MHI and NICHIYU Sign Basic Agreement on Integration of Forklift Truck Business Operations
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MHI and NICHIYU Sign Basic Agreement on Integration of Forklift Truck Business Operations - JCN Newswire
MHI and NICHIYU Sign Basic Agreement on Integration of Forklift Truck Business Operations

Tokyo, Nov 30, 2012 - (JCN Newswire) - Mitsubishi Heavy Industries, Ltd. (MHI) and Nippon Yusoki Co., Ltd. (NICHIYU) have signed a basic agreement under which the two companies will integrate their respective businesses in forklift trucks. MHI boasts strength in engine-powered forklifts and has a global scope of operations, while NICHIYU excels in battery-powered forklifts and operates primarily in the domestic and Asian markets. Through their integration initiative, the two companies aim to pool their global management resources to optimum advantage, enabling the new integrated entity to successfully perform as a top-tier manufacturer in the rapidly changing global forklift truck market.

MHI's forklift truck operations center on a full range of engine-powered offerings. MHI has been active in overseas markets for many years, and today it has business bases in the United States, the Netherlands, Finland, Singapore, Dalian, and Shanghai (China). Besides marketing under the Mitsubishi forklift trucks, MHI produces and markets forklift trucks under the Cat(R) lift trucks, and in recent years it has acquired Rocla Oy, a Finnish manufacturer specializing in warehouse-use material handling equipment, and is collaborating with Jungheinrich AG of Germany in the North American market. In this way MHI is progressively expanding its scope of operations as a comprehensive provider of material handling systems and equipment, and further growth is now being pursued through initiatives such as the adaptation of its Dalian facilities as a base for producing forklifts targeted at the emerging economies.

NICHIYU was the first Japanese manufacturer to develop battery-powered forklift trucks. Today its core operations focus on small and medium-size forklifts, material handling systems and other products for the domestic and Asian markets. NICHIYU led the industry in developing storage and transport technologies attentive to environmental needs, and by supplying storage and transport systems and equipment that curb carbon dioxide (CO2) emissions and save energy. Throughout its history, NICHIYU has continuously sought to help users improve their business conditions and to contribute to environmental enhancement. Presently NICHIYU is ramping up to launch operations in April 2013 of its second overseas production base in Thailand following its earlier overseas production base in Shanghai, and going forward it intends to expand its business operations and strengthen its earnings further.

The integration of MHI and NICHIYU's forklift truck businesses is expected to result in a significantly enhanced product lineup, the sharing and optimization of distribution channels, efficient development of products matching market needs, and effective utilization of human resources and capital investment.
In recent years MHI and NICHIYU have taken a series of steps to strengthen their corporate ties. In June 2007, MHI became NICHIYU's largest shareholder by acquiring all of the shares offered under a third-party allocation initiative. In April 2009, the two companies merged their domestic sales operations and jointly established a new company named NICHIYU MHI Forklift Co., Ltd. , which will be part of the integration.

In the latest integration development, MHI's forklift truck operations will be spun off and integrated into NICHIYU. NICHIYU will become an MHI consolidated subsidiary as a result of the integration, but NICHIYU, which has maintained solid growth to date under independent management, will continue to operate independently and focus on achieving further business expansion under the new configuration. In return, NICHIYU will provide MHI with an allotment of its common shares (representing 49.4% of the voting stock of NICHIYU) as well as classified stock without voting rights (in total, MHI will own 64.75% of shares). After signing the basic agreement, MHI and NICHIYU will begin discussions of details, targeting signing of a definitive agreement in February 2013 with the contemplated integration effective as of April 01, 2013.

With this strengthening of their ongoing collaboration in forklift truck operations, MHI and Nichiyu look to further improve and strengthen their product offering and their ability to respond swiftly to the needs of global users.

Companies Involved

Mitsubishi Heavy Industries, Ltd.
Head Office: Minato-ku, Tokyo,
President: Hideaki Omiya

Nippon Yusoki Co., Ltd.
Head Office: Nagaokakyo City, Kyoto Pref.,
President: Hideaki Ninomiya

Profile of New Integrated Entity

Name: To be determined and announced at a later date
Head Office: 1-1, Higashikotari 2-chome, Nagaokakyo City, Kyoto Pref. 617-8585, Japan
Capitalization: To be determined and announced at a later date
Establishment: April 1, 2013(planned)
President: To be determined and announced at a later date
Employees: Approximately 5,000
Business scope: Forklift truck operations; manufacture, sales and maintenance servicing of material handling systems and products relating to other business operations

About Mitsubishi Heavy Industries

Since its foundation in 1884, Mitsubishi Heavy Industries (MHI) has sought pioneering new monodzukuri (manufacturing) techniques, building the foundations for the development of the entire industry. Today, with environmental and energy issues to the fore, MHI provides people around the world with eco-friendly products, and contributes to society through its involvement in global infrastructure projects and other business activities. For more information, please visit the MHI website at


Mitsubishi Heavy Industries, Ltd.
Hideo Ikuno
Daiya PR (in charge of public relations 
for Mitsubishi Heavy Industries, Ltd.) 
Tel: +813-6716-5277 
Fax: +813-6716-5929

Nippon Yusoki Co., Ltd.
Hideyuki Koizumi
General Affairs Dept.
1-1, Higashikotari 2-chome, 
Nagaokakyo-shi, Kyoto 617-8585, Japan
Tel: +81-75-956-8602

Nov 30, 2012
Source: Mitsubishi Heavy Industries

Mitsubishi Heavy Industries (TSE: 7011) (U.S: MHVYF)

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Topic: Business Tieup
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