Tokyo, March 13, 2006 – Honda Motor Co., Ltd. today announced plans to acquire one million shares of new stock through a third-party allotment from Marujun Co., Ltd. (headquarters: Ogaki, Gifu; President: Yoshiaki Imagawa), a key Honda supplier of automobile body frame components, to further strengthen the existing business relationship.
Honda and Marujun have been enjoying a good working relationship in the area of body frame components and stamping dies ever since Marujun began supplying stamping dies for automobile body panels 43 years ago, in 1963.
By strengthening the business relationship with Marujun, Honda aims to further strengthen its competitiveness in growing automobile markets in China and other Asian countries. Specifically, Honda and Marujun will work together based on a long-term strategy to further strengthen parts development and production capabilities by establishing a system which enables them to achieve highly effective parts development and overseas production. Honda and Marujun will also strengthen areas of quality, cost management, and logistics.
About Marujun Co., Ltd. – as of the end of March 2005
|Capital||:||JPY 532.55 million|
|Investment ratio||:||16.1% Yorio Imagawa; 11.3% Yoshiaki Imagawa
11.3% Honda Motor Co., Ltd.; 61.3% Others
|Representative||:||Yoshiaki Imagawa, President|
|Business activities||:||Manufacturing and sales of automobile body frame components
and stamping dies
|Consolidated Net Sales||:||JPY 29,155 million (Fiscal Year ended March 2005)|
|Ordinary Profit||:||JPY 834 million (Fiscal Year ended March 2005)|
|Other||:||Publicly listed on the Nagoya Stock Exchange, 2nd Section
since February 1999.