Nippon Piston Ring Co., Ltd., Tokyo, Japan, and Riken Corporation, Tokyo, Japan, have announced a Memorandum of Understanding (MoU) agreement to establish a joint holding company formed by mutual stock transfer, and to consolidate the two companies on equal terms. The MoU has been resolved by the board of directors of the two companies and the trading name of the new joint company will be NPR-Riken Corporation.
Founded in 1934, NPR is said to have contributed to the development of motorisation on a global scale through the provision of high-performance, high-quality Powder Metallurgy piston rings, valve seat inserts, camshafts, and other parts primarily for use in internal combustion engines. In addition to press and sinter Powder Metallurgy, the company also uses Metal Injection Moulding to manufactures a wide range of components.
Riken was established in 1927 to commercialise the research of the Institute of Physical and Chemical Research, and has contributed to the development of the global automotive industry for over ninety years through its study of surface treatment, processing, and materials technologies for piston rings and other parts.
The companies explained that the automotive industry is undergoing a remarkable transformation and the market for engine parts is becoming stricter. Despite this transformation, the companies believe the internal combustion engine will remain the primary form of power train, and NPR and Riken are dedicated to developing eco-friendly engine parts. The companies also believe it is necessary to think outside of the area of internal combustion related parts and increase investment in SDGs, ESG, decarbonisation, and other new areas in line with global trends.
This has led to the decision to establish NPR-Riken Corporation, which is expected to enable the two companies to focus on increasing the profitability of their existing core business of automobile engine parts by integrating and utilising the management resources of both companies. Additionally, NPR and Riken will work to accelerate efforts in the fields of marine vessels, hydrogen, new energy projects, thermal engineering, electromagnetic compatibility projects, metal injection moulded parts, medical equipment, axial gap motors, and other fields.
The joint holding schedule is anticipated to enable the following advantages:
- Strengthening existing businesses by reallocating management resources and developing products that will form the core of future business
- Strengthening the ability to respond to an increasingly decarbonising society
- Reducing costs through shared use of infrastructure and other resources
- Reducing manufacturing costs by improving production efficiency through shared product integration and achieving a timely and appropriate fulfilment of supply responsibilities
- Upgrading interpersonal abilities through the exchange of personnel and technologies
Assuming that NPR-Riken Corporation is approved at each of the company’s General Meeting of Shareholders, and the necessary approval of relevant authorities, the two companies plan to engage in a joint share transfer to establish a joint holding company that will be wholly owned by both NPR and Riken, bringing them together as a wholly owned subsidiary of NPR-Riken Corporation. It is reported that the president of Riken will assume the position of CEO of NPR-Riken Corporation and the president of NPR will assume the position of COO of NPR-Riken Corporation.