News
News
Announcement on business alliance formed between Shimada Electric Co., Ltd. and IDEC Izumi Corporation
This is to inform you that Shimada Electric Co., Ltd. (President, Masami Shimada) has signed a business alliance agreement with IDEC Izumi Corporation (President, Toshiyuki Funaki), a general control device manufacturer regarding distribution of flameproof products. Details are outlined below.
Development leading to business affiliation
With few signs of an economic recovery in Japan, the demand for flameproof products in the major market segments comprising electric power, oil, and chemical plant industries continues to be stagnant due to such activity as continued cutbacks on investments in equipment.
However, we have seen a rise in new demand for flameproof products in such new market segments as gas, paints, chemicals, and multipurpose underground conduits supported by heightened awareness of labor safety and other issues.
In such circumstances, Shimada Electric, aspiring to become a general manufacturer of flameproof products, and IDEC Izumi Corporation, a general control device manufacturer, have joined hands, signing a business alliance agreement aimed at expanding their share and sales in the industry.
We will be able to offer customers an even broader range of product selections through this business alliance including control boxes, control devices, etc., in addition of course to our existing product lines including flameproof joint boxes, cable glands, wiring, piping equipment, etc. The alliance signifies our commitment to customer satisfaction and a step towards new market development.
The signing results in a business alliance agreement aimed at expanding share and sales in the industry between Shimada Electric, which endeavors to become a general manufacturer of flameproof products, and IDEC Izumi Corporation, a general control device manufacturer.
Effects
- Dealing in control boxes and control devices facilitates establishment of an integrated order-receiving system.
- Complements mutual distribution channels as our existing sales channels are combined with IDEC Izumi Corporation's users and the control device trade channel.
- Further alliance in the production and product development departments is anticipated.
Domestic market share of flameproof products
| IDEC Izumi Corporation | 20% |
|---|---|
| Shimada Electric | 15% |
| Total | 35% Expected to reach 50% in three years. |
Outline of IDEC Izumi Corporation
IDEC Izumi Corporation
| Representative | :Toshiyuki Funaki |
|---|---|
| Headquarters | :1-7-31 Nishi Miyahara, Yodogawa-ku, Osaka City 532-8550 |
| Tokyo Head Office | :4-1-8 Kounan, Minato-ku, Tokyo |
| Foundation | :November 1945 |
| Establishment | :March 1947 |
| Shares | :First Section of the Tokyo Stock Exchange and Osaka Stock Exchange |
| Sales | :24.8 billion yen (Fiscal year ended March 2002 on consolidated basis) |
| Employees | :803 |
