Keihin Corporation (“Keihin”) hereby announces that Sanden Corporation (“Sanden”) and Keihin have entered into a letter of intent concerning the promotion of collaboration on automotive air conditioning system under the terms set forth below.
1. Terms of Letter of Intent
The companies agreed on the matters set forth below based on the spirit of equal footing:
(1) The companies will promote collaboration with the goal of creating world’s top class products in the air conditioning system business, achieving the economies of scale in the relevant market and becoming the “megasupplier” by expanding the customer base to automakers around the world.
(2) The companies will review and discuss on the establishment of joint venture company that will be based on the companies’ strengths, which are international affiliates and development capabilities, and that will conduct, among others, joint development and market expansion activities, by Sanden contributing its business expansion potential in the global market especially its U.S. and European customers and its development capabilities in environmental technology and by Keihin contributing its development capabilities in HVAC and its competitive strengths in heat exchanger in the global market. Sanden, which has the potential to expand the customer base, will lead the expansion of customer base and the development for such expansion.
(3) The companies will discuss on how the collaboration ought to be in the future.
2. Overview of Collaboration Partner (As of March 31, 2013)
Trade Name Sanden Corporation
Location of Head Office 20 Kotobuki-cho, Isesaki-shi, Gunma
Name of Representative Mitsuya Yamamoto, Director and President
Main Business Automotive Systems Business, Commercial Store Systems Business, Eco Systems Business and Other Products
Amount of Capital 11,037,000,000 yen
3. Other
We will promptly make announcements on any decisions made hereafter relating to this matter which should be disclosed.
