The files are in Adobe Acrobat Format.
To view them you will need to download the Acrobat Reader.
2003 News Release
May 14 
Hitachi Metals to Purchase the World-Class Amorphous Metals Business Division of Honeywell International Inc.
Tokyo, Japan-May 14, 2003-Hitachi Metals, Ltd. ("Hitachi Metals," TSE5486) announced today that it has reached a basic agreement with Honeywell International Inc. ("Honeywell") to purchase its amorphous metals business Division, Metglas® Solutions ("Metglas") and the business divisions of affiliated companies.
Hitachi Metals is a manufacturer of the soft magnetic material increasingly used in electronics products, including Finemet™, which is a nanocrystalline soft magnetic material developed by Hitachi Metals. The addition of Metglas® will enable Hitachi Metals to provide a broader range of technical solutions to customer needs.
1. Background and Objectives
Recent developments in IT technology have led to a greater use of electronics in a wide variety of equipment, which are required to be smaller in size and lighter in weight. Furthermore, lower energy consumption and counter measure for electromagnetic noise have been required by regulations in many countries. Soft magnetic materials are ideal to meet these requirements, and are finding their way into a greater number of applications.Amorphous metal alloys are the result of intense research and development by AlliedSignal (predecessor of Honeywell International Inc.). Through pioneering of new types of applications for amorphous metals and development of new metal alloys and new manufacturing technologies, these materials are now produced at Honeywell's facility at Conway, South Carolina, U.S.A.
Hitachi Metals experiments with a large variety of magnetic materials in its position as a material manufacturer, and in 1988 succeeded in developing Finemet™, the world's first soft magnetic alloy with superior soft magnetic properties.
The Finemet Business Development Office was established in October 2001 to promote the development of Finemet™ business making it one of the principal corporate projects for business expansion.
The demand for soft magnetic materials is expected to develop rapidly in the near future, led by next-generation automobiles such as hybrid and fuel cell vehicles. Hitachi Metals believes that enhancing its product line-up is desirable to achieve further business expansion, and has therefore decided to purchase the Metglas® division of Honeywell.
Hitachi Metals is a leading supplier of soft magnet materials. By combining Finemet™, the amorphous metal products of Honeywell and the line-up of other soft magnetic materials such as ferrite cores and HI-DUST core from our Information System Components Company, Hitachi Metals will be able to offer a broad range of complementary solutions to its customers that are both cost efficient and tailored to specific applications.
Hitachi Metals will focus on developing new applications and reducing the manufacturing cost by the integration of both Hitachi Metals and Metglas® own technical resources, such as material development, melting, refining, amorphous ribbon mass production and electric component design technologies. And it will enhance the world wide sales network of soft magnetic material and components and try to improve customer satisfaction including stable supply.
Hitachi Metals continues to concentrate its management resources on promising business areas, and develop new businesses related to its core competence.
2.Special Features
| (1) | Acquisition Details | |
| Hitachi Metals will acquire all the assets of the Metglas® division of Honeywell, including personnel, plant and equipment, trademarks and intellectual property rights. | ||
| a. | Metglas® Conway (South Carolina, U.S.A.) will be acquired by Hitachi Metals' wholly owned U.S. subsidiary, Hitachi Metals America, Ltd. (HMA), and will become a subsidiary of HMA. | |
| b. | The Indian division of Metglas® located in Gurgaon, Haryana, India will become an Indian subsidiary of Hitachi Metals. | |
| (2) | Acquisition Schedule | |
| The closing of the acquisition will take place after closing conditions are met, which is expected to occur within 60 days. | ||
3. Anticipated Effect on Performance Results
There will be negligible effect on consolidated performance of Hitachi Metals during fiscal 2003.Inquiries:
| Press Inquiries: | |
| Public Relations Office, | Mr. Kobayashi Tel:+81-3-5765-4079 |
| Client Companies: | |
| Finemet Business Development Office, | Mr. Takao Tachibana Tel:+81-3-5765-4045 |
Reference Materials
1. Profile of Honeywell International Inc., Hitachi Metals, Ltd. and Hitachi Metals Finemet Business Development Office
