Wednesday 23 March 2016

TMEIC to Invest US$35 Million for Business Expansion in India

New Factory Exemplifying the Concept of a Next-generation “Recycling Energy Factory” Planned for Construction -

March 23, 2016 – Toshiba Mitsubishi-Electric Industrial Systems Corporation (TMEIC; headquartered in Tokyo, Japan) has announced its plan for making an additional investment in India. In line with this, to address the rapid expansion of new orders for PV inverters, in particular, the Company will build a power electronics factory on newly acquired land situated adjacent to the motor factory of TMEIC Industrial Systems India Private Limited (TMIND).

TMEIC has previously invested nearly US$65 million for strategically growing its business operations in India, including construction of the motor factory. The additional investment planned totals approximately US$35 million. Nearly 60% of this amount will be used as capital for constructing a new factory roughly 10,000 square meters in size, while the remainder will be utilized to augment operations for the further business expansion of TMIND.

Construction of the new factory will start from this spring with the aim of commencing operations from around summer 2017. Together with relocating operations from the current power electronics factory acquired from AEG Power Solutions BV in 2014, approximately 250 people are expected to be employed at this production site. Additionally, the new facility exemplifies the concept of a next-generation “recycling energy factory” equipped with a solar power generation system.  

The new factory will produce power electronics products, specifically, PV inverters, motor drive inverters and Uninterruptible Power Supplies (UPS).

In terms of PV inverters, TMIND has received a large volume of new orders in India and the factory is continuously operating at full capacity. Additionally, as the global leader capturing the top share of PV inverters, TMEIC will supply PV inverters made in India not only locally but also throughout the world. The new factory will be genuinely designated as the core of TMEIC’s renewable energy business.
A UPS responds to critical power sources for data centers and other purposes. This product actually has a high technical commonality with PV inverters. While UPS made in Japan currently are being sold in India and new orders are steadily being received, TMEIC plans to produce products locally at the new factory directed toward making full-fledged inroads into the Indian market.   

With regard to motor drive inverters, TMEIC aims to expand these products as drive systems combined with motors. The new power electronics factory seeks to realize an ideal environment as a system in which motors and inverters will be produced at the same location. 

Construction of a new factory is the culmination of the means for achieving TMEIC’s strategy in India, and with the additional investment announced at this time, TMEIC’s investment in India will total US$100 million on a cumulative basis, which during the past three years is the largest investment TMEIC has made in any country worldwide, including Japan.

TMEIC will undertake concerted efforts to realize the further growth of TMIND as an Indian company toward the realization of the “Make in India” initiative.

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