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News Release
Fuji Electric Group Streamlines Organization
September 29,2009
Fuji Electric Holdings Co., Ltd.
Fuji Electric Holdings Co., Ltd. (FHC) (President and Representative Director: Haruo Ito; Headquarters: Shinagawa-ku, Tokyo) announced today the transfer of the semiconductor and photoconductor business units of Fuji Electronic Device Technology Co., Ltd. (FDT) to Fuji Electric Systems Co., Ltd. (FES), a core operating company, on October 1, 2009. FHC positions fiscal 2009 as the year to complete the Fuji Electric Group’s structural reforms aiming to achieve profitability in fiscal 2010. This transfer was previously announced in June of this year as a part of restructuring effort.
FHC also announced the merger of Fuji Electric Advanced Technology Co., Ltd. (FAT), the group’s R&D company, into the holding company as of October 1, 2009. A new advanced technology research laboratory will then be created with the aim of carrying out technological innovation for the group, while accelerating the development of advanced basic technologies.
1. Overview of the reorganization
(1) Transfer of semiconductor and photoconductor units to FES
The Fuji Electric Group has accelerated the reorganization of its business portfolio through the transfer of the semiconductor and photoconductor business of FDT to FES, which recently integrated the group’s five sales subsidiaries into its sales division on July 1 of this year. The group is also working to provide customers with system solutions focusing on the targeted markets of energy and environmental products.
In these targeted markets, the Fuji Electric Group is developing businesses that make the most of Group synergies for the social infrastructure market including railways, as well as the new-energy market including solar and wind power. Moreover, the group is contributing to society by promoting business expansion in the green market, which is expected to see increased demand in the future for smart grid next-generation electric power networks, and Green IDC, which help reduce environmental impact and reduce electrical costs.
The Fuji Electric Group will also integrate its product technology development organizations, and promote the unified development of power electronics technologies and power semiconductors, one of the group’s core technological fields, across the entire process from device creation to application. In this way, the group aims to maximize its business earnings, while providing products that meet customers’ many needs.
(2) Further reconstruction of the power semiconductor production system
Major automakers have announced plans to develop electric vehicles (EVs) amid the rapid expansion of the market for environmentally friendly cars such as hybrid vehicles (HVs). This has further increased the importance of the automobile market for power semiconductors.
Given these changes in the business environment, the group is placing importance on power supplies and industrial plant engineering as basic segments for the power semiconductor business. At the same time, it is emphasizing the new-energy, car electronics and automotive (HV and EV) fields, where growth is expected, as priority areas. In this way, the Fuji Electric Group is working to further re-construct its global system for optimal production.
Specifically, in order to manage foreign exchange risks and reduce costs, the group is vigorously accelerating its shift toward production outside Japan, as part of building a production system for the power supply and industrial plant engineering segments. Meanwhile, the group has also changed plans to close two plants in Japan, and is further re-constructing the current four domestic plants (Matsumoto Factory, Iiyama Fuji Co., Ltd., Omachi Fuji Co., Ltd., and Hokuriku Fuji Co., Ltd.) in order to create a production system for the automotive and new-energy fields
Further reconstruction of production systems: Overview
(3) Establishing an advanced technology research laboratory, and strengthening advanced research for portfolio realignment
FHC will integrate the functions of the R&D division being merged into FHC and establish a new advanced technology research laboratory within its organization. The new laboratory will work on technology research and innovation for the realignment of the group’s business portfolio.
Within the advanced technology research laboratory there will be an energy and environment research center, a device technology research center, a basic technology research center, and a production technology research center. This will strengthen the advanced research and marketing for leading-edge technologies such as next-generation power semiconductors (SiC and GaN), as well as next-generation solar cells. It will also accelerate the development of products and systems to achieve customer satisfaction.
2. Schedule
The following steps will be carried out on October 1, 2009