This time, we would like to introduce STG’s acquisition of shares in a Malaysian aluminium die-casting manufacturer, which took place in Malaysia on March 26, 2021.
STG was established in Osaka in 1975 and its main business is magnesium die-casting, which excels in reducing the weight of products. The company also provides one-stop services from mold design, casting of metal parts, machining, finishing and conversion processing. The company has factories in Osaka and Shizuoka in Japan, and overseas offices in Hong Kong, Shenzhen, and Thailand.
According to STG’s press release, STG has been “aggressively developing new businesses and M&A for the future, especially in overseas, with the aim of improving production capacity and diversifying the supply chain”. As for the acquisition of STX Precision, the company decided to acquire STX Precision because “we can improve production technology by combining our strengths in production,” and “there is almost no overlap in major customers, and we expect synergy effects such as diversification of the supply chain through the transfer of STG’s magnesium die-casting technology”. Following the listing on TOKYO PRO Market in 2019, the acquisition of STX Precision is expected to further develop STG’s business.