Koyo Seiko, Toyoda Machine Works (TMW, Japan) Announce Merger
The boards of Koyo Seiko Co., Ltd. and Toyoda Machine Works have met and formally agreed to merge their two companies. The new company will be called JTEKT Corporation and will have offices in Osaka and Nagoya, Japan.
Originally, the merger was to take place April 1, 2006, but has been moved up to January, 2006. The ownership of JTEKT Corporation will be primarily Koyo, since it is roughly twice the size of Toyoda Machine Works.
All Koyo and Toyoda brand names will remain unchanged in their various marketplaces under the new organization. All operations of both companies are tentatively slated to continue as is with no reduction in their present workforce.
Koyo Seiko Co., Ltd. was established in January, 1921 and has become the world's fourth largest bearing manufacturer. The company also produces electric powered steering systems and other automotive-related products.
Toyoda Machine Works was established in 1941 as a machine tool manufacturer and has remained primarily in that business, with some operations presently focusing on automotive components and electronic controls.
Both companies have long and close ties with Toyota Motor Corporation. Toyota owns almost 23% of Koyo Seiko and almost 24% of Toyda Machine Works. A deputy director from Toyota Motor Corporation has been named a managaing officer of JTEKT.
Kohshi Yoshida, President of Koyo Seiko Company will be named President of JTEKT upon completion of the merger.
