Nidec to buy out Mitsubishi Material's motor unit
(Japan Economic Newswire Via Acquire Media NewsEdge) OSAKA, Sept. 26 -- (Kyodo) _ Precision motor manufacturer Nidec Corp. said Thursday it will buy out Mitsubishi Materials Corp.'s subsidiary that manufactures motors for use in automobiles, as it seeks to enter the growing automotive motor market.
The acquisition of Mitsubishi Materials C.M.I. Corp. will enhance Nidec's product lineup that has been focused on motors for personal computer hard disk drives, digital cameras, gaming consoles and other electronic products whose markets have been maturing, it said.
The cost of the transaction, which it plans to complete by the year-end, is estimated at 10 billion yen.
Mitsubishi Materials C.M.I., based in Shizuoka Prefecture, produces "stepping motors" for electrically controlling fuel injection valves to improve fuel efficiency and enhancing the functionality of head-up displays, and posted group sales of 13.3 billion yen in the year to March 31.
Kyoto-based Nidec will take over the firm's five plants -- two in Japan and one each in Malaysia, Indonesia and China -- and keep its 1,600-person workforce, it said.
(c) 2013 Kyodo News International, Inc.
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