Omron to Build Auto Electronics Parts Factory in Eastern Europe
Omron to Build Auto Electronics Parts Factory in Eastern Europe
By Makiko Kitamura and Shunichi Ozasa
Feb. 12 (Bloomberg) — Omron Corp., Japan;s largest maker
of laser radars for cars, will build an auto-parts factory in
Eastern Europe within three years as it seeks to win new
customers in the region.
Kyoto-based Omron, which supplies carmakers including
Nissan Motor Co., will start making electric power-steering
controllers in Poland or Hungary, Chief Executive Officer Hisao
Sakuta said in an interview with Bloomberg Television.
Carmakers including Volkswagen AG, PSA Peugeot Citroen and
Toyota Motor Corp. have set up factories in Eastern Europe to
take advantage of lower wages. Omron forecasts automotive
components sales will rise 12 percent annually over the next
three years on demand for fuel efficiency and safety.
“There is a lot of growth in technology in cars, and Omron
has the kind of technology people want,;; said Robert Taylor,
who oversees $24 billion as director of international equities
at Chicago-based Harris Associates LP, including 2.4 million
shares of Omron.
Volkswagen opened a factory in Russia in November, joining
rivals Ford Motor Co. and Renault SA in production in the
country. Toyota and Peugeot set up a joint venture in the Czech
Republic that started operations in February 2005.
Having a production facility in “Eastern Europe, where
many companies are entering, is a must,;; Sakuta said. He
declined to give an investment amount or production capacity.
Europe, Japan
Europe accounted for 16 percent of the company;s sales last
fiscal year, compared with 56 percent in Japan.
Electric power-steering systems help drivers turn wheels,
improving fuel efficiency, as they use less engine power than
conventional systems. Omron also makes laser radars for cruise
control systems that measure a car;s distance from the vehicle
ahead to help prevent crashes. It is also developing face-
recognition systems that can detect when drivers are falling
asleep or looking away from the road.
Growth in the auto components business, which made up 13
percent of total revenue last year, will be driven by electric
power steering controller sales, which may quadruple in three
years on growth
in Europe, Sakuta said. The company already produces components
for electric power steering in the U.K., and may also start
making them at an existing factory in China, he said.
To contact the reporters on this story:
Makiko Kitamura in Tokyo at
