Nidec-Shimpo to make planetary reduction gears in Philippines to avoid higher U.S. tariffs

28, Jun. 2019

MANILA, NNA – Japanese industrial parts and equipment maker Nidec-Shimpo Corp. will produce planetary reduction gears in the Philippines for export to the U.S. market to avoid higher tariffs on shipments from its manufacturing unit in China

The wholly owned subsidiary of Nidec Corp. plans to invest about 6 billion yen ($56 million) to install production lines at a plant of Nidec Subic Philippines Corp., a local arm of the global motor producer, a spokesman told NNA Thursday.

Planned production capacity is 50,000 units per year and operation is scheduled to begin by year-end, he said.

Nidec-Shimpo’s plant in China’s eastern coastal province of Zhejiang has capacity to produce 80,000 planetary reduction gears a year. It will not cut the capacity there in order to build a bi-polar production system with bases in China and the Philippines, according to the spokesman.

The firm headquartered in Nagaokakyo, Kyoto Prefecture, western Japan, intends to ship products from the Philippines to Europe as well in a move to expand sales there following its takeover of German gearbox maker MS-Graessner GmbH & Co. last September.