Mitsubishi Pencils acquires Lamy

[Mark from Yorkshire]

@A Smug Dill I was thinking not along the lines of making own nibs more not owned by some faceless multinational venture capitalist like cross, waterman and also Parker. It would of been nice to see a company like Pilot with experience of manufacturing and also marketing fountain pens and hopefully have them make a profit.

 

my fear is and I hope that I am proven wrong as I know I can be that Mitsubishi pencil co, will with time see the Lamy fountain pen range as uneconomic and stop the production. 
 

are Onato independent ?  That and TWSBI. I suspect there are loads more out there. 
 

kind regards 

 

mark 🤟🏻😃🤔

[Number99]

Press Release by Mitsubishi Pencil Co.

The article is in Japanese. Please add Japanese to your browser's translation language.

(The Press Release section disappears for some reason when I switch the website settings to the English version...)

https://www.mpuni.co.jp/company/press/20240229-53404.html

 

 

Links to the above press release have been verified to be archived on the Wayback Machine.

https://archive.org/web/

 

 

Edited February 29, 2024 by Number99

[A Smug Dill]

33 minutes ago, Mark from Yorkshire said:

my fear is and I hope that I am proven wrong as I know I can be that Mitsubishi pencil co, will with time see the Lamy fountain pen range as uneconomic and stop the production. 

 

Honestly, I personally don't quite understand this mentality or sentiment. We're talking about for-profit commercial enterprise. If something is uneconomic or unprofitable, then it is only rational and sensible to stop it, unless the state — or some other bigger-than-Joe-Consumer fairy godmother — decides to take over the enterprise and use “the public purse” to continue funding and running it, even at a loss, in order to serve “the common good” that is in the particular actor's charter or creed to serve.

 

It makes little sense for consumers like us, and others who equally have no skin in the game, to expect the owner of a business to continue something (especially) largely unchanged, just so we can have what we want — without paying the price of keeping it alive and kicking — when the owner is not getting what it wants, i.e. profit or advantage. Wanting to have something provided at some other party's (or parties') sole expense may be a very human thing to do, but should not be dressed up as even mildly virtuous or righteous instead of fundamentally selfish.

 

I hope LAMY will be profitable for Mitsubishi Pencil. If it ultimately isn't, then I hope the company has the sense to either shut it down, or sell it to some other party who thinks it knows better how to turn a profit. If — and that's a big if — nobody can make a good enough return on their investment in LAMY, then it should be shut down irrespective of nostalgia; I'm certain there will be other contemporary pens in the market for consumers to buy.

[HobbitLife]

@Mark from Yorkshire @A Smug Dill Is Aurora still independent? I was under the impression they still make nibs, feeds, and all the rest in-house. 

[LoveBigPensAndCannotLie]

I would have of course preferred if Lamy stayed independent but as far as parent companies go, Mitsubishi seems to be a really solid choice. At the very least they're in the business of making quality writing instruments. I don't think it'd be wrong to say that Japanese companies put a lot of focus on putting out good products, not just scrounging for top profits.

[Chandon]

My own view as a long time Lamy user/collector (of fountain pens, ballpoints and pencils) is that Lamy lost its innovative streak when Dr Manfred Lamy retired, and the company was then run by hired managers. At one point, there were 3 CEOs, which is always a sign of lack of corporate strategic direction. I guess no-one in the Lamy family could, or wanted to, take over the business, and make a proper go of it. When Dr Manfred died (last year was it?) I think a sale became inevitable. The family will have cashed-out as often happens in many family companies where the second or third generation of owners' hearts/minds are not in. it. At the same time, Mitsubishi Pencil is a good company that makes some great products and has high production standards and a vast distribution network. It could deliver some new products to Lamy (a better ballpoint refill, more innovative pencils etc) and higher QC across all lines.  It is also much preferable to a company like Newell Rubbermaid that has ruined Parker, Waterman and Rotring, or a sale to private equity vultures. That said, I'm sorry Lamy will no longer be an independent, German-owned, family company. I've been using its pens for about 50 years, and will miss their unique designs and style. At the end of the day, though, Lamy is a business that employs 340 people, and it needed to be run properly and to make money. I'm sure Mitsubishi will keep and develop the most profitable products and dump the rest. I understand that Lamy may have discontinued some of its models (like the Ideos, Logo, Pur) already. From reading the German website, I see that they have also introduced some new colours of the Nexx, released a different special edition Safari, more colours of the Econ ballpoint and even are-released Dark Lilac ink (at a mere fraction of the price it is sold for on E-Bay). Maybe part of the Mitsubishi strategy is to focus on the lower cost pens to compete with Pilot and Platinum - maybe it will commission a new design?

