The signing joins the respective sheet-fed offset printing machinery businesses in an effort to bolster competitiveness, boost scale of operations and product line-up, cut costs, and improve sales and service networks.
The new business, to be called Ryobi MHI Graphic Technology will begin business on January 1 next year. It will be 60 per cent owned by Ryobi and 40 per cent by Mitsubishi.
Sales target for the first year is 30 billion Yen (around $330m) with a profit target of 1.5 billion yen (around $17m).
The two companies cite market conditions and shrinking demand, especially in developed countries, as the main thrust behind the partnership. A statement says, “This downturn has led both companies to promote internal structural reforms in order to sustain their market competitiveness and financial soundness.”
The fortunes of the two companies have varied dramatically in recent years; Ryobi has carved out a successful niche as small format offset press manufacturer, and has moved into the B2 and A1 markets with success, Mitsubishi by contrast has floundered, especially outside Japan.
In Australia Ryobi is sold and supported by Cyber with increasing success, and it was the only press supplier with presses at PacPrint, however there have been no Mitsubishi sales here since the turn of the century.
The press ranges of the two companies do make a good fit, Ryobi operates at the smaller sizes, Mitsubishi at the larger end, and in web presses.
Ryobi is also moving into digital printing, it is working closely with Myakoshi, another Japanese press developer, to develop digital print solutions. Ryobi is also thought to provide the chassis for Benny Landa’s nano presses and the Fujifilm digital presses.
The signing joins the respective sheet-fed offset printing machinery businesses in an effort to bolster competitiveness, boost scale of operations and product line-up, cut costs, and improve sales and service networks.
The business scope will include manufacture and sale of printing machinery and related materials, the design and implementation of equipment installs, and the sale of used machinery.
Comment below to have your say on this story.
If you have a news story or tip-off, get in touch at editorial@sprinter.com.au.
Sign up to the Sprinter newsletter
