Tokyo, Japan - October 6, 2021
Yokogawa Electric Corporation (TOKYO: 6841) announces that the company and its subsidiary Yokogawa Manufacturing Corporation have concluded an agreement with Oki Electric Industry Co., Ltd. (“OKI”) on October 5 to transfer their aviation equipment business to OKI.
1. Reason for transfer
For many years, Yokogawa has been involved in the aviation equipment business, designing and manufacturing cockpit instruments such as multifunctional liquid crystal displays that meet its customers' exacting requirements.
OKI is an electronics manufacturer that provides a wide range of telecommunications equipment, mechatronics systems, and infrastructure support solutions to customers in the public and private sectors.
Under its Accelerate Growth 2023 mid-term business plan, Yokogawa is aiming to create new value by focusing on the energy and sustainability, materials, and life industry business segments. OKI, on the other hand, is focusing on leveraging Yokogawa's aviation equipment technology and know-how as well as its customer base to develop new products that combine the technological assets of both companies, and to open up new markets. Given the shared interest that both companies have in the continued growth of this business, Yokogawa has decided to transfer its aviation equipment business to OKI.
2. Outline of the business to be transferred
Main business: Manufacturing and sales of aviation equipment
Sales: 4.9 billion yen (fiscal year 2020)
3. Outline of Oki Electric Industry Co., Ltd.
Capital: 44 billion yen
Sales (consolidated): 392.9 billion yen (fiscal year 2020)
Number of employees (consolidated): 15,642 (as of June 30, 2021)
4. Date of transfer
April 1, 2022: Transfer of business (planned)
5. Business impact
The company estimates that the transfer of this business will have a minimal impact on its consolidated financial results; however, it will continue to evaluate this and provide an update at the November financial results briefing for the second quarter of fiscal year 2021.
Yokogawa provides advanced solutions in the areas of measurement, control, and information to customers across a broad range of industries, including energy, chemicals, materials, pharmaceuticals, and food. Yokogawa addresses customer issues regarding the optimization of production, assets, and the supply chain with the effective application of digital technologies, enabling the transition to autonomous operations.
Founded in Tokyo in 1915, Yokogawa continues to work toward a sustainable society through its 17,500 employees in a global network of 119 companies spanning 61 countries.
For more information, visit www.yokogawa.com