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Ube Industries, Ltd. (President: Kazumasa Tsunemi) and Mitsubishi Materials Corporation
today announced that they are temporarily suspending studies
for an integration of cement manufacturing operations.
Ube Industries and Mitsubishi Materials combined their
cement marketing and logistics divisions in October 1998,
and R&D divisions in October 1999. Amid projections
of a worsening operating environment, the two companies
had also begun studying the feasibility of further integration,
including manufacturing divisions, with the view to enhancing
management efficiency, profitability and competitiveness
in international markets. However, the two companies have
decided to suspend the negotiations for integration of
manufacturing, as their consultations did not reach consensus
on plans for the post-integration development of the business
and other issues.
Ube Industries and Mitsubishi Materials intend to continue
working together to cut costs in areas where collaboration
is feasible under the terms of a comprehensive business
alliance. Underscoring this commitment is the need for
further rationalization and the pursuit of greater efficiency
on the part of the manufacturing divisions of the two
companies. Together with these actions, both companies
will redouble their efforts to reinforce their operating
bases by enhancing their profitability and financial strengths.
The two companies will maintain and further strengthen
the existing alliance involving sales, logistics and R&D
divisions. This alliance has already produced tangible
benefits, including large cost savings made possible by
integration.
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