Announcement of Signing a Letter of Intent for Business Alliance on Commercial Printing Machinery
Wednesday, 23 January 2013 09:34 Sabine Industry News - Analogue Printing
 Mitsubishi Heavy Industries Printing & Packaging Machinery, Ltd. (Masami Shimizu, President) and Ryobi Limited (Akira Urakami, President and COO) herein announce signing a Letter of Intent, dated January 23, 2013, for a joint study on business alliance for commercial printing machinery business.
1. Purpose of the agreement
Both companies have been producing and selling sheet-fed offset printing presses (*1) and facing the stiffer market situation with the shrinking demand especially in developed countries due to the recent global economic crisis. This has led both companies to promote structural reforms to sustain competitiveness in the market and financial soundness as well.
As part of the further efforts in strengthening corporate structure, both companies agreed to study on establishing business alliance in the field of sheet-fed offset printing press business with a possible set up of a joint venture company in future specifically aiming at improving competitiveness of sheet-fed offset printing machinery, enhancing the scale of operations, and solidifying its management base.
It is expected in the commercial printing industry that the market demand for printing machinery in the developing countries is getting stronger, and the demand for higher specification products is expected to grow further in the global market.
Both companies from now on jointly study the scheme that allows significant synergy effects such as enhancement of product line-up, enlargement of product development capability, reduction of product cost, and improvement in sales and service networks. The plan is expected to enable the stronger presence in the global market.
(*1)"Sheet-fed offset printing press" means a printing machine which prints high quality visual image on cut out paper sheets.
2. Overview of Both Companies
(1) Corporate Name
| Ryobi Limited
| Mitsubishi Heavy Industries, Paper & Packaging Machinery, Ltd.
| (2) Headquarters Site
| 762 Mesaki-cho, Fuchu-shi, Hiroshima, Japan
| 1-1-1, Itozaki Minami, Mihara-shi, Hiroshima, Japan
| (3) Official Position and Name
| Akira Urakami, President and COO
| Masami Shimizu, President
| (4) Business Lineup
| Die-cast products Printing equipment
(Offset printing presses, Peripherals, etc.) Power tools
(Electric power tools, lawn and garden
equipment, etc.) Builders’ hardware (Door closers, hinges, architectural hardware, etc.)
| Sheet-fed offset printing presses
Commercial web offset printing presses
Newspaper offset printing presses
Paper Converting Machinery
| (5) Capital
| 18,472 million yen
| 10,000 million yen
| (6) Date of Establishment
| December 16, 1943
| April 6, 2004
| (7) Number of Employees (As of September 30, 2012)
| 2,111
| 834
| (8) Relationship between Both Companies
| No relationship in capital, personnel, and trading as of now
| No relationship in capital, personnel, and trading as of now
| (9) Operating Results of Previous Fiscal Year
| 2012 fiscal year (April, 1 2011 to March, 31 2012)
(consolidated results)
| 2012 fiscal year (April, 1 2011 to March, 31 2012)
| Net Sales
| 165,638 million yen
| 43,574 million yen
| Operating Income
| 7,715 million yen
| 1,811 million yen
| Ordinary Income
| 6,950 million yen
| 1,262 million yen
| Net Income
| 4,179 million yen
| 690 million yen
|
3 schedule Both parties aim to conclude a final agreement in this respect by June 30, 2013.
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