[Mark from Yorkshire]

It would have been interesting to see what Pilot could have done with Lamy. 

[Estycollector]

I am pleased as Mitsubishi makes exceptional lead pencils. Hopefully they will now be complete. 

[sketchstack]

On 2/29/2024 at 2:36 AM, A Smug Dill said:

Honestly, I personally don't quite understand this mentality or sentiment.

 

1. People like something. So they want it to survive. 

 

 

On 2/29/2024 at 2:36 AM, A Smug Dill said:

Wanting to have something provided at some other party's (or parties') sole expense may be a very human thing to do, but should not be dressed up as even mildly virtuous or righteous instead of fundamentally selfish.

 

2. Hoping a new parent company doesn't drive a beloved brand into the ground isn't "fundamentally selfish". Last I checked Lamy pens aren't handed out for free. People pay money for them and wish to continue doing so. (See #1)

 

All of that said, I have faith that Mitsubishi we be good stewards of the Lamy brand. While there may be tweaks to the business here and there, nothing about this acquisition worries me.  

 

 

 

[Estycollector]

The Mitsubishi Pencil Company acquires LAMY, aiming to lead the company and brand into the future (prnewswire.com)

[Chandon]

12 hours ago, Mark from Yorkshire said:

It would have been interesting to see what Pilot could have done with Lamy. 

Interesting idea. I always thought that there was a certain synergy between Lamy and Tombow, as both companies have been pioneers of innovative design over the last 40 years. I know that Tombow has never been a company that makes lots of fountain pens, but look at lines like the Zoom and the Object and you'll see they are a really innovative company design-wise. Some of Lamy's most innovative designs have been its ballpoints and pencils (Noto, Pico, Dialog, Spirit, ABC, Scribble etc) so there was a real synergy with Tombow. Whilst I think the design is brilliant, I am not a fan of Kuru Togas as I can rotate a pencil myself and they are not ideal for cursive. On the other hand, I think that the Mono mechanical pencil is one of the best there is (for its price). Tombow's wooden pencils are as good (if not better) than those made by Mitsubishi.  All food for thought.

[The Elevator]

Well, this should be interesting. Of all the fully-in-house FP makers, I would never have thought Lamy would be the one looking to sell out. Compared to the other manufacturers like Pelikan and Waterman, they seem to have a much more cohesive identity to me, featuring interchangeable nibs and solid metal body options, both of which are very attractive to me as an engineer. 

 

Honestly? I’m pretty optimistic. When I am not writing with a fountain pen, I usually have a Mitsubishi product in my hands, and have had nothing but good experiences with all my Uni and Mitsubishi products. I think Uni-Mitsubishi’s sleek modern aesthetic is a good match for Lamy’s clean, utilitarian style. I often have my Uniball Signo RT-1 and Lamy Studio next to each other on the same desk, and they look like pretty close cousins.

 

It would be cool to see some crossover. For example, more high-quality German machined bodies for Uni gel pens, or Mitsubishi’s obsession with fraud prevention creating a brand-new line of Lamy permanent inks. Product-wise, I think Mitsubishi has probably been thinking in this direction for a little while, as they compare the Uniball Air’s pressure-sensitivity to a fountain pen on the website. I would really like to see more technical innovation in Lamy’s FPs, perhaps a seamless piston-filler with a polished stainless body and longitudinal ink windows? I would be overjoyed to see some more nib options too. 

