GELDERN, Germany -- Aug. 3 -- Germany's two largest producers of printed circuit boards have signed a wide-reaching agreement that binds the companies respective sales, purchasing and technology teams.

Ruwel AG and Fuba Printed Circuits, which have joint sales of 270 million euros (about $325 million), say their combined buying power has the potential for "considerable savings" on raw materials. The companies also plan to coordinate sales and production efforts, in order to reverse downward pricing pressure and benefit from economies of scale.

Ruwell operates plants in Goch, Wetter, Grassau, Pfullingen, Nykøbing and and two in Geldern. 

Fuba has plants in Gittelde, Dresden, and has JVs in Tunisia and India. The capacity of the Tunisia factory was recently increased by 80,000 m², to 200,000 m² per annum. Additional expansion will take it to 320,000 m² by year-end.

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