New Cosmos Electric establishes a wholly owned local company, New Cosmos Electric Shanghai. The new firm will handle everything from manufacturing to export, sales, and maintenance and plans to start operation next January.
They will switch over to local production from importing low cost products for industrial use fromJaoan to increase their ability to compete in terms of price.
Total investment amounts to ¥120m and they will start business with a staff of 30, including 3 Japanese.
At the plant they will produce 10 items including portable gas detectors and stationalry tye gas detectors which detect various gases such as flammable gas and toxic gas. Annual production capacity is set at 5,000 units. They are aiming at ¥150m in sales for the first year.
According to the firm, the Chinese market for gas detectors is about ¥5bn to ¥20bn which is about half size that of the Japanese market.
Sales of their overseas business amounted to about 5% of total sales for FY2007 ending March. They will increase their overseas sales to up to 10% of total sales by expanding their business in China and Korea.