SANYO Electric Co., Ltd.
Japan Storage Battery Co., Ltd.
February 26, 2003
SANYO Electric Co., Ltd. Announces Purchase of Shares in
GS-MELCOTEC Co., Ltd. a Subsidiary of Japan Storage Battery Co., Ltd.
Tokyo, February 26, 2003----In October of 2002 SANYO Electric Co., Ltd., (SANYO) the world's leading producer of rechargeable batteries and Japan Storage Battery Co., Ltd. (Japan Storage Battery) announced a fundamental agreement between the two companies in which SANYO would purchase 51% of the outstanding shares of GS-MELCOTEC Co., Ltd. (GS-MELCOTEC) a subsidiary of Japan Storage Battery. This transaction was completed today February 26, 2003 officially establishing the company under the new name "SANYO GS Soft Energy Co., Ltd." that will move forward under joint capitalization from SANYO and Japan Storage Battery.
Since beginning mass production of Nickel Cadmium batteries in 1964, SANYO has mass produced Nickel Metal Hydride and Lithium ion batteries developing itself into an industry leader in compact rechargeable batteries, including top market share for Lithium ion batteries. SANYO has increased not only domestic production of Lithium ion batteries but in 2001 began overseas mass production of Lithium ion battery cells expanding SANYO's Lithium ion supply capacity.
Japan Storage Battery 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 mobile phones and PHS (Personal Handyphone System) phones. In 1997 Japan Storage Battery established the joint venture Company GS-MELCOTEC with Mitsubishi Electric Co., Ltd. to manufacture and sell Lithium ion batteries for use in portable devices. Since its establishment GS-MELCOTEC has established itself as a key player in the market for thin, high capacity Lithium batteries for mobile phones.
The Lithium ion battery with its special features of high capacity, light weight and compact size has experienced a rapid increase in demand beginning in the second half of the 1990's due to the strong market growth in key applications that use Lithium ion batteries, namely note PC's and mobile phones. The Lithium ion battery currently is the compact size rechargeable battery with the largest market size 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 mobile 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 Battery came to a fundamental agreement based on the belief that integrating both companies advanced technologies to achieve increased speed in technology development will result in an improved ability to develop Lithium ion batteries required by today's customers. The share purchase was completed today with SANYO holding a 51% share of GS-MELCOTEC and Japan Storage Battery holding the remaining 49% with the new company re-named "SANYO GS Soft Energy Co., Ltd."
By combining SANYO and Japan Storage Battery's manufacturing technology and management know-how will improve performance and reliability further solidifying SANYO and Japan Storage Battery's position as the world's top Lithium ion battery manufacturers.
Company Outline
Company Name: SANYO GS Soft Energy Co., Ltd.
Established: February
26, 2003
Location: Kyoto,
Japan
Representative: President, Hitoshi Ouchi
(Previous
position: deputy general manager, CRM division,
Soft Energy Company, SANYO Electric Co., Ltd.)
Capitalization: 3.5 billion Yen
Investment: SANYO Electric Co., Ltd. 51%
Japan Storage Battery Co., Ltd. 49%
Employees: 240
Business Content: Lithium ion battery manufacturing & sales