Mitsubishi Heavy Industries Printing & Packaging Machinery, Ltd. (MHI-PPM) and Ryobi Limited have signed a shareholder agreement, dated June 20, 2013, to establish RYOBI MHI Graphic Technology Ltd., a joint venture and implementation of business integration in the field of sheetfed offset printing presses. Ryobi will own 60% of the JV, and MHI-PPM 40%.
Both MHI-PPM and Ryobi manufacture and market sheetfed offset printing presses. Recently, the market situation has deteriorated due to shrinking demand, especially in the developed countries, due to the global economic crisis. This downturn has led both companies to promote internal structural reforms in order to sustain their market competitiveness and financial soundness.
As announced on Jan. 23, 2013, MHI-PPM and Ryobi agreed to study establishing a business alliance in the field of sheetfed offset printing presses specifically targeted at improving competitiveness in that area, enhancing scale of operations, and solidifying their management base.
Subsequently, the two companies held discussions on how to realize an ideal business alliance in this industry. The new agreement finalizes plans to establish a joint venture integrating their respective sheetfed offset printing machinery businesses in a quest to achieve significant synergy effects, including product line-up enhancement, expansion of product development capabilities, production cost reductions and improvement in sales and service networks.
In creating the new joint venture, MHI-PPM and Ryobi seek to prevail against intensifying global competition and build a stronger presence in the global market. They also aim for the new entity to develop into a leading global company in the printing press industry by meeting customer expectations and providing innovative, high-quality products and outstanding services to the market.