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Hitachi to Enter Business, Capital Tie-up with GMTC
05/10/2012 - Hitachi Metals, Ltd. has decided to enter into a business relationship with Taiwanese high-grade specialty steel manufacturer Gloria Material Technology Corp. (GMTC) for mutual cooperation in production, sales, technology, and investment. The agreement also extends to a capital tie-up under which Hitachi Metals will acquire the equivalent of 5% of GMTC’s stock.
Hitachi Metals, Ltd. has decided to enter into a business relationship with Taiwanese high-grade specialty steel manufacturer Gloria Material Technology Corp. (GMTC) for mutual cooperation in production, sales, technology, and investment. The agreement also extends to a capital tie-up arrangement under which Hitachi Metals will acquire the equivalent of 5% of GMTC’s stock to be issued for capital increase by way of third-party allotment.
Hitachi Metals already produces high-grade specialty steel at its Yasugi Works of Specialty Steel Division, High-Grade Metals Co. (Yasugi City, Shimane Prefecture). To effectively respond to the predicted rise in global demand, the company is looking for ways to expand its capacity and business base in the sector.
GMTC handles stainless steel and super heat-resistant alloys that are certified by major aircraft and energy plant makers, as well as mold materials and other steel products. GMTC also seeks to expand operations to meet the burgeoning market demand for high-grade specialty steel.
Hitachi Metals foresees this tie-up as a way of accelerating the creation of a partnership positioned to take full advantage of its strengths—high performance and high quality, technical services, product development expertise, and brand recognition—as well as those of GMTC, which include an extensive overseas sales system, ready access to the Chinese market, price competitiveness, and brand power. The ultimate objective is to redouble growth in the high-grade specialty steel business in the steadily expanding global market.
The schedule currently calls for Hitachi Metals and GMTC to advance more detailed discussions aimed at commencing mutual production outsourcing, shared use of distribution channels, technical support, and other collaboration from the current fiscal year. The acquisition by Hitachi Metals of GMTC’s stock will be executed following GMTC’s general meeting of shareholders, scheduled for June 22, 2012.
