Mitsui Seiki's new CEO has a Jtekt connection.

Precision-machine-tool builder Mitsui Seiki Kogyo Co. (Tokyo, Japan) announces that Tadayuki Abe, 63, will be appointed president and chief executive officer at the end of the month, to succeed Takehiko Higuchi, who is retiring. An engineer-turned-executive, Abe started his career with Mitsui Seiki's top customer, Toyota Motor Corp. in 1967. After working on machine-control technology at the carmaker's factory, he moved to Toyoda Machine Works Ltd. (Kariya,Aichi Pref.)in 1998 to run its research labs and serve on its board. He later oversaw its machining-center operations until early this year, when he was named senior executive director at Jtekt Corp. (the new entity formed in the merger of Toyoda and Osaka-based Koyo Seiko Co.).

Abe says that three of Jtekt's managers are slated to move to Mitsui Seiki, which in turn will send one person to the larger company. So the ties between the two firms now include what the Japanese call a "fusion of people." The move follows previous joint development of horizontal-spindle machining centers and marketing collaboration between Jtekt predecessor Toyoda Machine and Mitsui Seiki.

Jtekt has retained the former Toyoda Machine's 15.8% interest in Mitsui Seiki unlisted stock, a deal cut in 2003. (Mitsui & Co., the huge conglomerate and trading company, holds 50%, and Toyota Motor Group owns 30% of Mitsui Seiki Kogyo.)

Abe says he doesn't buy into the rumored merger of Jtekt, its Koyo Machine Industries Co. unit (Yao City, Osaka), and Mitsui 1 Seiki. Instead, he tells the local press that the trio should continue, on their own, further development of their respective specialties, including cylindrical, surface, and thread grinders. Meanwhile, Abe says he'll work to further enhance the Mitsui Seiki brand names, which cover CNC jig borers,jig grinders, way grinders, and automotive transfer lines.

The new CEO is said to have been hand-picked by his predecessor, Takehido Higuchi, who started with Mitsui Seiki as an accountant in 1964 and moved to the executive ranks in the 1990s, serving as president for the last seven years. His tenure is noted for moving manufacturing into the new its headquarters facility at Kawajima-machi, HiM-gun, Saitama Prefecture, with its strict environmental and vibration controls that aid in building high-precision machines. He did that by selling the former factory, built in 1934, and using the assets to consolidate machine-tool and compressor businesses into one location. He also divested the company's Hino Truck assembly plant, increased Toyota Motors" stock ownership, and established that comprehensive alliance with Toyoda Machine, along the way reducing debt by 30% during the machine-tool recession of 2000-04.

Mitsui Seiki USA, Inc Franklin Lakes, N J, with reporting from our Asian correspondent.