Japanese injection molding machine manufacturers Nissei Plastic Industrial Co. Ltd. and Toyo Innovex Co. Ltd. have reached an agreement to integrate their businesses. The companies will become wholly owned subsidiaries under the banner of parent company GMS Group Co. Ltd. through a joint share transfer on April 1, 2026.
Hozumi Yoda has been named Chairman and CEO and Yoshiaki Tabata will be president and COO of the holding company.
The business integration and share transfer is subject to shareholder approval and customary permits and licenses from relevant authorities.
Coming together to confront challenging business environment
The consolidation was precipitated by a challenging business environment in the injection molding and industrial machinery space, the companies explained in a news release.
Specifically, they cited the following reasons for uniting their efforts:
Sluggish demand and rising costs due to geopolitical risks;
intensifying global competition due to the rise of Asian companies;
a skilled labor shortage and growing demand for innovative products that contribute to environmental conservation;
the rise of emerging markets such as India and the emergence of new growth markets such as electric vehicles and hybrid vehicles;
the need to strengthen immediate response capabilities in support systems.
The companies determined that integrating their businesses will enable them to take on initiatives that they could not achieve individually. In addition to designing and building injection molding machines, the companies plan to collaborate on the development of platforms and solutions from a customer-centric perspective in a global capacity. The name of the joint holding company, GMS, symbolizes this mission: The acronym stands for Global Molding Solutions. “We aim to create a group where employees can work enthusiastically, with confidence and pride in being a globally leading group in the industry,” said the news release.
Anticipated synergies include accelerated design and development along with cost reductions, economies of scale in procurement, shortened delivery times through improved production efficiencies, and an expansion of product lines and services.
Both companies build injection molding machines, but Toyo Innovex also brings die-casting machines to the mix.
Global footprints
Founded in 1947, Nissei Plastics is a global business with manufacturing plants in Japan, China, Thailand, the United States, and Italy. Overseas sales reportedly accounted for 66.8% of its total business in the fiscal year ending March 2025. It recently announced plans to build a new factory in India.
Founded in 1925, Toyo Innovex also has a significant global reach. In the fiscal year ending March 2025, injection molding machines accounted for a little over 73% of its sales, the remainder being die-casting machines. Overseas sales accounted for 69.5% of the company's business. The company operates plants in Japan and China.
