UPDATED — [Shanghai Kawaguchi Machinery Co. Ltd. officials contacted Plastics News in May 2017 with questions about this story. They say Yizumi Precision Machinery Co. Ltd. had a letter of intent to buy a controlling stake in Shanghai Kawaguchi dated April 7, 2016, but that the deal was never finalized. Watch PlasticsNews.com and PNChina.com for updates to this story.]
Yizumi Precision Machinery Co. Ltd. has a plan to acquire 80.09 percent of the shares in Shanghai Kawaguchi Ltd.
In an exclusive statement for Plastics News, Yizumi said the strategic investment will allow Shanghai Kawaguchi to market and sell its Kawaguchi-branded injection molding machines, manufactured in China, anywhere outside Japan.
The deal was priced at $277,100. The shares were to be transferred to Yizumi from Masanori Kawaguchi and Yosihisa Kawaguchi.
Shanghai Kawaguchi's Japanese parent Kawaguchi Ltd. was one of the earliest pioneers in Japan's injection molding machine industry with 30 percent market share at its peak, Yizumi said. Kawaguchi, which was founded in 1944, recorded many firsts in its heyday including Japan's first low pressure foam injection press, the first robotic arms, and the first to use external storage devices on injection molding equipment. Today there are more than 10,000 Kawaguchi machines still in production.
Shanghai Kawaguchi was established in 2004 and has since established a complete production and sales system as well as a localized R&D center that has developed multiple series of new products, Yizumi said.
Kawaguchi started making all-electric injection molding machines in Shanghai in 2010 and in 2011 set up a factory in Hebei to make large-tonnage hydraulic machines.
Yizumi CEO Richard Yan said he values Kawaguchi's history, brand, and technology assets, which are complementary to Yizumi's business. Combing Kawaguchi's brand, technology, experienced team and established channels with Yizumi's growing scale and capital, he said, the Kawaguchi brand is expected to grow rapidly and create enormous value for Yizumi's global expansion.
Yizumi has been promoting its goal of becoming a world-class enterprise in the polymer processing equipment industry. It acquired HPM's intellectual properties in 2011 for $325,000. Yizumi also appointed former Engel executive Hans Wobbe chief technology officer in 2015. In addition, it has mentioned plans to invest in production capacity in India and a technical center in Germany.
Kawaguchi closed its U.S. subsidiary in 2011.
[The original headline on this story was "Yizumi acquires controlling stake in Kawaguchi's Shanghai business." It was updated on May 31, 2017, to reflect that the companies had a letter of intent, but the deal may not have been finalized. Watch PlasticsNews.com and PNChina.com for updates.]