Nidec to acquire the Delta production line from Secop Austria

KYOTO, Japan, April 01, 2020 (GLOBE NEWSWIRE) -- Nidec Corporation (TSE: 6594; OTC US: NJDCY) (the “Company” or “Nidec”) announced today that the Company has signed a definitive agreement with Secop Austria GmbH (“Secop”) on March 31, 2020, by which Nidec will acquire the Delta production line from Secop (“the Transaction”) through the Company’s sub-subsidiary Nidec Global Appliance Italy S.r.l. and its Austrian company, as outlined below.

With this transaction, Nidec and Secop aim to preserve as many jobs as possible at the site in Fürstenfeld, Austria. Nidec will take over approximately 40 employees for the production of household refrigeration compressors on the Delta line and has already retained 47 employees for the production of motors for washing machines and dish washers. Furthermore, Secop will retain and strengthen its group headquarter in the Fürstenfeld area and therefore retain in excess of 80 employees. As a result, more than 170 of the current 300 jobs at the Fürstenfeld site will be saved. For the remaining employees, Secop offers socially responsible solutions.

Secop will transfer its second Austrian production line for the production of Kappa compressors, which was not for sale, to its European production facility in Zlaté Moravce, Slovakia. It was confirmed between the parties that for several reasons, including competitive issues, the Kappa line is not for sale to Nidec.

1. Overview of the Business

(1	)	Transferor		Secop Austria GmbH
(2	)	Transferee		Eff Siebzigacht Beteiligungsverwaltung GmbH (a subsidiary of Nidec Global Appliance Italy S.r.l. )
(3	)	Headquarters of Secop		Fürstenfeld, Austria
(4	)	Transferred Business		Business relating to development, manufacture and sale of Delta compressor products
(5	)	Employees		Approximately 40
(6	)	Closing		By June 1, 2020 expected

2. Purpose and Background of the Transaction