Ryobi joins forces with Mitsubishi in major press maker merger

A new Japanese press making giant has been born as Ryobi and Mitsubishi agreed to join forces.

The two sheetfed offset manufacturers will officially integrate their businesses on 1 January 2014. The new company will be called Ryobi Mitsubishi Heavy Industries Graphic Technology, and will be 60% owned by Ryobi and 40% by Mitsubishi. It will be based in Hiroshima, Japan.

Ryobi has been making significant headway into the Australian market in recent years under the agency of reseller Cyber. Major installations include three presses sold to CMYKhub over as many trade shows.

The press manufacturer has also been making moves in the digital space, including a hybrid press running Kodak imprinting heads and a B2 sheetfed liquid toner press developed with Miyakoshi.

Ryobi and Mitsubishi Heavy Industries Printing & Packaging Machinery  announced their proposed partnership on 23 January with a letter of intent. They then had until 30 June to finalise an agreement.

[ProPrint Poll: Who wins when vendors consolidate?]

They said the joint venture had been prompted by a fall in demand since the Global Financial Crisis.

"This downturn has led both companies to promote internal structural reforms in order to sustain their market competitiveness and financial soundness," they announced.

The joint venture should deliver "significant synergy effects including product line-up enhancement, expansion of product development capabilities, production cost reductions and improvement in sales and service networks".

It will also help the companies "prevail against intensifying global competition and build a stronger presence in the global market".

Ryobi and Mitsubishi said they expected demand to increase in emerging economies - and that the developed world was also likely to see a growth in higher-spec products.

The joint venture was signed on 20 June.