Share

Twitter

News Release
The Fuji Electric Group Consolidates Motor Affiliates to Strengthen Drive Solution Business Including Inverters

March 3,2009
Fuji Electric Holdings Co., Ltd.

Fuji Electric Holdings Co., Ltd. (Headquarters: Shinagawa-ku, Tokyo; Representative: Haruo Ito) announced today that Fuji Electric Systems Co., Ltd. (Headquarters: Shinagawa-ku, Tokyo; Representative: Mitsunori Shirakura; hereinafter referred to as “FES”), its wholly-owned subsidiary, would merge Fuji Electric Motor Co., Ltd. (Headquarters: Suzuka-shi, Mie; Representative: Takanori Miyazaki; hereinafter referred to as “FDM”), a wholly-owned subsidiary of FES, to operate a comprehensive motor business that covers small- to large-capacity industrial motors. The Fuji Electric Group will also reinforce its drive solution business by combining motors with inverters and other drive control equipment.

1.Objectives

FES is a core operating company of the Fuji Electric Group which is primarily engaged in industrial and power plant system business. Its mainstay products include industrial motors; FES develops, designs, manufactures and markets middle- to large-capacity motors with a significant track record of delivery. In the meantime, FDM develops, designs, manufactures and markets small-capacity motors for general industrial machinery, including machine tools. In this way, the motor business of the Fuji Electric Group has been separated into two areas and operated by FES and FDM independently to respond to different needs and customers.

The business environment surrounding motor operation, however, has dramatically changed due to a global economic downturn and an increase in needs for energy-efficient or environmentally-friendly products. To cope with this change in business environment, the Fuji Electric Group has decided to consolidate all motor operations to channel all motor resources to areas that help environmental protection and energy-efficiency where market needs are expected to significantly grow. The Fuji Electric Group will also convert its business model for drive products from component-based model to solution-based model by providing comprehensive offerings that cover motors, inverters and other drive equipment. To this end, Drive Center will be newly established in Drive Business Headquarters of FES to strengthen business strategy and marketing, and reinforce and accelerate development for solutions that combine motors with inverters and other drive equipment.

2.New Motor Business Strategy (Sales Forecast for Fiscal 2008: ¥30 Billion)

a) Strengthen business strategy and development for solutions that combine motors with inverters and other drive control equipment
b) Reinforce new product development and streamline product portfolio
・ Strengthen development of new products that satisfy energy-efficiency and environmental protection requirements, such as permanent magnet (PM) motors and highly-efficient motors
・ Provide motors with different capacities ranging from small to large that meet customers' needs while creating more targeted offerings
c) Develop a solution-based business model by providing offerings that combine motors with inverters and other drive control equipment
d) Realign production organization to quickly respond to customers' needs and reduce production cost by transferring operations for general-purpose motors to Fuji Electric (Dalian) in China

3.Date of Merger

April 1, 2009
Note that Fuji Electric Motor (Dalian) Co., Ltd., Fuji Electric Motor (Shanghai) Co., Ltd. and Atai Fuji Electric Co., Ltd. will become affiliates of FES as of April 1, 2009.

4.Company Outline (As of February 28, 2009)

Fuji Electric Systems Co., Ltd.
Establishment: December 1965
Location: Osaki, Shinagawa-ku, Tokyo
Representative: Mitsunori Shirakura
Capital fund: JP¥25 billion
Line of business: Development, manufacture and sales of, and service for information systems, communication systems, control systems, drives and electric power systems
Fuji Electric Motor Co., Ltd.
Establishment: May 1999
Location: Suzuka-shi, Mie
Representative: Takanori Miyazaki
Capital fund: JP¥2.8 billion (FES has a 100% stake)
Line of business: Development, manufacture and sales of, and service for motors and motor application products
Fuji Electric Motor (Dalian) Co., Ltd.
Establishment: August 2005
Location: Dalian, China
Representative: Takanori Miyazaki
Capital fund: RMB¥149,111,000 (FES and FDM have a 75% and a 25% stake respectively)
Line of business: Manufacture of motors
Atai Fuji Electric Co., Ltd.
Establishment: May 1997
Location: Taoyuan, Taiwan
Representative: Takanori Miyazaki
Capital fund: NT$100,000,000 (FDM has a 100% stake)
Line of business: Manufacture and sales of motor application products
Fuji Electric Motor (Shanghai) Co., Ltd.
Establishment: May 2003
Location: Shanghai, China
Representative: Masatoshi Hotta
Capital fund: RMB¥3,311,000 (FDM has a 100% stake)
Line of business: Sales of motor products

Customer Inquiry:

Sales Planning, Sales Group, Fuji Electric Systems Co., Ltd.
Tel. +81-3-5435-7020
Sales Planning, Fuji Electric Motor Co., Ltd.
Tel. +81-52-231-8186