This agreement follows the previously announced distribution agreement entered by the parties on January 27, 2010, granting Samyang exclusive distribution rights in Korea for ZAP’s electric vehicles and agreement to support Samyang doing local assembly and possibly manufacturing ZAP’s complete line of electric trucks, vans, motorcycles, scooters and ATVs for the Korea market.
This investment further enhances the commitment between Samyang and ZAP to develop the electric vehicle market in Korea and solidifies the foundation of their strategic alliance with financing. Samyang’s investment in ZAP is part of Samyang’s core strategy in placing priority on the development of the electric vehicle market in Korea.
Electric Vehicles are one of the more visible Green Energy Industries promoted by Korea’s National Energy Committee under Korea’s President Lee Myung Bak with nationally targeted environmental metrics to be attained by 2030. This "Green Growth" initiative is stimulating a new industry sector in electric vehicles, an area that Samyang believes is rapidly gaining market momentum; it is supported by Korean government subsidies, tax benefits and funding allocations of over 400 billion won (close to US$500 million) managed by Ministry of Knowledge Economy (MKE) [Oct 15, 2009 MKE bulletin].
Further information regarding the investment agreement may be found in the Form 8-K filed by ZAP with the Securities and Exchange Commission on February 2, 2010.
Samyang, known for its camera lens manufacturing business, held a press conference to announce their entry into the new strategic business priority in Electric Vehicle market and their partnership with ZAP. The event took place at the Hilton Convention Center in Seoul, Korea last week, attended by over 500 media and related industry partners and associates. In show of support, representatives from Hangzhou government’s International Investment Group, and also the CEO of ZAP’s Chinese partner Jonway Automobile Ltd, attended the signing ceremony.
Samyang, located in Masan, Korea, is a developer of optical lenses and a range of applications for closed circuit television systems used extensively in highly important security settings such as casinos and banks, as well as government and commercial buildings. Founded in 1972, Samyang’s securities are publicly traded on the Korean stock exchange. Samyang is an exclusive supplier for "Made in Korea" lenses to Sears and has made lenses for Nikon, Canon, Minolta and Yashica. In 2004 Samyang merged with Japanese optical device maker Seikou.
ZAP is one of the world’s oldest electric vehicle providers, having delivered over 117,000 of a broad range of vehicles to more than 75 countries since 1994. ZAP supplies electric trucks and vans to military, government and corporate fleets and is an innovator of electric motorcycles, scooters and ATVs. The Santa Rosa, California based company offers some of the only electric city-speed cars and trucks in production today and is leveraging its accrued technology know-how in developing a cost effective high-speed electric car called the ZAP Alias.