This is to notify that Sumitomo Heavy Industries, Ltd. (hereinafter referred to as “SHI” or the “Company”) and its subsidiary Izumi Food Machinery Co., Ltd. have established a beverage machinery related joint venture company with Germany-based Krones AG (hereinafter referred to as “Krones”) to develop the Asia region.
Purpose of Establishing a Joint Venture Company
SHI Group has earmarked the beverage machinery business as a growth field and has worked over the years to strengthen its capabilities in this area. In particular in Asia, economic development has meant that the sales volume for tea and coffee-related drinks has increased, resulting in greater demand for beverage machinery. Germany-based Krones is a manufacturer of beverage machinery that was established in 1951. It is a global company with approximately 14,000 employees and a sales and service network spanning 82 countries. The company has strong distribution channels not only in Europe, but also in the future growth market of Asia.
Through the establishment of this joint venture company, SHI Group aims to capitalize on the know-how and supply chain of Krones and accelerate the development of its beverage machinery business in the Asia region.
