NJT Copper Tube Corporation

Investment timing: 2019/9
Deal type: Carve-Out
Fund: AG II / AG II-b
Status: Active

Investment Background

NJT Copper Tube is a manufacturer and distributor of copper tubes for heat exchangers and internal piping used mainly in residential air conditioners and packaged air conditioners for offices and buildings, etc., and has high technological and development capabilities backed by a long history of over 120 years. In response to the business carve-out needs of its parent company, UACJ, Aspirant Group invested in the company with the themes of sustainable growth by becoming a standalone company/strengthening profitability/promoting new product development.

Post-Investment Activities

Development of Infrastructure

• Development of an accounting management system
• Design/management of meeting structure
• Development of Corporate Infrastructure (Building system infrastructure to become a standalone company and strengthening quality control mechanisms)

Rationalization

• Improvement in Productivity – Reduction of order loss (Making appropriate order/production decisions by refining demand forecasts)
• Improvement in Productivity – Cost reductions (Global optimization of production capacity)
• Pricing Strategy (Implementation of appropriate pricing)
• Improvement in Cash Management​ (Assistance to set up independent financing capabilities as a standalone company, improvement of cash position through higher working capital efficiency)

Support for Growth

• Sales Support/Sales Channel Expansion, etc. (Establishment of a new business (aluminum business) and a new overseas plant)
• R&D/Capital Investment (Investment in new facilities and replacement of aging facilities (some to be implemented in the future))
• R&D/Capital Investment (Promotion of  new product development (aluminum products/high value-added products) and new alloys)