Ube Machinery Corp. Ltd. is buying a majority stake in the injection press business of fellow Japanese firm Mitsubishi Heavy Industries Ltd., a consolidation meant to cope with an “increasingly severe” business environment, Mitsubishi announced July 29.
Ube will acquire an 85 percent equity stake in the MHI subsidiary Mitsubishi Heavy Industries Plastic Technology Co. Ltd. to “secure [MHI's] worldwide business in injection molding machines.”
Ube will acquire MHI's sales bases in what it calls “the core overseas markets” of North America, China and Thailand, while other overseas sales bases will remain under MHI.
Terms were not disclosed.
The merger will position Ube “to cope with the increasingly severe environment surrounding the injection molding machine business environment both in Japan and abroad,” according to a statement on the website of Nagoya, Japan-based MHI.
“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,” it said.
The statement said Ube had been looking to expand in the global market.
Ube, based in Ube, Japan, will establish a wholly owned sales company to handle the injection molding machinery business of both companies. The deal is scheduled to close by Jan. 1.