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UPDATE 1-Nidec to cut reliance on Thai factories - Nikkei
December 23, 2011 / 6:00 PM / 6 years ago

UPDATE 1-Nidec to cut reliance on Thai factories - Nikkei

Dec 24 (Reuters) - Japanese motor maker Nidec Corp will reduce its reliance on Thai factories for hard-disk-drive motors by diversifying production bases to China and the Philippines, the Nikkei business daily reported.

The company, which controls 80 percent of the global market for hard-drive motors, manufactures 60 percent of its output in Thailand, the newspaper said.

Thai production will be reduced to 40 percent of the total by the April-June quarter through increasing output in the Philippines and China, President Shigenobu Nagamori said in an interview with the Nikkei.

Nidec, which makes motors for automotive systems, digital camera parts and personal computer cooling fans mainly in Vietnam, China and Thailand, plans to spread these operations beyond Asia.

Nidec is also planning to build levees at 10 Thai plants by next year’s rainy season, at a cost of about 200 million yen ($2.56 million) each, the daily said.

Nagamori sees the company taking a 55-60 billion yen hit to group operating profit this fiscal year from the Japan Earthquake, the Thai flooding, the ultrastrong yen and a spike in rare-earth metal prices, the business daily said.

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