2017 News Release

Mgmt Back

Hitachi Metals, Ltd.

Notice Concerning Consolidation of Hitachi Metals MMC Superalloy, Ltd.,
as Wholly-owned Subsidiary

 Hitachi Metals, Ltd. (hereinafter, “Hitachi Metals”), hereby announces that it has decided to acquire all of the shares of its subsidiary Hitachi Metals MMC Superalloy, Ltd. (hereinafter, “Hitachi Metals MMC Superalloy”), held by Mitsubishi Materials Corporation (President: Akira Takeuchi; hereinafter, “Mitsubishi Materials”). The purpose of the acquisition is to strengthen the aircraft and energy materials business. Hitachi Metals concluded a share transfer agreement with Mitsubishi Materials on September 27, 2017.

 Subsequently, Hitachi Metals MMC Superalloy will become Hitachi Metals’ wholly-owned subsidiary as of October 2, 2017, the day of the scheduled share transfer. Going forward, we will aim to further reinforce and expand Hitachi Metals’ aircraft and energy materials business by leveraging an even closer integrated management system.

1. Purpose of Transaction

 Hitachi Metals’ Specialty Steel Company aims to achieve further growth in the global automobile, industrial infrastructure and electronics-related markets. By positioning the aircraft and energy materials business as a core business for the next generation, we have been aggressively investing our management resources in order to further solidify and expand this business.

 As part of such efforts, Hitachi Metals has been making large-scale investments in Yasugi Works (Yasugi, Shimane Prefecture), its main manufacturing plant. These include a 24-ton vacuum induction melting and casting furnace, a 10,000-ton class free forging press, and a high speed radial forging machine. The investments will further strengthen special steel as a material. In addition, Hitachi Metals established Japan Aeroforge, Ltd. (Kurashiki, Okayama Prefecture), with Kobe Steel, Ltd., and others in 2011, investing in a 50,000-ton cutting-edge hydraulic forging press—one of the largest in the world.

 In 2014, Hitachi Metals acquired 51% of the issued shares in Hitachi Metals MMC Superalloy. Now a consolidated subsidiary of Hitachi Metals, the company has an extensive track record and technological capabilities in the aircraft materials area. Following this transaction, Hitachi Metals MMC Superalloy accelerated personnel exchange with Hitachi Metals and increased its product competitiveness by newly installing an 840-ton ring rolling mill and three large heat treatment furnaces, which resulted in the steady acquisition of customer accreditation. Hitachi Metals MMC Superalloy has also been aggressively engaged in sales activities in the global market in close collaboration with the Hitachi Metals Group.

 Given these circumstances, we have decided that this share acquisition and integration of Hitachi Metals MMC Superalloy into Hitachi Metals has progressed sufficiently. Accordingly, we have judged that it is best to consolidate Hitachi Metals MMC Superalloy as our wholly-owned subsidiary in order to realize medium- to long-term growth of the aircraft and energy materials business through closer collaboration between the two companies.

2. Outline of Hitachi Metals MMC Superalloy, Ltd.

(Unless otherwise specified, the data below refers to the situation [schedule] as of October 2, 2017.)

(1) Company name Hitachi Metals MMC Superalloy, Ltd.
(2) Location 1230 Kamihideya, Okegawa, Saitama
(3) Date of incorporation July 1, 2010
(4) Representative Yoshitaka Suda, President
(5) Capital 3,808.4 million yen
(6) Business details Manufacturing and sales of heat resistant alloys, corrosion resistant alloys, wear resistant alloys and special copper alloys
(7) Number of employees 344 (as of March 31, 2017)
(8) Shareholders Hitachi Metals, Ltd.: 100%