PRESS RELEASE: Nikon Reinforces Digital Camera Business with Capital Investment to Notion VTec Berhad (Malaysia)
January 19, 2010 - Nikon Corporation (Michio Kariya, President) has invested capital in Notion VTec Berhad (Thoo Chow Fah, Executive Chairman; hereinafter, Notion), located in Selangor Darul Ehsan, Malaysia, in order to strengthen and expand the relationship between the two companies.
This will help Nikon to increase its presence even further in the digital camera market through the utilization of Notion's machining technologies in the production of Nikon products, and development of a framework that will achieve a stable supply of highly competitive digital cameras.
Objectives of stock acquisition
As digital cameras become more and more common, precision instrument machining technologies become even more important, as the core of production technologies, in maintaining a global competitive edge and in the ability to achieve and maintain a stable supply of high-quality products to the market. Notion has advanced technologies and a great deal of know-how in the machining field, which it has applied, along with extensive business connections including those in machined parts supply, for the manufacture of Nikon interchangeable lenses. Therefore, Nikon has decided to strengthen and expand its cooperative relationship with Notion in order to provide the market with a more stable supply of digital cameras and interchangeable lenses.
On the other hand, the increased strength of the yen since the current monetary crisis began has affected profits, making the reduction of risks related to exchange rates with overseas procurement an important topic. At the same time, further cost reduction is extremely important given the severe competition in the digital camera market. Nikon expects that the investment of capital to Notion will help to reduce the risks associated with fluctuating exchange rates and reduce costs to further strengthen its digital camera business.
In the future, Nikon will promote business expansion by strengthening its cooperative relationship with Notion through the more stable release of products to the market and increased competitive power achieved with the utilization of Notion's advanced precision instrument machining technologies.
Details of stock acquisition
|Third-party allocation of new shares |
|Date of acquisition ||January 15, 2010 |
|Quantity acquired ||13,844,694 shares (equivalent to 10% of outstanding shares prior to the new stock issue) |
Notion VTec Berhad corporate profile
|Corporate name ||Notion VTec Berhad |
|Representative ||Thoo Chow Fah, Chairman and Executive Director of the Board |
|Address ||Lot 6123, Jalan Haji Salleh, Batu 5½ Jalan Meru, 41050 Klang, Selangor Darul Ehsan, Malaysia |
|Date of establishment ||1995 |
|Capital ||RM70,358,342 |
(approximately ¥1,900 million at ¥27 per RM1.00)
|Business ||Manufacture of precision parts |
|Major products ||Components for hard disks, cameras, home electronics, and industrial components (for automobiles, air conditioners and digital devices) |
|Number of employees ||Approximately 1,500 |
The information in this press release is current as of the date of publication. It is subject to change without notice.
(First posted on Tuesday, January 19, 2010 at 11:19 EST)