 

I’m a little nervous, of course, but I think in a few years we’ll look back and say “Well that went pretty well, considering the circumstances.”

[A Smug Dill]

6 hours ago, sketchstack said:

People like something. So they want it to survive. …‹snip›… Hoping a new parent company doesn't drive a beloved brand into the ground isn't "fundamentally selfish". Last I checked Lamy pens aren't handed out for free. People pay money for them and wish to continue doing so.

 

I also want LAMY to survive, and be profitable for Mitsubishi Pencil (or whoever owns it next) as an arm or subsidiary of the company, in whichever way the new owner makes the German brand suit the enterprise's business goals.

 

What I don't care is whether new management decides to cull products that aren't profitable, to focus on what are, so as to ensure LAMY's survival and value as a business.

 

On 2/29/2024 at 8:41 PM, Mark from Yorkshire said:

my fear is and I hope that I am proven wrong as I know I can be that Mitsubishi pencil co, will with time see the Lamy fountain pen range as uneconomic and stop the production. 

 

Pilot, Platinum, and Sailor have collectively proven there is market demand for fountain pens and money to be made. How Mitsubishi Pencil uses LAMY's fountain pen manufacturing capability to compete in the market is a different thing from the product set to be unchanged even when @Mark from Yorkshire's implied assumption is that “the Lamy fountain pen range” as it is known today underperforms economically for the manufacturer. If it takes changing or even culling (say) the LAMY 2000 from the range, for the brand to fare better in the market and make Mitsubishi Pencil happy, then it should be what supporters of the brand/company want, to ensure LAMY as a business is not run into the ground and then discarded.

 

[Mark from Yorkshire]

@Chandon I was thinking more a company with fountain pens in its DNA with Japanese QC/QA as well. That or Sailor. My worry with Mitsubishi Pencil co is exactly that they are a pencil/ RB/BP company with no past experience of manufacturing or making fountain pens. I hope to god that I am wrong as I really like my Fountain pens. I have one sailor and a couple of standard non European Pilots that show the venture capitalist Cross etc up for what they are carp. I also have a Uniball or two, they are good for what they are RBs. Once again Mitsubishi pencil co’s area of expertise. I would rather if they are to be bought out by a Japanese entity which just to be clear I have no problem with it was one with a history of making and marketing fountain pens. 

[Mark from Yorkshire]

3 minutes ago, A Smug Dill said:

 

I also want LAMY to survive, and be profitable for Mitsubishi Pencil (or whoever owns it next) as an arm or subsidiary of the company, in whichever way the new owner makes the German brand suit the enterprise's business goals.

 

What I don't care is whether new management decides to cull products that aren't profitable, to focus on what are, so as to ensure LAMY's survival and value as a business.

 

 

Pilot, Platinum, and Sailor have collectively proven there is market demand for fountain pens and money to be made. How Mitsubishi Pencil uses LAMY's fountain pen manufacturing capability to compete in the market is a different thing from the product set to be unchanged even when @Mark from Yorkshire's implied assumption is that “the Lamy fountain pen range” as it is known today underperforms economically for the manufacturer. If it takes changing or even culling (say) the LAMY 2000, for the brand to fare better in the market and make Mitsubishi Pencil is happy, then it should be what supporters of the brand/company want, to ensure LAMY is not run into the ground and then discarded.

 

@A Smug Dill I meant all of Lamys fountain pens as Mitsubishi pencil co are not a manufacturer or marketer of fountain pens. All they want is the devil sticks and rollerballs. That is why I said somebody like TWSBI, Pilot or Sailor would have been a better fit. They understand the market, and promotion and sale of fountain pens and the profitability. That and the right marketing strategies, Mitsubishi are no better than the companies that back Parker, Waterman and Cross et al. They only want the assets and Intellectual property. I.e they only want to cherry pick the low fruit.

[sketchstack]

20 minutes ago, Mark from Yorkshire said:

They only want the assets and Intellectual property.

 

Of course none of us knows what either company is/was thinking with the acquisition but sometimes it's not so simple. 

