NEC Tokin To Ally With KEMET

NEC Tokin Co., a leading manufacturer of tantalum capacitors, announced that NEC Tokin agreed to form a capital and business alliance with KEMET Co., a US-based manufacturer of capacitors, as part of efforts to strengthen its financial base, increase sales, and reduce costs in areas such as procurement and production. KEMET is also given the option to subscribe to future capital increases of NEC Tokin or acquire its shares held by NEC Corporation, its parent company. NEC expects to post a consolidated net loss of 100 billion yen in the current business year ending March 31, due to massive flooding in Thailand and sluggish mobile phone operations.