Sumitomo Corporation and Musashi Seimitsu Industry Co., Ltd. have reached a basic agreement on the acquisition by Sumitomo Corporation of 25% of the shares of Hay Holding GmbH, a major German manufacturer of automotive parts whose shares are all held by Musashi.
Hay, with nine business locations mostly in Europe, is Europe’s largest manufacturer of forged and machine-processed components. Hay is also price-competitive in its high-speed hot forging of transmission gears and other power train components, and expects to see significant future growth not only by continuing to serve a steadily growing European automobile market but also by capturing rising demand in the Chinese market.
Musashi is engaged in the manufacture/sale of engine, gear-related, and underbody parts for car and motorcycle manufacturers, and it does manufacture globally from 21 business locations in 11 countries.
Sumitomo Corporation regards the automotive-related business as one of its core businesses. Sumitomo Corporation’s automotive business can be largely divided into three areas: manufacturing, sales and distribution, and financing and leasing. It is also expanding into the finished vehicle/parts manufacturing business by collaborating with Japanese finished-vehicle and parts manufacturers that were previously customers.