Mitsubishi, Ryobi Studying Business Alliance

HIROSHIMA, JAPAN—Mitsubishi Heavy Industries Printing & Packaging Machinery and Ryobi Limited have signed a letter of intent for a joint study on a business alliance for commercial printing machinery business.

Both companies have been producing and selling sheetfed offset printing presses and facing the stiffer market situation with the shrinking demand, especially in developed countries due to the recent global economic crisis. This has led both companies to promote structural reforms to sustain competitiveness in the market and financial soundness as well.

As part of the further efforts in strengthening corporate structure, both companies agreed to study the feasibility of setting up a joint venture company specifically aimed at improving competitiveness of sheetfed offset printing machinery, enhancing the scale of operations and solidifying its management base.

The companies foresee market demand for printing machinery in the developing countries becoming stronger, with the demand for higher specification products expected to grow further in the global market.

The two firms hope to forge an agreement that would produce significant synergies such as enhancement of product line-ups, enlargement of product development capability, reduction of product cost, and improvement in sales and service networks. A final agreement is expected by June 30.