2. Areas expected to develop in the future, Introduction to amorphous metals, Introduction to Finemet™
REFERENCE MATERIALS
1. Profile of Honeywell International Inc., Hitachi Metals, Ltd. and Hitachi Metals Finemet Business Development Office
Honeywell
| Company name: | Honeywell International Inc. |
| Establishment: | 1999 (AlliedSignal Inc. and Honeywell Inc. merged in 1999) |
| Head Office Location: | Morristown, New Jersey U.S.A. |
| Representative: | David M. Cote, President & CEO |
| Capitalization: | US$4,367 million (2002) |
| Sales Volume: | US$22,000 million (2002, approximate) |
| Employees: | 120,000 (2002, approximate) |
| Main Business Areas: | Aerospace (Aircraft Landing Systems, Engines, Systems & Services, Federal Manufacturing & Technologies, Aerospace Electronic Systems), Automation & Control Solutions (Automation & Control Products, Industry Solutions, Service), Specialty Materials, and Transportation & Power Systems (Consumer Products Group (Auto), Friction Materials, Garrett Engine Boosting Systems) |
Hitachi Metals
| Company name: | Hitachi Metals, Ltd. |
| Establishment: | April 1956 |
| Head Office Location: | 1-2-1 Shibaura, Minato-ku, Tokyo |
| Representative: | Michihiro Honda, President and Representative Director |
| Capitalization: | ¥26,283 million (2002) |
| Employees: | 17,000 (2002, consolidated approximate) |
| Sales Volume: | ¥410,000 million (2002, consolidated approximate) |
| Main Business Areas: | High-Grade Metal Products and Materials, Electronics and IT Devices, High-Grade Casting Components for Automobiles, Construction Components, Plant and Equipment, and Service and Other |
Hitachi Metals Finemet Business Development Office
| Establishment: | October 2002 |
| Location: | 1-2-1 Shibaura, Minato-ku, Tokyo (Manufacturing departments in Yasugi-city, Shimane Prefecture and Tottori-city, Tottori Prefecture) |
| Representative: | Takao Tachibana, Director of Finemet Business Development Office |
| Employees: | 120 (2002, consolidated approximate) |
| Sales Volume: | ¥2,000 million (2002, consolidated approximate) |
| Main Business Areas: | Manufacture and sale of FinemetTM, a nanocrystalline alloy with soft magnetic properties |
2. Areas expected to develop in the future, Introduction to amorphous metals, Introduction to Finemet
Areas and applications expected to develop in the future
Areas
* Next-generation automobiles, such as hybrid and electric fuel cell vehicles
* Electronic devices for IT and household appliances
* Electric devices for industrial equipment, such as medical equipment and semiconductor manufacturing equipment
* Electric power distribution and construction fields that require electromagnetic shields
Applications
Power electronics and EMC components, and sensor applications
Introduction to amorphous metals As amorphous metal does not have a crystal grain structure, it is considered a metallic glass alloy. Amorphous metal shows superior magnetic and mechanical properties, compared with conventional crystalline materials. The material is used in various technical fields, including such applications as electric power distribution transformers, magnetic cores for electric and electronics circuits, and metal joining. Introduction to Finemet™
Finemet™ is a soft magnetic material consisting of ultra-fine crystal grains, and was developed by Hitachi Metals in 1988. It is commonly referred to as nanocrystalline soft magnetic material.
Finemet™ material demonstrates superior soft magnetic properties compared with conventional material due to its combination of high-saturation magnetization and high permeability. Finemet™ material is manufactured through the recrystallization of amorphous metal. It was widely believed that the recrystallization of amorphous metal and fine grains of crystalline soft magnetic material resulted in deteriorating soft magnetic properties. The development of Finemet™, however, disproved that common notion. Finemet™ is expected to expand its market share in related application field, such as noise suppression, power supply, and telecommunications due to its superior soft magnetic properties.
| Features | Advantages | |
| High permeability/Low core loss |  |
Compact size/Energy-saving |
| Zero magnetostriction | |
Low mechanical noise/Minimal soft-magnetic-property damage from mechanical stress |
| Minimally affected by aging | |
High reliability and stability in soft magnetic properties |
| Low temperature dependence | |
Reliability and stability in soft magnetic properties |
| Controllable magnetization curves | |
Wide variety of applications |
