TOKYO, June 30, 2004 - Kobe Steel, Ltd. and Kawasaki Heavy
Industries, Ltd. have agreed to transfer the manufacturing of crushing equipment
to their 50/50 joint venture, Earth Technica Co., Ltd., on April 1, 2005, the
two companies said today. Earth Technica currently designs and markets crushing
equipment.
The domestic aggregate market, the main market for the crushing
equipment business, has been shrinking due to structural changes brought about
by the decrease in public works, and a recovery is difficult to foresee. Kobe
and Kawasaki hold leading positions in Japan's crusher market. With their main
products being highly competitive, their respective menus complement each other.
Utilizing their know-how in crusher technology in the growing environmental
business, Kobe is involved in soil remediation, while Kawasaki supplies refuse
paper and plastic fuel systems to the recycling field.
On this background, Kobe and Kawasaki agreed in January 2003 to
merge their crushing equipment businesses, as both saw each other as ideal
partners. They also announced they would later shift manufacturing to Earth
Technica. As a first step, the two companies transferred the marketing and
design portions of their businesses to the joint venture, which began operations
in July 2003.
Earth Technica will become an independent unit with marketing,
design and manufacturing functions. In addition to the mutual use of sales
networks, the improvement in product line-up, and the advantages of new product
development, sales and technology, the joint venture benefits from higher
production efficiency, lower supply costs, and the streamlining of duplicated
functions. The integration of manufacturing will further strengthen the business
foundation of the joint venture.
Earth Technica aims to further develop by proactively focusing
its management resources in the environmental and other new areas that are
anticipated to grow in the medium to long-term future.
Outline of the Joint Venture
Name: |
Earth Technica Co.,
Ltd. |
Headquarters: |
Tokyo |
President: |
Kyoichi Yahagi |
Capital: |
1.2 billion yen (plus 1.1 billion yen of
additional paid-in capital) |
Equity share: |
Kobe Steel 50%, Kawasaki Heavy
Industries 50% |
Integration: |
April 1, 2005 |
Business activities: |
1) Design, manufacture and sale of
crushers, grinding mills, separators 2) Design, manufacture and sale of waste
recycling equipment 3) Design, manufacture and sale of wear and
heat-resistant cast parts for crushers |
Employees: |
Roughly 300 (April 1,
2005) |
Sales offices: |
Sapporo, Sendai, Tokyo, Nagoya, Osaka,
Hiroshima & Fukuoka |
Plant locations: |
Yachio, Chiba and Takasago,
Hyogo | |
Current Outline of Crushing Equipment
Businesses
Kawasaki Heavy Industries
Projected fiscal 2004 sales |
12.5 billion yen (consolidated with
Earth Technica) |
Fiscal 2003 sales |
11.5 billion yen (consolidated with
Earth Technica) |
Fiscal 2002 sales |
12.0 billion yen |
Employees |
212 (as of June 1,
2004) |
Plant |
Yachio,
Chiba |
Kobe Steel
Projected fiscal 2004 sales |
9.4 billion yen (consolidated with Earth
Technica) |
Fiscal 2003 sales |
5.7 billion yen (consolidated with Earth
Technica) |
Fiscal 2002 sales |
8.2 billion yen |
Employees |
76 (as of June 1, 2004, excluding those
in common sections at Takasago Machinery Center) |
Plant |
Takasago, Hyogo |