DNC Technology Co. Ltd., representing the Fine DNC Group, and Sumida Corp. have established a new joint venture company, Sumida Korea Inc., which will focus on the sales and research and development of inverter transformers and inverter modules in the Korean market. Sumida Corp. will make an initial investment of $510 million, while DNC Technology Co. Ltd. will make an initial investment of $490 million.
Given the robust growth in the world LCD market, Fine DNC Group and Sumida Group both sight the opportunity in the booming business. Having been specialized in manufacturing and marketing different parts of the LCD backlighting system, both groups believe a coalition between them would enhance each other’s ability to better serve the customers and enable the business expansion in the Korean market, which accounts for 45% of the worldwide LCD panel production.
In an unrelated story, Sumida Corp. has agreed to acquire a German company named STELCO GmbH and established a holding company in Europe. Sumida Corp. has reached the agreement of acquiring all issued shares of STELCO GmbH with its shareholders.
In order to vitalize the sales activities and increase Sumida Corp. presence in the European market for future operating growth, the acquisition of STELCO is seen as part of an important corporate strategy to gain a firm foothold in capturing the European market.
In Germany, STELCO produces and sells passive electronic components such as ceramic chip coils. STELCO has maintained steady business growth in the severe environment of the European market since its establishment in 1999, with sales of euro 14 million and income of euro 764,000 for the current year.