Today, 11 March 2025, ELP Corporation Limited (ELP) entered into a Joint Venture and Shareholders Agreement and (JV Agreement) Supply Agreement in respect of the territory of Japan.
The JV Agreement is between ELPJ Technology Co. Ltd (ELPJ), ELP and Satoru Yasumura (Yasumura). The Supply Agreement is between ELP, ELP Korea Co Limited (ELPK) and ELPJ. ELPK is a fully owned subsidiary of ELP and a company registered in South Korea, where ELP’s products are manufactured and assembled. ELPJ is a joint venture entity which is 49.66% owned by ELP, and 50.33% owned by Yasumura.
KEY HIGHLIGHTS
- The agreements signed today allow for the continued expansion of markets in which ELP products can improve electrical efficiency and enhances safety
- There is an expectation that after a short period of months, ELPJ will have its own factory and will assemble ELP products in Osaka, Japan
- The JV Agreement provides an obligation on Yasumura to fund the working capital and capital expenditure of ELPJ going forward, with ELP’s contribution being the procurement of the Supply Agreement and technical assistance in respect of the proposed factory
- It is planned that ELPJ will aggressively pursue opportunities for the sale and distribution of ELP products in key sectors in Japan
- The JV Agreement includes the usual protections afforded to shareholders such as restrictions on transfer of shares, processes for dealing with disputes, provisions on valuation of shares, and like clauses
- The Supply Agreement provides for the supply of ELP products by ELPK to ELPJ, firstly through finished products and eventually through the provisions of parts for assembly in Japan by ELPJ
- The Supply Agreement is initially for a period of 4 years, with minimum commitment obligations on the part of ELPJ, which grows over this period
- Payments under the Supply Agreement are to be made by ELPJ partly up front and the balance to paid 5 days prior to the goods being ready for shipping to Japan, with shipping and insurance to be handled by ELPJ
ELP is an unlisted Australian public company based in Melbourne, Australia with its research and manufacturing facility located in South Korea. ELP products have been created to prevent stray electrons that leads to electrical hazards, such as leakage currents. It provides an additional layer of safety while allowing the continuous of operation of electrical equipment. It provides immeasurable benefits where uninterrupted operation of electrical equipment is critical.
ELP products are protected by international patents and come in various forms to protect for different situations.
ELP currently sells its products in South Korea and has signed agreements for China. It is in discussions for various other territories.
ABOUT YASUMURA
Satoru Yasumura is the CEO of YHB Osaka Co Ltd, which supplies manual tools to Toyota Motors in Japan. He is also part of the family that is one of the largest suppliers of building materials to the domestic housing market. His brother Hisao Yasumura is the CEO of Mitsumaru Co Limited.