Nissan to sell battery manufacturing business in Sunderland as part of wider deal

The sale and purchase agreement covers Nissan’s battery subsidiary Automotive Energy Supply Corporation (AESC), and battery manufacturing operations in Sunderland, England, and Smyrna, Tennessee. Assets sold to GSR will also include part of Nissan’s Japanese battery development and production engineering operations located in Oppama, Atsugi and Zama.

Nissan says that the workforce at all facilities covered by the deal, including the production plants at Zama, Sunderland and Smyrna, will continue to be employed, while the headquarters and development centres of the business will remain in Japan.

Explains Nissan president and chief executive Hiroto Saikawa: “This is a win-win for AESC and Nissan. It enables AESC to utilize GSR’s wide networks and proactive investment to expand its customer base and further increase its competitiveness. In turn, this will further enhance Nissan’s EV competitiveness. AESC will remain a very important partner for Nissan as we deepen our focus on designing and producing market-leading electric vehicles.”

Adds GSR Capital chairman Sonny Wu: “The acquisition of AESC represents an important step for us in the new energy vehicle industry chain. We plan to further invest in R&D, expand existing production capacity in the U.S., UK and Japan, and also establish new facilities in China and Europe, enabling us to better serve customers around the world. With these capabilities and plans added to the battery business’ already skilled workforce, high technical capabilities and proven product-quality track record, we will be in a very good position for growth.”

Nissan will implement the transaction by first taking full control of AESC by acquiring the combined 49% minority holding held by NEC Corporation and its wholly owned battery and electrode subsidiary NEC Energy Devices. NEC has announced approval of the sale of AESC shares to Nissan and the fact that it is in negotiations with GSR for the sale of NECED.

The transaction, which is subject to normal consultation with staff representative bodies and, pending regulatory approvals, is expected to be completed by the end of December 2017.