Japan-based TANAKA Kikinzoku Kogyo K.K. acquired all shares of Metalor Electrotechnics (Suzhou) Ltd. held by its group company Metalor Technologies International SA on April 1, 2023. TANAKA Kikinzoku is one of the core companies of the Tanaka Precious Metals group. Meanwhile, Metalor Suzhou is Metalor’s subsidiary in China.
Specifically, the acquisition of shares makes Metalor Suzhou a wholly owned subsidiary of TANAKA Kikinzoku Kogyo. The subsidiary will be renamed METALOR TANAKA Electrical Materials (Suzhou) Ltd. Moreover, the company will change its system of directors.
Reasons for the Acquisition
In recent years, major Chinese customers increasingly demanded for local production of electrical contacts. In response, TANAKA aims to continuously expand business in China by integrating TANAKA Kikinzoku Kogyo’s production knowledge with Metalor Suzhou’s resources. This strategy will expand production capabilities and build a system for stable supply of electrical contacts. Furthermore, it will be an essential base for business expansion, using TANAKA’s network to open new markets and gain new customers in Asia, which has prominent market growth. Beginning 2024, TANAKA Kikinzoku Kogyo will transfer its electrical contact-related products and commence mass production. Eventually, new company sales are expected to double by 2030.
In addition, the system will supply a broader range of products through collaboration with group company TANAKA Kikinzoku (Ningbo) Co., Ltd. The company manufactures silver electrical contacts used in automotive components.