They were broken down by type: JPY 5 billion (£38 million) for factory closures JPY 4.7 billion (£36 million) for the energy solutions exit JPY 2.4 billion (£18.6 million) for another effort to optimise excess marketing expenses that are redundant with DMG Mori AG JPY 0.9 billion (£7 million) of excess middle management and closing redundant subsidiaries, another initiative also announced at the same time. No buyers, terms or timescales of either the closures or the disposals were disclosed, although the costs to the company in 2016 (which is expected to include all of the costs) were revealed. The November document says that the decision was made “to concentrate our management resources”, adding that AG’s solar panel business has “struggled to make a profit in that business for years.” It set up an energy solution park at its Bielefeld, Germany, factory in 2012. Begun in 2006, the business marketed solar photovoltaic panels (including the SunCarrier product) and chemical energy storage systems (such as the CellCube product) to go with them. Bought by Mori Seiki in 2007 from Sandvik Group, the firm produces precision mandrels and workholding solutions.įinally, DMG Mori has decided to sell DMG Mori AG’s energy solutions business, Gildemeister Energy Solutions. In November, DMG Mori Co explained it bought Dixi “in order to obtain high precision technology” and decided to close its factory “as we thought its role already ended.”Īlso, it has decided to sell Tobler SAS of Louvres, France. In Europe, the company has decided to close the Le Locle, Switzerland, factory of subsidiary Dixi Machines, acquired in 2007 by Mori Seiki (two years before the first formal cooperation agreement with DMG parent Gildemeister AG started).

(That same year, DMG Mori also established a Mori Seiki factory in Tianjin, northern China, initially making NHX 40 horizontal machining centres. Second, DMG Mori AG has decided to shut its Shanghai, China, factory, its first Asian production plant, established in 2003, that also made ecoLine lathes and machining centres, and subsequently added DMU 50 production in 2013. The Chiba, greater Tokyo, Japan factory opened in 2003 that made ecoLine machines has been closed, and its production has been merged into the main factory at Iga, Mie prefecture. The changes take place in Asia and Europe, in machine tools and other businesses. At worldwide exhibitions in the latter half of 2016 (IMTS, Chicago AMB, Stuttgart JIMTOF, Japan) the company has launched models of the successors to the ecoLine series: modular, configurable CMX milling machines and CLX lathes. The days are numbered for the DMG Mori’s ecoLine budget range. The document continues: “We have decided to reorganise our global production capacity, following the exit from our middle-class product ecoLine series, and in order to respond more flexibly to the fluctuation of foreign exchanges.” A third-quarter 2016 consolidated financial results Q&A document from early November explained that the former deal proved impractical for the Japanese Co: “It was still difficult for our company to directly control AG, both operationally and financially, under the German governance regulations, which delayed optimisation of management resources.” The reason for this action, less than two years after the Co had acquired 50% voting rights in the AG through a 52% stake, was control.

In August, Japan-headquartered DMG Mori Co’s “Domination, Profit and Loss Transfer Agreement” with German firm DMG Mori AG became effective, after the former amassed a 76.03% stake in the AG. As a result, the company has posted a one-off charge for this “clean-up of negative legacies” of JPY 13 billion (£100 million) in the current financial year.įirst, the integration.

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