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FOR IMMEDIATE RELEASE No.2641

Mitsubishi Electric to Expand Factory Automation Systems Business

Targeting annual sales of 600 billion yen by fiscal year ending March 2016

Tokyo, December 14, 2011 - Mitsubishi Electric Corporation (TOKYO: 6503) announced it will strengthen its factory automation (FA) solution businesses, including related production and sales capacities, with the intention of expanding market share, especially in China, India, ASEAN nations, Brazil and other emerging markets. The goal is to raise annual sales of the FA systems business from 480 billion yen at present to 600 billion yen by the fiscal year ending in March 2016, and also increase the ratio of overseas FA systems sales from 45 percent to 50 percent over the same period.

In addition to its current worldwide partnerships, Mitsubishi Electric will strengthen cooperation with software, ERP systems and CC-Link industrial network partners to enhance its iQ Platform business. These partnerships enable Mitsubishi Electric to expand technological advantages and business opportunities, in particular for energy-saving solutions in China and infrastructure solutions in ASEAN nations.

In China, Mitsubishi Electric aims to raise annual sales from 60 billion yen at present to 100 billion yen by March 2016. By the end of 2012, the company will have three FA-related factories operating within China: Mitsubishi Electric Dalian Industrial Products Co., Ltd. is already making mechatronics and FA control equipment such as PLCs and human machine interfaces, Mitsubishi Electric Automation Manufacturing (Changshu) Co., Ltd. will begin manufacturing servo motors, numerical controllers and other drive products, and Mitsubishi Electric Low Voltage Equipment (Xiamen) Co., Ltd. will start producing low-voltage switchgears from 2012.

In India, Mitsubishi Electric will work with local partners to establish and strengthen production networks starting with manufacture of low-voltage switchgears. By next year, its Indian operations also plan to triple the number of FA-related distributors and increase sales workforce to more than ten fold.

In the ASEAN nations, the company will position its Singapore-based sales subsidiary as its headquarters for the ASEAN market to target growth in infrastructure solutions in partnership with the CNA Group Ltd. Mitsubishi Electric will also start producing smart meters at affiliated companies in Thailand and Indonesia. Sales and service channels will be enhanced in other new markets including Brazil, Vietnam, Mexico, Indonesia and Turkey.

As part of these initiatives, Mitsubishi Electric will launch a global FA website to provide customers with timely product information in 22 languages beginning in spring 2012. To meet requests for the shortest-possible delivery times, the company will deploy a global supply-chain data management system to comprehensively manage orders, sales, stock and production information worldwide.

"We have determined that we must strengthen our FA solutions capabilities to support our customers' manufacturing productivity and to provide them with more prompt and reliable service," said Hideyasu Nonaka, group president of Factory Automation Systems and senior vice president of Mitsubishi Electric. "To achieve these goals, we have decided to collaborate more closely with our partners who provide FA solutions and strengthen our production and sales capacities worldwide, reinforcing our position as a leading global FA player."

Opportunities to supply automation equipment to customers operating outside of Japan are rapidly expanding as Japanese companies continue to increase their offshore capital investments and local manufacturers continue to grow. At the same time, China, ASEAN nations and other emerging markets are increasing their investments in infrastructure such as trains, subways and water treatment facilities, creating new demand for integrated solutions targeting energy savings, environmental protection and safety. In the face of intensifying competition with local and specialized FA equipment manufacturers, however, suppliers are being forced to respond to customers faster through, for example, shorter product-delivery times and quicker provision of product support.

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