Simplo to set up joint venture for electric car batteries in China, reveals chairman

Taiwan-based notebook battery maker Simplo Technology has decided to spend 48 million yuan (US$7.03 million) to set up a joint venture with the China Putian Information Industry Group to produce batteries and related recharging systems for electric cars in China, according to company chairman Sung Fu-hsing.

Simplo will hold a 48% share in the joint venture, which will be headquartered in Shanghai and is scheduled for mass production in 2011, using a Putian plant as the production base initially, Sung revealed. The joint venture also plans to set up a new plant in Shanghai later.

By 2013, the joint venture is expected to generate NT$10 billion (US$312.11 million) in revenues, Sung estimated.

Simplo has projected that its overall revenues are likely to reach NT$8-8.1 billion in the first quarter of 2010, down 15-16% sequentially but up 15-17% on year.

For 2009, Simplo posted net profits of NT$2.46 billion, translating into an EPS of NT$10.61.