Japan's EM Devices to boost automotive power relay output in Philippines

28, Feb. 2019

TOKYO, NNA – EM Devices Corp. of Japan will invest more than 1 billion yen ($9 million) to ramp up production of power relays at its Philippine plant, hoping to sell more to Japanese carmakers in overseas markets.

Demand for power relays, a switching system which uses electromagnetic coils to open and close a circuit, has been rising as more electric components and parts are used in automobiles.

EMD Technologies Philippines Inc., a wholly owned subsidiary, will build new assembly lines at its plant in Calamba City, Laguna Province.

Since establishing its foothold in 1996 as an NEC Corp. group firm, EMD has built two factories in the Southeast Asian country. In the past few years, it has spent about 5 billion yen to add four assembly lines producing power relays.

“Seventy percent of our sales go to European and American suppliers and our sales to Japanese makers account for only 10 percent,” an EM Devices official told NNA. “While maintaining our share in the European and American markets, we would like to target Japanese production overseas.”

EM Devices posted revenue of 21 billion yen in the 12 months that ended in March 2018. It expects sales to stay around the same level in the current fiscal year.

The company began operations as an NEC division in 1955, making wire spring relays. It was spun off as an independent firm outside the NEC group in 2017.