Press release 31.08.23

DAIHEN Group strategic investor of Lorch Schweißtechnik GmbH

Lorch Schweißtechnik GmbH joins forces with the Japanese DAIHEN Group and thus becomes part of the listed DAIHEN Corporation. With DAIHEN, Lorch has found the desired perfect partner for further long-term expansion. The merger will result in farreaching
growth potential for Lorch and DAIHEN and excellent future prospects for Lorch employees and customers.

"The aim is to continue to supply our customers with innovative and smart welding technology solutions Made in Germany in the coming years and to create a long-term perspective for our employees. The takeover by DAIHEN Corporation as a strategic investor for Lorch Schweißtechnik GmbH therefore offers both sides far-reaching growth potential," explains Wolfgang Grüb as managing partner of Lorch Schweißtechnik GmbH. Lorch will continue to operate independently as a German premium supplier. The headquarters in Auenwald with development, production, administration and sales will remain unchanged and will be further expanded. The technological know-how of DAIHEN and Lorch is to be used to develop and offer even better high-end solutions for the European and worldwide
market in the future. In order to achieve this, very strong investments are to be made in the development of new products. Lorch's foreign subsidiaries will also remain unchanged and the efficient partner network will continue to be supported by Lorch Sales.

"With the investment by the strategic partner DAIHEN, Lorch has succeeded in bringing a long-term and strong partner on board and in regulating the entrepreneurial succession," says Wolfgang Grüb, who has been at the helm of the company for four decades and will move to the company's advisory board after a transition phase. "For me, it was important to set the course in good time to give the Auenwald site and the Lorch employees a reliable perspective." The existing management team will take over the management of the company in the future. Wolfgang Grüb: "I am pleased that Lorch will be able to continue its business operations on a continuous basis with the then rejuvenated management team. Lorch is my child, and I will continue to be closely associated with it."

"The acquisition of LORCH into the DAIHEN Group represents a significant strategic step for us to strengthen our presence in the European market and beyond," says Shoichiro Minomo, CEO and President DAIHEN. DAIHEN is massively strengthening its presence and market share in Europe with the investment in Lorch. DAIHEN, with its claim as a technology leader and a strong global sales network, is ready to intensively support the distribution of LORCH technology. In addition to synergies in product development for welding technology, closer cooperation in the field of welding automation with regard to robotics is being sought. Lorch will continue the COBOT Welding division unchanged. In the future, it is also planned to offer system integration with OTC robots (from the DAIHEN Group). Lorch has already consistently expanded the system integration business area in recent years. This cooperation increases the performance of Lorch's product and service portfolio in all sales channels.

"With LORCH, we have gained a partner in Europe with whom we will jointly develop products on an equal footing. In this, our position as a technology leader will certainly serve us well," assures Shoichiro Minomo. With common goals and a strong commitment to quality, both companies are focused on expanding their leading position in welding technology in the European region.