In context
In late 2024, global machine tool manufacturers were expanding capacity in China to serve the country's booming automotive, robotics, and industrial machinery sectors. Nidec Machine Tool's new facility in Pinghu, Zhejiang Province, was part of this trend, aiming to localize production and strengthen supply chains.
What was reported
Nidec Machine Tool announced the completion of a new factory built by its subsidiary Nidec Machine Tool (Zhejiang) in Pinghu, China. The three-floor facility, with construction starting in March 2023, covers approximately 66,000 square meters, including an 18,000-square-meter first floor. It houses a machine tool assembly area, component machining area, office, and a 600-square-meter showroom—the company's first in China.
The factory is already operating at full scale and projects first-year production of 4 million units, rising to 8 million units by 2030. Main products include hobbing machines (GPH and GE series), gear machine tools, horizontal machining centers (HMC series), and gear-cutting tools.
To ensure quality, Nidec employees will receive training in Japan on machine tool basics, mechanical assembly, and machining practice, aiming to match the quality of products from its Shiga factory. The facility will also serve as a procurement hub, sharing supply chain information with other Nidec Group companies in Pinghu and developing new business partners.
Why it mattered
This expansion underscored Nidec's strategy to capture a larger share of the Chinese machine tool market by localizing production and integrating with group companies like Pama Shanghai and Takisawa Mechatronics. For industrial automation, it signaled a shift toward regional manufacturing hubs to meet demand for precision tools used in robotics and automotive production.
"The new factory will work united with the rest of the Nidec Group to achieve the largest share in the Chinese market, says the company."
Source: Robotics & Automation News (roboticsandautomationnews.com) · Published 2024-10-22 · “Nidec opens new new factory in China”