July 16, 2007 -- The US subsidiary of Sumitomo Electric Hardmetal Corporation has acquired a 75% controlling stake in US cutting tool manufacturer Master Tool Corporation for US$6.5m as it seeks to expand its line-up of products for the North American automotive industry.
Cleveland, Ohio-based Master Tool is a leading manufacturer of cutting tools for processing vehicle engine parts. Until now, Sumitomo Electric Hardmetal had been supplying cubic boron nitride bits and other products used in the tools to Master Tool, which in turn sold the products to US OEMs.
The acquisition of Master Tool means that Sumitomo Electric Hardmetal will now produce and sell in the US most of the machine tools needed for the processing of components in the automotive sector. In 2008, Sumitomo Electric Hardmetal plans to boost Master Tool's sales by 150% from 2006 levels to more than ¥1.5bn by expanding its sales network beyond North America.
Source: Automotive World
Source: Factiva
