Sumitomo, Di-Nikko Engineering of Japan to build factory in Chinese IT hub

26, May. 2020

Photo by Frank Wang on Unsplash
Photo by Frank Wang on Unsplash

TOKYO, NNA – Sumitoronics Corp., a manufacturing subsidiary of major trading house Sumitomo Corp., has agreed with the welding firm Di-Nikko Engineering Co. to build a factory in a Chinese information technology hub city to expand electronics production services, the Japanese duo said Monday.

Growing demand for home electronics and cars motivated the two firms to build their factory in Wuxi, west of Shanghai, Sumitomo Corp. said. This is Sumitronics’ first own production facility in China.

The automotive field particularly has generated demand for high-quality, competitively priced board mounting for electronics. Over 1,000 Japanese firms operate in the city, the company added.

The two companies will set up Sumitronics Manufacturing (Wuxi) Co. in June giving Sumitomo’s subsidiary Sumitronics Shanghai Co. an 86 percent stake. The remaining 14 percent will go to Trois Electronics Co., part of Di-Nikko Engineering. The new factory is expected to start operating in June 2020, Sumitomo said in a statement on Monday.

Di-Nikko Engineering has been developing and supplying electronic devices in China since 2004 to meet demand for gear such as electric cars and autonomous vehicles. Di-Nikko hopes the joint venture will let it expand business in populous, well-off eastern China.

To grow further, the joint venture plan eventually to produce equipment for medical care and environmental infrastructure.