Elval S.A. and UACJ Corporation signs MOU for a joint venture company for automotive sector

Elval S.A. and UACJ Corporation have signed a Memorandum of Understanding to establish a joint venture company (“Newco”) for the purchase, production and sale of automotive heat exchanger materials in Europe.

Newco will be established in Germany in accordance with the laws of Germany and take the form of a limited liability company (GmbH).

UACJ shall subscribe for 51% of the shares and Elval shall subscribe for 49% of the shares in the Newco at the time of its incorporation.

The parties shall agree a separate Technology License Agreement under which UACJ shall provide the technical assistance necessary for Elval to manufacture products of automotive heat exchanger materials to be purchased by Newco for sale to the customers in Europe.

UACJ and Elval consider automotive heat exchanger materials to be a strategic product. Demand for automotive heat exchangers in Europe, which is a key automotive market, is expected to remain robust. The establishment of Newco will enable UACJ and Elval to take advantage of this growing demand.

UACJ and Elval have developed a close relationship over a number of years. The new venture is meant to enhance and extend this relationship. UACJ will provide Elval with leading-edge technology for automotive heat exchanger materials and will benefit from Elval’s advanced production capabilities, further enhancing its broad-ranging competitiveness in supplying such materials of high quality to European customers.

Elval and UACJ plan to continue deliberations to reach final agreement with a view to establishing the new company around July 2015.