 

• If Lamy is profitable, then Mitsubishi may simply adhere to the "ain't broke, don't fix" philosophy. Lamy may then run with autonomy for the foreseeable future; very little may change from a consumer's perspective. So Mitsubishi has added to their portfolio of products by acquiring a healthy, established business.
• Mitsubishi may have been just as if not more interested in a distribution network. Buying Lamy gives them instant inroads to hundreds if not thousands of retailers.

 

[Chandon]

1 hour ago, Mark from Yorkshire said:

@Chandon I was thinking more a company with fountain pens in its DNA with Japanese QC/QA as well. That or Sailor. My worry with Mitsubishi Pencil co is exactly that they are a pencil/ RB/BP company with no past experience of manufacturing or making fountain pens. I hope to god that I am wrong as I really like my Fountain pens. I have one sailor and a couple of standard non European Pilots that show the venture capitalist Cross etc up for what they are carp. I also have a Uniball or two, they are good for what they are RBs. Once again Mitsubishi pencil co’s area of expertise. I would rather if they are to be bought out by a Japanese entity which just to be clear I have no problem with it was one with a history of making and marketing fountain pens. 

That is a great point, but I think that Lamy's business is about much more than fountain pens, ranging from kids' coloured pencils to rollerballs. IMO, the ballpoints are some of the most innovative designs out there, and may have been a big attraction for Mitsubishi. A better refill than the M16 would be welcome. What has impressed me about Lamy is that it is one of the few companies that still make a pen model as a fountain pen, pencil, ballpoint, rollerball, from the Imporium to the Safari via the 2000 line etc. Mitsubishi may well also have been attracted by the Lamy entry level pens (ABC, Nexx, Safari, Al-Star, CP1) as these will allow it to compete with Pilot and Platinum in the Japanese market by offering a "cheap" fountain pen.

[Merrick]

8 hours ago, Mark from Yorkshire said:

@A Smug Dill I meant all of Lamys fountain pens as Mitsubishi pencil co are not a manufacturer or marketer of fountain pens. All they want is the devil sticks and rollerballs. That is why I said somebody like TWSBI, Pilot or Sailor would have been a better fit. They understand the market, and promotion and sale of fountain pens and the profitability. That and the right marketing strategies, Mitsubishi are no better than the companies that back Parker, Waterman and Cross et al. They only want the assets and Intellectual property. I.e they only want to cherry pick the low fruit.

That could be the case, or it could be the case that Mitsubishi specifically wanted Lamy because Lamy gives them an instant foothold in the fountain pen market. And if that is the case then they are likely to retain many of the existing employees for the exact reason that they have expertise in an area where Mitsubishi currently has none. 
 

This news is making me consider picking up a few more Lamy pens now in case models do start getting canceled. 

[Estycollector]

Thoughts yesterday was a potential tax benefit that a Japanese Company would obtain by owning a German Company. I just did a search and found, 

When a Japanese company owns a German company, there can be potential tax benefits depending on various factors. Let’s explore some aspects:

Foreign Tax Credits:

A Japanese corporation is subject to Japanese corporate income taxes on its worldwide income.

To avoid double taxation of foreign-source income, Japanese corporations are allowed to claim a tax credit against corporation and inhabitant’s taxes for foreign income taxes paid directly1.

Owning a German company could allow the Japanese company to offset German taxes paid against its Japanese tax liability.

[Bill P]

8 hours ago, Merrick said:

That could be the case, or it could be the case that Mitsubishi specifically wanted Lamy because Lamy gives them an instant foothold in the fountain pen market. And if that is the case then they are likely to retain many of the existing employees for the exact reason that they have expertise in an area where Mitsubishi currently has none. 
 

This news is making me consider picking up a few more Lamy pens now in case models do start getting canceled. 

I agree, it could be a VERY good fit....Lamy is in  a Writing Instrument segment that Mitsubishi is NOT in...additionally, Mitsu has lots of writing instrument experience with inks, and perhaps they could improve on Lamy's non fountain pen inks....

 

Time will tell how this goes for us Lamy enthusiasts.