Transfer of Capacitor Business
Hitachi Chemical Co., Ltd. (“Hitachi Chemical”), Shin-Kobe Electric Machinery Co., Ltd. (“Shin-Kobe”), and Hitachi AIC Inc. (“Hitachi AIC”) approved a resolution at their board of directors’ meeting held on July 28, 2009, to conclude between Shin-Kobe and Hitachi AIC a basic agreement on the transfer of capacitor business of Hitachi AIC to Shin-Kobe. The outline of the basic agreement is provided below:
1. Purpose
Hitachi Chemical Group has identified “Energy” as one of the key business area in the future, with high growth potential worldwide. The Group companies have been cooperating for the development of the energy business.
Capacitor business has been run by Hitachi AIC for years and is now actively engaging in new fields such as wind power generation and solar cell power generation. In the process of the development of the energy business, we have come to believe that Capacitor business should be transferred and integrated into Shin-Kobe, which has a long history and experience in rechargeable batteries, from lead batteries to lithium-ion batteries, and in power systems, and which, at the same time, is aiming to expand its business into the new energy field. By doing so, we expect that a wide-ranging synergistic effect can be exerted on technology, sales, procurement, etc., more than before and that the development of the battery device business and industrial energy system business will be accelerated as a whole.
Therefore, both companies have agreed that the three businesses of Hitachi AIC, namely, aluminum electrolytic capacitors, plastic film capacitors, and evaporated products (evaporated products are the core material of capacitors), will be transferred to Shin-Kobe as of October 1, 2009.
2. Summary of the basic agreement
(1) Scope of business to be transferred
Aluminum electrolytic capacitors, plastic film capacitors, and evaporated products, which are currently owned by Hitachi AIC and its subsidiaries (Note: The other businesses of Hitachi AIC, namely, printed wiring board business, tantalum capacitor, and equipment business, will not be transferred)
(2) Summary of business to be transferred
Total asset: 7.6 billion yen
Net Sales: 11.5 billion yen
Number of employees: approximately 350 persons (as of March 31, 2009)
(3) Price and method of business transfer
To be determined by future discussion between Shin-Kobe and Hitachi AIC.
3. Future schedule (Plan)
End of September, 2009: The date of the conclusion of the final agreement regarding the business transfer between both companies
October 1, 2009: The date of business transfer
