KYOTO, Japan (May 23, 2016) — Nidec Corporation announced that it acquired a 100 percent ownership interest in E.C.E. S.r.l., an Italian cable hoist manufacturer, from the shareholders on May 20 to strengthen its building construction machine business conducted through Nidec’s subsidiary, Nidec FIR Elettromeccanica S.r.l.
As a result of the transaction, E.C.E. became a consolidated subsidiary of Nidec, which issued a press release with details about the acquisition.
In line with its continuing initiative to create an optimal business mix, the company is actively moving forward with the development of new growth platforms with particular emphasis on automotive, appliance, commercial and industrial motors and solutions, according to the press release.
Commercial equipment and products have been and will continue to be an important impetus in keeping the initiative on course, the company said. Since the acquisition of Nidec Kinetek Corporation and its subsidiaries in November 2012, the company has added to its product portfolio a new range of motors for commercial equipment, such as pumps, kitchen appliances (dishwashers, ovens, etc.) and construction equipment (cable hoists, ladder hoists, lifts, etc.), primarily targeted at the European market.
Through the transaction, the company expects to strengthen FIR’s position in the building construction machines market. TEA International S.r.l., as a group company of FIR, covers sales and manufacturing of cable hoists for construction and has its presence mainly in Europe. E.C.E is also a well-known brand in this area and is a recognized brand in the Middle East and North Africa. Nidec expects E.C.E. will help both FIR and TEA to work in tandem to enhance Nidec’s brand exposure in the broader regional markets.
In addition, E.C.E., with its sales mainly through its agents, can expand its sales in regions other than the Middle East and North Africa by using the FIR group’s sales network and sales force, the company said. Nidec also expects E.C.E. to utilize procurement synergies with the FIR supply chain to improve its profitability, the company added.