TSX Symbol: WJX
TORONTO, Aug. 19, 2021 /CNW/ - Wajax Corporation ("Wajax") and Hitachi Construction Machinery Loaders America Inc. ("Hitachi") today announced that, effective March 1, 2022, the companies plan to expand their current Canadian direct distribution relationship to include construction excavators, mining equipment and related aftermarket parts. Since 2001, these products have been supplied to Wajax via a third-party joint venture partner to Hitachi Construction Machinery ("HCM"). Earlier today, it was announced by HCM and its partner that such joint venture would be dissolved, with an expected dissolution date of February 28, 2022.
The expansion of the direct relationship between Wajax and Hitachi is expected to strengthen the competitive positioning of both companies in the Canadian construction and mining markets.
Commenting on the change, Wajax's President and CEO, Mark Foote, stated "Hitachi is Wajax's largest manufacturing business partner and a very important contributor to our strategy. We are very pleased that our direct relationship will be significantly strengthened. Working directly with our partners at Hitachi will provide Wajax with enhanced access to product development and improved market responsiveness. We look forward to building on this already strong partnership in the core markets of construction and mining, as well as in additional areas in the future."
On behalf of Hitachi, Simon Wilson, Vice President of Sales, stated "Wajax is one of Hitachi's largest and most successful independent distributors globally and has been a valued partner for over two decades. The Canadian market is key to Hitachi's strategy, and we look forward to the benefits of an expanded direct relationship with Wajax as our national construction and mining partner. We believe this change will increase our market share by providing customers with products that lead the market in terms of value, performance and reliability."
For further information, please see Hitachi's related news releases at www.hitachicm.com/global/.
Wajax Corporation
Founded in 1858, Wajax (TSX: WJX) is one of Canada's longest standing and most diversified industrial products and services providers. The Corporation operates an integrated distribution system providing sales, parts and services to a broad range of customers in diverse sectors of the Canadian economy, including construction, forestry, mining, industrial and commercial, oil sands, transportation, metal processing, government and utilities and oil and gas. For more information on Wajax, please visit the company's website at https://www.wajax.com.
Hitachi Construction Machinery Loaders America Inc.
Hitachi Construction Machinery Loaders America Inc. Is a wholly owned subsidiary of Hitachi Construction Machinery, a global leader in the construction and mining machinery business including construction and ultra-class hydraulic excavators, wheel loaders, rigid frame dump trucks, compaction equipment, applications and mine management systems. For more information on Hitachi Construction Machinery, please visit the company's website at https://www.hitachicm.com.
Cautionary Statement Regarding Forward-Looking Information
This news release contains certain forward-looking statements and forward-looking information, as defined in applicable securities laws (collectively, "forward-looking statements"). These forward-looking statements relate to future events or the Corporation's future performance. All statements other than statements of historical fact are forward-looking statements. Often, but not always, forward looking statements can be identified by the use of words such as "plans", "anticipates", "intends", "predicts", "expects", "is expected", "scheduled", "believes", "estimates", "projects" or "forecasts", or variations of, or the negatives of, such words and phrases or state that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors beyond the Corporation's ability to predict or control which may cause actual results, performance and achievements to differ materially from those anticipated or implied in such forward-looking statements. To the extent any forward-looking information in this news release constitutes future-oriented financial information or financial outlook within the meaning of applicable securities law, such information is being provided to demonstrate the potential of the Corporation and readers are cautioned that this information may not be appropriate for any other purpose. There can be no assurance that any forward-looking statement will materialize. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release are made as of the date of this news release, reflect management's current beliefs and are based on information currently available to management. Although management believes that the expectations represented in such forward-looking statements are reasonable, there is no assurance that such expectations will prove to be correct. Specifically, this news release includes forward looking statements regarding, among other things, the planned expansion of our Canadian direct distribution relationship with Hitachi effective March 1, 2022, to include construction excavators, mining equipment and related aftermarket parts; the dissolution of a joint venture partnership between HCM and a third-party, including the expected date of such dissolution; our expectation that the expansion of the direct relationship between Wajax and Hitachi will strengthen the competitive positioning of Hitachi and Wajax in the Canadian construction and mining markets; our belief that working directly with Hitachi will provide Wajax with enhanced access to product development and improved market responsiveness; and the belief that the change will increase Hitachi's market share in the Canadian construction and mining markets. These statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to: the ability of HCM and its partner to dissolve their joint venture arrangements, including their ability to complete the steps necessary for such dissolution in a timely manner or at all, and to obtain any required approvals for, or consents to, such dissolution; and the ability of Hitachi and Wajax to develop and execute successful sales, marketing and other plans related to their expanded direct distribution relationship. Factors that may cause actual results to vary materially include, but are not limited to: the inability of HCM and its partner to dissolve their joint venture arrangements satisfactorily, including their inability to complete the steps necessary for such dissolution in a timely manner or at all, or the failure to obtain any required approvals for, or consents to, such dissolution on acceptable terms; and the ability of Hitachi and Wajax to develop and execute successful sales, marketing and other plans related to their expanded direct distribution relationship. The foregoing list of factors is not exhaustive. Further information concerning the risks and uncertainties associated with these forward-looking statements and the Corporation's business may be found in our Annual Information Form for the year ended December 31, 2020 (the "AIF"), in our annual MD&A for financial risks, and in our most recent quarterly MD&A, all of which have been filed on SEDAR. The forward-looking statements contained in this news release are expressly qualified in their entirety by this cautionary statement. The Corporation does not undertake any obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless so required by applicable securities laws.
Readers are cautioned that the risks described in the AIF, and in our annual and quarterly MD&A, are not the only risks that could impact the Corporation. We cannot accurately predict the full impact that COVID-19 will have on our business, results of operations, financial condition or the demand for our products and services due to the uncertainties related to the spread of the virus and its variants. Risks and uncertainties not currently known to the Corporation, or currently deemed to be immaterial, may have a material effect on the Corporation's business, financial condition or results of operations.
SOURCE Wajax Corporation
For Wajax: Mark Foote, President and Chief Executive Officer, Email: [email protected], Stuart Auld, Chief Financial Officer, Email: [email protected], TSX Symbol - WJX; For Hitachi: Simon Wilson, Vice President of Sales, Hitachi Construction Machinery Loaders America Inc.
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