For inquiries on this matter, please contact
- Mitsui & Co., Ltd.
Corporate Communications Division
Mitsui & Co. Ltd. (President: Shouei Utsuda, hereinafter referred to as Mitsui) and Mori Seiki Co., Ltd. (President: Masahiko Mori, hereinafter referred to as Mori Seiki) made the joint purchase on February 20 (American time) of leading U.S. machine tools sales company Ellison Technologies, Inc. (hereinafter referred to as ETI; see following corporate profile for details) for approximately 35 million USD. Mitsui and Mori Seiki also plan to jointly invest in the establishment of a sales and service company in Russia.
1. Purchase of ETI
ETI is a leading and well-established machine tools sales company with independent sales organizations in America's West and Mid-West. It began dealing in Mori Seiki products in 2000, and currently sells approximately 850 units per year, or roughly 60% of Mori Seiki's total US sales. Business investments into sales companies for industrial and construction machinery in the United States forms a core business for Mitsui in the field of machinery, and Mori Seiki is looking to achieve steady growth in machine tools sales in the same region. ETI has achieved an expansion in its operations under the leadership of its founding owners, but has been looking to sell the business and the fact that its policies were in line with both Mitsui, which aims to expand its U.S. machine tools sales business, and Mori Seiki, which hopes to see the long-term steady growth of ETI, led to the sale of the company. ETI forecasts the sale of 1,000 units of machine tools in fiscal 2007.
2. Establishment of Russian Sales and Service Company
Mitsui began to export Mori Seiki machine tools to Russia in 2004, and currently exports approximately 20 units per year, with turnover having expanded to around 500 million yen. The sale of machine tools in Russia is expanding, largely centered on energy and the transportation industry, including railways. A joint company will be set up with Mori Seiki in order to provide sales support for local branches and an after-service system for end users (see following corporate profile for details). The company's registration is planned for March of this year, with annual sales in Russia of 180 units and annual turnover of approximately 3 billion yen forecast for 2013.
|Location||Santa Fe Spring, California|
|Number of employees||approx. 450|
|Capital||approx. 7.5 million USD|
|Sales||approx. 210 million USD|
|Investment ratio (after sale of company)||Mitsui 71%, Mori Seiki 9 %, existing shareholders 20%|
|Company name||Mori Seiki Moscow LLC (Headquarters: Moscow)|
|Capital||26,400,000 Russian rubles (approx. 1 million USD)|
|Investment ratio||Mitsui 51%, Mori Seiki 49%|
|Representative||Yoshimi Ota (scheduled to be posted by Mori Seiki)|
This press release includes forward-looking statements about Mitsui. These forward-looking statements are based on the current assumptions and beliefs of Mitsui in light of the information currently available to it, and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements. The risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest annual report on Form 20-F, which has been filed with the U.S. Securities and Exchange Commission.
This press release is published in order to publicly announce specific facts stated above, and does not constitute a solicitation of investments or any similar act inside or outside of Japan, regarding the shares, bonds or other securities issued by us.