Mitsubishi Heavy Industries (MHI) Printing & Packaging Machinery, Ltd. and Ryobi Ltd. have signed a letter of intent to study the possibility of establishing a joint venture company for sheetfed printing technology. The two Hiroshima, Japan-based press manufacturers made the announcement January 23, 2013. They set a June 30 deadline to conclude a final agreement on joining their sheetfed businesses. MLP U.S.A. is a group company of MHI.
MHI and Ryobi face shrinking market demand for their sheetfed presses, particularly in developed countries, due to the recent global economic crisis. Both companies are committed to structural reforms designed to sustain competitiveness and financial strength.
In the joint statement, MHI and Ryobi said they expect improvements in the commercial printing industry in the developing countries to fuel increased market demand for printing machinery. “The demand for higher specification products is expected to grow further in the global market,” the statement added.
Both companies will jointly study a business alliance “with a possible setup of a joint venture company in the future” specifically aimed “at improving competitiveness of sheetfed offset printing machinery, enhancing the scale of operations and solidifying its management base.” The resulting plan seeks to strengthen MHI’s and Ryobi’s presence in the global market. Such a scheme would allow “significant synergies, such as enhancement of product lineup, enlargement of product development capability, reduction of product cost and improvement in sales and service networks.”