Mitsubishi Materials Corporation (President: Akira Takeuchi; hereinafter "MMC") announced today that MMC and Hayakawa Inc. (President: Motoaki Hayakawa; hereinafter "Hayakawa") agreed on the transfer of all shares in Ryoei Metals Corporation (President: Shoichi Yano; hereinafter "Ryoei Metals"), a consolidated subsidiary of MMC that manufactures and sells precision forgings, by MMC to Hayakawa.
Although Ryoei Metals has been manufacturing and selling precision forgings as its main business, it was considering fundamental structural reforms based on the policy of the Advanced Materials & Tools Company in MMC to respond to changes in the global business environment for its main business. In these circumstances, MMC has been negotiating with Hayakawa, a wholly owning holding company of Hayakawa CO., LTD. that has manufacturers and trading companies in Japan and overseas under its umbrella and whose core business is the distribution of special steel. As a result, MMC and Hayakawa shared the view that the further growth of the both companies can be expected by combining the technical capabilities of Ryoei Metals with a strong track record in delivering bevel gears with high accuracy in Japan with the network of the Hayakawa Company Group in Japan and Southeast Asia in its precision forging business as a result of the transfer of the shares. Ryoei Metals will continue to operate its current business base (Okegawa City, Saitama) even after the transfer of the shares.
In its medium-term management plan Material Premium 2016, MMC has adopted "fortifying the foundation for growth" as one of its group-wide growth strategies. The Advanced Materials & Tools Company in MMC provides an extensive lineup of products essential for industry, such as cemented carbide products including drills and inserts used for the processing of parts for automobiles and aircraft, and sintered parts used for engines and transmissions, on a worldwide scale. We will continue to fortify our foundation for growth by injecting our management resources efficiently in products and regions that are expected to growth further, while promoting business selection and focus.