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.

OMRON Establishes Automotive Electronic Components Production Base in Guangzhou, China