The letter was signed by Masami Shimizu, president of Mitsubishi Heavy Industries Printing & Packaging Machinery and Akira Urakami, president and COO for Ryobi. Both parties aim to conclude a final agreement in this respect by 30 June, 2013.
Both companies have been producing and selling sheetfed offset printing presses and facing the stiffer market situation with the shrinking demand especially in developed countries due to the recent global economic crisis. This has led both companies to promote structural reforms to sustain competitiveness in the market and financial soundness as well.
In India, Mitsubishi is represented by New Delhi-based Provin Technos and Ryobi represented by Bengaluru-based Indo European Machinery. When PrintWeek India contacted the representatives of Provin and Ryobi, we were told that they are awaiting more clarity about their roles from the parent companies.
However, according to letter of intent, these are efforts in strengthening corporate structure, and both companies agreed to study on establishing business alliance in the field of sheetfed offset printing press business with a possible set up of a joint venture company in future specifically aiming at improving competitiveness of sheetfed offset printing machinery, enhancing the scale of operations, and solidifying its management base.
The letter further states that in the commercial printing industry that the market demand for printing machinery in the developing countries is getting stronger, and the demand for higher specification products is expected to grow further in the global market.
Both companies from now on will jointly study the scheme that allows significant synergy effects such as enhancement of product line-up, enlargement of product development capability, reduction of product cost, and improvement in sales and service networks. The plan is expected to enable a stronger presence in the global market.