chips and boards are currently exempt from retaliatory tariffs when shipping into the US, although this is set to change in coming weeks, creates large amounts of uncertainty in the industry. Distributors in the US such as DigiKey have used tariff-free zones to minimise the impact on importing and exporting boards.
- Distec changes its name to Fortec Integrated
- How Digikey tackles tariffs
- Raspberry Pi integration for industrial display with Android 13
The coordinated production chain at Fortec avoids high surcharges as products with the corresponding added value are only subject to regular customs duties of currently 10%, he says. This significant difference results in more stable and predictable import costs, enhancing planning certainty even in an internationally volatile trade environment.
This also helps with material procurement. Having production sites around the world with local warehousing mitigates the impact of trade sanctions and sudden customs adjustments. As a result, European industrial customers benefit from shorter delivery times, high quality standards, and a predictable cost structure.
www.fortec-integrated.de; www.fortec-power.de
If you enjoyed this article, you will like the following ones: don't miss them by subscribing to :
