Mitsubishi Electric and Shihlin Electric to Set Up JV in China to Produce Low-Voltage Switchgears
Keywords: Low-Voltage Switchgears, Control Panels, Electrical Distribution Systems, Manufacturing Equipment.
Mitsubishi Electric announced that together with its wholly owned Chinese subsidiary, Mitsubishi Electric (China) co., Ltd., it has agreed with Shihlin Electric & Engineering Corporation to establish a joint venture company in Xiamem, Fujian Province, China to develop, manufacture and sell low-voltage switchgears. Operations are scheduled to start in October 2012 and targets annual sales of 7 billion Japanese yen, or 540 million RMB, by the end of March 2016.
The new company, Mitsubishi Electric Low Voltage Equipment (Xiamen) co., Ltd., will be located on the premises of Xiamen Shihlin Electric, an affiliate of Shihlin Electric & Engineering. The company will have paid-in capital of 6.5 million USD, or approximately 500 million Japanese yen, with Mitsubishi Electric, Mitsubishi Electric (China) and Shihlin Electric holding 60%, 10%, and 30% shares, respectively. Mitubishi Electric also controls 21.17% shares of Shihlin Electric & Engineering, headquartered in Taipei, Taiwan. The joint venture is expected to have a workforce of 110 by the end of March 2016.
Manufacturers are increasingly migrating from China's economically developed eastern coast to central and western regions where the government is promoting development with incentives. New production facilities and offices are stimulating the demand in these regions for low-voltage switchgears, which are used in control panels for manufacturing equipment and electrical distribution systems in buildings.
ARC Advisory Group