Mitsubishi Electric Corp. expects rising wages in China and India to fuel demand for its products, President Kenichiro Yamanishi said.
Demand for Mitsubishi Electric’s factory automation equipment is “constantly growing” in China, a trend that may spread to India, Yamanishi said in an interview in Tokyo on Wednesday. “It’s a transition period for China to be more automated from labor-intensive work.”
Hourly manufacturing wages in China in 2010 surged 89 percent from five years ago, while they tripled in India, according to estimates at research firm Euromonitor International.
That’s prompting companies such as Foxconn Technology Group, the world’s largest contract manufacturer of electronics, to push plans to automate their factories.
Mitsubishi Electric, Japan’s second-largest maker of machinery used to automate factories, expects revenue will rise 23 percent over five years to ¥4.5 trillion within the 12 months ending in March 2016, the company said in June.
Industrial automation systems made up 25 percent of sales and 39 percent of operating profit at the Tokyo-based company last fiscal year.
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