Apr. 26, 2013
TDK Corporation (President: Takehiro Kamigama) has announced that at a meeting held today its Board of Directors passed a resolution to establish a joint venture in Guangdong Province, China. The joint venture will be set up by three companies: TDK, Rising Nonferrous Metals Co., Ltd., a Guangdong-based resource development company, and Tokai Trade Co., Ltd.
- Reason for Establishing Joint Venture
TDK manufactures various electronic devices for use in automobiles, IT equipment and other applications, as well as various magnets for industrial equipment. Burgeoning demand for rare-earth magnets in particular is expected worldwide as energy efficiency and environmental considerations take on greater importance in automobiles, home electric appliances and other sectors.
Against this backdrop, TDK has decided to establish a magnet manufacturing joint venture in China to ensure an even more stable supply of rare-earth materials, which are a finite resource, with the view to strengthening its business.
- Overview of Joint Venture
1. Company Guangdong TDK Rising Rare Earth High Technology Material Co., Ltd 2. Headquarters New and High-Tech Development Zone, Yu Jiang Zhen, Meizhou City, Guangdong Province, China 3. Representative Keiichi Imamoto, Chairman 4. Paid-in capital US$33 million 5. Shareholding ratio TDK: 59%; Rising Nonferrous Metals Co., Ltd.: 37%; and Tokai Trade Co., Ltd.: 4% 6. Main business Manufacture of rare-earth magnets 7. Establishment May 2013 (planned)
- Overview of Joint Venture Partners
(1) Rising Nonferrous Metals Co., Ltd.
1．Company Rising Nonferrous Metals Co., Ltd. 2. Headquarters 103 Guomao Road, Haikou, Hainan Province 3. Representative Ye Lieli 4. Establishment June 1993 5. Main business Manufacture and sales of rare earths and tungsten products 6. Relationship with TDK No capital, personnel or business relationship with TDK
(2) Tokai Trade Co., Ltd.
1．Company Tokai Trade Co., Ltd. 2. Headquarters 16-13 Akasaka 2-chome, Minato-ku, Tokyo, Japan 3. Representative Moto Mitsui, Representative Director 4. Establishment April 2005 5. Main business Trading business 6. Relationship with TDK No capital, personnel relationship with TDK
- Main Schedule
Board of Directors’ resolution April 26, 2013
Joint venture establishment May 2013 (planned)
The establishment of this joint venture will have a negligible impact on TDK’s consolidated business results for the fiscal year ending March 31, 2014.
This joint venture may be dissolved if the required approvals for the establishment and operation of the joint venture are not forthcoming from the Japanese and Chinese governments.
Contact for media
|Mr. Sumio Marukawa||TDK Corporation
|+81 3 email@example.com|