News Room 2011 (The former Furukawa-Sky)

• 
• 

Letter of Intent for Joint Venture Concluded with Chinese Aluminum Enterprise

March 23, 2011

Furukawa-Sky Aluminum Corp. and wholly owned subsidiary Nippon Foil Mfg. Co., Ltd. signed a Letter of Intent on April 14, 2011 with aluminum enterprise Guangdong Dongyangguang Aluminum Co., Ltd. (Registered capital: RMB 827 million; Legal representative: Jing Ping Guo) regarding the establishment of a new company that will undertake research and development, manufacturing and sales of aluminum foil for batteries, negative electrodes for capacitors, and other products.

Lithium-ion rechargeable batteries, which use aluminum foil, are rapidly replacing lead-acid and nickel-hydride batteries in the area of industrial batteries. As automotive batteries, they will be increasingly used in hybrid vehicles, electric vehicles and plug-in hybrid electric vehicles as power sources. The market for lithium-ion rechargeable batteries is therefore expected to see significant growth in the near future.

Nippon Foil Mfg. has established a considerable track record in aluminum foil for industrial batteries and electronics in Japan. The company intends to leverage its experience and aggressively expand into the rapidly growing Chinese market in order to take advantage of the rise in demand and ensure a solid response to next-generation products.

Subsequent to this agreement, we will engage in concrete discussions toward the signing of a joint venture agreement that will include the finalized capital ratio and products to be handled by the new company, and other related contracts.