Hitachi, Nissan to integrate forklift businesses

News Story
- 1 Dec 2011 ( #542 ) - Tokyo, Japan
1 min read
Hitachi Construction Machinery Co. and Nissan Motor Co. have announced that they will integrate their forklift businesses to enhance their competitiveness amid expectations for strong demand growth in emerging economies.

According to a report in Japan's Mainichi Daily News, the two companies' operations run by subsidiaries will be integrated and operated by the northern spring of 2012 under a new company to be set up by the Innovation Network Corporation of Japan, an investment fund backed by the government.

Under the agreement, Hitachi Construction's TCM Corp. subsidiary and Nissan's Nissan Forklift Co. unit will be merged under the new company to be called UniCarriers Corp., in which the INCJ will invest a total of JPY 30 billion (USD 386.4 million) to take the majority of the new firm's shares in terms of voting rights.

Hitachi Construction and Nissan will hold stakes in the new firm in proportion to their subsidiaries' share transfer and will continue to support the growth of the forklift business by providing technology and engaging in joint research and development projects, according to the report.

The move is aimed at securing a large share in growing markets as many Japanese forklift manufacturers do not have sufficient operational scale to capture share in expanding markets despite their technological advantage.
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