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Mitsubishi Electric to Set Up FA Production and Sales Company in China

Targeting annual sales of 30 billion yen by March 2016

Tokyo, May 19, 2011 - Mitsubishi Electric Corporation (TOKYO: 6503) announced today that it will strengthen its factory-automation equipment business in China by establishing a company in Changshu, Jiangsu Province, China in June 2011. The new company, Mitsubishi Electric Automation Manufacturing (Changshu) Co., Ltd., is expected to begin operating in December 2012 and will target annual sales of 30 billion yen by March 2016.

The firm will manufacture and sell servo motors, numerical controllers and other drive products to capitalize on rapidly increasing demand for FA equipment in China's huge manufacturing sector. With a planned workforce of 450 employees by March 2016, the company is expected to play a key role in expanding Mitsubishi Electric's FA business in China.

The Chinese market is experiencing buoyant capital investment, especially to meet the fast-rising demand for smartphones, tablet PCs and other mobile devices. As manufacturers expand production capacity for these products, they also have been investing more heavily in automation due to labor shortages and rising wages.

Mitsubishi Electric Dalian Industrial Products Co., Ltd. was established in Dalian to manufacture circuit breakers from 1994, and then added electrical discharge machines and inverters in 1999. Ryoden Automation (Shanghai) Ltd., now Mitsubishi Electric Automation (China) Ltd., was set up in Shanghai in 2002 to handle sales in the domestic market.
Mitsubishi Electric Automation Manufacturing (Changshu)

Mitsubishi Electric Automation Manufacturing (Changshu)

New Company Outline

Name Mitsubishi Electric Automation Manufacturing (Changshu) Co., Ltd.
Location Changshu Southeast Economic Development Zone (CSDZ),
Changshu, Jiangsu Province, China
Site area 33,150 square meters
Production floor space Approximately 24,000 square meters
Paid-in capital US$ 35 million (approximately 3,150 million JPY)
Investment ratio Mitsubishi Electric Corporation: 90%
Mitsubishi Electric (China) Co., Ltd.: 10%
Establishment June 2011
Start of operations December 2012
Business Manufacture and sales of servo motors, numerical controllers and other factory-automation equipment