SANYO Electric Co., Ltd.
Japan Storage Battery Co., Ltd.
October 3, 2002
SANYO Electric Co., Ltd. & Japan Storage Battery Co., Ltd.
Announce Fundamental Agreement
-SANYO to obtain shares in GS-Melcotec Co., Ltd. a subsidiary of Japan Storage Battery Co., Ltd.-
Tokyo, October 3, 2002----SANYO Electric Co., Ltd., (SANYO) the world's leading producer of rechargeable batteries and Japan Storage Co. Ltd. (Japan Storage) have come to a fundamental agreement in which SANYO will purchase 51% of the outstanding shares of GS-Melcotec Co., Ltd. a subsidiary of Japan Storage.
Japan Storage in 1993 lead the battery industry in developing a square -type Lithium ion battery, the main type of battery used in mobile communication devices such as cell phones and PHS (Personal Handy System) phones. In 1997 Japan Storage established the joint venture Company GS-Melcotec Co., Ltd. with Mitsubishi Electric Co., Ltd. to manufacture and sell Lithium ion batteries for use in portable devices. From that time on GS-Melcotec Co., Ltd. has expanded its business to the market of thin, high capacity Lithium batteries for mobile phones. GS-Melcotec is currently one of the leaders in market share for Lithium ion batteries.
Since beginning mass production of Nickel Cadmium batteries in 1964, SANYO has been an industry leader in compact rechargeable batteries starting mass production of Nickel Metal Hydride batteries in 1990 and Lithium ion battery mass production in 1994, maintaining top market share for Lithium ion batteries. Still a relatively new type of rechargeable battery introduced to the market in the 1990's the Lithium ion battery is known for its high capacity, lightweight and compact size. Due to a rapid increase in demand for mobile phones and personal computers, the main type of devices that use Lithium ion batteries, in the latter half of the 1990's saw a drastic increase in demand for Lithium ion batteries. In order to meet the needs of the increased demand for Lithium ion batteries, SANYO has increased domestic production and in 2001 began overseas mass production of Lithium ion battery cells expanding SANYO's Lithium ion supply capability.
The Lithium ion battery currently is the compact size rechargeable battery with the largest market and is the rechargeable battery expected to see even stronger future growth as the devices that use Lithium ion batteries continues to expand. Mobile devices such as cellular phones etc. are rapidly developing becoming smaller with more functions requiring the rechargeable batteries that supply the power for these devices to be thin, high capacity and highly reliable batteries. In the near future it is also projected that there will be increased competition in the field of rechargeable batteries from Chinese and Korean battery manufacturers.
Under these market conditions SANYO and Japan Storage came to this fundamental agreement in order to integrate both companies top-rank technologies to achieve increased speed in technology development resulting in the ability to develop the Lithium ion battery required by today's customers. Japan Storage will acquire 100% of GS-Melcotec Co. Ltd. shares. SANYO will then purchase 51% of GS-Melcotec shares with Japan Storage holding the remaining 49%.
By combining SANYO and Japan Storage manufacturing technology and management know-how will improve performance and reliability cementing SANYO and Japan Storage's position as the world's biggest Lithium ion battery manufacturers.
Company Outline
Company Name: GS-Melcotec Co., Ltd.
Location: Kyoto,
Japan
Representative: President, Kenzaburo
Hayashi
Established: April
24, 1997
Capitalization: 10.1
billion Yen (As of September 30, 2002)
Investment: Japan
Storage Battery Co., Ltd. 63.3%, Mitsubishi Electric
Corporation
36.7% (As of September 30, 2002)
Sales: FY
2001 27.39 billion Yen
Employees: 250
(As of September 30, 2002)
Business Content: Lithium ion battery manufacturing &
sales
Homepage URL
SANYO Electric Co., Ltd. http://www.sanyo.co.jp/koho/index_e.html
Japan Storage Battery Co., Ltd. http://www.nippondenchi.co.jp/top_e/e_top.html
GS-Melcotec Co., Ltd. http://www.gsmelcotec.com/