Japanese lubricant manufacturer Moresco Corp. will purchase U.S. blender AML Industries by May next year, the company announced in a press release last week.
According to our medium-term plans, we are expanding into growing markets like North America. We plan to expand and strengthen our lubricant business in North America and the region, said the release. The company said it will strengthen its marketing, cost and other business systems to capture the expanding demand for automotive related specialty lubricants in the United States.
Moresco USA, a wholly-owned subsidiary of Moresco in Japan, signed an agreement to purchase AML Industries and AML Realty LLC shares. The company will officially sign the purchase contract by May next year.
Based in Ohio, AML Industries produces a series of lubricants marketed under the Amlube brand, including water-based synthetic lubricants for hammers and presses, and graphite lubricants, which are synthetic lubricants containing graphite for industrial tools. AML Realty is a real estate company.
Moresco also manufactures other industrial lubricants, such as lubricants for hot forging and metal cutting fluids for the automotive and steel industries. It has functional fluids plants in China, Thailand, Indonesia and the U.S.
According to Morescos third quarter financial results released last month, specialty lubricant sales increased 13.5 percent in volume and 0.4 percent in revenue to 9.1 billion yen (U.S. $80 million), compared to the same period a year earlier. Metal cutting fluids sales increased due to new customers in China, and sales in other overseas countries were firm. However, sales of synthetic lubricating oils fell 5.5 percent to 2.9 billion yen, due to weak sales in overseas automotive and hard disk drive markets.