GS Yuasa Corporation (Tokyo Stock Exchange: 6674) announced today that consolidated subsidiary GS Battery Vietnam Co., Ltd. has decided to acquire land in the Vietnam Singapore Industrial Park in Binh Duong Province, where its head office plant is situated, for a lead-acid motorcycle battery assembly plant so as to gradually double its total motorcycle battery production capacity in the country.
Since 2011, Vietnam’s pace of economic growth has slowed, and the trend has continued in 2013. The demand for motorcycles, however, remains strong, and the market for replacement motorcycle batteries is particularly robust, demonstrating stable growth despite the nation’s economic slowdown.
GS Battery Vietnam has developed a presence as a high-end, high-quality battery brand in the Vietnamese market through its supply of new car batteries and active expansion into the replacement battery market with valve-regulated lead-acid (VLRA) batteries*. Sales of VLRA batteries have surged in Vietnam since 2010. Lead-acid motorcycle battery sales rose to 5.8 million units in 2012, with GS Battery Vietnam capturing a 60% market share.
Sales of lead-acid motorcycle batteries in the replacement market are expected to continue growing steadily in 2013 and beyond. To rapidly increase its manufacturing capability, GS Battery Vietnam acquired a 20,000㎡ land site and a 7,500㎡ building in the Vietnam Singapore Industrial Park in April 2013 for US＄4 million. Procedures are now being taken for the transfer of land use rights. Operations at the new facility are scheduled to commence in 2013, and the company plans to gradually increase its current capacity of 6 million units to 13 million units by 2017. Capital spending to increase production is expected to reach ¥1.5 billion by 2017.
*Valve-regulated lead-acid (VLRA) batteries
Oxygen gas generated during charging is absorbed by the negative plate and is resolved to the electrolyte solution. The battery has a sealed, gas-absorbent structure which requires no monitoring of the solution or water replacement during the battery’s lifetime.
| 1. Company name | GS Battery Vietnam Co.,Ltd. | |
|---|---|---|
| 2. Establishment | May 12, 1997 | |
| 3. Location | Head office plant | Vietnam Singapore Industrial Park, Thuan An Town, Binh Duong Province |
| No. 2 plant | 3 Ho Nai Industrial Park, Trang Bom Town, Dong Nai Province | |
| 4. Capital | 96.9 billion Vietnamese dong | |
| 5. Shareholders and percentage of ownership | GS Yuasa Group 77.50% Mitsubishi Corporation 22.50% | |
| 6. Business description | Manufacture and sale of lead-acid automobile and motorcycle batteries | |
■Photo of the Outside of GS Battery Vietnam Co., Ltd.
