Tokyo (SCCIJ) – Sumitomo Electric Industries, a leading Japanese company in automotive products, has acquired the European manufacturer of powdered metal components Sinterwerke Grenchen AG from Grenchen (Canton of Solothurn) to strengthen its business in Europe. Simultaneously, the Japanese bought Sinterwerke Herne GmbH (Germany). Financial terms were not disclosed. The consulting company Dübbers held both producers since 2015. The commitment of the new Japanese owner, with its typical long-term business view, may secure Sinterwerke jobs in Switzerland and Germany and, if its expansion plan succeeds, even opens the opportunity for new posts.
Ambition for Europe
Sumitomo’s powder metal products division operates globally, with Sumitomo Electric Sintered Alloy Ltd. headquartered in Takahashi City (Okayama) as its mother plant. The division provides a wide variety of products primarily for Japanese manufacturers of cars, automotive components, and air conditioners.
Sumitomo Electric as a market leader in Asia and with a strong position in NAFTA region countries wants to take advantage of the acquisition in Switzerland and Germany by expanding its sales channels to cover European automakers and components manufacturers and increase the presence of its powder metal products business.
The Japanese group expects this acquisition to significantly contribute to becoming a technology wise leading global supplier of high performance, high-functionality sinter products by leveraging world-class materials and process technology.
For Sinterwerke and its customers this acquisition is an essential move towards increasing global presence and implementing the latest production process technologies, Sinterwerke said in a statement on its website.
Relevant automotive supplier
Sinterwerke is a well-established company in the European Market for sintered automotive parts. With 400 employees and locations in Germany and Switzerland, Sinterwerke develops and manufactures high-quality and complex sintered parts. Customers are mainly top European Tier1 suppliers and original equipment manufacturers of the automotive industry.
SWG Sinterwerke Grenchen AG, Switzerland, founded in 1948, and BTMT GmbH in Herne, Germany, established in 1971, were united in July 2014 under the company name of Sinterwerke. One year later, the two firms were acquired by Dübbers Management & Consult GmbH, who is now selling all shares to Japan.
Powder metallurgy technology
The Swiss and German company accompanies its customers during the whole process chain, from the construction of the part, the tool and process layout, through the pressing and sintering up to the mechanical machining.
Operating in the field of powder metallurgy, Sinterwerke specialize in the production of high-density sinter parts with the highest standards for geometry and sinter materials and are primarily suppliers for the automotive and power tool industry.
Apart from producing self-lubricating bearings, further fields of application are high-alloy, weldable sintered materials and the use of soft magnetic sheet molding compounds.
Text: SCCIJ with material of Sumitomo Electric Industries and Sinterwerke; Photo: © Sinterwerke