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Kyocera to acquire 100% ownership of U.S.-based solid tool manufacturer
Kyocera Corporation (President: Goro Yamaguchi) today announced that it has completed a share purchase agreement regarding the U.S.-based solid tool manufacturing and sales company, SGS Tool Company (President: Thomas Haag) and its group companies (herein “SGS Tool”).
Effective May 2, 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.
Cutting tools are utilized for machining in various industrial fields including automotive, aerospace, energy, general industrial machines and medical related products ― 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 automotive, aerospace, energy and medical 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.
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.
About SGS Tool
|Company name||SGS Tool Company|
|Global headquarters||Munroe Falls, Ohio, U.S.A.|
|Main Business||Manufacturing and sales of solid tools|
|Employees||335 (as of February 29, 2016)|
SGS Tool main products
|Endmills||Drills||Tools for medical use|