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News Release
Fuji Electric Holdings to Establish Its Wholly-Owned Management Company in Shanghai, China
March 18,2008
Fuji Electric Holdings Co., Ltd.
Fuji Electric Holdings Co., Ltd. (President: Haruo Ito) announced today that it was taking the procedure to establish its wholly-owned management company in Shanghai, China in July 2008, aiming at further expanding its local business. The background of the establishment and targets and key initiatives of the management company are as follows:
1.Background
With a total of 34 sites for manufacturing, sales and logistics in China including Hong Kong as of the end of fiscal 2007, the Fuji Electric Group positions the China, where half of its operating sites concentrate, as the most import hub to expand its overseas business. Conventionally each core operating company of the Fuji Electric Group under its pure holding company system has operated its own subsidiaries independently. Aiming to further expand its business and increase earnings in China, however, the Fuji Electric Group has decided to set up a local management company.
2.Target
By establishing the management company, the Fuji Electric Group aims to achieve ¥100 billion of sales in fiscal 2008 and ¥200 billion in fiscal 2015 from operation in China.
Sales and Personnel Outlook of the Entire Group Companies in China
3.Key initiatives
1)Strengthen governance of the entire group companies in China
The management company will develop business strategy for China to optimize the entire group's business under the leadership of the chief operating officer appointed from Fuji Electric Holdings to lead local operation. It will manage funding, human capital, marketing, information systems and logistics for the entire group companies in China to improve entire operational efficiency. In addition, it will strengthen governance of the entire group companies in China by appointing specialists in the area of legal, tax and labor affairs to quickly and appropriately respond to changes in the situation.
2)Enhance personnel training by creating a human resource development center
In an effort to achieve ¥200 billion of sales in fiscal 2015, we will focus on the development of human resources capable of serving as top management as well as training and education for engineers and technicians. To achieve this, a human resource development center will be set up within the management company and a time schedule of localization process will be created promptly. In addition, establishment of an education facility with capacity of 100 people will be discussed.
3)Develop and manufacture locally environmentally-friendly or energy-saving products
For the Fuji Electric Group to be able to help China promote energy-savings and address environmental problems, we will build capability to develop and manufacture products suited for these needs in China.
1.Set up a R&D center
The Fuji Electric Group already has a R&D center in the premises of Zhejiang University in Zhejiang and has formed an academic-industrial alliance with Tsinghua University in Beijing. To further expand its business going forward, however, it is necessary to promote local product development and build capability to propose solutions for energy-saving and environmental problems. To achieve this, we will reinforce collaboration with research institutions, academic society, and universities in China by establishing a R&D center within the management company which will lead technology development of the entire group companies in China. In addition, we will promote implementation of the Fuji Electric Group's technology policy and transfer of its technology to China, led by Fuji Electric Advanced Technology Co., Ltd., a research institute of the Fuji Electric Group.
2.Upgrade and increase manufacturing capability in China for energy-saving or environmentally-friendly products
A new high-voltage inverter plant will be constructed within fiscal 2008 in the adjacent site of the low-voltage inverter plant in Wuxi which has already came on-stream. The total production output of low- and high-voltage inverters is expected to be approximately ¥20 billion in fiscal 2010.
Another plant in Wuxi for instrumentation equipment has started production of analytical instruments while introducing cutting-edge technology to the production.
4)Strengthen cooperation with leading Chinese companies
We have already formed strategic alliances or set up joint companies with some leading Chinese companies in the field of instrumentation equipment and low-voltage switches, including a joint venture with Dalian Bingshan Group Co., Ltd. to sell vending machines. Going forward, we will further actively enhance collaboration with leading Chinese companies.
4.Overview of the Management Company (Regional Headquarters in China)
Customer Inquiry
Global Business Strategy and Promotion
Marketing Planning Group
Fuji Electric Holding Co., Ltd.
Tel. +81-3-3495-5983