Mitsubishi Electric, the Japanese maker of programmable logic controllers and other industrial automation equipment, plans to establish complete supply chains in China to compete more effectively in local markets and avoid problems that might arise from US trade restrictions.
Mitsubishi Electric’s local partnerships and procurement are first expected to evolve into sourcing of complete lower-end equipment, with investments and other arrangements commencing in the coming year. More advanced products are likely to follow, but at a pace that will not undermine production, employment and technological leadership in Japan.
Company CFO Kuniaki Masuda told the Nikkei that while Mitsubishi Electric currently exports products to China from Japan and other countries, in the future “we will be able to meet demand by sourcing only from within China.”
