Kabelschlepp to be taken over by Tsubakimoto Chain

Tsubakimoto Chain has announced that it plans to acquire a 100% equity interest in Kabelschlepp GmbH, and make the company a subsidiary in order to enhance its global competitiveness in support and gu…

Tsubakimoto Chain has announced that it plans to acquire a 100% equity interest in Kabelschlepp GmbH, and make the company a subsidiary in order to enhance its global competitiveness in support and guidance systems for cables and hoses as per the determination of the board of directors at the recently-held board meeting. Tsubaki began producing chain-based cableveyors in 1959. Spurred by the increased demand for these products in the steel production and machine tool industries, Tsubaki entered into a License agreement with industry pioneer Kabelschlepp in 1968. Since then, over the past 40 years, Tsubaki has increased the range of supported applications and has expanded its lineup from steel cableveyors to those made from engineering plastics. The decision to make Kabelschlepp a subsidiary aims to leverage the long-running technological partnership between the two firms to enhance Tsubaki“s global competitiveness in cableveyors and other products via the following synergies: 1. Enhancement of competitiveness through faster and more efficient product development via integration of product development and establishment of global production bases in the cableveyor field. 2. Utilization of the sales networks and global talent pool of both firms to expand Tsubaki“s share of the global cableveyor market. 3. Expansion of sales of Tsubaki“s power transmission products (industrial chains and a variety of power transmission parts) in Europe by utilizing Kabelschlepp“s existing European customer base. Kabelschlepp is scheduled to become a consolidated subsidiary of Tsubakimoto Chain from the financial year ending March 2011. Accordingly, the equity acquisition of Kabelschlepp will have no impact on Tsubaki“s current consolidated results. Both companies had a joint venture in China, based in Shanghai.