Taiyo Pacific Partners announced today that it has accumulated in excess of 5% in YAMASHIN-FILTER CORP. (6240). Taiyo Pacific Partners is known for its cooperative investment style working with senior management to enhance shareholder value.
Brian K. Heywood, Chief Executive Officer and Managing Partner of Taiyo Pacific Partners, said, “Companies like Yamashin are the reason we think Japan is one of the most interesting investment markets in the world. They are a global niche leader with 70% market share in mission critical construction machinery oil filters. They have a strong management team lead by the very capable President Yamasaki. And, they continue to innovate with game changing technology. The most recent innovation is their YAMASHIN NANO FILTER which triples the life of oil filters and dramatically reduces costs for their customers. However, the material they developed for the new hyper efficient filter also appears to have numerous other commercial uses in the air conditioning and automotive industries. Intriguingly, they have also attracted apparel industry customers who value the material for its lightweight insulation qualities that may have a big impact on clothing design. We expect the combination of good management, market leadership, and continued innovation will provide excellent long term returns for our investors.”
Michael A. King, Chief Investment Officer and Managing Partner of Taiyo Pacific Partners, said, “YAMASHIN is one of the most unique manufacturing companies we have found. Their focus on specialty filter production and their use of the difficult-to-imitate filter technology, as well as strong relationships with major industry clients, creates high barriers to entry and enables them to sustain their competitive advantage. With YAMASHIN NANO Filter the management has set a long-term growth path to transform themselves from a construction machine filter maker to a comprehensive filter provider. We believe the equity market has not yet incorporated the potential scale of future growth.”
President Atsuhiko Yamazaki commented, “Since our foundation, our management philosophy has been Rokajini Tsukafuru, a Japanese phrase which expresses our commitment to contributing to society through filtration. With a comprehensive internal capacity that allows us to develop our own materials and product designs as well as manufacture our filtering products, we have consistently expanded our business in the construction and industrial machinery industry. We appreciate Taiyo Pacific Partners’ understanding of our business model, which leverages our management philosophy and R&D capabilities. We will continue to strive for highly transparent management for our shareholders and aim to further increase corporate value and sustainable growth with our long-term vision of becoming a comprehensive filter manufacturer.”
Taiyo Pacific Partners, located in Kirkland, Washington, was founded in 2003 by Asia-focused professionals dedicated to friendly shareholder activism in Japan and other Asian countries. The firm currently manages over $2.4 billion in Japan-focused funds. All strategies employ a friendly engagement approach.