Recent News About Gold Peak
GP Batteries and Sanyo join hands to produce lithium batteries in China
June 30, 2004, HONG KONG – Singapore-listed GP Batteries International Limited has entered into an agreement with Sanyo Energy Tottori Co Ltd (“Sanyo Energy”) of Japan to set up a joint venture in China to produce lithium batteries. GP Batteries is a member company of Gold Peak Industries (Holdings) Limited (SEHK code: 40).
Sanyo Energy is a subsidiary of Sanyo Electric Co Ltd of Japan which makes electrical and electronic products under the world-renowned “SANYO” brand.
Located in Ningbo Hi-Tech Park in Ningbo, China, the new joint venture named Ningbo GP Sanyo Energy Co Ltd will manufacture and sell manganese dioxide primary lithium batteries. Construction of the plant has commenced and production is expected to start in September. The products will be sold in both the China and international markets, tapping on the well-established worldwide marketing networks of both GP Batteries Group and Sanyo Energy.
“Formation of this joint venture enables GP Batteries to expand its existing product range. Also, by combining the strengths of both GP Batteries and Sanyo Energy groups, the joint venture is expected to produce high-quality but cost-competitive batteries for both industrial and consumer markets,” said Andrew Ng, Chairman and Chief Executive of GP Batteries.
Under the agreement, GP Batteries and Sanyo Energy will respectively own 49% and 51% of the equity interest in the joint venture which will have a registered capital of US$25 million. GP Batteries and Sanyo Energy will make total cash contributions of US$12.25 million and US$12.75 million respectively in four phases over a two-year period. It is expected that there will be positive contribution before the second quarter of 2006.
In addition to cash contribution, Sanyo Energy will make available the latest advanced technology as well as provide the required technical support and assistance to the joint venture.
