TDK to Establish Joint Venture in China

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.

1. 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.
2. 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)

3. 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

4. Main Schedule
   Board of Directors’ resolution April 26, 2013
   Joint venture establishment May 2013 (planned)
5. Outlook
   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.

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