GS Yuasa to Acquire Management Rights to Thai Joint Venture and Make it a Consolidated Subsidiary

GS Yuasa Corporation (Tokyo Stock Exchange: 6674) announced today that it has concluded a basic agreement with its Thai partner in the joint-venture company Siam GS Battery Co., Ltd. to raise GS Yuasa’s ownership of the equity-method affiliate from 39% to 60%, and give GY Yuasa management rights to the company, making it a consolidated subsidiary of GS Yuasa Corporation.

In March 2013, GS Yuasa acquired an additional 10% stake in Siam GS Battery from another shareholder, increasing its ownership from 39% to 49%. Moreover, GS Yuasa will raise its ownership to 60% in May by acquiring further shares to be issued through a third-party allocation.

Since its establishment in 1966, Siam GS Yuasa has been the GS Yuasa Group’s core manufacturing and sales site for lead-acid automotive batteries in Thailand. Amid expectations of a continued rise in automobile demand in Southeast Asia, GS Yuasa plans to accelerate the following strategies after acquiring management rights.

(1) Transfer cutting-edge technology for the manufacture of idle-stop car batteries

(2) Deploy an automated manufacturing system to produce 5 million automobile batteries annually (2014)

(3) Promote the globalization and growth of the company by investing management resources in Myanmar, Laos, Cambodia, and other areas in the Mekong region

In addition to Siam GS Yuasa, the GS Yuasa Group manufactures and sells lead-acid automotive and motorcycle batteries at Yuasa Battery (Thailand) Public Company Limited (41% stake) and forklift lead-acid batteries at GS Yuasa Siam Industry Ltd. (60% stake). GS Yuasa is targeting combined sales of ¥35 billion from the three companies in 2015.

The GS Yuasa Group aims to solidify its position as Asia’s No. 1 battery company and expand business further by increasing collaboration among operations in Indonesia, Vietnam, and other countries in the ASEAN region, and bolstering its management foundation in the region.

Overview of Siam Battery GS

1． Company name: Siam GS Battery Co., Ltd.

2． Head office: Samut Prakan Province, Thailand

3． Representative: Hiroshi Tateiwa, President

4． Products Manufactured: Lead-acid automotive and motorcycle batteries

5． Establishment: July 11, 1966

6． Capital: 56 million Thai baht prior to capital increase; 71.4 million Thai baht after capital increase

7． Number of employees: approximately 960 (as of February 28, 2013)