Nam Tai, Toshiba to Terminate Battery Venture

May 20, 2002 by Jeff Shepard

Nam Tai Electronic & Electrical Products Ltd. (Hong Kong) has entered into a memorandum of understanding with Toshiba Battery Co. Ltd. (Japan) to discontinue its lithium-ion rechargeable battery joint venture in China. Toshiba will reacquire Nam Tai's entire interest in the joint venture company, BPC (Shenzhen) Co. Ltd.

Following Toshiba Battery's sale to Sanyo of its NiMH battery business and a general reorganization of the battery business in the Toshiba Group, Nam Tai and Toshiba mutually agreed that continuing with the joint venture would not be in their best interests considering the expected downward trend in demand for lithium-ion battery packs.