Machine maker Okuma to build 1st factory in 16 years for China local output

09, May. 2019

TOKYO, NNA - Japanese machine tool maker Okuma Corp. will build a second factory in China to meet local customers’ automation needs directly and faster, its first new plant in 16 years.

The company said in a statement Tuesday that it would set up a wholly owned subsidiary capitalized at 880 million yen ($8 million) in the eastern Chinese city of Changzhou next month. Okuma (Changzhou) Machine Tool Co. will manage local production and marketing.

Initially, the Changzhou company will import partly finished units from an Okuma subsidiary in Taiwan, increasing local procurement to 70 percent by 2021.

“We have judged that from the viewpoint of cost and lead time, it will be highly beneficial to have a production hub in a market where demand is growing rapidly,” an Okuma spokesman, who declined to be named, said Thursday.

“Factory automation demand will continue growing in China in line with the Made in China 2025 initiative,” he added.

Okuma has been supplying customers in China with products it makes in Taiwan.

The new plant will be in the economic and technological development zone in Changzhou and start operating in October.

It will have 3,676 square meters of assembly lines, a 379 square-meter showroom and 676 square meters of office space.

The Changzhou unit will produce CNC (computerized numeral control) lathes and machining centers at an initial monthly pace of 10 units combined, increasing to 40 in 2020 and 75 in 2022.

Okuma aims to increase sales of its GENOS series machine tools in China to 900 units in 2022 from 200 currently.