Kennametal Inc., Latrobe, PA, has signed a product supply agreement with Kyocera Corporation, Kyoto, Japan. The agreement includes initiatives such as private labeling, cross-licensing and sales and marketing.
The agreement is global in scope and is designed to complement the suppliers’ existing product lines. Kennametal and Kyocera plan to grow sales of each others’ product lines worldwide. Each company will also continue to sell its own products through established channels.
This agreement will enable each company to leverage the strength of the other in different geographical regions,” said Yukihiro Takarabe, Kyocera Corporation executive officer and general manager of the Corporate Cutting Tool Group. “As Kyocera strives to expand its global footprint, adding complementary advanced cutting tools from Kennametal, such as solid endmills, holemaking tools and milling products, will strengthen our product lines and establish Kyocera as a global player.”
Kennametal Vice President and President of Metalworking Solutions and Services Group Ron Keating said: “This agreement supports our growth strategies very well. Today’s announcement presents both companies with the opportunity to offer more products, reduce costs and increase each other’s production capacity utilization.”
Kyocera began its cutting tool business in 1973. The firm offers inserts, which are one of its main products, under the CERATIP brand. During the year ended March 31, 2007, Kyocera Corporation’s consolidated sales were US$10.8 billion.
Kennametal Inc. is a $2.3 billion supplier of tooling, engineered components and advanced materials consumed in production processes. Kennametal is in over 60 countries – with almost 50% of revenues from outside the U.S.