Corporate Aug. 15, 2018
Hioki Singapore Establishes New Subsidiary in Indonesia
Meeting on August 7, 2018, Hioki’s Board of Directors approved the establishment of a new company by Hioki Singapore Pte. Ltd., a consolidated subsidiary of Hioki E.E. Corporation.
Company Name: Pt. Hioki Electric Instrument
Headquarters: Jakarta, Indonesia
Representatives:
Commissioner: Takahiro Okazawa (Director and Senior Managing Executive Officer, Hioki E.E. Corporation)
Representative Director: Toshihiko Tsuchiya (President, Hioki Singapore Pte. Ltd.)
Businesses: Sales, customer support, marketing, and after-sales service for Hioki products in Indonesia
Capital: IDR 2,525 million (about JPY 20 million)
(Hioki Singapore Pte. Ltd.: 99%; Hioki E.E. Corporation, 1%)
Start of Operations: September 2018 (tentative)
Relationships with Hioki E.E. Corporation:
Capital relationship: Pt. Hioki Electric Instrument is a subsidiary of Hioki Singapore Pte. Ltd., a wholly owned subsidiary of Hioki E.E. Corporation which owns a 99% stake in the new company.
Personnel relationship: Takahiro Okazawa, a director of Hioki E.E. Corporation, will serve as the new company’s commissioner.
Transaction relationship: The new company plans to purchase products from Hioki E.E. Corporation.
(The yen equivalent of the new company’s capital was calculated at an exchange rate of IDR 1 = JPY 0.008.)
Building a global sales network continues to be a top priority for Hioki. To date, Hioki Singapore Pte. Ltd. has served the market in Indonesia through a representative office located on the island of Java. Hioki believes demand for electric measuring instruments will grow in the country, driving additional growth for its businesses there. The new company, a subsidiary that is being established by a wholly owned subsidiary of Hioki E.E. Corporation to more fully realize the potential of the Indonesian market, will work to spread awareness of the Hioki brand, to build a sales network, and to expand Hioki’s customer base.
"Jakarta is well-known for its massive traffic congestions, but it is predicted that the expansion of MRT, LRT and other public transportation facilities will spur further development of this already bustling economy," comments Toshihiko Tsuchiya, President of Hioki Singapore. "Hioki sees increased opportunities to support Indonesia's various industries including maintenance, repair and operations. The representative office we set up prior to this milestone faced many limitations in terms of offering pre-sales support, satisfactory lead times and after service. I am confident that with the establishment of an official sales subsidiary, we will be able to deliver more rapid and precise service, and further narrow the distance to our customers."
Investor Outlook
The establishment of the new company is expected to have only a minor impact on the Hioki Group’s consolidated business results for the fiscal year ending December 2018.About HIOKI
Established in 1935, HIOKI E.E. CORPORATION (TSE: 6866) has grown to become a world leader in providing consistent delivery of test and measuring instruments through advanced design, manufacturing, and sales and services. By offering over 200 main products characterized by safety and quality while meeting an expansive range of applications, we aim to contribute to the efficiency and value of our customers' work in research and development, production and electrical maintenance. HIOKI products and services are available around the world through our extensive network of subsidiaries and distributors. Information about HIOKI is available at www.hioki.com.