Plansee and MMC sign merger deal to launch PMG

Plansee and Mitsubishi Materials Corporation have formalised their PM joint venture by signing the agreement merging the relevant pats of their businesses under a Luxembourg-based holding company. The transaction is expected to be wrapped up on December 1.

They will each have a 50 per cent stake in Plansee Mitsubishi Materials Global Sintering (PMG), which is capitalised at e5 million. Turnover is expected to be in the region of e350 million (Yen 48 billion).

The aim is to position the new joint venture as one of the leading global automotive suppliers in PM, and expand fast-growing markets in China, Eastern Europe and South America. PMG will run production facilities in Japan, Germany, Spain, the US, Malaysia and China and will focus on global engineering and production of structural parts from iron, steel, bronze, aluminium and titanium for engine, transmission and chassis applications.
Plansee's Michael Schwarzkopf is to be PMG's chairman with Mitsubishi's Tsuneo Katsuki as vice chairman. Masafumi Koga was named as president, with Michael Krehl as vice president.

The Plansee Group ended its fiscal year on 28 February, posting record sales of e680 million (about $812 million). Sectors such as automotive, electronics, lighting, medicine, and power all gained.

Dr Michael Schwarzkopf, chairman of the executive board of Plansee Holdings reported satisfactory earnings. He attributes earnings to high manufacturing-capacity utilisation and productivity improvements, this despite increases in the euro against the dollar and the yen and dramatic price increases for molybdenum and tungsten raw materials.

Plansee has 4,600 employees in 58 companies in 20 countries. Schwarzkopf said the first quarter of the new business year fell in line with the high level of the previous three months. However, he says current indicators point to a softening in the automotive, electronics, and semiconductor markets.

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