Mitsubishi Heavy Industries and Ryobi Limited have jointly announced they are in talks for a business alliance in the commercial printing machinery business. The two companies are both based in Hiroshima, Japan.
The statement, in part, reads:
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.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.
Mitsubishi’s Paper & Packaging Machinery division had, as of the end of September 2012, 834 employees while all of Ryobi, including its Power Tools, Die-cast products, and Builders Hardware businesses, had 2,111. Ryobi was founded in 1943 while Mitsubishi’s Paper & Packaging Machinery Division was founded in 2004. The Mitsubishi Group as a whole was founded in 1870 and today has over 350,000 employees.
While no further details regarding the discussions have been released, the two companies expect to conclude a final agreement by June 30.