- With the transfer agreement, TDK aims to accelerate the development of high-performance, high-quality rare earth magnets for growth markets including motors for electric vehicles (EVs).
- Acquisition of Showa Denko’s magnet alloy-related equipment and patents enables TDK to efficiently produce them and timely provide them to the market.
November 27, 2018
TDK Corporation (TSE: 6762, President and CEO: Shigenao Ishiguro, hereinafter “TDK”) announces today it has reached an agreement with Showa Denko K.K. (TSE: 4004, President and CEO: Kohei Morikawa, hereinafter “Showa Denko”) and concluded a transfer contract of Showa Denko’s neodymium magnet alloy R&D business sector to TDK. Showa Denko is a manufacturer of a comprehensive portfolio of petrochemical products and electronic materials.
The agreement reached between the two companies is designed to accelerate the development of new, high-performance and high-quality neodymium magnets, and to establish a more efficient production system for meeting escalating market demand.
Within its magnet products portfolio, TDK offers neodymium magnets containing rare earth minerals, and ferrite magnets consisting of a mixed oxide of metals including iron. Showa Denko’s magnet alloy complements the evolution of TDK’s unique material technologies and neodymium magnet products. TDK’s magnet products for motors are used in automobiles, industrial equipment, information and communications technology devices, and related products.
TDK said it believes that this transfer enables it to enhance the quality of neodymium magnets from the level of materials. It is another step towards achieving its target of zero defects, and providing safe and secure TDK products to customers in a timely manner.
1. Assets to acquire
The neodymium magnet alloy-related equipment and intellectual property rights, including patents, possessed by Showa Denko.
2. Overview of transferor
|(1) Company name||Showa Denko K.K.|
|(2) Address||13-9, Shiba Daimon 1-Chome, Minato-ku, Tokyo 105-8518 Japan|
|(3) Representative||Kohei Morikawa, President and CEO|
|(4) Main business||Development, manufacturing and sale of petrochemical, chemical, inorganic and electronic materials|
|(5) Capital||140,564 million JPY (as of June 30, 2018)|
|(6) Relationship with TDK||TDK has no capital and personal relationships with Showa Denko. TDK has a business relationship with the company, including purchase of electronic materials.|
3. Transfer schedule
|November 27, 2018||Contract to be concluded between both companies|
|End of January, 2019 (plan)||Transfer to be completed|
4. Future outlook
The impact of this matter on the consolidated earnings forecast of the TDK Corporation is expected to be insignificant for the period ending in March 2019.
About TDK Corporation
TDK Corporation is a leading electronics company based in Tokyo, Japan. It was established in 1935 to commercialize ferrite, a key material in electronic and magnetic products. TDK's comprehensive portfolio features passive components such as ceramic, aluminum electrolytic and film capacitors, as well as magnetics, high-frequency, and piezo and protection devices. The product spectrum also includes sensors and sensor systems such as temperature and pressure, magnetic, and MEMS sensors. In addition, TDK provides power supplies and energy devices, magnetic heads and more. These products are marketed under the product brands TDK, EPCOS, InvenSense, Micronas, Tronics and TDK-Lambda. TDK focuses on demanding markets in the areas of information and communication technology and automotive, industrial and consumer electronics. The company has a network of design and manufacturing locations and sales offices in Asia, Europe, and in North and South America. In fiscal 2018, TDK posted total sales of USD 12 billion and employed about 103,000 people worldwide.
Contacts for regional media
|Global||Mr. Yoichi OSUGA||TDK Corporation