Omron to invest US$15mil in new Indonesian manufacturing facilities

• Investment builds on 23yrs of manufacturing history in Indonesia
• Around 1,000 manufacturing jobs expected to be created

JAPAN’S Omron Corp has announced plans to construct two new facilities at its existing manufacturing plant, Omron Manufacturing Indonesia (OMI), in Indonesia’s West Java.
 
The two new facilities, covering more than 20,000 sq metres, will be constructed at an estimated cost of Rp205 billion  (US$15 million) and will produce multiple electronic components to meet global demand in industrial automation and automotive production.
 
When completed, the new facilities will significantly increase Omron’s manufacturing capacity, and also allow Indonesia to play a central role in its global manufacturing network, the company said in a statement.
 
The new factories, including commissioning and validation, are expected to be completed in approximately two years and be operational in April 2017, it added.
 
“Indonesia has embarked on a massive development programme to expand and modernise its infrastructure,” said OMI president director Irawan Santoso.
 
“As a global leader in sensing and control technologies, our expanded manufacturing capacity will also position Omron well to support the country’s infrastructure development needs,” he added.
 
The addition of these new facilities would make OMI the first manufacturing site amongst Omron’s global manufacturing network to produce multi-components that serve its different businesses.
 
These include the industrial automation business, automotive electronics business, and electronic and mechanical components business, Omron said in its statement.
 
Currently, OMI produces about 191 million components annually, of which 90% is exported while the remaining 10% is sold domestically. The new facilities are expected to increase OMI’s total production volume to 325 million components and modules by 2020.
 
OMI’s new facilities will be equipped with manual, semi-automated and fully-automated production lines that will allow the company to better serve the varied needs of its customers.
 
In addition to the capital investment, OMI’s expansion will also contribute to the creation of employment opportunities for technical professionals, Omron said.
 
Approximately 1,000 engineers, operators, quality specialists and other skilled professionals are expected to work at the new factories when construction is completed.
 
Related Stories:
 
Malaysia may be losing its mojo as investment destination
 
SAP opens second office in Indonesia
 
EMC may shift SEA focus to Malaysia and Indonesia next year
 
IBM opens 3 new branches in Asean
 
 
For more technology news and the latest updates, follow us on Twitter, LinkedIn or Like us on Facebook.