This news release is intended for media purposes, and is current of the date of publication. Information is subject to change without notice.
KYOCERA to Acquire 100% Ownership of Denmark-Based Industrial Cutting Tool Manufacturer UNIMERCO Group A/S
June 29, 2011Kyocera Corporation (President: Tetsuo Kuba; herein “Kyocera”) today announced that its wholly-owned Germany-based subsidiary Kyocera Fineceramics GmbH (President: Shigeru Koyama; herein “KFG”) has completed a share purchase agreement regarding the Denmark-based industrial cutting tool manufacturing and sales company Unimerco Group A/S (CEO: Kenneth Iversen; herein “Unimerco”). Effective July 11, KFG will acquire 100% ownership of shares of Unimerco, making it a wholly-owned subsidiary and allowing KFG to strengthen its cutting tool business in Europe.
Established in Denmark in 1964, Unimerco is a globally expanding cutting tool manufacturer concentrated in Europe. As an independent supplier of high-performance, custom-made solid-type cutting tools for a diverse range of industrial fields including automotive, aviation, wind power, hydraulic equipment and woodworking, the company has earned a highly respected reputation in the cutting tool market.
Kyocera, which started its industrial cutting tool business in 1973, has been contributing to advanced productivity for its customers through the development, manufacturing and sales of its main lineup of indexable cutting tool products. With the addition of solid-type tools to its lineup, Kyocera is aiming for continued growth as a comprehensive cutting tools manufacturer able to meet a wider range of customer needs.
By incorporating Unimerco as a wholly-owned subsidiary, KFG will be able to expand sales locations throughout the predominant European market and strengthen sales of its conventional product lines. Furthermore, by adding Unimerco's line of high-quality, high-precision, custom-made solid-type cutting tools to the Kyocera Group lineup, KFG will also be able to fully engage in the growing fields of cutting tools for aviation and energy, as well as enter the distinct northern European woodworking market, thus expanding its business.
“Kyocera shares Unimerco's corporate culture and management style of valuing its employees and encouraging participation by all,” stated KFG President Shigeru Koyama. “By combining the strength of the two companies we will aim for further growth in the European industrial cutting tool market.”
“We are extremely happy to be joining the Kyocera Group,” said Unimerco CEO Kenneth Iversen. “In unifying the two companies we will strive to aggressively develop our business on a global scale, and continue to supply products that provide full satisfaction to our customers.”
The acquisition also means that Kyocera will enter into a new business arena with Unimerco's other major activity, Unimerco Fastening, which sells nailers, nails and compressors under the Tjep brand. This part of the company — primarily targeting the construction industry — is currently growing rapidly in a number of European markets, and over the coming years further globalization is expected.
Upon completion of the agreement, Kenneth Iversen will remain as Unimerco president and all employees will be kept on in continuation of Unimerco Group operations.
In recent years, market competition has been intensifying, with increased demand in manufacturing fields for high-performance industrial cutting tools that can deliver high-precision and high-speed cutting. The synergy created by the unification of Kyocera and Unimerco will strengthen the company's cutting tool business to a new level, and allow it to meet an even wider variety of customer needs — helping to contribute to enhanced productivity on the factory floor.
UNIMERCO is an international manufacturer, distributor and service provider within the machining industry. The company's core activities comprise optimisation guidance and sales of tooling solutions for e.g. the automotive, aerospace, metal, woodworking, power generation, fluid power and food industries. UNIMERCO was established in Denmark in 1964, and today has companies in Europe, the USA and Asia.
Related News for Corporate / Management
- Changes in Organizational Structure, Executive Officers and Management Personnel
- Notice Relating to Kyocera Corporation’s Voluntary Adoption of International Financial Reporting Standards
- Notice Relating to Kyocera Corporation’s Intention to Apply to Delist American Depositary Shares from the New York Stock Exchange and Terminate Registration with the U.S. Securities and Exchange Commission
Related News for Industrial Cutting Tools