Regal-Beloit Corporation, Beloit, WI, ($1.4 billion in 2005 sales) has sold its Regal Cutting Tools business to YG1 Co., Ltd., Incheon City, Korea.
'This is a very positive move for the Regal Cutting Tools business as it will be aligned with a world leading manufacturer and marketer of high speed and carbide rotary cutting tools,' said Henry W. Knueppel, chairman and CEO of Regal-Beloit.
'As we moved aggressively into motion control systems, electric motors and power generation over the past several years, the cutting tools business was no longer a strategic focus for us."
The sale of the business will reduce Regal-Beloit's sales by approximately $17 million on an annual basis and will be neutral to earnings. Regal-Beloitis a manufacturer of mechanical and electrical motion control and power generation products serving markets throughout the world. The company is headquartered in Beloit, WI, and has global manufacturing, sales, and service facilities.
YG1, based in Incheon City, Korea, manufactures a wide array of metal cutting tools including end mills, taps, drills and other tooling in high speed steel and carbide. YG1 is one of the world's largest end mill manufacturers and markets products in 70 nations around the world. The company was founded in 1981 and has grown to more than $100 million in annual sales with facilities in Asia, Europe, Australia and the U.S.