Tokyo (Kyodo) — Hitachi Construction Machinery Co. and Nissan Motor Co. will integrate their forklift businesses to enhance their competitiveness amid expectations for strong demand growth in emerging economies.
The two companies’ operations run by subsidiaries will be integrated and operated by Spring 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 subsidiary TCM Corp. and Nissan unit Nissan Forklift Co. will be merged under the new company to be called UniCarriers Corp., in which the INCJ will invest a total of 30 billion yen 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.
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, they said.