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Nidec moves into industrial motors with Fuji JV

17 September, 2008

Nidec, the world’s largest manufacturer of motors for computer hard drives, is moving into the industrial market by taking a 60% stake in Fuji Electric’s compact industrial motors business. It has also launched a bid for a majority stake in another Japanese motor-maker, Toyo Denki Seizo.

Nidec is paying around ¥10bn (£51m) for 60% of the Fuji business, and may buy the remaining 40% later. Nidec claims to be the global market-leader for various small and mid-sized brushless motors for IT and other applications. It says that market conditions in this sector have become increasingly cost-competitive because of rising raw materials costs and commoditisation and that, in this environment, the joint venture will strengthen both partners’ businesses.

The new company, provisionally called Nidec Fuji Motor, is due to start operating on 1 January, 2009.

Nidec is offering around ¥15bn (£77m) for a majority stake in Toyo Denki, which makes motors, inverters and other equipment, with the rail industry as a key target. Nidec, which would like to take over Toyo Denki entirely, says that the combined business would create "an optimal blend of uniquely different strengths and technological expertise" and would help it to achieve its goal of becoming the leading motor manufacturer for the railway and automotive industries. Toyo Denki has until 15 December to respond to the bid.

Toyo Denki’s product portfolio includes magnetic levitation equipment, vending machines, generators and in-wheel motors. It employs about 670 people.

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