OMRON Corporation (Head Office: Shimogyo-ku, Kyoto, President and CEO: Yoshihito Yamada, hereinafter, "OMRON") announced today its decision to construct the second factory of OMRON (Shanghai) Co., Ltd. (hereinafter, the "OMS 2^nd Factory") in the city of Shanghai, China, to ramp up the capacity of various types of control equipment and thereby meet the voracious demands for automation on factory floors in that country.

As labor costs continue to rise and labor shortages are exacerbated on factory floors throughout China, the automation of manufacturing operations is rapidly progressing. Meanwhile, under the government-led China Manufacturing 2025 (CM2025) initiative, demands for control equipment and industrial robots continue to expand together with increased investments in automation and labor-saving to build smarter production facilities. Upon the establishment of the OMS 2^nd Factory, OMRON will double its production capacity in China by fiscal 2020 (vs. fiscal 2017), and this will allow it to ramp up the capacity for photoelectric sensors, proximity sensors, and other control equipment for factory automation that are witnessing continuously rising demands both in China and on a global basis. OMRON will also establish new production lines of industrial robots at the currently existing factory (1^st Factory), which will cater to growing China's domestic market, thereby enhancing production to meet the voracious demands for such robots.

The rationale behind this decision is twofold. First, OMRON wishes to achieve sufficiently large production capacity to supply industrial robots and control equipment up to 2025, which is the milestone year of the CM2025. Second, it hopes to build a flexible and productive production line that is capable of absorbing the impact of rising labor costs and other factors. The OMS 2^nd Factory will be a model factory for "innovative-Automation," OMRON's unique concept for bringing innovation to manufacturing. With the OMS 2^nd Factory offering solutions to other manufacturers with factories in China, OMRON aims to contribute to successful implementation of the CM2025 and further expand its business in the Chinese market.

Overview of the OMS 2^nd Factory

Total investment: JPY1.0 billion (Building renovation: JPY0.4 billion, Equipment investment: JPY0.6 billion)
Scale: Total floor area: 9,102m² (1^st Factory*: 14,612m²)
Production capacity: 1.70 million units per month (unit production of sensors as of fiscal 2020)
Production items: Key sensing equipment (photoelectric sensors, proximity sensors, etc.)
Start of operation: July 2018

About "innovative-Automation!"

As a leader in industrial automation, OMRON has extensive lines of control components and equipment, ranging from image-processing sensors and other input devices to various controllers and output devices such as servo motors, as well as a range of safety devices and industrial robots. By combining these devices via software, OMRON has developed a variety of unique and highly effective automation solutions for manufacturers worldwide. Based on its reservoir of advanced technologies and comprehensive range of devices, OMRON set forth a strategic concept called "innovative-Automation!" consisting of three innovations or "i's"--"integrated" (control evolution), "intelligent" (development of intelligence by ICT), and "interactive" (new harmonization between people and machines). OMRON is now committed to bringing innovation to manufacturing sites by materializing this concept.

About OMRON Corporation

OMRON Corporation is a global leader in the field of automation based on its core technology of "Sensing & Control + Think." Established in 1933, OMRON has about 36,000 employees worldwide, working to provide products and services in 117 countries. The company's business fields cover a broad spectrum, ranging from industrial automation and electronic components to automotive electronics, social infrastructure systems, healthcare, and environmental solutions. For more information, visit OMRON's website: https://www.omron.com/.

Contact (media):: Brand Communications Department
OMRON Corporation
Tel: +81-75-344-7175

OMRON to Construct Second Control Equipment Factory in China