Mitsubishi Materials (MMC) of Japan has announced that it will acquire a 51% shareholding in Hitachi Tool Engineering Ltd, a leading Japanese cemented carbide cutting tool and wear part producer. Hitachi Tool Engineering Ltd is a division of Hitachi Metals Ltd which will retain the remaining 49% of shares. The transaction is scheduled to be completed by April 1, 2015.
Production of carbide tools by Hitachi Tool will become part of MMC’s Advanced Materials & Tools Division and the acquisition is expected to help MMC achieve a 10% share or higher of the global carbide tool market. Hitachi Tool specialises in the production of carbide tools for a variety of difficult-to-cut materials and complicated shape products for power generation equipment, aerospace materials and other applications.
It was stated that Hitachi Tool will benefit from MMC’s considerable global sales network, and will also be able to take advantage of MMC’s raw material procurement, integrated supply chain and recycling network.
The company will continue its tool steel business partnership with Hitachi Metals. Along with conventional type tool steel steels, there are some high speed tool steel grades made by Powder Metallurgy process (HAP series) having superior wear resistance and toughness because of higher alloy content and uniform fine microstructure.
Hitachi Tools employs 722 people (as at March 31, 2014) and reported net sales of Yen 18,966 billion ($177.8 million) for the financial year 2013/2014.