Notice of Integration of Chinese Subsidiaries in Hydraulic Equipment Business
- Business
- Hydraulic Equipment
Nabtesco Corporation (headquarters: Chiyoda-ku, Tokyo; President & CEO: Kazumasa Kimura) hereby announces that it has decided to integrate Hydraulic Equipment's Chinese manufacturing and sales subsidiary Shanghai Nabtesco Hydraulic Co., Ltd. (Shanghai, China) with its sales subsidiary Shanghai Nabtesco Hydraulic Equipment Trading Co., Ltd. (Shanghai, China).
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- 1. Purpose of the integration
- This integration aims to rebuild the structure of the Chinese Hydraulic Equipment business in response to the sluggish demand in the Chinese construction equipment market. By integrating manufacturing and sales organization, we aim to reduce costs and improve business efficiency by reducing assets.
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- 2. Process of the integration
(1) Scheme
Asset of Shanghai Nabtesco Hydraulic Equipment Trading Co., Ltd. will be transferred to Shanghai Nabtesco Hydraulic Co., Ltd.. Sales operations will be unified under Shanghai Nabtesco Hydraulic Co., Ltd..
- 2. Process of the integration
(2) Schedule
Resolution date：July 31, 2024
Completion date (planned)：October, 2024
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3. Status of Subsidiaries
(1) Subsidiary to be integrated and succeededCompany name
Shanghai Nabtesco Hydraulic Co., Ltd.
Address
No. 905 East Rong Le Road, Songjiang District, Shanghai 201613, China
Representative
Ge Zhi Wei
Established
March, 1996
Capital
$14.5 million
Shareholders
Nabtesco Corporation：55％
Shanghai Electric Hydraulics and Pneumatics Co., Ltd.：30％
Komatsu Ltd.：15%Business
Manufacturing and sales of hydraulic equipment for construction machinery
(2) Subsidiary to be integrated and dissolved
Company name
Shanghai Nabtesco Hydraulic Equipment Trading Co., Ltd.
Address
1704 Room, Yue Xiu Tower, No.388 Fu Shan Road, Pudong New Area, Shanghai, 200122, China
Representative
Ge Zhi Wei
Established
September, 2013
Capital
JPY 100 million
Shareholders
Nabtesco Corporation：67％
Shanghai Electric Hydraulics and Pneumatics Co., Ltd.：33％Business
Procure, sales and service of hydraulic equipment for construction machinery
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- 4. Impact for FY2024 guidance
- This integration is expected to improve the capital-efficiency of the Chinese Hydraulic Equipment business, but its impact on our consolidated forecast for FY2024 will be minimal.
End.
