Denso picks up stake in Tohoku Pioneer EG

Japanese component major, Denso Corporation announced that it has agreed with Pioneer Corporation to buy stake in Tohoku Pioneer EG Corporation (Tohoku Pioneer EG), which is involved in the factory automation business and is owned by Tohoku Pioneer Corporation, a consolidated subsidiary of Pioneer Corporation.

The company says with the global environment for the manufacturing industry at a turning point due to the shrinking workforce and aging population. Various initiatives are being taken to promote industrial change, such as Connected Industries in Japan and Industrie 4.0 in Germany.

Against this backdrop, Denso has set the goal of developing optimal solutions for FA systems in the Long-term Plan 2025, which it formulated in 2017. Specifically, it will offer FA system solutions that combine automation processes using robots with IoT-based kaizen support by leveraging its expertise in process design and worksite management refined through many years of manufacturing automotive components, thereby offering new value to society.

As a system integrator of various automated production equipment, Tohoku Pioneer EG has supplied advanced custom-made FA production systems that meet the needs of customers, including Denso, in various industries such as the automotive, electrical/electronic equipment, medical, food, semiconductor, and IT industries.

The component major says it has a track record of introducing automation systems at 130 plants globally has an affinity with Tohoku Pioneer EG’s experience in offering FA production system. By taking a stake in Tohoku Pioneer EG, Denso will be able to offer optimal streamlined FA system solutions and thereby contributing to the overall development of the manufacturing industry.