Announcement of batching plant business transfer
~ Utilizing the resources effectively in the business for mini-excavators and cranes ~
IHI Construction Machinery Limited <IK>, a subsidiary wholly owned by Ishikawajima Harima Heavy Industries Co., Ltd. <IHI>, announces that the batching plant business will be transferred to KYC Machine Industry Co.,Ltd <KYC>.
The both parties came to an agreement for the transfer by the end of March 2007.
The batching plant is a facility to produce ready mixed concrete made from cement, aggregates, and water to be mixed up. Our plant business faces the hard environmental circumstance that public work projects are contractile. In contrast, there is an expanding demand for high-value added concrete like "high-strength concrete" and "high performance concrete", which is desired for high-rise building construction. IK recognizes its necessity of R & D to be made continuously so as to make our presence higher and to keep competitiveness in the market.
IK will strengthen the business for mini-excavators and cranes that are positioned as our core products, utilizing our management resources effectively into the field.
The decision was made to transfer the batching plant business to KYC that runs mainly the plant business.
IK will transfer the sales right, technical know-how, and around 30 employees involved in the batching plant business to KYC.
KYC will consolidate IK's technical know-how and human resources into its existing plant business to provide higher -quality products as well as services by their harmony.
KYC tries further to enlarge the business to make its presence concrete in the market.
IK will utilize our business resources in the field of mini excavators and cranes, which contribute to provide better products and services. IK challenges further to develop the market and profitability through our activity emphasized on customers.
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