Mitsubishi Electric Corporation said it will acquire an 80% stake in Fuji Bakelite Vietnam Co., Ltd. on the outskirts of Hanoi. Fuji Bakelite Vietnam is a subsidiary of Fuji Bakelite Co., Ltd. based in Okayama Prefecture, Japan. The new joint venture (JV) company, Mitsubishi Electric FP Automation Vietnam Co., Ltd., will be established on June 1. Subsequently, it will begin production of air circuit breakers beginning Jan. 2025. This is in addition to the company’s existing line of small low-voltage circuit breakers.

Fuji Bakelite Vietnam has been in operation since 2014. Primarily, it manufactures small low-voltage circuit breakers for Mitsubishi Electric’s Fukuyama Works in Hiroshima Prefecture. Mainly, 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. Mainly, this trend is seen in countries such as Vietnam, Thailand, Indonesia, and Malaysia, where strong economic growth is anticipated.

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.

-24 May 2024-