JAPAN – Yamaha Corporation (Yamaha) is planning to establish a manufacturing subsidiary in Indonesia, PT. Yamaha Musical Products Asia (YMPA), and construct a new factory in that country.
Yamaha’s board has also approved an increase in the capital of its subsidiary in India, Yamaha Music India Pvt. Ltd. (YMI), and the construction of a new factory.
The construction of these two new factories reflects Yamaha’s intention to respond to rising demand for musical instruments and audio equipment as a consequence of expansion, primarily in the middle income classes, in the emerging countries as well as Yamaha’s aim to further expand its sales and market share on these areas.
Yamaha’s Management Vision, which describes the desired future image of the company for the coming 10 years, states that it is aiming at “Becoming an indispensable, brilliantly individual company,” and the construction of these new factories is positioned as a strategic investment on the way to realizing this vision.
In Indonesia, the new factory of the newly established YMPA will manufacture digital musical instruments, piano parts, and other products.
In addition, while optimizing production items working together with Yamaha’s five existing factories in Indonesia, the new facility will contribute to increasing profitability and to raising production capacity in the musical instruments and audio equipment businesses as a whole.
In India, the construction of a new factory by consolidated subsidiary YMI, will facilitate the integration of manufacturing and sales, and YMI will work to manufacture and market products that take account of the specific needs of customers in the Indian market.
In addition, YMI will play the role of a base for supplying musical instruments and audio equipment to markets in the emerging countries, where growth in demand is anticipated.
Yamaha Motor Co’s stock (TYO:7272) was down 0.38 percent at the Tokyo Stock Exchange Thursday morning. The stock was trading at JPY2,617. – BusinessNewsAsia.com