Daikin Industries Ltd. and TDK Corp. are looking to move part of their overseas production back to Japan, becoming the latest Japanese manufacturers seeking to change course amid the weakening of the yen.
Noriyuki Inoue, chairman of Daikin, said Wednesday at a press conference in Osaka that his company will shift more production of home air conditioners in China to its plant in Shiga Prefecture, while TDK is considering transferring some of its Chinese output of auto electronic parts to a factory in Akita Prefecture.
The two companies will join Panasonic Corp. and Sharp Corp. in the trend of bringing back production they had shifted overseas to temper the impact of a strong yen, after the yen hit a seven-year low against the dollar last month.
Behind their decisions are rising costs of importing products made abroad for the home market due to the weakening yen and increasing labor costs in China.
Daikin, the world’s top seller of air conditioners, has already moved part of its air-conditioner output in China to the Shiga plant.
Panasonic President Kazuhiro Tsuga told reporters at the International Consumer Electronics Show in Las Vegas on Tuesday that he hopes to entice customers in Asia with “made-in-Japan” products by returning some overseas production of home appliances such as washing machines to domestic plants.
via Mainichi
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Alfonso Esparza
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
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