Johnson Matthey has bolstered its batteries technology business after completing a £46 million deal to acquire Swiss-based Clariant’s energy storage arm.
The move came as new accounts lodged at Companies House showed the firm’s Dundee-based Battery Systems operation racked up a £4m loss in 2013.
However, the return for the former Axeon business at Wester Gourdie Industrial Estate was expected as the business is in a developmental stage.
Martin Green, director of Johnson Matthey Battery Technologies, said the site was not likely to be profitable until the medium to long-term.
“It produces advanced battery systems for the automotive industry, is not profitable at present and this was expected,” he explained.
“We are investing considerable sums in this area with a view to it being profitable in the future, and the Dundee operation is an important part of our activities,” he stated.
JMBS in Dundee has been involved in a number of projects for major car manufacturers, including providing the battery power for the electric McLaren P1 hypercar
In the year to March 31 the Dundee site, where about 70 people are employed, had a turnover of £4.87 million, but sales costs of £6.93m produced an overall pre-tax loss of £3.99m.
Johnson Matthey yesterday said the purchase of Clariant AG’s energy storage would further strengthen its position in the battery field and give it access to various patents and intellectual property related to the technology.
Earlier this year the group invested $26 million in the sector through the purchase of a lithium iron phosphate (LFP) cathode manufacturing plant in China from A123.
LFP offers both high power density and a long cell cycle life, making it well suited for use in high power applications such as hybrid vehicles
Robert MacLeod, chief executive of Johnson Matthey said: “The acquisition of Clariant’s battery materials business provides us with a strong position in LFP from which to develop a broad portfolio of battery materials.
“It enhances our Battery Technologies business, complementing our recently acquired battery materials manufacturing assets and our expertise in battery systems.
“These, together with our continued investment in battery materials research and dvelopment will support our work to develop the next generation of higher performance products that can meet the challenging energy storage requirements of batteries for the automotive sector.
“The further strengthening of our battery technologies capability is a key milestone in the development of our New Businesses Division.
“It marks an important step in Johnson Matthey’s long term strategy to establish new businesses in adjacent markets with strong growth potential that align with our technology competences.”
The deal includes Clariant’s energy storage division’s manufacturing plant in Quebec, and an R&D centre in Moosburg, Germany.