Yokogawa and Ando agree to strategic alliance

Yokogawa Electric and Ando Electric have signed a partnership agreement to collaborate on business strategies for their test and measurement and semiconductor test equipment product lines.

Yokogawa Electric Corp and Ando Electric Co, two of Japan's leading instrumentation companies, have signed a partnership agreement in which the companies will collaborate on business strategies for their test and measurement and semiconductor test equipment product lines.

At the same time, NEC has agreed to transfer 33% of Ando's issued shares to Yokogawa (NEC currently holds 35% of Ando's issued shares).

Last year Yokogawa announced a policy to accelerate sales growth in the measurement sector.

Ando has also set itself on a path to reinforcing development of its core business by investigating the formation of a strategic alliance with an industry partner, while NEC has focused on a reorganisation of its group-wide structure.

The alliance between Ando and Yokogawa will centre on Ando's measurement systems for optical communications, together with Yokogawa's test instruments for the development of communications networks and multimedia equipment.

It also covers areas in which both companies have been involved, such as ATE semiconductor testing and device handling systems, where the partners intend to offer a wide range of products and services to create greater customer satisfaction and global competitiveness as test solutions providers.

The collaboration in their ATE and measurement equipment businesses by the two partners is worth 130 billion Yen.

However, by taking advantage of the anticipated synergies created through their alliance and by focusing on the communications, multimedia, semiconductor and other growth areas, the two companies forecast this figure to reach 200 billion Yen in 2005.

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