2005

Establishment of an Engineering Company in the United States with Citizen Precision Machinery Co. Ltd.

Dec. 2. 2005
Marubeni Corporation

Marubeni Corporation is pleased to announce that it has established Citizen Machinery America Inc. (CMA) in the United States, in conjunction with Citizen Precision Machinery Co. Ltd. and Marubeni Citizen Cincom Inc. (MCC).

MCC, a joint corporation of Marubeni and Citizen Watch Co., Ltd., currently conducts sales activities for the Cincom Series, Compact CNC Lathe Machines made by Citizen. A characteristic of the United States market, compared to other international markets, is that clients want to maximize machine capability and potential by attaching special tools and peripheral units to standard machinery. To meet these demands, we established CMA as a new engineering company.

CMA will develop specialized tools according to demand, install them on machines and provide peripheral units to become differentiated from its competitors and expand the business of Cincom in the United States. CMA will also take over the business of Brookdale Associates, Inc., a local engineering company, and will start operations from January 1,2006. Marubeni will cooperate with MCC in conducting sales activities and support operations for CMA in its start-up phase.

Improving engineering capabilities and expanding business in the United States has been a common theme for Marubeni and Citizen. By establishing this new company, Citizen acquires a direct local engineering-support system that will help increase sales of MCC, and MCC’s business domain will expand by taking over Brookdale’s original development of peripheral units.

Sales in the Untied States for MCC and MCA for FY2005 are expected to reach 90 million dollars, with the number of units sold expected to reach 500. These companies will play an important role in Citizen’s machine tool business. With the new company, we aim to expand the scale of the business to sales of 100 million dollars and 600 units by FY2008.

Corporate Profile

[Citizen Machinery America Inc.]

Headquarters        : 68 Moylan Lane, Agawam, Massachusetts, U.S.A.

Capital                 : 5 million U.S. dollars

Stockholders         : Citizen Precision Machinery 51%, Marubeni Citizen
                            Cincom Inc. 39%,Marubeni 10%

President              : Hiroshi Shinohara (Citizen Machinery)

Employees             : 36 (tentative)

Business activities  : Development, manufacture and sales of specialized
                            tools for machine tool.Development, manufacture and
                            sales of high-pressure pump units for machine tool.    
                            Reconditioning of machine tool,Remodeling of machine
                            tool to meet client specifications and providing cutting 
                            technology.

[Citizen Precision Machinery Co., Ltd.]

Headquarters          : 4107-6 Miyota, Miyota Machi, Kitasaku-Gun, Nagano
                              Prefecture

Established             : July 1982

Capital                   : 498 million 

Stockholders           : Citizen Watch 100%

Business activities    : Manufacture of machine tool

 

[Marubeni Citizen Cincom Inc.]

Headquarters             : New Jersey, United States of America

Established                : 1984

Capital                      : 1 million U.S. dollars

Stockholders              : Marubeni 50%, Citizen Watch 40%, Marubeni
                                 America 10%

Business activities      : Import and sales of machine tool (Compact CNC
                                lathe machine) made by Citizen Watch.

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