MAHLE and RIKEN signed a Memorandum of Understanding for a global cooperation
Stuttgart/Germany, 22June 2007—The MAHLE Group, with Headquarter in Stuttgart announces that MAHLE GmbH and RIKEN Corporation have signed a Memorandum of Understanding (MOU) for a global cooperation on June 20, 2007.
The purpose of the cooperation is that both parties make use of existing resources and create synergies aiming at offering highly value-added products and services for customers and enhancing each corporate value in globally expanding and technologically evolving automobile markets. The cooperation between MAHLE and RIKEN will be based on respecting each party’s independence and promoting each company’s strengths in the areas of piston rings, camshafts and other products.
In addition to the expansion of the already existing Allied Ring Corporation, a 50-50 joint venture manufacturer of piston rings based in North America and owned by MAHLE and RIKEN, both companies will study and promote intelligent collaborative projects worldwide making use of existing resources.
MAHLE and RIKEN will promote joint cooperation in the areas of technical development and manufacturing of piston rings, engine components and systems, camshafts and other products in line with day-by-day advancement of engine technology. Also the technological level will be enhanced by active technical exchange.
The cooperation does not consider any equity participation between the two companies.
The MAHLE Group is among the top 30 automotive suppliers globally and is the world market leader for combustion engine components, systems and peripherals. MAHLE employs more than 40,000 employees in 110 production plants and seven research and development centers. In 2006, MAHLE generated sales in excess of EUR 4.3 billion (USD 5.8 billion).
The RIKEN Corporation with Headquarter in Tokyo is a global company supplying automobile and industrial machinery parts and other industrial products. As of March 31, 2007 the company reached net sales of YEN 91,272 million with 4,073 employees.