Materials Handling Joint Venture Formed in Shanghai, China
Responding to the demand for logistics automation and the growth of the materials handling sector in China
Tsubakimoto Chain Co. (Headquarters: Osaka, Japan. President: Isamu Osa) has established a business base for material handling in China by forming a joint venture with Shanghai Xiaobo Mech. & Elec. Co., Ltd. The new company, Tsubakimoto Materials Handling Systems (Shanghai) Co., Ltd., begins operation on October 1.
Rationale for the Joint Venture
One of the priorities of our Medium-Term Management Plan is to expand into the Chinese market, which represents a high-volume zone.
Our material handling business has been providing the automobile, steelmaking, cement, and machine tool industries in the Chinese market with a variety of transport systems. In the future, we intend to meet the automation needs of the distribution sector, primarily the segment associated with clothing and other daily necessities, which is experiencing growing demand. We intend to expand sales of our distribution systems with a focus on Linisort, an automatic sorting system that has captured a large share of the Japanese market, to local logistics contractors and Japanese apparel makers.
The new company will begin offering sales and engineering services, while
plans call for expansion into manufacturing, construction, and maintenance
services within three years.
Note that the Shanghai Xiaobo Mech. & Elec. Co., Ltd. has already established a joint venture relationship with an engineering company in China as well as a company which manufactures material handling systems for the Chinese automobile industry. We plan to expand our business on our own initiative while levering the network of Shanghai Xiaobo Mech. & Elec. Co., Ltd.
With the establishment of this new company, the Group now operates 11 companies in China, including five companies in the Materials Handling Division.
Outline of New Company
- Company name
Tsubakimoto Materials Handling Systems (Shanghai) Co., Ltd.
Chairman (part-time): Hideaki Haruna (Deputy General Manager, Materials Handling Division)
President (full-time) : Futoshi Tanyama (Currently Manager, China Project, Materials Handling Division)
Room 601, Pine City Hotel, No.8, Dong An Road, Shanghai China
- Start of operation
October 1, 2011 (established on September 2)
(Ownership ratio: Tsubakimoto Chain 90%, Shanghai Xiaobo Mech. & Elec. Co., Ltd. 10%)
- No. of employees
10 (at start-up)
- Sales target
¥800 million in fiscal 2013
Outline of Shanghai Xiaobo Mech. & Elec. Co., Ltd.
- Company name
Shanghai Xiaobo Mech. & Elec. Co., Ltd.
No.2008, Changfen Road, Fengjing Jinshuan, Shanghai, China
Design, manufacture, and sales of conveyor systems
- Date founded
- Tsubaki Group China Network
- Installations of Linisort Automatic Sorting System
Women's Clothing Distribution Center
: Linisort handles all processes including inspection of received goods, sorting for specific retailers, boxing, and shipping.
Men's Clothing Distribution Center
: Uses space-saving linear configuration.
Cosmetic Product Distribution Center
: Saves space with a flexible layout using a looped configuration. This contributes to a substantial reduction in lead time for existing operations.