Umicore announced today an acceleration of its capacity expansion investments for NMC (nickel manganese cobalt) cathode materials. The acceleration is required to meet a surge in demand for materials used in hybrid and electric vehicles.
The expansion program entails investments of some € 160 million over a period of three years at the company's existing facilities in Cheonan (South Korea) and Jiangmen (China), as well as greenfield investments on adjacent land in both locations. Umicore will deploy its latest generation of proprietary production technologies which will enable the company to triple existing capacity by the end of 2018 across a broad range of material grades. These are in compliance with the very highest quality standards for the automotive industry. The new capacity should start coming on stream in the second part of 2017.
Vehicle electrification is being driven by the need to reduce CO2 emissions and improve air quality. In many regions this is being supported by ambitious emission legislation. The number of electrified vehicle models being launched has been surging in recent months and the penetration of these vehicles, ranging from mild hybrid cars to full electric models, is projected to grow at an increasingly fast pace. There is also a trend towards electrification of vehicles used for public transportation such as electric buses. Umicore's NMC cathode materials are key ingredients in enabling the improvements required for battery technology to increase driving range and reduce the total cost of electrified vehicle ownership.
Marc Grynberg, CEO of Umicore, commented: "We are excited by the acceleration of demand and, thanks to the hard work of our teams in the past several years, we are well prepared to add significant capacity fast in support of our customers' growth. Umicore has a unique position in cathode materials and these investments underscore our ambition to be a global leader in materials that enable clean mobility. We are proud to be playing this role in sustainable transportation."
Marc Grynberg will host a conference call today at 10:30 AM CET to address your questions. The conference call can be accessed using following dial-in number:
| Country | Local number |
| Belgium | +32(0)2 404 06 60 |
| Germany | +49(0)69 2222 10621 |
| Netherlands | +31(0)20 716 8296 |
| UK | +44(0)20 3427 1919 |
| USA | +1646 254 3363 |
| International | +44 20 3427 1919 |
Dial in 5-10 minutes prior to the start time using the Conference ID 9737042. Please state your first name, last name and company name before entering the conference.
For more information
Investor Relations
Evelien Goovaerts +32 2 227 78 38 evelien.goovaerts@umicore.com
Eva Behaeghe +32 2 227 70 68 eva.behaeghe@umicore.com
Media Relations
Tim Weekes +32 2 227 73 98 tim.weekes@umicore.com
Umicore profile
Umicore is a global materials technology and recycling group. It focuses on application areas where its expertise in materials science, chemistry and metallurgy makes a real difference. Its activities are organized in three business groups: Catalysis, Energy & Surface Technologies and Recycling. Each business group is divided into market-focused business units offering materials and solutions that are at the cutting edge of new technological developments and essential to everyday life.
Umicore generates the majority of its revenues and dedicates most of its R&D efforts to clean technologies, such as emission control catalysts, materials for rechargeable batteries and recycling. Umicore's overriding goal of sustainable value creation is based on an ambition to develop, produce and recycle materials in a way that fulfils its mission: materials for a better life.
The Umicore Group has industrial operations on all continents and serves a global customer base; it generated a turnover of € 10.4 billion (€ 2.6 billion excluding metal) in 2015 and currently employs 10,400 people.
The Rechargeable Battery Materials business unit of Umicore has been a global leader in the development and production of cathode materials for lithium ion rechargeable batteries since the mid-1990s. Its products are at the heart of advances in its customers' technology that drive ever-improving range and performance for electrified vehicles and improved durability and functionality in consumer electronics.