Mitsubishi Electric Doubles Down On China Supply Chains

2025-02-03 07:01:59

(MENAFN- Asia Times) Mitsubishi Electric, the Japanese maker of programmable logic controllers and other industrial automation equipment , plans to establish complete supply chains in China to compete more effectively in local markets and avoid problems that might arise from US trade restrictions.

Mitsubishi Electric's local partnerships and procurement are first expected to evolve into sourcing of complete lower-end equipment, with investments and other arrangements commencing in the coming year. More advanced products are likely to follow, but at a pace that will not undermine production, employment and technological leadership in Japan.

Company CFO Kuniaki Masuda told the Nikkei that while Mitsubishi Electric currently exports products to China from Japan and other countries, in the future“we will be able to meet demand by sourcing only from within China .”

This follows the pattern of European companies such as ABB , Volkswagen and Bosch , which have all built or are building full-scale operations in China.

Mitsubishi Electric competes with Siemens and Rockwell Automation in programmable logic controllers (PLCs), and Siemens and Fanuc in computerized numerical control (CNC) systems. It also makes industrial robots, human-machine interfaces (interactive screens), servomotors, inverters, power distribution and control equipment, and other products used in factory automation.

Mitsubishi Electric is well established in China, with a headquarters in Beijing; sales offices in other major cities; factories producing industrial automation equipment, elevators and escalators, air conditioners and power semiconductor devices; R&D centers in Beijing and Shanghai; and a research collaboration in energy systems and environmental technologies with Tsinghua University.

In 2018, Mitsubishi Electric announced a “strategic partnership” between two of its group companies, Mitsubishi Electric (China) and Mitsubishi Electric Automation (China), and China's state-owned Instrumentation Technology and Economy Institute (ITEI ) to support Beijing's“Made in China 2025” initiative:

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