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July, 1998


Gates and Nitta create Asian belt joint venture

Gates and Nitta Corporation have signed an agreement to create a new venture, called the Gates Nitta Asia Pacific Company (GNAPCO), that will manage all Gates power transmission business interests in Asia. Gates operations in Australia are not affected by the deal.

Gates and Nitta Corporation, which is based in Japan, have a long history of co-operative efforts. The two companies are partners in the Japanese belt manufacturer Unitta and the Gates Nitta Belt Company (GNBC) in China. Gates and Nitta, along with Pyung Hwa Industries, also jointly own Gates Korea, a major player in the Korean belt market.

The historic agreement calls for GNAPCO to own and manage power transmission manufacturing and distribution operations at Gates Singapore, GNBC, Unitta, Taiwan Nitta and to develop new opportunities throughout Asia. Gates Korea, although not a formal part of the new organisation, will be managed through GNAPCO as well. In addition, GNAPCO will establish belt marketing policies and direct belt marketing activities throughout the region. Gates will own 51 percent of the new joint venture and Nitta 49 percent.

Bill Marcum, who has been appointed president of GNAPCO, said the new organisation gives Gates a vehicle to further increase its belt business in Asian markets. "GNAPCO provides the management structure to allow for future growth", he stated. "It will allow us to fully integrate our power transmission interests in Asia with a co-ordinated regional approach. And it will maximise our existing technical capabilities and customer relationships in Japan for the benefit of GNAPCO and Gates worldwide."

 

Eurofocus, July 1998