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Kaga Electronics Co., Ltd. announces that it has completed construction of a new factory in Xiaogan, Hubei Province, in order to strengthen its EMS business in inland China.
Since the company’s founded in 1968, it has expanded its business fields by catering to the diverse needs of its customers with the corporate philosophy of “Everything we do is for our customers.” In particular, in recent years, the EMS (electronics manufacturing services) business, which is considered to be a driver of the company’s growth, has increased production sites according to the needs of a growing number of domestic and overseas customers. Up to this point, the Kaga Electronics Co., Ltd. has developed a network of sites based in China and the ASEAN region; in the past few years, it has aggressively engaged in construction of factories and purchase of companies in these areas. As a result, the company currently directly manage 22 EMS factories in 10 countries.
Kaga Electronics Co., Ltd. has manufactured in-car products in Xiangyang, Hubei Province since 2014, and has now constructed a new factory in Xiaogan due to active demand from customers.
Xiaogan is located near Wuhan, which is an automotive manufacturing hub, and is thus an ideal location to build closer relationships with existing customers and cultivate new ones. In addition to manufacturing for existing customers, the company also aims to secure new orders from local Chinese companies and achieve net sales of 10 billion yen within five years of operation. It also plans to incorporate the functions of the Xiangyang factory into the new Xiaogan factory.
The company will work to expand the scale and improve the quality of the group’s operations, with the aim of forming “Japan’s No. 1 corporate group in the industry” by achieving sales in the region of 500 billion yen, becoming a competitive “World Class Company” that will survive even in global competition when competing against foreign rivals with sales in the region of 1 trillion yen. This is the vision of the company's medium-term management plan, by leveraging the increased competitiveness of the EMS business.