Nidec to acquire Romanian appliance motor manufacturer

The acquisition is a part of Nidec's growth strategy under which it aims to achieve sales of JPY 2 trillion, operating margin ratio above 15% and return on equity (ROE) above 18% in FY 2020 through organic growth and acquisitions. The Company is moving forward with the development of new growth platforms with particular emphasis on automotive, appliance, commercial and industrial motors and solutions. Through this transaction, the company expects to enhance the competitiveness of its appliance motor business in the European market and obtain IMEP’s major customers. In addition, Nidec intends to build up a major manufacturing base in an emerging EU market for its Appliance, Commercial and Industrial Motors business (ACIM). “With the expansion of ACIM globally, it is essential to expand its production capacity in Europe, especially in a cost-efficient country. The location of IMEP is suitable as a manufacturing base, because Romania is a cost-efficient country with qualified labor force,” the company writes in a press release. The Company intends not only to utilise IMEP’s sizable premises and facilities, including a manufacturing factory for the appliance business but also make investments and enhance the production capacity for the commercial and industrial business.