Nissei ASB Machine and Shibaura Machine Enter into Memorandum of Understanding for Business Partnership
Nissei ASB Machine and Shibaura Machine Enter into Memorandum of Understanding for Business Partnership
Shibaura Machine Co., Ltd. and Nissei ASB Machine Co., Ltd. have entered into a memorandum of understanding for a business partnership for cooperation in injection molding machines and other fields in mainly emerging markets abroad.
Japanese injection molding machine manufacturers currently face an unprecedented period of change caused by the global economic stagnation due to the Covid pandemic, ESG and other environment-related regulations, the need to prepare for industry 4.0, and intensified competition due to the market entry in emerging markets. In light of these circumstances, Shibaura Machine and Nissei ASB aim to provide customers with the highest value on a global level by combining what each has to offer in the value chain from development to sales using their unique strengths and know-how as machine makers. In particular, the companies will aim to capture the top position in terms of market share in India and increase global sales by utilizing resources at their locations in India which are primary locations for their business.
Shibaura Machine and Nissei ASB will use the entering into the Memorandum of Understanding as the starting point for initiating the discussion and examining the possibility of collaboration in a broad range of fields with a view to the sustained growth of both companies, and will initially start with arrangements for collaboration in the manufacture and sale of injection molding machines at locations in India. In relation to small electromotive injection molding machines, which are expected to be a future growth product, the companies aim to widely supply machinery with specifications that meet the requirements of emerging markets by combining the technological capabilities of Shibaura Machine’s electromotive injection molding machines with Nissei ASB’s local procurement and production capacity in India and using the differing customer sales routes of each company. Shibaura Machine and Nissei ASB will commence an assessment of the specifics of their business model, such as their specific roles and the division of functions. We will promptly announce more detailed information, etc. on the business partnership once disclosure matters have been decided.