As previously announced in January, Mitsubishi and Ryobi will be joining forces for its commercial printing equipment business. The two companies announced that a formal agreement has been struck this week. The new company will be known as Ryobi MHI Graphic Technology Ltd.
“MHI-PPM and Ryobi seek to prevail against intensifying global competition and build a stronger presence in the global market,” the companies stated in a press release.
Ryobi MHI will be established as of January 1, 2014, and will be based in Hiroshima, Japan. It will be led by five directors: three from Ryobi, and two from Mitsubishi Heavy Industries Printing & Packaging Machinery (MHI-PPM). The new entity will be 60 percent owned by Ryobi and 40 percent owned by MHI-PPM.
In a letter to its distributors, Ryobi Division General Manager Hideki Domoto, said sales and support structure plans have not been finalized but no changes are anticipated until January. In the meantime, they will “study to find the best way to to for the existing and future customers.”
The company expects to have 2014 sales of 30 billion Yen (roughly $317 million) with a net income of 1.5 billion yen (roughly $15.9 million).