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SK Continental E-motion Launches Global Battery Business
-- SK Continental E-motion closes transaction and starts operations in January 2013

BERLIN, HANOVER, Germany, REGENSBURG, Germany, and 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, Seoul (South Korea), and Continental, Hanover (Germany), 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. Elmar Degenhart, 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.

The company is headed by Robert Lee as chief executive officer (CEO), former SK Innovation and the position of chief financial officer (CFO) is held by Marcus Heinemann, former Continental. Initially, SK Continental E-motion will employ around 220 people worldwide, sourced in almost equal proportions from the two partner companies. The venture, which is managed operationally from Berlin, began operations on January 2, 2013. The fully integrated teams will work on a global development footprint based at locations in Berlin, Germany and Daejeon, Korea.

SK Innovation and Continental form leading battery systems supplier

Hybridization and electrification are becoming increasingly important in passenger cars and light commercial vehicles, and batteries are a key component in this technology field. SK Continental E-motion will provide the latest lithium-ion battery technology to help international vehicle manufacturers to introduce electric drivetrains around the world. The company benefits from the skills of the technology leaders behind it, such as SK Innovation's in-depth expertise in the development of battery cells and separators. For its part, international automotive supplier Continental has extensive experience in battery-related electronics and complete battery systems as well as their integration into vehicles.

With preliminary sales of €32.7 billion in 2012, Continental is among the leading automotive suppliers worldwide. As a supplier of brake systems, systems and components for powertrains and chassis, instrumentation, infotainment solutions, vehicle electronics, tires, and technical elastomers, Continental contributes to enhanced driving safety and global climate protection. Continental is also an expert partner in networked automobile communication. Continental currently has more than 170,000 employees in 46 countries.

Continental has been investing in the development and optimization of climate-friendly systems and components for alternative drives for over ten years. In 100 series projects for 20 manufacturers worldwide, around 1,600 specialists are currently working on further developing existing concepts as well as new innovations for hybrid and electric vehicles. To ensure safe, efficient, networked and comfortable mobility, Continental is bringing together the corporation's expertise in integration, energy optimization, drive management, vehicle safety, information management and tires. Hybrid and electric vehicle components from all business units can be adapted to specific vehicle requirements worldwide, allowing them to be used in almost all vehicle classes and drive types.

SK Innovation, founded in 1962 as Korea's first oil refinery and with sales of US$59.3 billion in 2011, is one of the world's leading energy and petrochemical companies. SK Innovation, which focuses on research and development, deals primarily with lithium-ion batteries for electric vehicles, materials for information electronics materials (I/E) for IT devices and the field of exploration and production (E&P), while its subsidiaries SK Energy (South Korea's largest refinery company), SK Global Chemical (global top-tier chemical company) and SK Lubricants (global market leader for technically sophisticated and high-grade lubricants) successfully pursue their own business visions and strategies. SKI's lithium-ion battery business unit was created in 1996 and currently supplies leading international carmakers including Daimler and Hyundai.

Online media database: www.mediacenter.continental-corporation.com

Email Contact to SK Continental E-motion: info@sk-continental.com

The webpage of SK Continental E-motion you will find under: www.sk-continental.com

SOURCE Continental

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