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FOR IMMEDIATE RELEASE No.2585

Mitsubishi Electric to Establish Automotive Equipment Company in China

Tokyo, March 9, 2011 - Mitsubishi Electric Corporation (TOKYO: 6503) announced today that it will establish a new company in Changshu, Jiangsu Province, China in April 2011 to strengthen its automotive equipment business across the country. The new company, Mitsubishi Electric Automotive (China) Co., Ltd., is expected to begin operations in April 2012, and help Mitsubishi Electric's automotive business expand its annual sales in China to 50 billion yen by March 2016.

Mitsubishi Electric Automotive (China) will manufacture and sell electric power steering equipment, automotive multimedia products and other automotive equipment in China, with a workforce of 500 employees in place by March 2016. The company will also play a key role in Mitsubishi Electric's global strategy concerning its automotive equipment business by aiming to increase production capacity in line with growing market demand, strengthening product competitiveness through local procurement and engineering functions, and enhancing customer relations while pursuing potential business.


Mitsubishi Electric positions China, which became the world's largest market for cars in 2009 and continues to grow, as a major market for its automotive equipment business. In 2002, the company established Mitsubishi Electric Shihlin Automotive Changzhou Co., Ltd. in Changzhou, Jiangsu Province, jointly with Shilin Electric & Engineering Corporation for the manufacture and sales of automotive electrical components such as alternators and starters, as well as automotive multimedia products and other automotive electronics.


With the Chinese coastal market now stretching inland, Mitsubishi Electric expects further growth in demand and has decided to integrate the sales and marketing functions of Mitsubishi Electric Shihlin Automotive Changzhou to the new company, which will be established in Changshu City's Changshu Southeast Economic Development Zone (CSDZ), located between Changzhou and Shanghai. After the establishment of Mitsubishi Electric Automotive (China), Mitsubishi Electric Shihlin Automotive Changzhou will be dedicated to the manufacture of alternators and starters.

New Company Outline

Company name (tentative) Mitsubishi Electric Automotive (China) Co., Ltd.
Location Changshu Southeast Economic Development Zone (CSDZ),
Changshu, Jiangsu Province, China
Site area Approximately 50,000 square meters
Total floor space of building Approximately 20,000 square meters
Paid-in capital US$ 30 million (approximately 2,450 million JPY)
Investment ratio Mitsubishi Electric Corporation: 90%
Mitsubishi Electric (China) Co., Ltd.: 10%
Establishment date (plan) April 2011
Start of operations (plan) April 2012
Activities Manufacture and sales of electric power steering equipment,
automotive multimedia products and other automotive equipment

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