March 22, 2011
STAR MICRONICS CO., LTD
CITIZEN MACHINERY CO., LTD.
Star Micronics Co., Ltd.(headquartered in Suruga-ku, Shizuoka-City, Shizuoka Prefecture; Mr. Hajime Sato, President) and Citizen Machinery Co., Ltd. (headquartered in Miyota-machi, Kitasaku-gun, Nagano Prefecture; Mr. Kenji Sugimoto, President) have jointly developed a strategic CNC sliding headstock type automatic lathe especially for the Chinese market. The model is aimed at expanding their share of the Chinese market for such machinery.
The market in China, which came to have the world's biggest production of machine tools in fiscal 2009, continues to expand. For both companies, it has evolved into a market of strategic importance. A shared realization that creation of products aimed at the low-end segment of this market was an urgent task led to the decision to embark on a program of joint development of a strategic model for China with the scope of functions narrowed as far as possible.
To remain competitive with rivals from Korea, Taiwan, and China, costs were held down by the program of joint development and joint purchase of parts. The resultant product is a strategic system positioned as an entry-level model to the CNC automatic lathe lines of the two companies. The two hope to broaden their foothold in the Chinese market at an early date by launching a new shared brand and jointly pursuing activities of product development, manufacture, and sales.
Because it is aimed exclusively at the low-end segment of the Chinese market, the strategic model is a sliding headstock type CNC automatic lathe with a carefully circumscribed range of functions. The two companies are going to produce it at their plants in China and sell it only in that market for the time being.
The new model is going to be exhibited at the booths of Company Star Micronics and Citizen Machinery Miyano at the China International Machine Tool (CIMT) Show, the biggest such event in China, beginning on April 11. There, the two companies are going to launch the new brand based on the strategic model for the Chinese market, make a strong pitch for it, and kick off their sales campaigns.