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December 3, 2007 |
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SANYO ELECTRIC: To Make New Fuel Cell Company with Nippon Oil Sanyo Electric Co., Ltd. and Nippon Oil Corporation have agreed to create a new company for stationary fuel cell systems planned for establishment in April 2008. Sanyo and Nippon Oil, who have been partners in fuel cell development for years, aim to enhance efforts to shorten the development period, improve performance and reliability of the systems, and reduce costs through optimal production efficiency. Kyodo News, in its report, states that the envisioned fuel cells will involve producing electricity by making the oxygen they take in from the atmosphere react chemically with hydrogen extracted from kerosene or liquefied petroleum gas. Fuel cells, Kyodo adds, have drawn close attention in industry circles because the sole byproduct from oxygen-hydrogen reactions is water and they do not emit carbon dioxide, believed to be one of the leading causes of climate change. Sanyo, will first establish and spin off a new company dedicated to stationary fuel cell business and then Nippon Oil will acquire 81% of the shares issued. Kyodo News reports that Sanyo will start the fuel-cell operations as an independent company on April 1. The joint venture will develop, plan, system design and product manage the fuel cell systems. However, the production and assembly will be consigned to Sanyo Tokyo Manufacturing Co., Ltd., then Nippon Oil will purchase the systems from the new company and sell them to customers. The name of the company has yet to be determined. Senior Vice President of Sanyo, Company President of Clean Energy Company, Tadao Shimada is quoted as saying, "Hereafter, by combining the strengths of both companies, and increasing the pace of a low-cost, highly reliable stationary fuel cell system, home-use fuel cell systems will become commercialized more quickly." About Sanyo Electric Headquartered in Osaka, Japan, Sanyo Electric Co., Ltd. -- http://www.sanyo.com/ -- is one of the world's leading manufacturers of consumer electronics products. The company has global operations in Brazil, Germany, India, Ireland, Spain, the United States and the United Kingdom, among others. * * * In March 2, 2007, Fitch Ratings placed SANYO Electric Co. Ltd.'s BB+ long-term foreign and local currency issuer default and senior unsecured ratings on rating watch negative. |
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