Kyocera Acquires SGS Tool

Kyocera Corporation (Kyoto, Japan) has announced that they have completed a share purchase agreement regarding the U.S.-based solid tool manufacturing and sales company SGS Tool Company (Munroe Falls, OH) and its group of companies. Effective May 2, Kyocera will acquire 100 percent ownership of SGS Tool and will rename the company Kyocera SGS Precision Tools, Inc. By incorporating, they plan to increase sales of the cutting tool business in North America by 2.5 times by fiscal year ending March 31, 2019.

Cutting tools are utilized for machining in various industrial fields, including automotive, aerospace, energy, general industrial machines and medical related products — with two main categories of products: indexable tools and solid tools. In this market, there is a high demand for companies that can provide total solutions for products ranging from roughing to finishing.

Currently Kyocera is expanding its cutting tool business globally with its main lineup of indexable cutting tool products, while SGS Tool is a solid tool manufacturing and sales company developing its business mainly in the U.S. and the UK, both of which possesses strength in products for the automotive, aerospace, energy and medical industries. By incorporating with SGS Tool they will create a business structure capable of providing total solutions and strengthen their  business globally as a valuable comprehensive cutting tool manufacturer.

The main objectives of this strategy are:

1. By expanding its lineup with solid tools and creating a structure capable of providing total solutions this will provide further added value solutions to customers.
2. By adding new manufacturing and sales sites, they will further strengthen and expand their cutting tool business in North America.
3. Development of products and technologies utilizing the knowledge of both companies Through mutual utilization of the sophisticated product geometry and latest coating technologies originally developed by each company, they will enhance its competitiveness and meet an even wider variety of needs in the market.

SGS Tool was established in 1951 and is headquartered in Munroe Falls. The company employs 335 people in the manufacture and sale of solid cutting tools

Kyocera Corporation, the parent and global headquarters of the Kyocera Group, was founded in 1959 as a producer of fine ceramics, also known as Advanced Ceramics. By combining these engineered materials with metals and integrating them with other technologies, they have become a leading supplier of cutting tools, industrial ceramics, solar power generating systems, mobile phones, printers, copiers, electronic components and semiconductor packages. During the year ended March 31, 2015, the company’s net sales totaled 1.53 trillion yen (approximately $12.7 billion).

global.kyocera.com,   www.sgstool.com