Three Korean Subsidiaries Merged Under a Single Name

Daifuku Co., Ltd. (headquartered in Nishiyodogawa-ku, Osaka) announced that it merged three subsidiaries operating in South Korea-ATS CO., LTD. ("ATS"), MIMATS CO., LTD. ("MSC") and DAIFUKU CARWASH-MACHINE KOREA INC. ("DCK")-into a new company called DAIFUKU KOREA CO., LTD. ("DKC") on March 31. ATS and MSC manufacture and sell automotive production line systems and provide after-sales services, while DCK sells and services car wash machines.

With this merger, ATS is the surviving company and absorbed MSC and DCK. The new subsidiary is wholly owned by Daifuku. The businesses of the three existing affiliates were reorganized into ATS Operations, MSC Operations and DCK Operations. The current locally appointed presidents of the three companies were reappointed general managers of their respective operations. The new subsidiary will have a sales target of approximately 30 billion won for fiscal 2009, which ends December 31, 2009 and will target sales of 50 billion won and operating income of 5 billion won in fiscal 2011, ending December 31, 2011.

ATS was established in 1997 to serve the automotive industry in South Korea while MSC was established in 2004 to serve non-Korean companies operating in South Korea. DCK was founded in 2003. All three affiliates have grown steadily and exceeded previous sales results in fiscal 2007. However, South Korea is experiencing a sustained period of difficult economic circumstances, with a decline in orders in the wake of the global financial and economic crisis and surging costs of imported items associated with the sharp depreciation of the South Korean currency. The new affiliate company will achieve greater efficiency through more effective use of resources and unified procurement to strengthen its operations.