OMRON Makes Full-scale Entry into fast-growing Russian Market - New Control Products Sales Company Operational from 1 October 2006 as OMRON Commits to BRIC Markets -
FOR IMMEDIATE RELEASESeptember 28, 2006
Tokyo, Japan – OMRON Corporation (TSE: 6645, US: OMRNY), a global leader in factory automation, sensing and control technologies, has established OOO OMRON ELECTRONICS (‘OEE-RUS’), a wholly owned subsidiary of OMRON’s Industrial Automation Business (‘IAB’) in Moscow, Russia. The new company, which will handle the sales and servicing of IAB's control equipment, is scheduled to start operations in October 2006. Following the establishment in January this year of OMRON’s new sales subsidiary in New Delhi, India, this latest announcement represents a further commitment by OMRON to serving its customers in the burgeoning BRIC markets.
OMRON is the first Japanese manufacturer of factory automation and sensing products to promote business expansion through a full-scale entry into the fast-growing Russian market. Political stability combined with rising consumer demand have encouraged foreign direct investment and stimulated steady growth in the Russian economy, particularly in the automobile industry, which has in turn fuelled the county’s factory automation market.
Until now, IAB has serviced its Russian customers by stationing OMRON Finland (OMRON ELECTRONICS O.Y) staff in Moscow. 'By establishing a local sales subsidiary with distribution rights, IAB aims to provide a more timely and personalized level of customer support. As a result, we aim to increase our share in the Russian market, targeting the high growth economies of St. Petersburg and Moscow in particular’ said Fumio Tateisi, IAB President.
OEE-RUS will offer a full array of control products including sensors, components, controllers (PLCs, motion controllers, inverters, servos) and networking systems, while its customers will benefit from direct sales as well as even higher levels of technical support, servicing and delivery.
OMRON projects revenues of 20 million euros (approximately 2.7 billion yen) in fiscal 2007. Revenue is expected to grow five-fold compared to 2005 to reach 50 million euros by 2010.
Overview of the New Company
|Name||OOO OMRON ELECTRONICS|
|Location||123557, Moscow, Sredniy Tishinskiy Lane 28. Russia|
|Date established||August 4, 2006|
|Date of incorporation||October 1, 2006 (scheduled)|
|Capital||RUB 23,200,000 (approximately JPY 101 million)|
|Capital Composition||OMRON Group – 100%|
|President||Peter Henrikson (OEE-RUS GM);
Dave Sanders (OMRON EUROPE B.V. Director)
|No. of employees||Approximately 24 in fiscal 2006; 80 in fiscal 2010|
|Main business||Sales of control system devices, technical support, customer and maintenance services|
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 28,000 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.
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