KITZ is to acquire common shares in TOA Valve Engineering Inc and to formalize a capital and business alliance between the two companies.
KITZ is an established valve manufacturer in Japan and abroad and offers a wide variety of products in the fields of building utilities, oil and petrochemical refineries through an extensive production and sales network. TVE is a leading Japanese valve manufacturer specializing in the manufacture of high temperature and high pressure service valves for power generation, for which quality and reliability are highly important.
The alliance specifies the sharing of resources and expertise in procurement, engineering, production, sales and after sales service. The deal is expected to complement and develop the existing strengths of the two companies, namely the high technical background and experience for high temperature/pressure service valves offered by TVE and the global network for procurement, production and sales provided by KITZ.
Under the agreement of the capital and business alliance, KITZ will become the largest shareholder of TVE. The deal reflects the longer term strategy of expanding overseas business by combining the strengths of both companies.