KYOTO, Japan, Feb. 4, 2011 (GLOBE NEWSWIRE) -- Nidec Corporation (NYSE:NJ) ("Nidec") today announced that its Board of Directors determined at a meeting held today that a portion of Nidec's management over its subsidiaries and a portion of the subsidiary management by Nidec Techno Motor Holdings Corporation (a wholly owned subsidiary of Nidec, "NTMC") will be transferred to Nidec Motor Holdings Corporation (a wholly owned subsidiary of Nidec, "NMHJ") through absorption-type corporate split transactions ( kyushu bunkatsu).
The following summarizes the planned corporate split transactions through which the relevant operations are expected to be transferred to the wholly owned subsidiary of Nidec.
1. Purpose of the Planned Group Company ReorganizationIn an effort to achieve its goal of becoming the world's leading manufacturer of all kinds of motors, Nidec has sought to strengthen its existing businesses and launched a new mid- to long-term growth strategy, "Vision 2015," aiming to a create a group of companies with a target sales level of 2 trillion yen in the fiscal year ending March 31, 2016. As part of the strategy, Nidec seeks to achieve further organic growth with a focus on general motors for home appliances as one of its core growth businesses. In line with this strategic focus, Nidec has strengthened its home appliance general motor business in Europe and North America through its acquisition of Sole Motors, an Italian company, in January 2010 and its acquisition of the motors and controls business of Emerson Electric Co., a U.S. company, in October 2010. Nidec also established NMHJ in October 2010 with a plan to make it the holding company to manage the home appliance general motor business in Europe and North America. To execute this plan, Nidec intends to reorganize the relevant group companies through the following corporate split transactions with the expected effective date being April 1, 2011. Through the proposed reorganization, Nidec seeks to streamline and further strengthen its home appliance general motor business and improve its profitability.