The truth or rumour? Does power battery makers Samsung SDI and LG SKI all in China rout?

Sep 11, 2019   Pageview:24

Korea is power battery since last year have been lose large quantities of orders, has ambitious plans to spend hundreds of millions of expansion of new energy automobile power in China battery all plans have been stranded.But Korea is a battery enterprise did not give up the opportunity in China, it waits for the end of the 2019 new energy subsidies mentality, hope in the absence of subsidies market environment, with local suppliers to compete the new battery.

South Korea's three big power battery makers Samsung SDILG and SKI rout in China

On October 16, tianjin property right transaction center, according to the announcement of tianjin zhonghuan electronic information group co., LTD. (hereinafter referred to as the "tianjin zhonghuan") and the tianjin economic and technological development zone state-owned assets management companies (hereinafter referred to as "the open holdings"), Samsung (tianjin) held by the public transfer battery co., LTD. (hereinafter referred to as "Samsung tianjin battery" below) a total of 30% of the company.

Samsung tianjin battery also calls the Samsung SDI tianjin factory, was founded in 2015, is Korea's largest battery manufacturers Samsung SDI's joint ventures in China, Samsung SDI is Samsung group affiliated enterprises in the field of electronics.Three major shareholders for Samsung SDI, tianjin central and the state-owned assets, stocks are 50%, 30% and 20% respectively., according to the property rights trading center listing announcement the tianjin zhonghuan will transfer the equity of 10%, according to Japan the transferred all hold 20% stake.

South Korea's three big power battery makers Samsung SDILG and SKI rout in China

Samsung SDI tianjin factory main business for the development, production, including car with power battery energy type, roundLithium ion batteriesAnd so on.Listing announcement, Samsung battery in tianjin in 2016 net profit loss of 085 million yuan.As of August 31 of this year, total assets of 803 million yuan, total liabilities as high as 806 million yuan, the owner's equity is - 3.8195 million yuan, insolvent.

This is the Samsung SDI xi 'an factory suspended expansion, SKI Beijing plant shut down, LG assignment of Nanjing factory, this year is a Korean battery factory survival crisis.

With products not on the white list of China's new energy vehicle power battery, which in turn can enjoy government subsidies, this leads to a Korean power battery constantly lose large quantities of orders, from last year start in China has ambitious plans to spend hundreds of millions of expansion of new energy vehicles plan has been full of power battery.

Debt 800 million insolvency

Tianjin property right transaction center, according to the listing announcement tianjin zhonghuan SDI is the transfer of the tianjin factory a 10% stake in the transfer price of 11.8103 million yuan, only higher than when the subscription price of 10.8453 million yuan less than RMB 1 million yuan.Have been a 20% stake in state-owned asset transfer floor price is RMB 23.6206 million.Other shareholders give up the right of first refusal.

According to the announcement of Samsung SDI tianjin factory results, several years of losses are regarded as two Chinese shareholder decided to sell the main reason for the stake.Although slightly better in 2017, as of August 31, 2017, tianjin Samsung battery net profit of 9.0416 million yuan, but the year debt has more than assets, still not out of a dilemma.

South Korea's three big power battery makers Samsung SDILG and SKI rout in China

The equity sell-off also let the South Korea's largest battery manufacturer's life even in China.Samsung SDI tianjin factory to focus on from the outside for the first time was in February this year, the rare zones located in tianjin factory, fire accident loss, also reinforced concerns about the safety of power battery.Before that, Samsung SDI is because Samsung mobile phone battery supplier in question.Samsung in 2016 because of battery fire problem recalled GalaxyNote7 handset, 65% of the batteries supplied by Samsung SDI.And tianjin factory is apple, Samsung, HTC, nokia, and other products of lithium ion battery supplier.

Samsung SDI's official website, according to its in changchun, China, hefei, Hong Kong, Shanghai, Beijing, tianjin, Wuxi, xi 'an, and other places have branch offices in Taipei, currently responsible for battery production, respectively in tianjin, xi 'an, Wuxi three factories.

And Mired in crisis is more than Samsung SDI tianjin factory, earlier this year, Samsung SDI battery factories in xian - Samsung ring new battery Revelations has suspended plans to increase the new production line.Aimed at the China, the world's largest electric car market opportunities, Samsung SDI planned to $2020 for $600 million, for xi 'an factory installed more battery production line.But the factory since it began operations in September 2015, has so far been unable to sign any major supply agreement.In addition to tianjin, xi 'an low capacity utilization, Samsung SDI to launch the construction of factory is delay of Wuxi.This means that Samsung SDI battery business in China is slowing at all.

