Hitachi Chemical : Announcement of Hitachi Chemical's Establishment of a New Overseas Subsidiary

October 25, 2019
Hitachi Chemical Co., Ltd.

Hitachi Chemical Co., Ltd. (hereinafter 'Hitachi Chemical') announces the decision to establish a new consolidated subsidiary in Thailand (hereinafter 'new Thai Company') and to transfer the automotive lead-acid battery business of Hitachi Chemical Asia (Thailand) Co., Ltd. (hereinafter 'HCTD') to the new Thai Company for the purpose of reorganizing and integrating lead-acid battery business in Southeast Asia.

1. Background and Purpose

From 2012 Hitachi Chemical has manufactured and sold automotive lead-acid batteries at HCTD to target Thailand and the Southeast Asia region. In 2017 Hitachi Chemical newly acquired Hitachi Chemical Storage Battery (Thailand) PLC. (former Thai Storage Battery PLC., hereinafter 'HCBT'), a manufacturer/distributor of automotive and industrial lead-acid batteries in Thailand, as a consolidated subsidiary, aiming to further strengthen its battery business through HCBT's brand value, manufacturing bases, and sales networks, with HCBT working to expand its business in Southeast Asia by integrating Hitachi Chemical's manufacturing knowhow to enhance its lead-acid battery product capabilities.

In order to reorganize and integrate lead-acid battery business in Thailand, Hitachi Chemical will establish the new Thai Company and transfer HCTD's automotive lead-acid battery business to the new Thai Company. In addition, the new Thai Company is planning to merge with HCBT to utilize its management assets and operate its businesses more efficiently. Through this reorganization and integration, Hitachi Chemical will continue to contribute to society and community of Southeast Asia, by providing a stable supply of automotive and industrial lead-acid batteries.