Valeo and Ichikoh: Strategic Alliance in Lighting Systems
18 April 2000
Valeo and Ichikoh: Strategic Alliance in Lighting Systems
PARIS--April 17, 2000--Valeo (Paris: FR; OTC: VLEEY) and Ichikoh Industries, Ltd. announced today the signing of a Memorandum of Understanding regarding the setting up of a global business alliance in lighting systems and equipment. According to the agreement, a cross share-holding would take place in which Valeo would acquire the 20% share held by Nissan in Ichikoh. Ichikoh would reciprocate with the option to take a minority stake of up to 20% in Valeo's lighting activities.The agreement covers technical, industrial and commercial collaboration, including all the major business functions of design, development, production and delivery.
The final agreement is expected to be completed before July 1, 2000.
Commenting the alliance, No?l Goutard, Chairman and CEO of Valeo, stated:
"Valeo's agreement with Ichikoh is excellent news. Ichikoh is renowned for its technical expertise in the lighting field. Through our combined efforts we will be able to really satisfy our global automotive customers' lighting needs. The synergies created will provide an opportunity for expanded business and increased sales. This alliance consolidates Valeo's worldwide leadership position in automotive lighting systems."
The combined presence of Valeo and Ichikoh represents 23 lighting plants worldwide, including 11 in Europe, 4 in North and South America, and 8 in Asia, together with 3 R&D centers. The number of employees will total 10,500. Current combined sales in lighting amount to nearly 2 billion euros, with strong growth potential. Valeo is already the leading producer of lighting systems in Europe, North and South America. In Asia, Valeo Lighting Systems is currently implanted in China. The agreement will enable Valeo to serve Japanese car manufacturers with Ichikoh.
Ichikoh, with sales of 116 billion yen (1.16 billion euros) and 4,600 employees, is one of the leading Japanese automotive parts suppliers with over 90 years of experience in the business. In automotive lighting they maintain approximately 26% of the Japanese market. Ichikoh supplies all the Japanese automobile manufacturers, with Nissan and Toyota as main customers.
This is the third agreement entered into by Valeo with Japanese automotive suppliers. It follows the recent completion of a joint venture with Unisia Jecs - Valeo Unisia Transmissions - and the MOU signed with Zexel in December 1999 for Thermal Systems.
Valeo is an independent industrial Group fully focused on the design, production and sale of components, integrated systems and modules for cars and trucks, and ranks among the world's top automotive suppliers. The Group achieved sales in 1999 of 7.7 billion euros. It has 118 plants, 39 R&D centers, 10 distribution centers and employs 51,700 people in 20 countries worldwide.
For more information on the Group and its businesses, please consult our website: www.valeo.com