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Japanese motor manufacturer Nidec to expand production capacity in China

Source: Xinhua| 2019-05-10 00:47:31|Editor: yan
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HANGZHOU, May 9 (Xinhua) -- Japanese comprehensive motor manufacturer Nidec Corporation said that it plans to invest about 100 million U.S. dollars to set up its second production site in east China's Zhejiang Province.

Nidec is seeking to increase its electric motor production capacity in China as the flourishing new energy vehicle and smartphone industries of the country have brought about "unprecedented" opportunities, the company said.

The company has set a revenue target of 800 billion yen (about 7.3 bln U.S. dollars) in the Chinese market by 2020, said Teruyuki Kai, vice president of the corporation who is in charge of Nidec's operations in China.

The planned investment, which came after another 100 million U.S. dollars in Nidec's first production facility in Zhejiang last year, showed the company's confidence in beefing up its presence in its largest market globally, Kai said.

Financial data show that Nidec's net sales went up by 2 percent to hit a record high of 1.52 trillion yen in its 2018 fiscal year, which ended March 31 this year.

Wang Ruixiang, head of the China Machinery Industry Federation, said that new energy vehicles in China have gained a solid growth momentum, driving the whole related industrial chain.

"Breakthroughs in core auto components and R&D in related spare parts chart the future of the industry," he said.

According to the China Association of Automobile Manufacturers, the sales volume of electric vehicles and plug-in hybrids in the country totaled 1.2 million units last year and are expected to reach 1.6 million units in 2019.

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