At a special ceremony held on 2 May at its Changwon factory, South Korea, senior management representatives from the new entity presented the company’s ambitions and future plans to an audience that included more than 1,100 employees (from home and abroad), as well as a number of additional key stakeholders.
The business plan, titled ‘New Start 40’ as it covers 40 years, focuses on the company continuing to aggressively grow its share of the global machine tool market, with the aim of becoming one of the top three suppliers in the medium term. It adds that it currently ranks fifth or sixth worldwide in terms of annual sales, which have ranged between KRW 1.2 – 1.3 trillion (£706-765 million) with 10% profit in the past few years.
Key elements of the business plan that will help the company realise its ambitions are: a commitment to innovation and technology leadership; responsive and well-resourced customer service; a strengthening of relationships with its global network of dealers.
The 40 year time-line has resonance and significance as the first incarnation of Doosan Machine Tools, then as part of Daewoo Heavy Industries & Machinery, was first launched in 1976: forty years ago.
After presenting 'New Start 40' at the ceremony, CEO Kim Jae-seop said:
"I would like to thank all employees of Doosan Machine Tools for their dedication. We have just taken our first step towards becoming one of the world’s principal top three machine tool suppliers. This is a historic milestone in our corporate history.”
Doosan Machine Tools (then called Daewoo Machinery) was originally launched as part of Daewoo Heavy Industries & Machinery on July 1, 1976. The business unit was subsequently acquired by Doosan Group where it operated as part of Doosan Infracore until the beginning of the month.
Parent company Doosan Infracore, primarily a construction equipment manufacturer, sold the division to improve its financial structure, according to Doosan Machine Tools Co Ltd.
The sale price was KRW 1.13 trillion (£664 million), reported South Korean newspaper Pulse.
Its new owner is South Korean venture capital firm MBK Partners, which last year bought Tesco's Homeplus network of stores in South Korea, for $6.15 billion, it reports on its website. Its managed assets total $10 billion. It says: “MBK Partners seeks to acquire industry-leading companies and, in partnership with management, to grow and create value in the companies over the long term. Through active participation on the board of directors, the MBK Partners investment team works with management to develop strategy, optimize capital structure, adopt global best practices in operations, controls and corporate governance and pursue strategic growth opportunities to build value.”
Currently Doosan Machine Tools Co., Ltd operates three manufacturing facilities, four subsidiaries, and 18 technical centres, and has global network comprising 122 dealers.
One of these dealers is Leamington-based Mills CNC, not only the exclusive distributor of Doosan machine tools in the UK and Ireland - a position incidentally it has occupied for over 25 years - but also a long-established and valued technical partner of first, Daewoo Machinery and, subsequently, Doosan Infracore and, now, Doosan Machine Tools Co., Ltd.
Commenting on the official announcement, Mills CNC’s managing director, Kevin Gilbert says: “It is perhaps a cliche to say that it’s business as usual. But that is very much the case. I am delighted that Doosan Machine Tools’ ambitions (as stated in New Start 40) are so closely aligned to our own corporate plans - especially the commitments made to innovation and to delivering ‘best-in-class’ after-sales service and customer support. I am also impressed that Doosan Machine Tools has presented a 40 year plan. Few companies would have the confidence or inclination to commit to such a progressive and ambitious programme.”
He adds: “The bottom-line for UK and Irish customers is to expect first-class machine tools backed by world-class aftersales services…which is why it’s definitely a case of ‘business as usual’.
*Revised 19/5/16 to include fact that Homeplus was a Tesco business.
