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Group Companies of Ube Industries and Mitsubishi Heavy Industries to Merge Injection Molding Machine Businesses
Group Companies of Ube Industries and Mitsubishi Heavy Industries to Merge Injection Molding Machine Businesses
Ube Industries, Ltd.
Ube Machinery Corporation, Ltd.
Mitsubishi Heavy Industries, Ltd.
Mitsubishi Heavy Industries Plastic Technology Co., Ltd.
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Tokyo, July 29, 2016 - Today Ube Machinery Corporation, Ltd., a Group company of Ube Industries, Ltd., and Mitsubishi Heavy Industries Plastic Technology Co., Ltd., a Group company of Mitsubishi Heavy Industries, Ltd. (MHI), concluded an agreement on the transfer of shares relating to their respective businesses in injection molding machines. Details of the agreement are described below.
1. Background and objectives 2. Outline of the share transfer 3. Outline of the two group companies
4. Schedule
All procedures toward implementation of the share transfer will be carried out as necessary, including submission of all documentation required by the Fair Trade Commission and other pertinent authorities.
- ① Ube Machinery Corporation 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.
- ② Mitsubishi Heavy Industries Plastic Technology possesses outstanding technology and sales strengths in injection molding machines, one of the core varieties of plastics processing machinery, and also has a robust track record in deliveries of many models worldwide.
- ③ Under the newly concluded agreement, Ube Machinery will acquire the management rights to Mitsubishi Heavy Industries Plastic Technology. By pooling the respective strengths of the two companies, Ube Machinery will strengthen its sales and servicing capabilities through enhancement of its product lineup and sales network, reduce production costs, and improve development capabilities by integrating the two companies' technologies in a quest to cope with the increasingly severe environment surrounding the injection molding machine business environment both in Japan and abroad. The company's aim is to achieve business expansion within the global market for injection molding machines by providing new value anticipating customers' increasingly diversified needs.
- ① Ube Machinery will acquire an 85% equity stake in Mitsubishi Heavy Industries Plastic Technology in order to secure the latter's worldwide business in injection molding machines.
- ② The scope of the agreement also includes the transfer of MHI's injection molding machine sales bases in the core overseas markets: North America, China and Thailand. Other overseas sales bases will remain under MHI's oversight, and efforts will be made to enhance their customer services.
- ③ Plans also call for the establishment of a sales company (to be a wholly owned subsidiary of Ube Machinery) to handle the injection molding machines marketed by Ube Machinery and Mitsubishi Heavy Industries Plastic Technology.
| Name | Ube Machinery Corporation, Ltd. | Mitsubishi Heavy Industries Plastic Technology Co., Ltd. |
|---|---|---|
| Location | 1980 Okinoyama, Kogushi, Ube, Yamaguchi Pref. | 1 Aza Takamichi, Iwatsuka, Nakamura-ku, Nagoya, Aichi Pref. |
| President | Yukio Hisatsugu | Koji Kubota |
| Business scope | Manufacture, sales, servicing and maintenance of die casting machines, injection molding machines, extrusion presses, vertical mills, kilns, furnaces, dryers, storage and transportation systems, dust collectors, bridges, floodgates, steel structures, and other industrial machinery | Design, manufacture, sales and servicing of injection molding machines, auxiliary equipment, dies and parts Engineering, retrofitting, repair, technical guidance and consulting for the above products |
| Capital | 6.7 billion yen | 450 million yen |
| Establishment | September 1999 | April 2005 |
| Principal shareholder (equity stake) | Ube Industries, Ltd. (100%) | Mitsubishi Heavy Industries, Ltd. (100%) |
| Employees | 1,034 (as of April 1, 2016) | 145 (as of April 1, 2016) |
| Sales | 45 billion yen (FY2015) | 10 billion yen (FY2015) |
| July 29, 2016 | Conclusion of agreement on share transfer |
| January 1, 2017 | Share transfer and commencement of sales company operations |