KYOTO, Japan, May 30, 2006 (PRIMEZONE) -- Nidec Corporation (NYSE:NJ) announced today that Nidec Automobile Motor (Zhejiang) Corporation, one of its manufacturing subsidiaries based in "Pinghu Economic Development Zone," Zhejiang, China, is now set to begin full production of motors for automotive applications including electric power steering systems.
Nidec Automobile Motor (Zhejiang) Corporation, in which Nidec Corporation owns a 70% stake and Nidec (Dalian) Limited holds the remainder, was established in February 2006 as the centerpiece of Nidec Group's automotive motor business. With the start of full-scale operation, Nidec Automobile Motor (Zhejiang) Corporation takes over the automotive motor business currently undertaken by Nidec Shibaura (Zhejiang) Corporation, a wholly-owned subsidiary of Nidec Corporation, operating in the same Economic Development Zone.
Nidec Corporation anticipates greater demand for motors that activate electric power steering systems and other automotive applications in a range of new-generation automobiles, including hybrid cars, as the market continues to be oriented towards sophisticated driving systems that excel both in performance and mileage.
The Nidec Group plans to increase its annual sales of automotive motors and associated parts to 40-50 billion yen by fiscal 2008 and approximately 100 billion yen by fiscal 2012.
Outline of Nidec Automobile Motor (Zhejiang) Corporation
1. Company name:
Nidec Automobile Motor (Zhejiang) Corporation
2. Principal line of business:
Manufacture of automotive motors
3. Paid-in capital:
US$ 10 million
4. Representatives:
Chairman Kenji Sawamura
President Akizumi Chimura
Director Hideyuki Ishii
5. Capital subscription:
Nidec Corporation 70%
Nidec (Dalian) Limited 30%
6. Location:
Huanbei Second Road 1000# No.5 Hall, Pinghu Economic Development
Zone,
Pinghu City, Zhejiang Prov. P.R.O.C.
7. Established:
February 24, 2006
8. Start of operation:
June 1, 2006
9. Lot area:
Approx. 15,305 sq.m.
10. Ground-floor area:
12,000 sq.m.
11. Sales plan:
FY2006: Japanese Yen 5 billion
FY2007: Japanese Yen 8 billion
FY2008: Japanese Yen 12 billion
12. Investment plan:
Japanese Yen 5 billion over the next three years
13. Number of employees:
500 employees for the first year
(to be increased up to 1,500 according to the pace of scale
expansion)
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