KYOTO, Japan, February 01, 2023 –( BUSINESS WIRE )–Nidec Corporation (TOKYO: 6594; OTC US: NJDCY) (the “Company” or “Nidec”) announced today that, in accordance with its November 30, 2022 press release, “Nidec to Execute a Share Transfer Agreement on Italian language Machine Device Manufacturer PAMA and Its Affiliates, ” it has completed the acquisition of all the shares associated with PAMA S. p. A (“PAMA”) on February 1, 2023.
Accordingly, PAMA will become a wholly owned subsidiary of the particular Company as outlined below together with Nidec’s business strategy going forward.
1 . Outline of the New Subsidiary
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(1) |
Company name |
PAMA H. p. The. |
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(2) |
Head quarter |
The city of Rovereto, Trentino-Alto Adige, Italy |
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(3) |
Foundation |
1926 |
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(4) |
New management |
Director & Chairperson: Tatsuya Nishimoto (Newly appointed) Director & General Manager: Alessandro Batisti (Reelected) Director: Takeshi Motohashi (Newly elected) |
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(5) |
Business bases |
Manufacturing and sales facets: Italy plus China Sales bases: The US, Germany, India, and others |
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(6) |
Affiliate marketers |
Nine companies in China, the US, Germany, India, and others |
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(7) |
Principal businesses |
Manufacturing plus sale associated with machine tools (boring and milling machines and machining centers, among others) |
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(8) |
Number of employees |
Approximately 430 |
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(9) |
Product sales |
Forecast because of the end of the fiscal year ended December 31, 2022 |
135. 6 million euro |
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2 . PAMA’s Strengths
A company, PAMA, with a broad product portfolio and high technological capabilities in the fields of 5-face milling machine, boring plus milling devices, and large machine equipment, boasts the particular world’s largest market share since a boring and milling machine manufacturer, whose end users include major press device, construction equipment, heavy machine for energy, earthmoving device, shipbuilding and aerospace aircraft manufacturers. In addition , PAMA enjoys stable annual sales within Europe, North America, and The far east – the country where PAMA has been in business since 1988.
3. Creating Synergies with the Nidec Group
Nidec Machine Tool Corporation plus Nidec OKK Corporation, two Nidec Team companies whose main products are gear cutting machines, large machine tools and machining centers, have already been in need of further developing the particular multitasking plus 5-axis engineering technology as well as expanding its lineup of boring and milling devices in the large device tools space. Also, both companies’ main sales area has been in The japanese and, compared with other major Japanese machine tool manufacturers, the two companies have generated less sales from overseas markets such as European plus American marketplaces and Chinese market, where the future growth is expected.
PAMA’s joining the Nidec Group will enable the Company to pursue synergies in all the areas associated with sale, manufacturing, and product development, including:
(1) expanding sales in the particular Asian, European and American markets based on a wide range of product lineup and cross selling;
(2) developing new products and components by combining the three companies’ technological expertise; and
(3) reducing lead time for delivery and production cost dependent on a global production optimization in Europe, the US, and Asia.
4. What Nidec Aims to Accomplish with Its Machine Device Business
The yearly sales of Nidec Machine Tool, Nidec OKK, and PAMA combined are approximately 87 billion yen. By generating synergies between these three businesses and some other Nidec Group companies, plus implementing new M& As, the organization plans to achieve product sales of more than 260 billion yen in its machine tool company within the fiscal year associated with 2025 (and 500 billion dollars yen in the financial year of 2030). Nidec stays committed to actively investing in the industry of device tools, which are dubbed as “machines of machine” or “mother machines, inch and contributing to the development of Japan’s machinery sector.
5. Effects upon Financial Performance for the Current and Next Fiscal Years
The Stock Acquisition will be expected in order to have no significant impact on the particular Company’s consolidated financial performance for this fiscal year ending March 31, 2023. If necessary, the business will make additional disclosure on a timely basis within accordance along with the rules associated with the Tokyo Stock Exchange upon determination of additional details.
Cautionary Statement Concerning Forward-Looking Information
This press release contains forward-looking statements regarding the intent, belief, strategy, programs or expectations from the Nidec Group or other parties. Such forward-looking statements are not guarantees of long term performance or even events plus involve risks and uncertainties. Actual results may differ materially through those described in such forward-looking statements because a result of various factors, which includes, but not limited to, the particular risks to successfully integrating the acquired business with the Nidec Team, the anticipated benefits of the Transaction not being realized, changes in general economic conditions, shifts in technology or user preferences for particular technologies and modifications in business and regulatory environments. The Nidec Group does not undertake any obligation to update the forward-looking statements contained herein or the reasons why actual outcomes could vary from those projected in the forward-looking claims except since may be required by law.
View source version on businesswire. com: https://www.businesswire.com/news/home/20230201005454/en/
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