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26
Feature “Omron in China” China, Our Driving Force for Growth
The impact from the global economic crisis has led to
two straight years of substantial declines in sales for
the Omron Group, with consolidated net sales drop-
ping by 16% year on year in fiscal 2009. Nevertheless,
the Group posted increased sales year on year in the
Greater China region on the support of the Chinese
government’s swift and large-scale economic stimu-
lus measures while sales contracted in Japan, North
America, Europe, and other advanced countries.
Greater China Region Sales
Grow Even During
the Economic Crisis
Omron Pursued Business in
China Immediately after the
Introduction of the “Reform and
Opening Up” Policy
market expanded in the 1990s, the Company’s focus
shifted from consignment production to direct invest-
ment, as it concentrated on constructing its local sales
structure.
After 2000, the Company’s Grand Design 2010
(GD2010) long-term corporate vision was launched in
fiscal 2001. During the plan’s 2nd Stage covering the
four fiscal years, 2004 to 2007, the Company put spe-
cial emphasis on expanding operating bases in China
and made aggressive investments in China to further
fortify the local sales and manufacturing structure. As
a result, sales in the Greater China region nearly tripled
from the 1st Stage to the 2nd Stage of the plan.
Establishment of a Core Base for
Monozukuri
In 2005, during the 2nd Stage of GD2010, Omron
established Omron (China) Co., Ltd. (Shanghai) as a
core global development and production base for the
IAB segment with comprehensive
monozukuri
(product
creation) functions spanning development, design, pro-
duction, distribution, and customer support services.
The Company followed in fiscal 2007 with the
establishment of the Omron R&D Collaborative
Innovation Center, the first overseas R&D base, in
Shanghai. The center brings together the researchers
and students at nearby universities in Shanghai with
exceptional research and development capabilities,
with the Company’s researchers into an R&D facility
focused on “collaborative innovation” for the creation
of new value.
30 Years Expanding the Business Base
Omron founder Kazuma Tateisi immediately recog-
nized the potential for business in China following the
normalization of diplomatic relations between Japan
and China in 1972. Omron began a technological
exchange of traffic control systems with China’s
Ministry of Public Security in 1979, the year after China
launched its “Reform and Opening Up” policy.
Omron continued developing activities in China in
the 1980s, including the conclusion of agreement for
contract assembly of relays with a local company in
Shanghai and the start of consignment production of
thermometers and blood pressure monitors. As the
Sales Trends in the Greater China Region
070605040302 08 09
(Billions of yen)
(FY)
26.3 31.0 33.9
41.7
69.4
91.5
77.1
75.2