- CEO of iQ Power Licensing AG, Bob Sullivan, also appointed CEO of iQ Power Asia Inc.
- Change in management clears way for re-organization and re-financing of Korean joint venture partner
iQ Power Licensing AG (ISIN: CH0268536338; WKN/Security Number: A14M1C; Symbol: IQL) announces the appointment of Bob Sullivan, CEO of iQ Power Licensing AG as new CEO of iQ Power Asia Inc., Gwangju, South Korea, effective immediately. Bob Sullivan remains, however, CEO of Swiss iQ Power Licensing AG.
Following a year-long controversy, the Board of Directors of iQ Power Asia (IQPA) have made an important step in the process for the re-organization and re-financing of the modern but financially beleaguered battery factory in southwestern Korea. The management change at the top level of the company is seen as a breakthrough for the further development of the new battery plant.
Currently the plant is producing far below its capacity due to financial restraints. This can be corrected only through a new re-organization and re-financing. Through the installation of the new CEO, serious and constructive negotiations with new investors can be conducted without obstruction.
The new CEO has the full support of the banks involved as well as the two most important customers, Daewoo International and Discover Energy International. “I am committed to find an optimal solution for the new start as soon as possible”, comments Bob Sullivan, new CEO of iQ Power Asia and CEO od iQ Power Licensing AG. “For the near term, iQ Power Asia will work closely with Daewoo and Discover Energy to ramp up sales volume and to improve all areas of production and operations”, he says.
Currently, the timing of the new re-organization and re-financing is still unknown. However investors, both strategic as well as financial, have shown strong interest due to the unique product offering using the iQ Power technology and the high speed modern manufacturing facility. Korea has a very good reputation internationally thanks to the success of Samsung, Hyundai and the major battery makers. This is critical for sales in developing countries. Korea is the leading battery export country in the world and is the world price/quality leader for automotive starter batteries.
The stabilization and ramp up of the plant at Gwangju, South Korea, is very important for iQ Power Licensing. At present the plant has modern production line, which is configured especially for batteries with iQ Power technology. The plant has the ability to produce high quality batteries using iQ Power technology in large quantities at competitive prices.
Even more important in the long term is that the success of the factory will act as a showcase for other possible licensees in other countries throughout the world.