TOKYO (dpa-AFX) - Japan's Mitsubishi Electric Corp. (MIELF.PK, MIELY.PK) Thursday said it has agreed with Robert Bosch GmbH to terminate operations of their joint venture, Nippon Injector Corp., by the end of 2025 and subsequently dissolve the company and complete the liquidation.
Nippon Injector, which was established in 1986, has been supplying more than 300 million gasoline fuel injectors for various OE customers in Japan and abroad.
The companies now expect declining demand for fuel injectors for combustion engines in the future due to the impact of the technological shift towards electrification in the automotive industry.
Starting 2023, production of gasoline fuel injectors will be transferred step-by-step to Bosch's manufacturing location in Hemaraj, Thailand, Robert Bosch Automotive Technologies. The shift is subject to approvals from the antitrust authorities within the relevant countries if applicable.
Mitsubishi Electric intends to receive supplies from Bosch's Hemaraj factory which is expected to be the main factory in Asia for port fuel injectors for gasoline engines in the future.
The company noted that Nippon Injector has already explained the decision to its labor union and employees. It will start discussions with its labor union on measures to support associates toward further employment.
Copyright(c) 2022 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2022 AFX News
