Acquisition of Majority Share in Chinese Industrial Machinery Parts Manufacturer
2014/09/26
Tsubakimoto Chain Co. (Headquarters: Osaka, Japan; President: Isamu Osa) announced that, in order to raise its global competitiveness in the chain business, it acquired a controlling share in Tsubaki CAPT Power Transmission (Shijiazhuang) Co., Ltd. ("TCP") of Shijiazhuang, Hebei Province, China, from Shijiazhuang CAPT Power Transmission Machinery Co., Ltd. ("CAPT") on September 26, 2014.
Tsubaki Group began doing business with CAPT in 1995. CAPT has continued to supply sprockets and timing pulleys to the Japanese and North American markets for Tsubakimoto Chain.
In February 2014, CAPT spun off its various businesses except for cast metals. TCP was established as a manufacturer of industrial machinery parts such as steel sprockets, and Tsubakimoto Chain now takes an equity stake in this subsidiary. This acquisition strengthens Tsubakimoto Chain’s ability to stably supply sprockets and timing pulleys on a global basis. At the same time, it allows us to deliver Chinese-made Tsubaki Group chains as a set, which should expand our sales in the Chinese market and promote our chain business’s growth.
Outline of subsidiary
- Company name:
Tsubaki CAPT Power Transmission (Shijiazhuang) Co., Ltd. - Representative:
Toshihiro Ageta (Chairman) - Date of incorporation:
February 27, 2014 - Capital:
CNY 104,280,000 - Location:
Gaocheng, Hebei, People’s Republic of China - Number of employees:
Approx. 550 - Principal business:
Manufacture and sale of industrial machinery parts such as sprockets and timing pulleys - Close of fiscal year:
December 31
Outline of subsidiary
Tsubakimoto Chain acquired a 51% share of TCP’s equity from CAPT. Ownership ratios are: 51% for Tsubakimoto Chain, 49% for CAPT.
Material effect
This acquisition will have only a slight effect on Tsubakimoto Chain’s consolidated earnings in the fiscal year ending March 2015.
