Nidec has recently announced to Execute of a Share Transfer Agreement with Italian Machine Tool Manufacturer PAMA, which is one of the well-known Machine Tool Industries along with its affiliates. The company has adopted a resolution, among other things, to buy the stock of the nine affiliates of the Italian machine tool maker PAMA.
Nidec Corporation announced that, they passed a resolution on purchasing the shares of Italian machine tool manufacturer PAMA and its nine affiliates.
Founded in 1926 PAMA S.p.A. is headquartered at the city of Rovereto, Trentino-Alto Adige, Italy. Their Director Alessandro Batisti, General Manager will continue to serve as such after the Stock Acquisition. They have their manufacturing facilities at Italy, and China. They are into the manufacturing and sale of machine tools (boring and milling machines, and machining centres, among others) with an employee strength of 430, and a sales turnover Fiscal year ended December, 118.3 million euros (approximately 17.2billion yen).
Nided Corporation entered into the machine tool business on a full scale after purchasing Mitsubishi Heavy Industries Machine Tool Co., Ltd. (currently, Nidec Machine Tool Corporation) in August last year, and purchasing the shares of OKK Corporation (currently, Nidec OKK Corporation) through a third-party allocation of common shares in February this year. With the latest purchase of PAMA, the Company will be able to accelerate the generation of strong synergies with its existing two machine tool manufacturers in the product range, as well as a product sale, development, and manufacturing.
PAMA is one of the most well-known companies in the machine tool industry for the wide range of product lineup and the high-level technological capabilities of its large machine tools, particularly boring and milling machines. The company is also known for its solid sales and service networks in Europe and other places such as China, the US, and India.
Nidec Machine Tool Corporation and Nidec OKK Corporation, whose main products are gear-cutting machines, large machine tools and machining centres, have been in need of further developing the multitasking and 5-axis machining technology as well as expanding their lineup of boring and milling machines in the large machine tools space. Also, both companies’ main sales area has been in Japan and, compared with other major Japanese machine tool manufacturers, both companies have generated fewer sales from overseas markets such as European and American markets and Chinese markets, where future growth is expected.
Following the completion of the acquisition of PAMA, through reciprocal usage of management resources between PAMA and the two machine tool companies, the Nidec Group intends to pursue synergies in all the areas of sale, manufacturing, and product development, including expanding sales in the Asian, European and American markets based on a wide range of product lineups and cross-selling. They also are developing new products and components by combining the companies’ technological expertise; and reducing lead time for delivery and manufacturing costs based on global production optimization in Europe, the US, and Asia.
After completing the Stock Acquisition, the Company will actively provide PAMA with resources and make necessary investments in PAMA to accelerate the growth of Nidec’s machine tool business, which will contribute to the development of the machine tool market on a global scale.
