Japanese motor giant Nidec is hunting for its next acquisition target in Europe’s machine tool sector, aiming to buy a manufacturer with annual sales of at least 50 billion yen ($330 million), Nikkei reported.
The potential deal would accelerate Nidec’s expansion in the machine tool industry, where it first gained a foothold through its 2021 acquisition of Mitsubishi Heavy Industries Machine Tool. The Kyoto-based company has since grown its machine tool revenue to 120 billion yen through additional purchases.
Nidec Machine Tool President Haruhiko Niitani said European manufacturers have shown more willingness to restructure compared to their Japanese counterparts, leading to increased acquisition opportunities. The company’s European track record includes the 2015 purchase of Spanish press machine maker Arisa and the 2019 acquisition of German gearbox manufacturer Desch.
As part of its growth strategy, Nidec is also strengthening its presence in India. The company plans to begin assembling machine tools at its Tamil Nadu facility by fiscal 2025, a move expected to slash delivery times to local customers by more than half.
The expansion push aligns with founder Shigenobu Nagamori’s stated goal of becoming the industry leader in machine tools, targeting 500 billion yen in segment sales by fiscal 2030.
