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15 December, 2006

New Large-sized LCD Backlight Factory Begins Operations in China

On December 15, 2006, Omron Group company Tama Fine Opto Co., Ltd. (TFO) began operations at its new production base in Changshu, Jiangsu Province, in China. The new facility, named Tama Fine Opto (Changshu) Co., Ltd. (TFO-CH), is equipped with a mass production system to support TFO’s main business, which is the development, production and marketing of backlight units for large-sized LCD panels.



Rapid expansion of the large-sized LCD TV market has spurred leading LCD makers in Japan, Taiwan and Korea to enter the Chinese market. The new production facility will allow TFO to maintain close contact with major local LCD manufacturers, enabling rapid response to customer needs and reinforcing its production capability while reducing costs through local procurement and production.

In April 2006, TFO began mass production and delivery of backlight units through its subcontractor in Wuxi City, Jiangsu Province, and plans to establish another base in southern China. Together with the company’s production and marketing base in Taiwan, these facilities will help TFO expand its business in the greater China area.



TFO-CH’s opening ceremony was held on December 18, with 150 people in attendance, among them business associates and construction representatives. Special guests included Changshu City Mayor Jiankang Wang and various government officials, such as members of the Administrative Committee of the Changshu Economic Development Zone. Attending from Japan were ECB President Soichi Yukawa and Kuninori Hamaguchi, Senior General Manager of ECB’s Semiconductor Division Headquarters.

In his opening address, ECB President Yukawa encouraged TFO-CH employees to contribute to the development of the Chinese economy and to support improvement in the quality of life of Chinese people, urging them to take a self-reliant approach. He also asked employees to strive for the continued expansion of Omron’s operations in China, expressing his hope that TFO-CH will become a noteworthy company there. Mayor Wang also gave a speech, expressing his hope for further growth of Omron’s operations in China as well as his expectations for a strengthened, improved partnership in this new stage of Japan-China relations.

After the ceremony, participants changed venues for a banquet at the nearby Crowne Plaza Hotel, where TFO-CH Chairman Shuji Kotaki declared his resolve to promote business practices that live up to Omron’s corporate core value of ‘working for the benefit of society’ and to conduct operations that are firmly rooted in the local community. The banquet, in which all participants wished for mutual growth and cultural development, promoted a spirit of strengthened ties between China and Japan while auspiciously celebrating the opening of TFO-CH. Changshu City has been a sister city of Ayabe City, Kyoto since May 1989.




Overview of TFO-CH

Company Name: TAMA Fine Opto (Changshu) Co., Ltd.
Date of Establishment: September 28, 2006
Start of operations: December 15, 2006
Business Lines: Manufacture of backlight units for large-size LCD panels
Representatives: Chairman: Shuji Kotaki
President: Hideo Nakai
Capital: US$2.6 million (Approx. JPY 290 million)
Investment Ratio: Tama Fine Opto Co., Ltd.: 90%
Omron (China) Co., Ltd.: 10%
Location: Changshu Economic Development Zone
Changshu, Jiangsu Province, China
Site Area: 2,800m2
Total Floor Area: 7,300m2
Employees: 55 (As of November 30, 2006)
Production Capacity: 100,000 units/ month (32 in. size, once facility is in operation)