Taiwan notebook battery makers Dynapack, Celxpert to merge

The respective boards of Dynapack International Technology and Celxpert Energy on September 28 approved the merger of the two companies through a stock swap of 1:1.7, with Dynapack to be the surviving company effective on December 31, 2010, according to the companies.

Dynapack and Celxpert are currently the second and third largest Taiwan-based makers of notebook batteries, and the merged company is expected to become the world’s third largest supplier of notebook batteries with a 16-17% projected market share.

Dynapack’s main customers are HP, Dell and Apple, while Celxpert is the supplier of Asus batterytek Computer, Lenovo, HP and Samsung, according to industry sources. Dynapack had previously indicated that the two companies’ clienteles are complementary and the merger will enhance their strength in procurement and provide improved customer service.

With many battery cell makers making inroads to cell packaging, a merger is a great strategy to deal with increased competition in the market place, the company added.

Some market watchers further pointed out that many notebook vendors and manufacturers often divide up orders based on the business scale of battery suppliers. Dynapack is expected to become a top three notebook battery maker, which should give the company more leverage when bidding for new orders.

Dynapack’s ongoing efforts in electric car batteries and other new businesses will not be affected, but Celxpert’s capacity expansion in Kunshan, China should be halted temporarily, the company said.

According to the sources, Dynapack has plans to build a new production base at the Kunshan Export and Processing Zone to consolidate their manufacturing capacity and for future expansion.

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