Netherlands-based SMARTRAC has signed a contract to completely take over Xytec, a Malaysia-based machinery builder. SMARTRAC already held 30% of the shares in Xytec before the take-over.

“By closing this deal, we executed a strategically important decision for our company. The access to state-of-the-art machinery for the production of RFID components provides a competitive advantage in our industry, which we have already benefited from through our previous cooperation with Xytec,” says Dr Christian Fischer, CEO of SMARTRAC. “We have always seen the huge potential of further developing this cooperation and are now in the position to make full use of the advantages this potential can give SMARTRAC. The know-how of the Xytec engineers, cost advantages as well as the exploitation of short delivery times for new machinery will contribute to maintaining the technological leadership of SMARTRAC and to allocating production capacities for further profitable growth.”

Xytec provides SMARTRAC with specialised machinery for the production of RFID inlays which are patent protected for SMARTRAC. On this basis, SMARTRAC has built up production capacities for RFID inlays which are produced using patent-protected wire embedding technology. SMARTRAC plans to increase the portfolio of Xytec products and to apply its expertise also to new areas. SMARTRAC already has several projects in progress that it says could make use of the potential of etching technology in the RFID market for mass transit and logistics. The Dutch firm is building up a production location in Malaysia close to Xytec´s production facilities where additional production capacities for etched RFID components will be developed.