Innovation Network Corporation of Japan ("INCJ"), Hitachi Construction Machinery Co., Ltd. ("Hitachi Construction Machinery") and Nissan Motor Co., Ltd. ("Nissan"), signed a Memorandum of Understanding to integrate their forklift businesses. With stricter environmental regulations affecting industrial operations in developed countries, many Japanese lift truck manufacturers are looking for ways to get a share of those markets. Without sufficient scale themselves, companies are increasingly looking to such strategic mergers, acquisitions and restructuring.
The subsidiaries involved, TCM Corporation and Nissan Forklift Co., Ltd., are being merged into a new company to be established and operated mainly by INCJ. Subject to receiving the necessary approvals from government authorities, the subsidiaries of Hitachi Construction Machinery and Nissan will be integrated and operated under the new company by spring 2012.
The new company aims to, while sustaining and developing existing business, gain market share in growth markets where the competitive landscape is still in flux. This will be supported by intensively allocating management resources in emerging markets, such as the ASEAN countries, and in sectors such as environmentally-friendly technologies.
The consolidation of business resources resulting from the integration, together with INCJ's additional funding, will enable the new company to develop to a scale that would not have been possible if attempted by each individual company, according to a Nissan press announcement. As shareholders in the new company, Hitachi Construction Machinery and Nissan will continue to support its growth by providing technology or other business know-how and engaging in joint development projects.
The name of the new company will be "UniCarriers Corporation" and Satoru Omori will be appointed as its representative.