Toyoda Machine Works, Kariya, Japan, parent of Illinois-based Toyoda Machinery USA, is merging with Koyo Seiko, Osaka, Japan. Both are affiliates of Toyota Motor Corp. and are combining to take on intensified competition in the automotive industry.
In addition to manufacturing cylindrical grinders and HMCs, Toyoda Machine Works produces power steering and driveline systems. Koyo Seiko produces ball and roller bearings, automotive steering systems, and centerless and surface grinders. Both companies are involved in Favess Co. Ltd., a joint venture developing and selling electric power-steering products.
The merger is expected to be completed by April 2006. Toyoda Machine Works common stock holders will be issued 0.76 share replacement of Koyo Seiko common stock for theirs. Koyo Seiko President Koshi Yoshida will become president of the as yet unnamed integrated company, with Toyoda Machine Works President Motohiko Yokoyama as vice president.