SEOUL, South Korea
Jan. 22, 2013
/PRNewswire/ -- At the beginning of this year, SK Continental E-motion closed the transaction and officially started operations following the approval of the relevant authorities. The company, which was established by SK Innovation,
), and Continental,
), will jointly develop, produce and distribute lithium-ion based battery systems for cars and light commercial vehicles. All relevant authorities have given unrestricted approval to the antitrust application submitted by the two companies. All provisions of the agreement signed on
July 23, 2012
came into force on completion of the approval process.
"Bringing together the capabilities of both companies opens up completely new options for the future of mobility. SK Continental E-motion's battery systems will be among the most advanced designs in the global automotive market," said
Ja Young Koo
, President & CEO of SK Innovation. "The synergies generated by Continental's extensive systems expertise and automotive engineering skills together with SKI's technological leadership in battery cells and separators will enable us to make SK Continental E-motion one of the world's leading suppliers of battery systems," added Dr.
, chairman of Continental's executive board.
SK Innovation has a 51 percent stake in the new company while Continental owns 49 percent. Both Continental and SK Innovation plan to invest about
270 million Euros
in SK Continental E-motion for the next five years.
The business strategies of SK Innovation and Continental will not be affected by their joint management of this new venture and both companies will continue to supply their customers in the automotive industry with their complete product range. SK Continental E-motion started working on initial development programs in the 48V mild hybrid segment as well as for commercial vehicle applications.