OMRON Establishes Automotive Electronic Components Production Base in Guangzhou, China Production to start from January 2006

FOR IMMEDIATE RELEASEMay 23, 2005

Kyoto - OMRON Corporation (TSE: 6645; US: OMRY), a global leader in automation, sensing and control technology, has established a new automotive electronic components manufacturing company, OMRON (Guangzhou) Automotive Electronics Co., Ltd. (abbr. OAG) in Guangzhou, China.

The company will begin production in January 2006 from a new plant located in the Guangzhou Economic and Technological Development Zone on the outskirts of Guangzhou, where many major auto manufacturers have also set up operations.Initially, the company will begin with 70 staff, and produce components currently used in automotive manufacturing, such as electric window units and keyless entry systems.There are additional plans to extend production in 2 to 3 years’ time to include various electronic control devices that are currently under development.The plant is projected to achieve production capacity value of approximately 0.4 billion yen in the first year, rising to 5 billion yen by FY 2007 (fiscal year ending March 31, 2008).The total investment, including land, buildings and machinery, amounts to 1.6 billion yen.

With China’s entry to the WTO, automotive manufacturers around the world have flocked to enter the Chinese market, and the Chinese automotive industry is growing rapidly together with the wide base of automotive electronics manufacturers that supports it.Some projections suggest that within a few years the number of automotives produced in China will almost equal that of Japan.AEC president Hiroki Toyama commented, “In this market context, OMRON has decided to establish this new production site in order to meet the needs of our clients’ China-based operations.”

In the future, automotive computerization looks set to accelerate rapidly as manufacturers strive to enhance the safety and comfort of their vehicles.OMRON is committed to assisting the manufacture of safe and comfortable vehicles by drawing on its core competency of sensing and control technology to provide high quality automotive electronic components and devices.

Strengthening OMRON's Automotive Electronic Components Business

OMRON has earmarked its Automotive Electronic Components Business (abbr. AEC) as an area for growth in its long-term corporate management strategy “GD2010”.To drive this global growth, AEC is constantly assessing how to leverage its key strengths and fulfill its fundamental policy of “Aiming for best-in-class in each business.”

In October of last year, AEC strengthened its European operations by establishing a joint-venture with an Italian automotive electronic components manufacturer so as to boost production and sales capacity.Domestically, OMRON expanded its production facility, OMRON Iida Co. Ltd (located in Iida City, Nagano prefecture, Japan) in June 2004, and installed a high-output, continuous automatic production line befitting its status as a global mother plant.OMRON is also actively enhancing its development facilities. In addition to setting up the “Keihanna Automotive Technology Research Department” (Kyoto Prefecture) within its Keihanna Innovation Center to conduct research into automotive safety technology, OMRON is also continuing expansion of the R&D facility at its Komaki AEC Office, scheduled for completion in August 2005.

Through this expansion and upgrading of R&D and manufacturing operations for automotive electronic components, OMRON plans to grow FY 2004 sales of 64.6 billion yen to 100 billion yen by FY 2007.

Outline of the New Company

Company name OMRON (Guangzhou) Automotive Electronics Co., Ltd.
Date of establishment 11 May, 2005
Commencement of operations January 2006 (planned)
Location Guangzhou Economic and Technological Development Zone
Main business Manufacture of automotive electronic components and devices (electronic control devices, electric window units, keyless entry systems, relays etc. )
Representative Chairman                   Hiroki Toyama
Vice Chairman            Shigeo Iguchi
President                    Vice Chairman Shigeo Iguchi
Capitalization 1.6 billion yen
*Fully owned by OMRON (CHINA) CO., LTD.
*OMRON (CHINA) Co. Ltd. is a wholly owned company of OMRON Corporation
Number of Employees 70.Planned to increase to 450 by 2010.
Production output 0.4 billion yen in fiscal year ending 31 March, 2006.
Target of 5 billion yen by fiscal year ending 31 March 2008.
Plot 40,000m2
Building area 8,000m2
Total floor space 16,000m2
Structure Reinforced concrete.2 storeys.
Investment USD 16 million (including land, buildings and machinery)

Automotive Electronic Components Company Sites

Headquarters /
Development

· Komaki AEC Office (Aichi Prefecture, Japan)

R&D Centers

· Keihanna Automotive Technology Research Department(Kyoto Prefecture, Japan)
· OMRON AUTOMOTIVE ELECTRONICS TECHNOLOGY G.m.b.H.(Stuttgart, Germany)

Development & Production Sites

· OMRON AUTOMOTIVE ELECTRONICS, INC.(Illinois & Michigan, U.S.)
· OMRON DUALTEC AUTOMOTIVE ELECTRONICS INC.(Ontario, Canada)
· OMRON BITRON Automotive Components S.r.l.(Alatri, Italy)

Production Sites

· OMRON Iida Co., Ltd. (Nagano Prefecture, Japan)
· OMRON AUTOMOTIVE ELECTRONICS KOREA, CO., LTD. (Seoul, Republic of Korea)
· OMRON Automotive Electronics Co., Ltd.(Ayutthaya, Thailand)
· OMRON Automotive Electronics UK Ltd.(Kingswinford, U.K.)
· OMRON ELETRONICA AUTOMOTIVA DO BRASIL LTDA(Sao Paulo, Brazil)

About OMRON

Headquartered in Kyoto, Japan, OMRON Corporation is a global leader in the field of automation. Established in 1933 and headed by President and CEO Hisao Sakuta, OMRON has more than 26,000 employees in over 35 countries working to provide products and services to customers in a variety of fields including industrial automation, electronic components, social systems (ticket gate machines, ticket vending machines, and traffic control), and healthcare. The company is divided into five regions and head offices are in Japan (Kyoto), Asia Pacific (Singapore), China (Shanghai), Europe (Amsterdam) and US (Chicago). For more information, visit OMRON’s website at www.omron.com

For media related enquiries, please contact:
Takayuki Nakamura
OMRON Corporation
Corporate Brand Communications Department
e-mail: takayuki_nakamura@omron.co.jp

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