A new offset press manufacturing alliance between Ryobi Limited and Mitsubishi Heavy Industries Printing & Packaging Machinery is set to see the two Japanese companies bolster their standing in the global offset industry.
The completion of the deal, which comes six months after the initial proposal of the alliance, is hoped to enable the two companies to maintain a prominent position in the global offset sheetfed press manufacturing market amid weakening global demand.
- The merger is well-timed - Bernard Cheong, managing director of local Ryobi offset supplier, Cyber.
In a joint statement, published on 20 June, the two manufacturers, said:
“Recently…the market situation has deteriorated owing to shrinking demand, especially in the developed countries, due to the global economic crisis. This downturn has led both companies to promote internal structural reforms in order to sustain their market competitiveness and financial soundness.
“The commercial printing industry presently anticipates demand for printing machinery to strengthen in the emerging economies. Simultaneously, demand for higher specification products is expected to grow further within the mature economies.”
In creating their new joint venture, the two companies say they seek to prevail against intensifying global competition and build a stronger presence in the global market.
They also aim for the new entity to develop into a leading global company in the printing press industry by meeting customer expectations and providing innovative, high-quality products and outstanding services to the market.
The agreement finalizes plans to establish a joint venture integrating the two companies’ respective sheet-fed offset printing machinery businesses in a bid to achieve ‘synergy effects’, including product line-up enhancement, expansion of product development capabilities, production cost reductions, and improvement in sales and service networks.
The companies say that the commercial printing industry anticipates demand for printing machinery to strengthen in the emerging economies, and the new combined entity will be well positioned to develop into a leading global company in the printing press industry.
Bernard Cheong (pictured), managing director of local Ryobi offset supplier, Cyber, said the initial alliance announcement earlier this year from the two companies comes at a good time, with Ryobi’s sales in South East Asia looking strong.
“The global economy has undergone many correction cycles over the last 2 years after the Global Financial crisis. Obviously, the printing industry has not been spared,” said Cheong in January. “We are fortunate that Ryobi’s business in China and South East Asia has been brisk. The joint press release to mark the intentions of the merger of Ryobi and Mitsubishi is well timed.”
The joint venture will see a new entity, 'RM Limited' set up on 31 July as preparatory company, with the company name to be changed to 'Ryobi Graphic Technology Ltd. and joint operations to commence on 1 January 2014.