Kyoto, Japan – Kyocera Corp. completed a share purchase agreement regarding the U.S.-based solid tool manufacturing and sales company, SGS Tool Co. and its group companies. Effective May 2, 2016, Kyocera will acquire 100% ownership of SGS Tool, and will rename the company as KYOCERA SGS Precision Tools, Inc. By incorporating SGS Tool, Kyocera plans to increase sales of cutting tool business in North America by 2.5 times by fiscal year ending March 31, 2019.
Background
Cutting tools are utilized for machining in various industrial fields including medical related products, automotive, aerospace, energy, and general industrial machines – with two main categories of products: indexable tools and solid tools. In this market, there is a high demand for companies that can provide total solutions for products ranging from roughing to finishing.
Currently Kyocera is expanding its cutting tool business globally with its main lineup of indexable cutting tool products; while SGS Tool is a solid tool manufacturing and sales company developing its business mainly in the U.S. and U.K. which possesses strength in products for the medical, automotive, aerospace, and energy industries.
By incorporating SGS Tool into the Kyocera Group, Kyocera will create a business structure capable of providing total solutions and strengthen its business globally as a valuable comprehensive cutting tool manufacturer.
Main objectives
1. Providing valuable solutions
By expanding its lineup with solid tools and creating a structure capable of providing total solutions, Kyocera will provide further added value solutions to customers.
2. Strengthening business in North America
By adding new manufacturing and sales sites, Kyocera will further strengthen and expand its cutting tool business in North America.
3. Development of products and technologies utilizing the knowledge of both companies
Through mutual utilization of the sophisticated product geometry and latest coating technologies originally developed by each company, Kyocera will enhance its competitiveness and meet an even wider variety of needs in the market.
SGS Tool Co. and its subsidiaries will be owned by Kyocera Corp. SGS headquarters will remain in Munroe Falls with manufacturing located in Cuyahoga Falls, Ohio and Columbia City, Indiana, as well as the U.K. All SGS associates, including manufacturing, sales agents, distribution center, and administrative and executive staff will remain with the new company.
SGS Tool Co. was originally founded in 1951 and today, SGS is best known for their solid carbide high performance end mills, drills, stainless steel medical tools, and subsequent PVD coatings. The majority of their business is in the U.S. with manufacturing in Wokingham, England. Greater than 30% of SGS’ sales result from exports to more than 60 countries.
Kyocera Corp. was founded in 1959 as a producer of advanced ceramics. By combining these engineered materials with metals and integrating them with other technologies, Kyocera has become a leading supplier of cutting tools, industrial ceramics, solar power generating systems, mobile phones, printers, copiers, electronic components, and semiconductor packages. During the year ended March 31, 2015, the company’s net sales totaled 1.53 trillion yen (approx. $12.7 billion). Kyocera appears on the latest listing of the “Top 100 Global Innovators” by Thomson Reuters, and is ranked #552 on Forbes 2015 “Global 2000” listing of the world’s largest publicly traded companies.
Tom Haag, president of SGS Tool Co. commented don how the sale fit into a long-term strategy for the business and community. “Kyocera’s business model offered many solutions to our business challenges approaching over the next decade. From basic raw material to research & development solutions, the company is well-positioned for the market challenges and innovations of the next decade and beyond”
Source: SGS Tool Co.