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News Release
Production of medium-voltage inverters to commence in China

October 21,2009
Fuji Electric Holdings Co., Ltd.

- Opening Ceremony for No. 2 Factory Held at Wuxi Fuji Electric FA -

Fuji Electric Systems Co., Ltd. (Headquarters: Shinagawa-ku, Tokyo; President and Representative Director: Mitsunori Shirakura), a core operating company of Fuji Electric Holdings Co., Ltd. (Headquarters: Shinagawa-ku, Tokyo; President and Representative Director: Haruo Ito), held an opening ceremony today for the newly built No. 2 Factory at Wuxi Fuji Electric FA Co., Ltd., a production base for inverters in China. This new factory represents an endeavor to expand the Fuji Electric Group’s inverter business in China. Built on the site of the existing Wuxi Fuji Electric factory, which manufacturers general-purpose inverters, it is scheduled to commence production of medium-voltage inverters for the Chinese market.

1. Background and Objectives

The Fuji Electric Group has positioned China not only as a market in its business strategy for inverters, but also as crucial area for production. Since commencing operation in 1998, Wuxi Fuji Electric has continued to function as a production base for general-purpose inverters, supplying high-quality products to the Chinese market and greatly contributing to Fuji Electric Group’s entrenched market position for general-purpose inverters in China.

In a bid to further strengthen its business strategy for inverters in the Chinese market, the Fuji Electric Group is commencing operation of the No. 2 Factory at Wuxi Fuji Electric, a company that has accumulated considerable manufacturing know-how. The new factory will focus on medium-voltage inverters, for which the group has already established a position in the Japanese market. This will enable the group to accelerate local production in China, thereby supplying products best suited to the Chinese market and raising customer satisfaction while expanding sales in that country. The group also aims to use its foothold in the Chinese market to enhance its price competitiveness and ability to respond to the local market while expanding sales in East Asia and Australia.

2. Main Business Expansion Plans

As demand increases for the group’s inverters for use in variable speed motors as well in energy-saving equipment, business opportunities are expanding. The Chinese inverter market in particular is expected to grow even further due to the need for environmental solutions in that country. While responding to customer needs and ensuring their satisfaction, the Fuji Electric Group will continue strengthening its development, production systems, and technological response for products best suited to the Chinese market in the following manner.

(1) Development
Output capacity for the Chinese market will be increased and the cost of products will be continually reduced.
(2) Production systems
Standardized designs will be developed and logistical system efficiency improved to enable quick turnaround times and specification changes.
(3) Technological response
Engineers from Japan will be dispatched to provide support for business negotiations and training for local employees.

3. Overview of Wuxi Fuji Electric

(1) Corporate name: Wuxi Fuji Electric FA Co., Ltd.
(2) Address: Lot No. 28, Xi Mei Road, New District Wuxi, Jiangsu 214028, China
(3) Representative: Hiroshi Miki (also general manager of Fuji Electric Holdings (Shanghai) Co., Ltd.)
(4) Capital: US$15.3 million (wholly owned subsidiary of Fuji Electric Systems Co., Ltd.)
(5) Business description: Development and manufacture of inverters, inverter parts, and instrumentation equipment
(6) Site area: 25,325 m2 (existing factory: 11,325 m2 + new factory: 14,000 m2)