News Room 2016

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By Strengthening Its Business in China, UACJ Establishing Global Supply Network for Automotive Heat Exchanger Materials

February 16, 2016

UACJ Corporation (Headquarters: Chiyoda-ku, Tokyo; President and CEO: Mitsuru Okada; hereinafter, “UACJ”) has reached an agreement with Guangdong Dongyangguang Aluminum Co., Ltd. (Headquarters: Shaoguan, Guangdong Province, China; President: Guo Jingping; hereinafter “Guangdong”) and Mitsui & Co., Ltd. (Headquarters: Chiyoda-ku, Tokyo; President and CEO: Tatsuo Yasunaga; hereinafter, “Mitsui”) to accept the transfer of some of the issued and outstanding shares of Ruyuan Dong Yang Guang Fine Foil Co., Ltd. (Headquarters: Shaoguan, Guangdong Province, China; President: Li Gang; hereinafter, “Ruyuan”).

In 2010, UACJ invested jointly with Mitsui in Ruyuan, formerly a subsidiary of Guangdong, licensing technology to Ruyuan in order to supply its automotive heat exchanger materials to customers operating in China. The current share transfer will boost UACJ’s ownership stake in Ruyuan from 25% to 49%.

In addition, UACJ has reached an agreement with Guangdong to jointly establish a new sales company in Shanghai and, going forward, promote the sale of Ruyuan’s products in the Chinese market. UACJ expects to hold a 51% stake in the new sales company. In addition to working to further enhance the quality of Ruyuan’s products, UACJ plans to begin offering its products to customers in the Chinese market under the UACJ brand. The new sales company will principally sell Ruyuan’s products but automotive heat exchanger materials from UACJ, UACJ (Thailand) Co., Ltd. (hereinafter, “UATH”), and other companies will also be sold, as necessary.

By reinforcing its operations in China in this manner, UACJ will augment its manufacturing bases into a four-base structure, in Japan, Thailand, Europe and China, establishing a global network to supply UACJ’s products.

In this way, UACJ plans to continue reinforcing its reason for being as a company meeting the needs of customers who are developing their operations throughout the world.

UACJ’s Global Supply Network for Automotive Heat Exchanger Materials

UACJ plans to also license to Ruyuan technology related to aluminum foil for electrolytic capacitors, one of that company’s mainstay products. As this market is expected to grow, UACJ will promote the supply of these products to meet the needs of customers in China.

Note: These agreements are pending approval from the relevant authorities.

Product Supply Network (after the current agreements are implemented)

Overview of the New Company (Scheduled)

＜Overview of Ruyuan＞ (before the current agreements are implemented)

Located in the city of Shaoguan, in China’s Guangdong Province, Ruyuan manufactures and sells rolled aluminum and aluminum foil products. Its ownership structure is Guangdong 55%, UACJ 25% and Mitsui 20%. The company currently employs approximately 800 people.

＜Overview of Guangdong＞

A member of the HEC Group, Guangdong conducts business in the areas of aluminum products, chemicals, electrolytic capacitors and power generation. Guangdong is listed on the Shanghai Stock Exchange.

＜Overview of Mitsui＞

Mitsui operates in myriad fields, including iron and steel products, mineral and metal resources, infrastructure projects, integrated transportation systems, chemicals, energy, food resources, food products, consumer services, IT & communications and corporate development. The company has sales bases and networks around the world. It leverages information to sell a diverse range of products, provides supporting logistics and financial services, and is involved in the arrangement of international projects.

＜Overview of UACJ ELVAL HEAT EXCHANGER MATERIALS GmbH＞

Established in December 2015 in Germany as a joint venture between UACJ and ELVAL Hellenic Aluminium Industry S.A., the company sells automotive heat exchanger materials in Europe. UACJ ELVAL HEAT EXCHANGER MATERIALS GmbH purchases materials primarily from ELVAL Hellenic Aluminium Industry S.A., as well as from UACJ, UATH, and other companies as needed, selling these products in Europe under the UACJ brand.

＜Overview of ELVAL Hellenic Aluminium Industry S.A.＞

ELVAL Hellenic Aluminium Industry S.A. is a leading aluminum manufacturer in Europe. ELVAL’s manufacturing base includes seven production plants in Greece and manufactures numerous different aluminum products that meet the needs of the packaging, construction, transportation and automotive industries, among others. ELVAL exports to more than 80 countries around the world and has trading facilities in seven European countries. ELVAL is a subsidiary of ELVAL HOLDINGS SA, which belongs to VIOHALCO SA, the holding company of various metal processing companies in Europe.