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News Release
Fuji Electric to Establish New Factory in Thailand for the Expansion of Asian Operations
September 10,2012
Fuji Electric Co., Ltd.
Tokyo, September 10, 2012 - Fuji Electric Co., Ltd. (hereafter, "Fuji Electric" or "the Company") (TSE: 6504) announced today that it has decided to establish a new factory in Thailand as a new production site, centered mainly on power electronics application products, for the expansion of operations in Asia.
1. Background
Fuji Electric, as a part of a three-year rolling plan starting this fiscal year, is expanding its infrastructure-related business focused mainly on power electronics application products in Asia, and China in particular, where there is significant economic growth, and is targeting 830 billion yen in sales in fiscal 2014, with 120 billion yen of that coming from Asia.
2. Reinforcement and Expansion of Operations in Asia
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As investment in infrastructure increases in Asia along with market growth, Fuji Electric expects that there will be an increase in thermal and geothermal power generation-related orders and sales of industrial plant systems to Japanese clients, as well as the expansion of the component business, namely that of power electronics application products.
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Demand for power electronics application products in the global market is expected to reach approximately 5.4 trillion yen in fiscal 2014 (assuming 10% or higher annual growth), with Asia garnering an annual average of approximately 12%.* Specifically, Fuji Electric is expanding its operations by targeting the growing power supply-related market and industrial plants. To meet these targets, it will expand the application of uninterruptible power supply systems (UPS) and large-capacity power conditioners (PCS) for mega solar power generation applications and introduce new models of inverters that meet global specifications.
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Fuji Electric is also reinforcing its sales locations in order to cultivate markets and expand system sales, strengthening its engineering function to develop and introduce products that meet local requirements and accelerating the localization of its after-sales service organization.
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*
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As forecasted by Fuji Electric
3. Establishment of an Asian Production Site
In Thailand, Fuji Electric is utilizing its existing resources, namely that of its manufacturing subsidiary, Fuji Electric Power Supply (Thailand) Co., Ltd., to build a new factory that will serve as its central production site in Asia. This new leg of production will equip Fuji Electric with global production capability in the three key regions of Japan, China and Asia overall, thereby strengthening Fuji Electric's cost competitiveness and avoidance of risks such as disasters and exchange rates by bolstering local design, local production and local consumption.
Overview of the New Thailand Factory
Artist’s Rendering of New Factory
Reference Material: Fuji Electric's Global Production Sites
