Sumitomo : Basic Agreement on Joint Investment in Automotive Forged Parts Business in Europe
August 10, 2016 at 02:42 am EDT
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Sumitomo Corporation (head office: Chuo-ku, Tokyo; President & CEO: Kuniharu Nakamura) and Musashi Seimitsu Industry Co., Ltd. (head office: Toyohashi, Aichi Prefecture; President & CEO: Hiroshi Otsuka; hereinafter, 'Musashi'), have reached a basic agreement on the acquisition by Sumitomo Corporation of 25% of the shares of Hay Holding GmbH (hereinafter, 'Hay'), a major Germany manufacturer of automotive parts whose shares are all held by Musashi.
With nine business locations mostly in Europe, Hay as Europe's largest manufacturer of forged and machine-processed components enjoys strong business ties with major manufacturers of finished vehicles and suppliers. Hay is also very price-competitive in its high-speed hot forging of transmission gears and other power train components (see Note), and it is expected to see significant future growth not only by continuing to serve a steadily growing European automobile market but also by capturing rising demand in the Chinese market.
Musashi is engaged in the manufacture/sale of engine, gear-related, and underbody parts for car and motorcycle manufacturers, and it does manufacture globally from 21 business locations in 11 countries.
Sumitomo Corporation regards the automotive-related business as one of its core businesses, and it provides automotive-related finance in addition to distributing/selling finished vehicles and selling steel materials used in cars and motorcycles. It is also expanding into the finished vehicle/parts manufacturing business by collaborating with Japanese finished-vehicle and parts manufacturers that were previously customers. Sumitomo Corporation is aiming to strengthen partnerships and create new value together by helping customers through these efforts to resolve their issues.
Musashi and Sumitomo Corporation will be adding further business value by utilizing Musashi's technical prowess and Sumitomo Corporation's automotive-related business platform to assist Hay in achieving long-term sustained growth. Leveraging the relationship of trust they have built over more than 30 years of steel material transactions, the two companies will utilize their respective strengths in joint endeavors to create synergy.
(Note) Power train: the collective term for transmissions, differential gears and other devices that transmit drive power generated by engines/motors
■ Profile of Hay Holding GmbH
(1)
Corporate Name
Hay Holding GmbH
(2)
Address
Haystraße 7-13 55566 Bad Sobernheim, Germany
(3)
Name and Title of Representatives
Bernd Gottschalk, Chairman of the Advisory Board
Ralph Onken, Managing Director
Nobert Loers, Managing Director
(4)
Business Contents
Shareholding of its subsidiary which engages in the production and sale of automotive parts
(5)
Amount of Capital
136,800 (euro)
(6)
Established
September 16, 2011
(7)
Number of Employees
About 2,600 people
Sumitomo Corporation published this content on 10 August 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 10 August 2016 06:42:05 UTC.
Original documenthttp://www.sumitomocorp.co.jp/english/news/detail/id=29500
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Sumitomo Corporation is a diversified group organized around 7 areas of activity:
- retail distribution of consumer goods (24.4% of net sales): food products, apparel and accessories, pharmaceuticals, building materials, household and decorative items, etc. The group is also developing a real estate business;
- trading of hydrocarbon, mining, chemicals and electronics products (24%): oil, natural gas, copper, gold, silver, zinc, lead, nickel, coal, iron ore, resins, pesticides, petrochemical products, etc.;
- trading of steel products and non ferrous metals (20%): flat and long steel products, tubular products, aluminum products, titanium, etc.;
- distribution of transportation and construction systems and equipments (15.1%): spatial equipments, landing fields, forest machines, motorcycles, mining operating vehicles, etc.;
- telecommunications and multimedia products and services supplies (8.8%): TV wiring, data communication solutions, film distribution services, mobile telephony, Internet access and computing services;
- development and implementation of civil engineering infrastructures (7.6%): power plants, wastewater treatment units, industrial plants, telecommunications centers, etc. The group is also providing logistics services;
- other (0.1%).
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