Parent Companies of ECHO and Shindaiwa Announce Shareholder Alliance

CHICAGO - Kioritz Corporation of Japan, parent company of ECHO Incorporated, and Shindaiwa Corporation, parent company of Shindaiwa Incorporated, have announced a business and shareholder alliance. The alliance provides the two international corporations the opportunity to investigate mutual means of addressing today’s increasingly competitive global environment through product and operational synergies.

“Increased consolidation within the outdoor power equipment industry, the rising cost of product development, and the need to meet changing worldwide environmental standards all contributed to the formation of this alliance,” explains Mr. Chuck Kitazume, Kioritz President and CEO.

“In recent years, the industry’s competition has intensified, including the entry of low-priced products from China and other developing countries,” adds Mr. Y. Asamato, President and CEO of Shindaiwa Corporation. “Substantial investment and advanced technology will be required to meet these new competitive challenges.”

“It is too early to say where this alliance will go long term,” adds Mr. Kitazume. “We do know there are opportunities for cooperation in product development, sourcing, and manufacturing.” Partnership between the two companies is not new. Kioritz has been supplying chain saws to Shindaiwa for the Japanese market since 2001. This alliance formalizes and strengthens an ongoing partnership.

While working jointly on various projects, ECHO and Shindaiwa will maintain their unique identities in the marketplace and remain autonomous companies.