October 17, 2012
Shinko Seiki Co., Ltd.
Re: Capital/Business Alliance in Vacuum Equipment Business
Hitachi Zosen Corporation (Suminoe-ku, Osaka; Minoru Furukawa, President, hereinafter called “HitachiZosen”) and Shinko Seiki Co., Ltd. (Nishi-ku, Kobe; Tadashi Mashimo, President, hereinafter called“Shinko Seiki”) have agreed, with the intention of expanding the precision machinery business, to form acapital/business alliance in the field of vacuum equipment and entered into an agreement dated September
27, 2012 whereby Hitachi Zosen will become the largest shareholder of Shinko Seiki by accepting Shinko
Seiki’s third party allocation of increased capital shares.
The Hitachi Zosen Group is developing various businesses based on vacuum technologies including
evaporation machines, sputtering machines, valves for vacuum equipment, etc. Recently, they successfully
developed planar evaporation sources for organic layer deposition, a proprietary technology of theirs,
which is contributing to increased orders for organic EL manufacturing equipment for mass production.
On the other hand, Shinko Seiki has been engaged in the development, design and manufacture of vacuumequipment ever since 1951 and abounds in practical accomplishments with vacuum equipment systems
such as plasma polymerization equipment, ion plating equipment, DLC equipment and vacuum soldering
equipment.
The capital/business alliance this time will enable the two parties to accept turnkey orders for building
production lines with various vacuum systems, by combining “new technologies possessed by Hitachi
Zosen, including planar evaporation sources for organic layer deposition, and the engineering capabilities
they have cultivated by constructing waste incineration facilities and chemical plants” with “Shinko Seiki’s
know-how for manufacturing various types of vacuum equipment.” In addition, with respect to travellingtype roll-to-roll coating equipment, the two companies will accelerate joint development with the aim to
expand sales in the FPD and solar cell market where film making is becoming more sophisticated.
As for vacuum pumps, another business pillar of Shinko Seiki’s, business will be developed overseas
utilizing Hitachi Zosen’s overseas operating bases and working hand-in-hand in both sales and procurement.
Furthermore, business coordination between one of Hitachi Zosen’s group companies, V TEX Corporation(Shinagawa-ku, Tokyo; Yasuhiro Maeda, President), a vacuum valve manufacturer, and Shinko Seiki will
be strengthened in an effort to develop systems that combine vacuum pumps and vacuum valves.
Hitachi Zosen has set a goal of achieving 50 billion yen in annual sales of precision machinery from thecurrent 30 billion yen, in its long-term “Hitz 2016 Vision” during the period from FY2011 to FY2016. Theprecision machinery center established this year at Hitachi Zosen’s Chikkou Works will be fully utilized forthat purpose and, through the alliance formed this time with Shinko Seiki, business will be expanded
further down the road.

1

An outline of the alliance is as follows.
Corporate Name

Hitachi Zosen Corporation

Shinko Seiki Co., Ltd.

Location

1-7-89 Nankokita, Suminoe-ku, Osaka

3-1-35 Takatsukadai, Nishi-ku, Kobe

Representative

Minoru Furukawa, Director, Chairman &President

Tadashi Mashimo, Representative Director& President

Business

Design and construction of environmentalsystems, industrial plants, machinery,process equipment, infrastructure,
precision machinery, etc.

Development, manufacture and sales ofvacuum instruments, vacuum pumps,
precision electric furnaces and optical
instruments

Capital45,442 million yen

300 million yen (Before capital increase
allocated to third party)

Accounting Date March 31

December 20

Transfer ofshares

Total shares issued
Before transfer: 6,000,000 shares
After transfer: 7,500,000 shares

Shares of Shinko Seiki owned by Hitachi
Zosen
Before transfer: 0 share
After transfer: 1,500,000 shares(Ownership ratio: 20%)2