SDK Establishes a Subsidiary to Sell Advanced Battery Materials in China
Showa Denko (SDK) (TOKYO: 4004) has established a wholly owned subsidiary “Showa Denko Battery Materials (Shanghai) Co., Ltd.” (SDBM) to sell battery materials, aiming to strengthen its battery materials business in China.
The market for lithium-ion batteries (LIBs) is rapidly expanding not only due to the spread of mobile electronic devices including smartphones but also due to the diffusion of on-board use of LIBs for “New Energy Vehicles” (NEVs) following the popularization of environmental awareness in global scale. Especially in China, the national policy to promote NEVs has been boosting production and sales of electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) for both personal and commercial use. Under these circumstances, many LIB manufacturers are actively conducting capital investment in China.
Until establishment of SDBM, SDK had been conducting business activities to sell LIB materials in China through Showa Denko (Shanghai) Co., Ltd., a management company which has been acting as regional headquarters. This time, however, SDK judged that it is necessary for the Showa Denko Group to establish a new company in order to secure quickness in decision making, strengthen relationships with major LIB manufacturers, and gather detailed information under immediate supervision of Advanced Battery Materials Division of the Company, thereby appropriately taking business opportunities in the rapidly growing LIB market in China.
In our ongoing medium-term business plan “Project 2020+,” we position our LIB materials business as an “Advantage-establishing” business. From now on, we give the new company a status as the center of our battery materials business in China, and will aim to expand the business further.
[Outline of the new company]
- 1)Name of the company: Showa Denko Battery Materials (Shanghai) Co., Ltd.
- 2)Location: 18F Wang-Wang Building, No. 211, Shimen Yi Road, Jingan, Shanghai 200041, China
- 3)Capital: 100 million
- 4)Date of establishment: April 10, 2018
- 5)Scope of business: Marketing and the sale of battery materials in China
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