Precision motor manufacturer Nidec Corp. said Monday it will set up a subsidiary in Guangdong Province, China, in mid-May to produce small precision motors for use in multimedia equipment, such as CD-ROMs and DVDs.
The new firm, Nidec (Dongguan) Ltd., will be capitalized initially at $5 million and owned 25 percent by Nidec and 75 percent by Nidec (Dalian) Ltd., another Chinese unit owned wholly by Nidec.
Nidec currently makes more than seven million small precision motors per month at its subsidiaries Nidec (Dalian) and Nidec Copal Philippines Corp.
With the addition of the new Chinese unit, the Nidec group aims for monthly production of 15 million units, the company said.