Consumables

Toyo Ink Group Acquires Shares of Turkey-based DYO Printing Inks

Thursday 17. December 2015 - Toyo Ink SC Holdings Co., Ltd. (President and Representative Director: Katsumi Kitagawa, Chuo-ku, Tokyo; "the Company") announced today that, on December 16, 2015, it signed a share purchase agreement with Ya?ar Holding Anonim ?irketi (located in ?zmir, Turkey; "Yasar") to acquire 75% of outstanding shares of the Turkey-based ink company DYO Matbaa Mürekkepleri Sanayi ve Ticaret Anonim ?irketi ("DYO Printing Inks"), a subsidiary of Yasar.

1. Purpose of Share Acquisition

The Toyo Ink Group, as a company contributing to the enrichment of life and culture of people, is focusing its efforts on expanding inks and coatings for the packaging market, including materials for food packages that are essential to everyday living. The Company has aggressively been accelerating global expansion through activities to expand its sales and profits in China and Southeast Asia and by setting up new manufacturing plants in developing countries such as India and Brazil.
As a critical next step toward growth, the Toyo Ink Group has made it a priority task to build a business base and expand its businesses in MENA (Middle East & North Africa), Central Asia, and in Eastern Europe, as well as strengthen its activities in the European region, for Europe is at the forefront of environmental technology and regulatory governance for industry, such as the food industry. As part of its growth strategy, the Company has been focusing on Turkey as a platform for building a business hub and established a liaison office in 2014 and a sales company in January 2015 while moving forward with marketing efforts in the country. Under such a business environment, the Company concluded that local production is essential to establishing an operating foothold in the area, resulting in the decision to acquire a local company.
Following the acquisition, DYO Printing Inks will become a consolidated subsidiary of the Company. Headquartered in the Aegean region of Turkey (city of Manisa), DYO Printing Inks is the country’s largest domestic ink manufacturer of gravure inks, flexo inks, offset inks and can coatings, and maintains a solid base in the country. As for operational policies, the Company first plans to increase both sales and profitability and expand the product portfolio of DYO Printing Inks’ existing line of inks and coatings based on the Company’s technical and global quality standards. In addition, the Company will develop new products to meet the needs of the region while enhancing operational efficiency through process improvements.
With the aim of achieving top market share and brand recognition in Turkey and its neighboring countries, the Company then plans to accelerate sales by strengthening its sales network in the priority areas of MENA, Central Asia and Eastern Europe. Moreover, it intends to reinforce marketing and sales activities to include products of the Toyo Ink Group and promote such products through existing distribution channels established in the country by DYO Printing Inks.
In the mid- to long-term, the Company intends to diversify its operations in Turkey by manufacturing and selling a wide range of Group products together with existing ones at DYO Printing Inks, thus enabling the Company to develop in a single location a strong brand that uses the comprehensive strengths of the Toyo Ink Group.