Manufacturers Agent Machinery Business For Sale

Business description

Established in 1978, this business has provided the owner with an excellent lifestyle and now offers him the opportunity to retire in comfort. It operates as a Manufacturers Agent, marketing a range of production equipment for the plastics and high pressure die casting industries. The business has not been performing as well as it should recently owing to reduced input from the owner and, more recently, the economic downturn which has affected the sale of big ticket items. Sales of spare parts and smaller items continue to go out on continuing demand despite very little sales activity by the business.

Operations:

Initially the business employed sales people and agents selling injection moulders to the plastics industry and hot and cold chamber pressure die casting machines for the die casting industry nationally. Spare parts for the machinery grew to become an important part of the business and represent the bulk of revenue at present, as large companies hold back on orders for capital equipment. Spares are ordered as required and stock holding is negligible. They are usually purchased overseas on open account and delivered C.O.D.

Installation and servicing is carried out by the company’s sub-contracted Electrical and Mechanical Engineers.

Large sales have continued at a slow pace and the company is currently expecting orders for a number of machines at good profit margins. Occasionally, by arrangement with UBE Industries Ltd of Japan, a company will negotiate directly with this overseas principal and in these cases the business receives a commission without any involvement.

Major Principals are:

• UBE Machinery Corporation Ltd. [Japan]
• Toyo Machinery & Metals Co. Ltd [Japan]
• Sanjo Seiki Co. Ltd. [Japan]
• AK Sangyo Co. Ltd. [Japan]
• Tojin Corporation Ltd. [Taiwan]

The business has access to a Japanese language interpreter if required.

Office hours are 9:00 a.m. to 5:00 p.m. Monday to Friday.


Market / Customer:

The customer profile is large companies such as

• Ford Motor Company of Australia Ltd.
• Toyota Motor Corporation (Aust) Ltd.
• Venture DMG Industries Pty. Ltd.
• Nissan Casting Australia Pty. Ltd.
• Triple Star Diecasting Pty. Ltd.

The company has concentrated on selling high quality product from Japan and Taiwan and has been successful in building long term relationships with both suppliers and customers for over twenty years.

There are currently about thirty customers throughout Australia.

The business is listed in three categories in the yellow pages. No other marketing activities are carried out. In the past the company has exhibited at the Ausplas Expo in Sydney and Melbourne. Any purchaser wishing to restore the business to higher figures would be well advised to continue this activity.

Premises:

The business currently operates from a small office and store room where machines have been demonstrated. However, it could quite easily operate out of a home or commercial office. The lease expires in December and the premises have been re-let.

Property information

Lease terms:

The lease expires in December 2008 and the premises must be vacated. The business is fully transportable and can be run from a home office.

Other information

Support & training:

TBA

Trading hours:

Normal 5 day week