Mori Seiki Co. and Gildemeister AG have outlined plans to establish a joint-venture manufacturing company in China with Shenyang Machine Tool Co. to produce machine tools with a focus on the automotive and electronics OEM markets. News reports from indicate the venture could be producing 100 machine centers per month by years end, but Mori Seiki has said no decision has been made on the amount of its investment in the venture nor its output targets.
The new venture will target Chinese manufacturers, but may export to emerging economies, Japan, the U.S., and Europe, according to reports. “This move takes account of the growing importance of China as the largest sales market worldwide for machine tools,” according to a Gildemeister statement.
Gildemeister is listed as the product designer for the new venture, with Shenyang overseeing production and Mori Seiki directing sales and services.
In addition, Mori Seiki is once again raising its holding in Gildemeister to 20.1%. Two years ago the two companies established a cross-shareholding arrangement in which each partner acquired 5% of the other. Last month, Gildemeister directors issued new common shares that Mori Seki acquired for a reported $116 million increasing its total holding in Gildemeister to 13.6%. At that time, it was indicated that Mori Seiki would increase its holding further, but would not acquire more than 24.9%.
Mori Seiki designs and builds CNC lathes, multi-axis turning centers, vertical and horizontal machining centers, and develops application systems. Gildemeister AG is a holding company for the DMG, Deckel Maho, Gildemeister products, which include turning and milling technology, along with control systems.
Shenyang Machine Tool Co. is a Chinese state-owned company that manufactures conventional lathes, CNC lathes, pipe-threading lathes, CNC milling boring machines, turning milling centers, among other machines.