Aug. 10, 2016
Basic Agreement on Joint Investment in Automotive Forged Parts Business in Europe
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|
Corporate Communications Department,