Omron acquires Chinese company

ntttttttttttt

Omron Corp said Friday that Omron (China) Co and Shanghai Best Electrical Appliance Manufacturing Co have entered into an equity transfer agreement, under which Omron (China) will acquire a 100% stake in BST. BST is a manufacturer of power latching relays in China.

In smart grids, which are expected to see a rapid increase in demand, smart meters will become a mainstay device as an interface for connecting power grids with commercial buildings or individual homes. Load switching units for directly controlling the supply of power to smart meters employ power latching relays.

In China, where smart meters are now in the introductory stage, power latching relays for smart meters have high growth potential. In fact, power latching relay sales in China are expected to account for about 65% (quantity basis) of worldwide sales by fiscal 2015, growing into a 15-20 billion yen business.

BST commands the leading position in the Chinese market for power latching relays, with a share of approximately 30%. The company has also gained a competitive advantage through its high-mix, low-volume production system and by enhancing productivity through the use of modular parts.