February 21, 2008 -- Kyocera Corp. plans to start repatriating production of its products with high added value and high market share, such as fine-ceramic components, electronic devices and cutting tools, from its manufacturing bases in China to its newly constructed facilities in Japan.

The move reflects the declining advantage of China as a low-cost manufacturing base due to its strengthening currency and rising labor cost. Instead, China is gaining importance as a market where products are made and sold to meet local demand, says Kyocera. The company intends to accelerate its efforts to develop new manufacturing and marketing strategies targeted specifically at China, as well as to reshuffle its global manufacturing structure.

As part of its new initiative, the Kyoto Prefecture-based company completed construction in January of a production facility for multilayer ceramic capacitors at its plant in Kokubu, Kagoshima Prefecture, with the goal of generating initial-year sales of ¥3.5 bn ($32.9 mn). The facility cost the company about ¥20 bn.

In addition, Kyocera is due to bring onstream at its plant in Sendai, Kagoshima Prefecture, a five-story facility for the manufacture of electronic components and ceramic-based ultra-hard cutting tools. In March, the company's subsidiary Kyocera Mita is scheduled to commission a printer toner plant in Mie Prefecture.

Source: Japan Chemical Week