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Mitsubishi Electric Launches New Company in Brazil for Sales and Service of Factory Automation Products

Tokyo, August 1, 2012 - Mitsubishi Electric Corporation (TOKYO: 6503) announced today that it has established a new company in Sao Paulo, Brazil to strengthen its computerized numerical controller (CNC) business in the Brazilian market. The new company, MELCO CNC do Brasil Comèrcio e Serviços S.A., will target annual sales of USD 25 million by March 2016.
In July, 2012, in order to quickly position itself to meet rapidly growing demand in the Brazilian market, Mitsubishi Electric signed a business transfer agreement to purchase the CNC sales and service division of Automotion Industria, Comèrcio Importacao e Exportacao Ltda., a local sales and service agency with high technical capabilities that has provided Mitsubishi Electric CNCs and factory automation products and components to Brazilian machine tool manufacturers for the past 20 years.

The newly established company will expand local sales and service capabilities by increasing personnel, including Japanese staff from Mitsubishi Electric, further enhancing Mitsubishi Electric's ability to provide local servicing for the rapidly increasing number of machine tools imported from countries such as Japan and Taiwan. MELCO CNC do Brasil Comèrcio e Serviços also intends to establish regional offices in southern and northeastern Brazil, regions that are expected to enjoy high economic growth following Sao Paulo State.

Building on this existing business base, Mitsubishi Electric will position the new company within its global service network as an important hub in South America, strengthening its business structure in the region.

The Brazilian market is now anticipating continuous growth, backed by rich mineral and food resources, as well as the privatization of state-owned corporations in the steel, mining, electrical power, and finance industries. In addition, the market growth is attracting manufacturers, including automobile makers from Japan and other countries. The hosting of several major international sporting events within the next few years is also expected to stimulate local capital investment for related facilities, further expanding the machine tool market.

Outline of MELCO CNC do Brasil Comèrcio e Serviços S.A
Company name MELCO CNC do Brasil Comèrcio e Serviços S.A
Representative Kazuo Kurokawa (scheduled to be appointed president on August 16, 2012)
Location Boituva, Sao Paulo, Federative Republic of Brazil (head office)
Capital USD 1.3 million (approximately JPY 110 million)
Established July 2012
Employees 20
Description of business Sales and service of CNCs in Brazil