Two Companies in Korea Merge for Enhanced Synergy in Automotive Business

|   Press release

HORIBA, Ltd. merged its subsidiaries in Korea, Horiba Korea Ltd. (HKL) and Horiba Automotive Test Systems Ltd. (HAKR).

The two firms were the Company’s core subsidiaries in the automotive test systems business (hereinafter, the “automotive business”) in Korea. The business of HKL and HAKR concentrated on emission measurement systems (1) and automotive test systems (2), respectively. The merger is intended to speed up their responses to customer needs and improve their ability to propose new solutions, uniting the Group’s workforce in the automotive field in Korea.

Purpose of Merger

Within the Group’s automotive business in Korea, HKL focused on emission measurement systems, while HAKR focused on automotive test systems. Each company had its own sales, service and engineering functions. In addition to these, HKL had production functions and HAKR had application development functions. The merger is designed to reorganize the manner of business in which they each before had entered separate agreements with the same customer firm. Their organizational merger is expected to bring about synergistic effects, such as faster responses to customer needs and improved capability in proposing solutions. The total solution business model, or turnkey business, that Horiba, Ltd. pursues in Japan, the United States and Europe, will also be implemented in Korea, combining the emission business and automotive business.

Terminology

(1) Emission measurement systems business
Provides combustion gas analysis and test systems, including engine emission measurement systems

(2) Automotive measurement systems business
Offers test systems for testing transmission and other drive systems that transmit power from the engine or motor to the wheels, as well as for brake tests and wind tunnel tests