Kioritz, Shindaiwa to merge
Japan-based Yamabiko Corp., the recently formed parent company of Kioritz Corp. and Shindaiwa Corp., is merging the two companies and will operate them as Yamabiko. Kioritz Corp. manufactures forestry and agricultural machinery, as well as outdoor power equipment. Shindaiwa Corp. manufactures welding machines and generators, agricultural and forestry machinery, and outdoor power equipment. The consolidation will affect the North American operations of both companies. “We have already made significant progress in gaining synergy with the two companies since our 2007 alliance,” said Chuck Kitazume, president and CEO of Yamabiko. “However, continued weakening of world markets, rising costs and the declining exchange rate between the dollar and yen dictate that we accelerate the consolidation process.” Operations of both companies will be merged in Japan by Oct. 1.
Shindaiwa Inc. of Tualatin, Ore., transferred sales and marketing responsibilities for Europe, Asia and the Middle East back to Japan as of April 1, 2009. Eventually, all Shindaiwa operations will merge with Lake Zurich, Ill.-based ECHO Inc., a subsidiary of Kioritz Corp. Consolidation of the U.S. operations should be complete by Oct. 1. “The merger of these operations will result in an efficient organization with lower costs, allowing both brands to be even more competitive in the North and South American markets,” said Yamabiko Chairman Yasushi Asamoto.