Kyoto - On 16th December, OMRON Corporation (TSE: 6645; US: OMRY), a US$5.5 billion Japanese manufacturer of automation and sensing products, will officially open a new automotive electronic components production and sales base in Guangzhou, China, in a strategic move to address global customer needs for low-cost procurement and strengthen business with major automotive manufacturers operating in the region.

The new company, officially named OMRON (Guangzhou) Automotive Electronics Co., Ltd. (abbreviation: OAG), will initially employ approximately 80 staff and start producing keyless entry systems and power window controllers from January 2006. In the future, production will expand to include new electronic control devices that are currently under development. Sales projections for the first year (January - March 2006) are 100 million yen, rising to 5 billion yen in 2007, and 15 billion yen for FY 2010.

Currently, the number of automotives produced in China is estimated at around 5 million per annum. Expectations for annual growth of over 10% have led experts to project that this figure will top Japan's annual production of 7 million vehicles by around 2007-2008. OMRON's Automotive Electronic Components Business (abbr. AEC) President Hiroki Toyama said "Many of the major players in the global automotive manufacturing industry have entered the Chinese market, and competition is rapidly intensifying. By starting local production in Guangzhou, a city that has become a global hub for the industry, we intend to target the rapidly growing Chinese market head on."

OMRON has earmarked AEC, together with its Industrial Automation (abbr. IAB) and Electronic Components (abbr. ECB) businesses as growth areas in its long-term corporate management strategy "GD2010". China has also been identified as an engine to power the company's growth, and OMRON is accelerating business expansion in the region.

OMRON opens its new Automotive Electronic Components Production Base in Guangzhou, China