News Releases 2020Regarding capital investment to boost production capability for EV-related products (motors and inverters)
Meidensha Corporation (Meiden) decided at a board of directors meeting held February 28, 2020, to make a ¥5.1-billion capital investment to build a new plant and procure necessary equipment at its Nagoya Works to boost its production capability for motors and inverters for electric-powered vehicles (EV).
The details are as follows:
1. Purpose and background of the capital investment
In its Medium-term Management Plan 2020, Meiden set EV-related businesses, such as the production of motors and inverters for EVs, as a growth business field. The demand for such products is expected to increase owing to global trends of strengthening environmental protection and tightening regulations. In line with Meiden's push in this domain, it decided in July 2018 on a combined ¥7-billion capital investment on EV-related facilities at three domestic works and in May 2019 on a ¥4.1 billion capital increase at a Chinese subsidiary Meiden set up to produce EVs.
As a further increase in demand for EV motors and inverters is expected, Meiden will boost its production capability by building a new plant and new production lines inside Nagoya Works. Combined with the existing production lines, Nagoya Works will have an annual production capacity of 340,000 EV motors and inverters when the new plant goes into operation. Meiden will consider further investments that are in line with the expansion of the market.
2. Capital investment outlines
|Investment amount||¥5.1 billion|
|Location||496 Ittangosewari, Nishi-Biwajima-cho, Kiyosu City, Aichi Prefecture|
|Items to be produced||496 Ittangosewari, Nishi-Biwajima-cho, Kiyosu City, Aichi Prefecture|
|Start of construction||Scheduled for August 2020|
|Start of operation||Scheduled for December 2021|
|Total floor space||5,229 m2|
|Production capacity||Maximum annual production of 170,000 units|
3. Future prospects
The impact of this capital investment on Meiden’s consolidated business performance for this fiscal year ending in March 2020 will be minor. Meiden will swiftly report any development if doing so is deemed necessary.
Public Relations Division