South Korea's three big power battery makers Samsung SDILG and SKI rout in China

Problems for power battery business in China, Samsung, said an official with the related media in China about the battery production base of the current operating situation, still need to verify is currently not comment.

Another bad news from the mobile, in iPhone8 listed in the first week, the two accidents happened, all show the bulge phenomenon in a battery, eventually leading to the fuselage expansion, mobile phone screen is open.Sources say apple three versions of the battery from the SDI and LG.Because have Note7 bad "profiling", which also makes the Samsung SDI in the outside world about its security question again.

Korea's battery big three are lost?

Before Samsung SDI tianjin factory owned by selling, South Korea's two other large battery maker LG and SKI batteries especially power battery business in China already struggling.Unable to build on the express, China's new energy subsidies and Korean battery giant rush to monopolize a market decision-making errors, let Korea is a battery enterprise in China has been in a state of half out.

Is Korean battery in China in 2015 to invest heavily in the year of, followed by Samsung SDI xi 'an factory, with a total investment of 3.5 billion dollars in LG chem Nanjing power battery factory also completed at the end of the year, and become the LG third global auto power battery production base.But after a 2016 earthquake in policy in the field of power battery, to April 2017, namely there is news, LG in the joint venture company in Nanjing "Nanjing LG chemical new energy battery co., LTD" production line is also the basic has been idle.Economic observer reporter from the company's web site to see, the latest news in the November 10, 2015 of the "completed" LG chem new energy battery factory.

South Korea's three big power battery makers Samsung SDILG and SKI rout in China

South Korea SKInnovation (SKI) announced in March this year, because of the reduced cell quantity, its legal person enterprise in China Beijing electronic control ace open technology co., LTD. (hereinafter referred to as Beijing electronic control ace BESK) has been the end of last year to stop production.Beijing electronic control ace is open SKI and Beijing automotive group, Beijing electronics holding co., LTD was established in 2013 the joint venture company, its SKI 40% stake.In June 2014, the joint venture company mainly for baic's new energy car battery.

Beijing new energy in the economic observer reporter interview also confirmed that has relations with the SKI over supply, according to its current battery supplier has switch for the local battery manufacturers hin tech center.As domestic led military vehicles in the field of new energy, new energy automotive obviously didn't have time to wait for the winds change, also can't take this risk.The relevant person in charge of SKI also foreign confirmed: "the decision was made by holding 60% of Chinese enterprises."

Because including faw, Shanghai automotive industry corp, baic, changan, the Great Wall, chery, and other domestic mainstream independent car companies have established cooperation with Korean battery enterprises.Like Beijing, therefore, in the past two years, many domestic automakers have abandoned cooperation with Korea is dynamic, and domestic battery supplier technology rapid ascension also make the vehicle manufacturers complete the switch.

Insist on until after 2019

In fact, the plight of Korean battery have started as early as in the middle of last year.Then, by theThe ternary lithium batteryFrequent accidents caused by new energy vehicle power battery regulation, steep escalation in July as the power battery "white list" (ministry of "power battery enterprise directory") published and released, battery supplier qualification is directly linked to new energy subsidies will be news.

As a result of the first four batches of contains 57 battery "white list", none of the department of Japanese and Korean battery companies in China, December fifth batch of new energy promotion models directory, but in a few hours to replace the two versions, was taken down is equipped with a LG, Samsung and other foreign models of the battery.Smell the vehicle manufacturer's decisive policy risk switching suppliers, is preparing to powerful carve up China's new energy automobile power battery is big cake of Korean abandoned overnight.

South Korea's three big power battery makers Samsung SDILG and SKI rout in China

Besides did not meet the qualification requirements, more important internal cause is headed by Samsung and LG, impatient for success of Korean battery with super low price monopoly market, malicious competition has ruined its direct access to the possibility of a new government energy subsidies in China.In addition, including China would boost domestic power battery technology upgraded to a strategic height, restrictions on foreign capital power battery, and the policy environment of sensitive, unfavorable factors around the Korean battery all the time.

But the LG and Samsung didn't seem to give up the opportunity in China, although some delay, but Samsung SDI is still planning new large battery factory in Wuxi city in China, and Wuxi factory will start mass production in 2019.Samsung SDI program in 2019 to 2023, Xian, Cheonan city, will be transferred to the Wuxi city of Ulsan factory production.

LG chemical also announced in February, will invest about $35 million to the expansion of the battery factory in Nanjing, will build a car battery factory and a small battery factory, though the production line assembly time is in the air.But Korea is waiting for the end of the 2019 new energy subsidies mentality, hope in the absence of subsidies market environment, with local suppliers to compete the new battery.

The page contains the contents of the machine translation.

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