Japanese auto parts supplier Denso Corp. said Sept. 7 that it agreed to purchase a stake in factory automation company Tohoku Pioneer EG Corp.
The company is owned by Tohoku Pioneer Corp., which in turn is a consolidated subsidiary of Japanese consumer electronics company Pioneer Corp. Tohoku Pioneer EG supplies customized factory automation production systems for use in the electrical and electronic equipment, medical, food, semiconductor, information technology and automotive industries. Denso is among its clients.
Denso did not disclose the size or price of the stake, but said the deal with Tohoku Pioneer EG will support its goal to develop solutions for factory automation systems as part of its 2025 long-term plan.
The company noted that the global manufacturing industry is facing a shrinking workforce and aging population, and as such it intends to offer system solutions that combine processes using robots with Internet of Things-based support.