Paris, 10th January 2006. Saft, the advanced technology battery company and Johnson Controls,a leading supplier of automotive components, today announce the launch of their joint venture to develop, produce and sell, on an exclusive basis, advanced technology batteries for hybrid electric vehicles (HEVs) and electric vehicles (EVs).
Saft has contributed licences for its nickel metal hydride and lithium-ion technologies, plus manufacturing know-how, for a 49% stake in a new company, Johnson Controls-Saft Advanced Power Solutions, a US based limited-liability company. Johnson Controls has contributed licences for its technologies, plus manufacturing know-how and will contribute $40m in cash and assets, for a 51% stake. HEV and EV batteries for military applications will remain outside the scope of the joint venture.
The board and the management of the new company is comprised of executives from both partners.
The two partners will contribute development resources within existing locations, and plan to develop state-of-the-art manufacturing sites based on market demand. The two partners are also combining their sales and marketing resources in order to address this fast-growing market. A NiMH development centre will be established within Saft’s facility in Nersac and operated by current Saft personnel resources.
The expansion of the joint venture will be funded by the use of non-recourse debt as well as contributions by the parties. Saft will not be obliged to make additional equity contributions but would see its stake diluted if it chose not to. However Saft’s shareholdings will not be less than 35% during the first five years so long as Saft invests a minimum of $40m during that timeframe, Saft has a put option for its entire stake exercisable after the fifth anniversary, whilst JCI has call options to reduce Saft’s stake as the business develops.
John Searle, Saft CEO declared “This is an important strategic development for Saft, and in conjunction with our partner Johnson Controls, the joint venture has real potential to reach its objective of being the leading Western manufacturer of advanced batteries for HEV and EV applications.”
About Saft
Saft (Euronext : Saft)is a world specialist in the design and manufacture of high-tech batteries for industry. Saft batteries are used in high performance applications such as industrial infrastructure and processes, transportation, space and defence. Saft is the world’s leading manufacturer of nickel-cadmium batteries for industrial applications and of primary lithium batteries for a wide range of end markets. The group is also the European leader for specialised advanced technologies for the defence and space industries. With approximately 4,000 employees worldwide, Saft is present in 17 countries. Its 16 manufacturing sites and extensive sales network enable the group to serve its customers worldwide."
For more information, visit Saft at www.saftbatteries.com
Press contacts:
SAFT - Jill LEDGER, Corporate Communication and Investor Relations Director
Tel.: +33 1 49 93 17 77, e-mail: jill.ledger@saftbatteries.com
