2016-2018 Exhibitions
Ube takes majority stake in MHI
Japan’s maker of injection moulding machinery Ube Machinery Corporation is acquiring an 85% share in compatriot machine maker Mitsubishi Heavy Industries Plastic Technology.
Ube says it has been looking to enhance its presence among customers and expand its plastics processing machinery business by improving its product appeal through measures including cost reductions, launching of new models accommodating more customers' needs, and expansion and enhancement of overseas service bases and that MHI is the right fit with its technology and sales strengths in injection moulding machines.
Under the newly concluded agreement, by pooling the respective strengths of the two companies, Ube Machinery will strengthen its sales and servicing capabilities through enhancement of its product line-up and sales network, reduce production costs, and improve development capabilities by integrating the two companies' technologies
The scope of the agreement also includes the transfer of MHI's injection moulding machine sales bases in the core overseas markets: North America, China and Thailand.
Plans also call for the establishment of a sales company (to be a wholly owned subsidiary of Ube Machinery) to handle the injection moulding machines marketed by Ube and MHI.
For 2015, Ube had sales of 45 billion yen and MHI, 10 billion yen. As of 1 April 2016, Ube had 1,034 employees and MHI, 145.
The deal will close by 1 January 2017.
(IMA)
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