September 27, 2006
TAMURA FA System Corporation (Headquarters: Sayama-shi, Saitama-ken; President: Tomoyuki Nakano; hereinafter called TAMURA FA System), a subsidiary of TAMURA Corporation (Headquarters: Nerima-ku, Tokyo; President: Naoki Tamura; hereinafter called TAMURA), and The Furukawa Electric Co., Ltd. (Headquarters: Chiyoda-ku, Tokyo; President: Hiroshi Ishihara; hereinafter called Furukawa Electric) establish in October 2006 TAMURA FURUKAWA MACHINERY CORPORATION (hereinafter called TFM), a joint company with a business area targeted at manufacturing, sales, maintenance service, etc. of reflow soldering equipment.
Background and Objectives of Joint Business
As the mounting industry continues to grow centering on China and Southeast Asia, the reflow soldering equipment business has been growing at an annual rate of 10% or more in these several years. But given the fact that a special procurement boom related with lead-free soldering has quieted down and that there are new movements toward business affiliation between the Euro-American and Chinese manufacturers, it is anticipated that we face intensified competition in the near future. Whereas TFM and Furukawa Electric share the recognition of such a harsh market environment, they have come to establish the new joint company because, they consider, it is possible to achieve business expansion and business performance enhancement by complementing strong points of either company.
Either company, TAMURA FA System and Furukawa Electric, is a leading company in this business field, having established a remarkable delivery record with a number of manufacturers both at home and abroad. The new company TFM will make effective use of managerial resources of both companies such as manufacturing bases, marketing network and design development capability, and taking advantage of synergy effects between the strong points of the two companies, will make efforts to be the world’s No.1 manufacturer of reflow soldering equipment. In particular, with respect to market development of TFM in China, the company will strengthen collaboration with Furukawa AVC Electronics (Suzhou) (FAZ), an affiliate company of Furukawa Electric in China, in order to reinforce and expand FAZ as an important business base for not only manufacturing but also for marketing in East China where many Japanese corporations are involved, thereby enhancing functionalities of customer service and product maintenance.
The outline of the newly established company TFM is as follows.
Outline of the New Company
| Company name | : TAMURA FURUKAWA MACHINERY CORPORATION |
| Establishment | : October 1, 2006 (scheduled) |
| Executive director & president | : Takashi Fukano |
| Location | : 2-3-1 Hirosedai, Sayama-shi, Saitama-ken |
| Capital | : 100 million yen (Investment ratio: TAMURA 70%, Furukawa Electric 30%) |
| Description of business | : Manufacture, sales, development, maintenance service, etc. of reflow soldering furnace |