December 12, 2007 -- Sodick Hightech Co. (TSE:6160) plans to more than double the production capacity at its precision-molding business in China during 2008.

The company will invest 300 million yen (US$2.7 million) to install around 30 injection molding machines at its Suzhou plant, raising the number of such machines there to 65. This will boost the factory's monthly capacity to 90 tons from 40 tons.

The move comes in response to the influx of automotive-related manufacturers into China. As more electronics are added to vehicles, demand grows for connectors that link electrical equipment, instruments and car navigation systems to power sources. Sodick will also beef up its production capacity for wipers and turn signals.

In addition, the firm will move some production in the precision-molding business from its Miyazaki plant to the Suzhou facility to be closer to customers and be better attuned to demand.

Sodick aims to boost Chinese sales in the precision-molding division to 5 billion yen in five years, up from around 1 billion yen at present.

Source: Asia Pulse