TOKYO--(BUSINESS WIRE)--Mitsubishi Electric Corporation (TOKYO: 6503) announced today that it will acquire an 80% stake in Fuji Bakelite Vietnam Co., Ltd. in outskirts of Hanoi, a subsidiary of Fuji Bakelite Co., Ltd. in Okayama Prefecture, Japan. The new joint venture (JV) company, to be named Mitsubishi Electric FP Automation Vietnam Co., Ltd., will be established on June 1 and will begin production of air circuit breakers from January 2025, in addition to the current company’s existing line of small low-voltage circuit breakers.
Fuji Bakelite Vietnam, which has been in operation since 2014, manufactures small low-voltage circuit breakers for Mitsubishi Electric’s Fukuyama Works in Hiroshima Prefecture. The new JV will leverage Fuji Bakelite Vietnam’s skilled workforce and expertise in manufacturing and quality control in Vietnam in its manufacturing operations.
Up to now, Mitsubishi Electric has expanded its factory automation (FA) business in the ASEAN region by exporting products manufactured mainly in Japan. In the future, however, the demand for FA products is expected to increase robustly in countries such as Vietnam, Thailand, Indonesia and Malaysia, where strong economic growth is forecasted. Establishing a JV company in Vietnam will enable Mitsubishi Electric to build a production system for low-voltage circuit breakers. In the future, this JV company aims to further expand its FA systems business by enhancing product supply capabilities in ASEAN countries to meet the growing demand for FA products.
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