2001

Dec.27, 2001

Minebea Co., Ltd.

Minebea Starts Production of Measuring Component in China

Minebea Co., Ltd. has launched production of measuring component at the Xicen Plant (located at Xicen Town, Qingpu County, about 60 km west of downtown Shanghai) of Minebea Electronics & Hi-Tech Components (Shanghai) Ltd. (hereinafter "Shanghai Minebea"), which is Minebea's manufacturing subsidiary in Shanghai, China.

Main products are strain gages and load cells. (Please see notes below.) A small-lot production of these products already began in November 2001 and a full-fledged mass-production is scheduled to start in February 2002.

Shanghai Minebea's Xicen Plant has been producing fan motors under its fully integrated production system since 1996. A new factory with a floor space of 24,645 was completed in October 2001 within the Xicen Plant (total area of 104,173). The new factory will manufacture measuring component in addition to fan motors.

Minebea made its entry into measuring component business by acquiring Shinko Tsushin Industry Co., Ltd. (presently "Measuring Component Division") in 1974 and expanded its production base to Singapore in 1975 and to Thailand in 1985. Currently, the Karuizawa Plant and the Fujisawa Plant engage mainly in product development, while factories in Singapore and Thailand conduct mass-production.

Major customers of measuring component are manufacturers of scales, plants, press machines and automobile and related components. Given that leading measuring component customers in Japan and Taiwan, especially scale makers, are accelerating production shift to China, Minebea has decided to launch production of measuring component in China to improve manufacturing and sales efficiency. Following this decision, Minebea will close the manufacturing facilities for this product category in Singapore (the Kallang Plant of NMB Singapore Ltd., produces mainly component for scales) and concentrate the products' production in China and Thailand.

Minebea established Shanghai Minebea in 1994, the Minebea Group's first production base in China, and started producing ball bearings and fan motors. The Shanghai Plant (located about 2 km west of the Xicen Plant at Xicen Town, Qingpu County, Shanghai) and the Xicen Plant manufacture ball bearings and fan motors, respectively, under the fully integrated manufacturing system that includes all processes from machining of components to final assembly.

Production of these two products, for both of which Minebea enjoys the largest share in the global market, has got into gear smoothly in China. Operations in China presently accounts for more than 11% of the total output of the Minebea Group, and China (Shanghai) has grown to be the second largest production base after Thailand.

Minebea will continue to discern the market trend in China and the rest of the world and to expand the product line and the production capacity of China operations.


* Note 1) Strain gages A strain gage consists of a very fine metallic foil etched in a grid pattern, which is bonded to a device and use to a measure the strain of the device when weight or force is applied, by detecting changes in resistance.
2) Load cells A load cell uses strain gages to convert weight and force into electrical output and are used in a variety of applications, including load measuring devices for digital weight scales and weight measuring devices for tanks and hoppers.

For further information and inquiries, please contact :

Minebea Co., Ltd.
Corporate Communications Office, Corporate Planning Department

Shoji Sato, General Manager

Yasuaki Miyahara

Tel : 81-3-5434-8637
Fax : 81-3-5435-8607

E-mail : ymiyahar@minebea.co.jp

URL : http://www.minebea.co.jp

Information in the press releases is current on the date of the announcement.
Product information, contact and other context are subject to change without prior notice.

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