< For Further Enhancement of Business Structures >Azbil Corporation sets up a new manufacturing company in Thailand. - Azbil wil

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February  28, 2013

Guided by the “human-centered automation” philosophy, the azbil Group has been redefining its businesses and reforming business structures in its drive for global growth. Even in Japan, with a mature economy and continuing structural change, the group has secured a growth model by combining the characteristics of its three core businesses (Building Automation business, Advanced Automation business, Life Automation business). Furthermore, it is planning to globally deploy this model to enhance growth and business efficiency. Azbil’s establishment of a manufacturing subsidiary in Thailand is one of the concrete measures to strengthen the global development of its production structure.

TOKYO, February 28, 2013 – Azbil Corporation has announced that to establish globally-optimized logistics and reorganize its production structure to strengthen technical response capabilities according to regional characteristics, it has established a manufacturing subsidiary, Azbil Production (Thailand) Co., Ltd., in Thailand on Feb. 20, 2013 and completed its registration. This subsidiary will join the main manufacturing sites of the azbil Group, which are located in Japan, China, and Saudi Arabia, to build up the group’s structure to provide design, production, and engineering service near the customers' sites which are expanding globally.

Azbil Production (Thailand) was established in Amata Nakorn Industrial Estate in Chonburi, Thailand for the manufacture of digital indicating controllers for Industrial Automation and Building Automation. In order to promptly begin operation after the company’s establishment, Azbil Production (Thailand) is renting the site and building as the first step, and is scheduled to commence operation in the summer of 2013. It will start operation with about 50 employees, on a rented site area of approx. 2,500m² and factory floor area of approx. 1,300 m². The production amount is forecast to be 200 to 300 million yen in the first year and several billion yen in three years.

Simultaneously Azbil will review its production structure in China. Azbil Control Instruments (Dalian) Co., Ltd. in Dalian will strengthen its design function, as well as accelerate competitive procurement to reduce material costs and other costs. Moreover, it will broaden manufacturing items of industrial and HVAC control valves, positioners, limit switches, etc.

While reorganizing production structures in Thailand and China, Azbil will reorganize its production structure in Japan. Its Hadano Factory in Kanagawa will stop production by fall 2013, and its functions will be transferred and consolidated to other domestic factories and overseas factories, etc.

Since establishing a factory manufacturing control valves in Dalian, China in 1994, overseas production facilities were concentrated in China and domestic factories in Kanagawa, Japan. Considering risk diversification including BCP (business continuation plan) and future growth in the Asian economy, Azbil decided to establish a manufacturing factory in Thailand, where infrastructure is built up to the highest level.

The azbil Group will continue to distribute its manufacturing functions among domestic and overseas regions in the future, and by improving technical response capabilities according to regional characteristics, it plans to raise its overseas production ratio of the group, which is currently less than 10 %, to 30 % in several years.

Guided by the “human-centered automation” philosophy, the azbil Group will pursue an optimal production system to strengthen solution at customers' work sites inside/outside Japan, with the goal of realizing customers’ safety, comfort, and fulfillment while contributing to preserving our natural environment.

News Source : < For Further Enhancement of Business Structures >Azbil Corporation sets up a new manufacturing company in Thailand. - Azbil will also strengthen its production structure in Dalian, China and accelerate global production reorganization -