Tokyo, October 25, 2002----Hitachi High-Technologies Corporation will acquire all the shares of subsidiaries of SANYO Electric Co., Ltd., which operates manufacturing and servicing of chip mounters, to build an integrated system that includes development, manufacturing, sales, and services.
Hitachi High-Technologies Corporation (Chairman and President, Yoshiro Kuwata) will acquire all the shares of SANYO High Technology Co., Ltd., and SANYO High-tech Service Co., Ltd., subsidiaries of SANYO Electric Co., Ltd. (President and COO, Yukinori Kuwano) effective April 1, 2003, thereby transferring full control of SANYO's chip mounter business to Hitachi High-Technologies Corporation. The transfer of control will bring greater efficiency to operations which provide chip mounters.
The majority of chip mounters manufactured by SANYO High Technology have hitherto been sold globally by Hitachi High-Technologies, and SANYO High-tech Service has handled servicing within Japan. However, the need for greater flexibility in the current market environment has led to plans to integrate the entire process, from manufacturing through sales and servicing, under the same management. This will improve organizational structure and management efficiency, while also speeding up the development of new products in response to customer needs.
With the transfer of control, SANYO High Technology Co., Ltd. will be renamed Hitachi High-Tech Instruments Corp. and SANYO High-tech Service will be renamed Hitachi High-Tech Instruments Service Corp. (Names may be subject to change at a later date.) As members of the Hitachi High-Technologies Group, the companies will combine the technological and sales expertise and research capabilities of the Hitachi Group with the technological strength built up by SANYO Electric over the years to expand their business and come up with ever better products for the market.
In addition to the high-speed tarlet type of mounter, which is currently a best-selling product, a new high-speed modular type of mounter will be released onto the market in the 2004 business year, with the target of securing 30% of world market share. Along with the expected further expansion of the market for Electronics Manufacturing Services (EMS), the new companies will focus on developing business in the rapidly growing Chinese market.
For SANYO Electric, the transfer of control of the chip mounter business is one part of a major structural reorganization that has already included the purchase of housing related operations, the sale of its vending machine business, and the acquisition of Ni- MH battery business, as well as a capital tie-up for Li-Ion battery operation. The company will continue to concentrate on its core business, securing its market position and profitability, and speeding up the process of selection and consolidation of SANYO Group businesses.
A thorough review of SANYO High Technology and SANYO High-tech Service operations will be conducted by an independent third party before the transfer of control takes place, and provided the results of this investigation are satisfactory, Hitachi High-Technologies and SANYO Electric plan to agree on a share price for the transfer before the end of January, 2003.
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