Fanuc to Boost Control Unit Output with New Plant

Fanuc will build a new plant in Japan, aiming to boost its output of control units used in machinery tools by 75% as demand grows both at home and in emerging economies such as China and India.

The industrial robot maker will raise its production capacity for computer numerical control (CNC) units to 30,000 units from 17,000 with the new plant, slated to come on-line next year, spokesman Keisuke Fujii said on Thursday.

The company declined to disclose the amount it will invest to build the plant, saying a Nikkei business report that Fanuc will spend 20-30 billion yen ($164 - $247 million) was speculation.

Fanuc is the world's top maker of CNC units, used to numerically control machine tools for consistent drilling, cutting and welding, and controls over 50% of the global market, outrunning rivals Siemens and Mitsubishi Electric.

Orders for Japanese machinery tools hit a record high in the business year ended March on worldwide demand, and Fanuc posted record sales of CNC units for the fourth straight year, which are heavily used in tools to form car and plane parts.

Fanuc shares rose 2.6% to 11,970 yen in the morning, compared with a 0.7% gain in the the Nikkei 225 Average.

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