KYOTO, Japan, June 4, 2014 (GLOBE NEWSWIRE) -- Nidec Corporation (NYSE:NJ) (the "Company") today announced that one of its subsidiaries, Nidec India Private Limited, plans to construct its manufacturing factory in the Neemrana Industrial Area, Rajasthan Province, India (the "Neemrana Factory").
India, whose population is expected to become the world's largest in the next few decades, not only exhibits huge market potential but also provides an abundance of prospective labor force, with people aged 25 and under representing 47% of its population and producing 1.5 million university-educated engineers every year. The Company seeks to gain ground in the burgeoning Indian electric motor market, comparable in size to that of Europe, by building local capacity for the design and manufacturing of its motor drive products used in automotive, appliance, commercial and industrial applications. As a cornerstone of the Nidec Group's market entry strategies aimed at establishing a strong presence in India, the Neemrana Factory will start out with production lines of the Company's two business divisions, namely Automotive Motor & Electronic Control (AMEC) and General Application Motor & Solutions (GAMS), and one consolidated subsidiary, Nidec Techno Motor Corporation. Manufacturing operations at the Neemrana Factory will benefit from the sharing of production infrastructure available under the joint production environment and will gain broad flexibility in localizing product development efforts and internalizing manufacturing processes, supplemented by low-cost automation and lean manufacturing methods.
The Company expects the Neemrana Factory to serve as a springboard for expanding the Nidec Group's global reach beyond the Indian domestic market into other untapped geographic markets, including the Middle East.
Outline of the Neemrana Factory
|(1)||Factory name: Nidec India Private Limited|
|(2)||Line of business: Manufacturing and sales of automotive, appliance, commercial, and industrial motors|
|(3)||Total investment in factory construction, facility purchase, etc.: Approx. 10 billion yen|
|(4)||Location: Neemrana Industrial Area, Rajasthan Province, India (approx. 100km south of New Delhi)|
|(5)||Number of employees: 1,500 (up to 5,000 after the completion of the second-phase construction)|
|(6)||Total site area: 121,410 square meters|
|(7)||Structure: Factory (steel construction) and office building (reinforced concrete)|
|(8)||Total floor space, Phase 1: 15,820 square meters|
|(9)||Total floor space, Phase 2: Approx. 16,000 square meters (tentative)|
|(10)||Start of Phase 1 construction: May 2014|
|(11)||Completion of Phase 1 construction: March 2015 (tentative)|
|(12)||Start of production: April 2015 (tentative)|
CONTACT: Masahiro Nagayasu General Manager Investor Relations +81-75-935-6140 firstname.lastname@example.org