Nissei ASB and Shibaura Machine to jointly market machines in India

Two Japanese compatriot machine makers: Shibaura Machine and Nissei ASB Machine have entered into a memorandum of understanding for a business partnership for cooperation in injection moulding machines and other fields in mainly emerging markets abroad, in particular India.

The firms say that MoU is a result of factors such as the Japanese injection moulding machine manufacturers currently facing an “unprecedented period of change” caused by the global economic stagnation due to the Covid pandemic, ESG and other environment-related regulations, the need to prepare for industry 4.0, and intensified competition due to the market entry in emerging markets.

In light of these circumstances, Shibaura Machine and Nissei ASB aim to combine what each has to offer in the value chain from development to sales using their unique strengths and know-how as machine makers.

In particular, the companies will aim to capture the top position in terms of market share in India and increase global sales by utilising resources at their locations in India, which are primary locations for their business.

Shibaura Machine and Nissei ASB say that the MoU will be used as the starting point for initiating the discussion and examining the possibility of collaboration in a broad range of fields with a view to the sustained growth of both companies, and will initially start with arrangements for collaboration in the manufacture and sale of injection moulding machines at locations in India.

In relation to small electric injection moulding machines, which are expected to be a future growth product, the companies aim to widely supply machinery with specifications that meet the requirements of emerging markets by combining the technological capabilities of Shibaura Machine’s electric injection moulding machines with Nissei ASB’s local procurement and production capacity in India and using the differing customer sales routes of each company.

Shibaura Machine and Nissei ASB will commence an assessment of the specifics of their business model, such as their specific roles and the division of functions.

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