Nidec licenced to open new factory at hi-tech park

Le Bich Loan (L), deputy head of SHTP Management Authority, hands over the investment certificate to Kazuto Hirasawa, vice chairman of Nidec Seimitsu Corporation

This is the fifth investment project of Nidec Corporation at SHTP, carried out under the commitment between the corporation and SHTP authority made in 2005.

The Nidec Seimitsu Vietnam Corporation project worth a total of $40 million will develop, produce and trade micro motors used in cell phones. Moreover, in the coming time, the company plans to produce motors for medical equipment.

Nidec Seimitsu Vietnam Corp. expects to start work on the new factory this month and put it into operation in late this year. According to the company’s plan, the factory will achieve stable production within the first three years after it starts service, with an output capacity of 45 million units a month and monthly revenue of $8 million.

Vietnam is the third destination of Nidec Corporation when it invests abroad, along with China and Indonesia. All products made in Vietnam will be exported.

So far, Nidec Corporation has launched five projects in Vietnam, namely Nidec Sankyo Vietnam, Nidec Vietnam Corporation, Nidec Servo Vietnam, Nidec Copal Vietnam and Nidec Seimitsu Vietnam Corporation, with the total pledged capital of $246.5 million. The Japanese firm has previously committed to invest some $500 million in SHTP.

Le Bich Loan, deputy head of SHTP Management Authority, said the first four projects of Nidec are operating efficiently. The total accumulated export revenue of the four units reached over $740 million as of end-May 2012, paying taxes of more than $9.5 million to the city’s budget.

The Nidec Seimitsu Vietnam Corporation project is invested by Nidec Seimitsu Corporation, previously known as Sanyo Seimitsu Co. Ltd., a subsidiary under Sanyo Electric Co. Ltd.

Before joining Nidec Corporation in July 2011, Nidec Seimitsu Corporation specialised in research, development, production and trading of precise micro DC motors, including four main groups of products: vibrating motors used in cell phones, optical disk drives, digital cameras and medical equipment.

Especially, cell phone vibrating motors occupy the largest portion in the total revenue of the company, which is the sole supplier of this type of motors for Apple’s iPhone 4.