Sumitomo and Hansen gearmotor brands to merge
Chesapeake, VA - The board of directors of Sumitomo Heavy Industries Ltd. (SHI) passed a resolution on July 31, 2013, to merge two gear-reducer related subsidiary companies in the United States and Australia.
Chesapeake, VA – The board of directors of Sumitomo Heavy Industries Ltd. (SHI) passed a resolution on July 31, 2013, to merge two gear-reducer related subsidiary companies in the United States and Australia.
Despite acquiring Belgium-based Hansen Industrial Transmissions NV (HIT) in March 2011, the company has maintained separate global sales offices for SHI and HIT. Through this resolution, the company has decided to merge the respective subsidiaries in the North America and Australia regions to increase the efficiency of the sales channel and to improve the convenience level of its services for customers.
Sumitomo and Hansen are involved in the manufacturing, sale and after-sale service of industrial gear reducers and gear motors.
The merger will be effective in North America on August 5, 2013 and in Australia on October 1, 2013. In North America, the resulting company will be called Sumitomo Machinery Corporation of America of Chesapeake, VA. Hansen Transmissions Inc. of Verona, VA, will become redundant.
In Australia, the surviving entity will be SM Cyclo (Australia) Pty Limited of Arndell Park, Australia, and Hansen Transmission Pty Ltd. of Rowville, Australia, will become redundant. The final company name has yet to be determined. Its business will continue to be the assembly, sale and after-sale service of industrial gear reducers and gear motors.
As this is a merger between two consolidated subsidiaries, there will be no impact to the consolidated financial results. “This merger has to benefit all of our stakeholders, customers, employees, and shareholders. We must not lose sight of the fact that our customers are the most important stakeholder. If we fail to deliver the benefits of our merger to them, success will not be realized,” said Ron Smith, president and CEO of Sumitomo Machinery Corporation of America.
The merged companies will operate as Sumitomo Machinery Corporation of America (SMA) and the Hansen facility located in Verona, VA, will continue operations as a regional assembly and service centre, joining the network of SMA regional facilities located throughout North and South America.