Fair Friend Group acquires MAG, becomes a major player in global automotive industry
TAIPEI — Jimmy Chu, chairman of Fair Friend Group (FFG,友嘉集團), Taiwan’s largest machine tool maker, announced his company’s successful acquisition of the global automotive supplier MAG IAS GmbH on August 23. The acquisition has created a synergy between FFG and MAG.
MAG, which is the world’s largest provider of turnkey solutions, tools and services, will boost FFG’s market position as a major player in the global automobile industry.
Chu indicated that the scale of the acquisition is the biggest ever happened in the domestic machine tool industry. It is a milestone for FFG to be among the top three leading names, together with DMG MORI and MAZAK, in the sector.
In recognition of FFG’s effort, the National Development Fund has agreed to set aside 20 billion NTD for investment in the company, boosting the total investment to 70-80 billion NTD.
FFG earlier reported that it has been the company’s strategy to acquire such a major international company since its business is focused mainly on exports. And since having an overseas presence could make a huge difference in solidifying its global competitiveness, it believed the acquisition was a good move.
The only way for Taiwanese machine tool companies to stay competitive in the global market is by entering into a strategic alliance with or acquisition of a major foreign enterprise. Earlier this year, for instance, Tongtai Machine & Tool (東台), one of Taiwan’s leading machine tool makers, successfully acquired PCI-SCEMM, a French company, and MBI, an Austrian company. With the acquisitions, it has strengthened its product capacity and expanded its market penetration in the global automotive market.