STIHL intends to acquire carburetor manufacturer Zama

- Supply base for core component guaranteed
- Jobs remain secure
- STIHL continues on course set by Zama

Safeguard supply base and make use of new business segment
The STIHL Group intends to acquire Zama – one of the world’s largest manufacturers of carburetors for handheld power tools. The carburetor maker has plants in Japan, the U.S.A., China and Hong Kong and recorded a sales volume of about US$ 80 million last year. STIHL executive board chairman Dr. Bertram Kandziora outlines the reasons for the acquisition: “Zama is our key supplier of carburetors. The Japanese owner family plans to pull out of the industrial business. In making this acquisition we want to safeguard the supply base of one of the core components of our products. At the same time, the sale of carburetors to third parties opens up a new business segment with growth potential for us.”

President of Zama USA stresses good cooperation
Like STIHL, Zama is a family-owned company. Both companies follow a similar strategy – such as first-class quality, strict concentration on customer satisfaction and a high level of in-house production. “STIHL has already named Zama ‘Supplier of the Year’ in 1997 and 2001,” explains Dale Gehr, president of USA Zama Inc. based in Franklin, Tennessee, and stresses: “Both companies have cooperated harmoniously and very successfully for many years. We look forward to continuing that cooperation in the future.“

Reduce emissions, secure jobs
The carburetor producer is a technology leader and a valuable development partner for the handheld powertools industry in the area of optimum mixture control in small engines. One of STIHL’s main goals is to further reduce power tool emissions.
When asked about the effects of the takeover on STIHL, Dr. Kandziora said: “In taking this strategic step we are strengthening our supply line and thus safeguarding jobs in the entire STIHL Group.“

STIHL to stick to general course set by Zama
Zama was founded in Japan in 1952 and now has an annual output of more than 13 million carburetors. Some 80 employees work at the company’s four locations. Another approximately 1,900 people are employed through a Chinese contractor.

STIHL wants to adhere to the general course set by Zama. “Existing Zama customers can continue to rely on the excellent development and supply service, and STIHL is also prepared to invest in expansion,” explains Dr. Kandziora. All the plants in Zama City and Iwate (Japan), Franklin (USA), Hong Kong and Xili (China) will be retained along with their employees.

It was agreed not to disclose the purchase price. The acquisition is still subject to approval from the responsible antitrust authorities.

Company portrait
The STIHL Group develops, manufactures and distributes outdoor power equipment for forestry, landscape maintenance and the construction industry. The product line is supplemented by the VIKING range of gar-den tools and equipment. Products are sold exclusively through servicing dealers. The STIHL sales and distribution organization consists of 32 sales subsidiaries, more than 120 importers and some 35,000 dealers in more than 160 countries. STIHL has been the world’s biggest selling chain saw brand since 1971. The company was founded in 1926 and is based in Waiblingen near Stuttgart, Germany. In 2006, STIHL achieved a worldwide sales volume of about EUR 2 billion with a workforce of 9,500.

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