Establishment of a New Compressor Company

Seiko Instruments Inc. (“SII”) and Calsonic Kansei Inc. (“CK”;Head Office:Minamidai, Nakano-ku, Tokyo; COO: Koichi Takagi) have reached an agreement to establish a new company that specializes in compressors, particularly compressors used in automobile air conditioners. This company is designated “Calsonic Compressor Inc.” (hereinafter referred to as “new company”).

SII entered into the field of automobile air conditioner compressors in 1979, applying high-precision processing technology cultivated by years of machine tool production. Since then, SII has expanded its market share over the years, particularly in Japan, Europe and Southeast Asia, with small-size passenger car units superior in compactness, lightweight and low cost.

CK, on the other hand, formed Calsonic Harrison Co., Ltd. in Utsunomiya, Japan as a joint venture with Delphi Corporation of the United States (presently GM) in 1986. Since then, CK has produced variable displacement compressors designed for medium- and large-size cars, resulting in a successful line of products for some of the top automakers, such as Nissan.

In 2001 both companies formed a joint venture company (Calsonic SII Compressor Sdn. Bhd.; abbreviated CSC) that produces rotary compressors for automobile air conditioners in Malaysia, and have continued working in collaboration.

The new company to be formed is the result of the eagerness of both companies to enhance the product lineup for small-size passenger cars and expand compressor business globally by taking advantage of SII’s competencies in miniaturization and weight saving technologies and CK’s strengths in systemization and modularization technologies.

The new company will completely take over the compressor business of SII, including that related to gas-heat pumps. The ratio of controlling shares between CK and SII is 85.1% and 14.9%, respectively, and the transition is scheduled for September of this year. Once the new company is established, efforts will be made to bring added value to the conventional compressor industry, such as automobile air conditioner periphery systemization, and to intensify new product development.


Contact Information
Seiko Instruments Inc.
Corporate Communications Group
Yako
Fax:+81-43-211-8011

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