Okuma Holdings Inc. - Introduction

Introduction

5-25-1 Shima-Oguchi, Ohguchi-cho
Niwa-gun 480-0193
Japan
Telephone: (+81) 587 95 7820
Fax: (+81) 587 95 4807
Web site: http://www.okuma.co.jp

Public Company
Incorporated: 1898 as Okuma Noodle Machine Co.
Employees: 1,895
Sales: $822 million (2004)
Stock Exchanges: Tokyo
NAIC: 332721 Precision Turned Product Manufacturing; 333319 Other Commercial and Service Industry Machinery Manufacturing; 333515 Cutting Tool and Machine Tool Accessory Manufacturing; 333518 Other Metalworking Machinery Manufacturing

Okuma Holdings Inc. is the name adopted in 2005 for the merged operations of Okuma Corporation and two affiliated companies, Okuma & Howa Machinery Ltd. and Okuma Engineering Co. The new company is one of Japan's and the world's largest manufacturers of computer-numerical-control (CNC) machinery and systems. The company, which stemmed from a maker of noodle machinery at the turn of the 20th century, produces a wide range of machinery for every industry. The company's largest production is in machining centers, which combine a range of production processes into a single, comprehensive system. Machining centers represent 50 percent of the group's sales, which are expected to top ¥136 billion ($1.3 billion) by the end of the enlarged company's 2006 fiscal year. Lathes represent Okuma's second-largest product category at over 30 percent. The company also produces multitasking machines, enabling a variety of production processes from a single centralized system. This category represents 14 percent of sales. Japan remains Okuma's core market, accounting for more than 46 percent of revenues. Elsewhere in the Asia Pacific region, the company generates more than 14 percent of sales, a number which was expected to grow with the company's launch of a lathe-making joint-venture, Hangzhou Feeler Takamatsu Machinery Co., in January 2005. Okuma has also maintained a sales and manufacturing presence in North and South America, especially in the United States, since the early 1980s. That market accounted for 26 percent of group sales in its 2005 fiscal year. In addition, Okuma exports to Europe, which represents approximately 14 percent of sales. Junro Kashiwa, who serves as president and CEO of Okuma Corp. will become chairman of Okuma Holdings. Upon completion of the merger, the listing for Okuma Holdings will replace those of Okuma Corp., Okuma & Howa, and Okuma Engineering.