The global site of the UK's leading magazine for automation, motion engineering and power transmission
30 May, 2024

Twitter link

Nidec takes 70% stake in German gearbox manufacturer, Desch

01 February, 2019

The Japanese motors and drives giant Nidec is acquiring a 70% stake in the German precision gearbox and drive component manufacturer, Desch Antriebstechnik, and its subsidiaries in Germany and China. The transaction will give Nidec’s gearbox subsidiary Nidec-Shimpo access to the market for large precision gearboxes, in addition to its current presence in the small precision gearbox market. Desch’s companies in North America are not part of the agreement, whose financial details have not been disclosed.

Desch, founded in 1906, is currently being run by fourth-generation family members, Hendrik and Olaf Desch, who will keep the remaining 30% of the company and will continue as sole managing partners. Desch employs about 400 people at its head office in Arnsberg, Germany and a factory in China. Last year, it generated a turnover of around €92.9m – a 43% increase on 2017.

Desch has a strong presence, especially in Europe, in the markets for large precision gearboxes and mechanical drive components such as clutches, brakes, couplings, pulleys and plain bearings, used in applications such as machine tools, construction machinery, agricultural machinery and presses. Desch also offers OEMs and end-users technical support, and diagnosis and repair services.

Nidec and Desch already know each other well from many years of doing business together. Nidec plans to continue Desch’s current strategy and to expand the business with the aim of achieving continuous growth. Desch will use Nidec’s know-how in electronic and electric drives to expand faster into mechatronic technologies. Nidec and Desch plan to offer complete systems based on “drive technology 4.0”. Nidec-Shimpo is also planning to sell its products through Desch’s European sales channels.

The companies have agreed to invest “extensively” in the expansion of Desch’s production sites in Germany and China over the next few years.

Desch's portfolio includes heavy-duty precision drives for applications such as presses

The deal will give Desch better access to markets in Asia where Nidec holds a strong position, while Desch will help Nidec to develop its European sales of mechatronic drives, and to expand its offerings in the higher torque and output ranges. Nidec is planning further acquisitions in this field and Desch will play an active role in this activity.

Nidec-Shimpo already has a strong presence in the market for small precision gearboxes following its purchase last year of the German company MS-Graessner, which manufactures linear planetary reducers (with aligned input and output shafts) and right-angle  reducers (with input and output shafts at an angle of 90 degrees to each other). These small precision reducers are used mainly in automated machinery applications such as semiconductor manufacturing, packaging, printing and robotics.

Nidec now employs more than 107,500 people around the world, and had a turnover of €11.4bn in the year ending 31 March, 2018. Its Nidec-Shimpo subsidiary manufactures precision gearboxes and other products, sold mainly in Japan, China and America.

  • To view a digital copy of the latest issue of Drives & Controls, click here.

    To visit the digital library of past issues, click here

    To subscribe to the magazine, click here



"Do you think that robots create or destroy jobs?"



Most Read Articles