NEC Transfers Components Business to Tokin
NEC Corp. (Tokyo, Japan) will transfer four of its electronic components business units and 5,000 employees to electrical materials maker Tokin Corp. on April 1, 2002, executives of both companies announced.
Tokin will assume complete ownership of battery-maker NEC Mobile Energy Corp. and NEC Technologies (Thailand) Co., which makes capacitors, as well as the capacitor manufacturing unit of NEC Toyama Ltd., and the relay manufacturing unit of NEC Tohoku Ltd. These businesses had net sales of $659.0 million in the year ended March 31, 2001. NEC will receive 49.6 million shares of Tokin common stock, increasing its shareholding in Tokin from 40.6 percent to 66.6 percent.
Tokin President Yuichi Haneta stated,
"After we started talking to NEC and we looked at their design excellence, combined with our materials experience, we thought if we got married, we would gain three or four or five times the force."
Executives have yet to decide whether Tokin will change its name or what the expanded company's new management structure will be.