Mitsubishi Materials (TYO:5711) will establish a wholly owned subsidiary to succeed the domestic cutting tools sales businesses of both the company and its wholly owned subsidiary Moldino Tool Engineering, through simplified absorption-type company splits, effective April 1, 2027.

The new company, to be named Mitsubishi Materials Tools Corp. on April 1, 2027, will consolidate the two companies' domestic sales operations.

The integration involves no consideration or share delivery, will not change Mitsubishi Materials' stated capital, and the newly established company plans to increase its capital to 100 million yen by the effective date.

The business unit being split from Mitsubishi Materials recorded net sales of 147.3 billion yen and operating profit of 14.3 billion yen for the fiscal year ended March 31.