And from Mita-
"MITA COPYSTAR BUOYED BY REPORTS FROM
JAPAN
U.S. Subsidiary Reassured By Players Involved In Parent's Reorganization
FAIRFIELD, N.J., August 27, 1998 -- Mita Copystar America, the United States subsidiary of Mita Industrial Co. Ltd., said today that over the last week it has received a number of positive assurances about the status of its parent company's operations from various sources involved in its reorganization in Japan, including the strongest statements yet about the participation of Kyocera, one of Japan's most respected manufacturing companies.
The American company said that these recent events significantly increase the likelihood that it will be able to maintain and continue expanding its strong presence in the U.S. marketplace while the parent's reorganization goes forward.
"Mita Copystar America is a very strong and profitable company, marketing some of the best products in the industry through an excellent dealer network," said Akihiro Nasu, president of Mita Copystar America. "As things continue to go smoothly for our parent company as it reorganizes, we are more than capable of continuing as a major force in the marketplace."
The most recent of the events was Mita Japan's announcement yesterday that Kyocera, the Kyoto-based company that is prepared to act as sponsoring company in connection with the reorganization once Japanese courts give the go-ahead, has in the interim dispatched a six-person team to "to grasp the real situation at Mita and see what support would be deemed appropriate." In its communication to Mita Copystar about Kyocera's action, Mita Japan said the team dispatched to Mita includes senior Kyocera executives, including Koji Seki, deputy general manager of Kyocera's Communication and Information Systems Group, and Yoshio Nakajima, assistant to the general manager of the Corporate Development Group.
That action by Kyocera came hard on the heels of a report to Mr. Nasu from the court-appointed trustee currently overseeing Mita Industrial, assuring the U.S. company that manufacturing and production lines, the export and import of products, parts and supplies and all other daily operations in Japan are running smoothly.
"This report confirms our experience since the reorganization was announced," said Mr. Nasu.
"There has been no disruption in the flow of product or parts and we have been able to provide our dealers and our customers with the excellent level of service to which they are accustomed.
Based on this report, we are confident that the situation in Japan remains stable, and we look forward to continuing our strong performance here in the America market."
In addition, the trustee's report made the strongest statement yet on the involvement of Kyocera, reporting that once the court says that rehabilitation may commence, the company will send an operational trustee and provide personnel and financial support to Mita Industrial.
The trustee also said that Kyocera had been contacted by Mita Industrial's creditors and its labor union, and that it had expressed its intentions to answer their requests in good faith.
Kyocera, which was recently named one of the world's 100 best managed companies by Industry Week Magazine, is one the largest producers of protective ceramic packages for semiconductors in the world. The company, whose 1997 revenues were $5.8 billion, also makes other electronic components and telecommunications equipment. One of the major office equipment industry consultants recently wrote that the involvement of Kyocera in Mita
Industrial's reorganization would likely prove fruitful for Mita Copystar, allowing it to strengthen its position in the converging digital market.
The trustee's report concluded that in their experience the likelihood of a Japanese company's successful reorganization once its application for rehabilitation has been approved is more than 95 percent.
"It is becoming increasingly clear that Mita Industrial is receiving the help and support it needs, even during this interim period," said Mr. Nasu. "We are very encouraged by what this means
for the U.S. company. Most importantly, we can conduct business as usual, with all sales, marketing and logistical activities continuing without change and with all our normal business policies and processes remaining in effect."
Fairfield, N.J.-based Mita Copystar America is the sales and marketing arm of Mita Industrial Co. Ltd. responsible for operations, technical support, service training, sales and distribution of high performance Mita copiers, printers and fax machines throughout the U.S. as well as Canada, Mexico, South America and the Caribbean."
NOTE: According to the Mita Homepage, the Japan operation is primarily involved in management, R&D, and sales without much manufacturing.
Mita's sales centers are in Japan, US, and the Netherlands.
FWIW,
Ron
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