Machine tool makers Tornos, Switzerland, and Tsugami, Japan, have signed a framework partnership agreement covering areas such as research and development, procurement, production and distribution.
The two companies have complementary activities in both product range and the geographical markets in which they operate, says the announcement.
Two contracts are currently being drawn up and will involve will involve Tsugami producing entry-level single-spindle machines for which Tornos has supplied the specification and which it will then distribute through its own sales network. Under the second contract, Tsugami will distribute Tornos multispindle machines in Japan and Asia.
Tsugami has a strong presence in Asia, which accounts for over 80 per cent of its sales. The first project under this alliance will enable Tsugami to leverage its production capacity more intensively. The second will optimize the use of its distribution channels in Asia.
Tornos has a strong presence in Europe, which accounts for almost 80 per cent of its sales. The first project under this alliance will give Tornos access to a complementary line of entry-level single-spindle products. The second will enhance penetration in Asia of its multispindle machines, replicating the business model already working successfully in the USA under its alliance with Hydromat.
Other agreements will be signed in future. With this in mind, the Tornos board of directors is setting up an ad hoc committee, an approach also being followed by Tsugami. Representatives of these two bodies will form an ‘Alliance Committee’. Membership of that committee will also include representatives of the companies’ respective boards acting as senior advisors of the alliance for each firm, together with senior managers from the companies directly involved in projects set up under the contracts. The senior advisors may also be invited to attend Board meetings of the partner company.
To cement the links between the two groups and symbolise the importance of the alliance for the two partners, each company has decided to acquire 1 million shares in the other.
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