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Nidec Opens Massive China Motor Plant as Japan Firm Doubles Down on Expansion

Company consolidates two facilities capable of producing 38 million units annually
Japan
n 6594.TSE Blue Chip 150
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Nidec Corp. officially opened its sprawling new industrial park in Qingdao, China, consolidating two existing facilities into a complex equivalent to 15 football fields as the Japanese motor manufacturer accelerates its expansion in the world’s second-largest economy.

The facility can produce 18 million motors and more than 20 million electronic inverters annually across 75 production lines, serving over 70 customers across Asia, Europe and the Americas. The park, completed in just 18 months, represents Nidec’s fourth major Chinese facility where the company already employs nearly 2,300 people.

The opening comes one day after Nidec completed its acquisition of Chinese scroll compressor manufacturer Changzhou Xecom Energy Technologies, underscoring the company’s aggressive China strategy despite mounting geopolitical tensions between Beijing and Western nations.

Located in Jiaozhou within the Shanghai Cooperation Organization Demonstration Zone, the campus features an 8,500-square-meter research and development center with eight laboratories and aims for carbon-neutral operations. According to company executives, the site can accommodate future expansions and automotive division projects.

The investment aligns with Nidec’s Vision 2025 plan to achieve four trillion yen ($27 billion) in annual sales. The company reported record financial results in April, with full-year sales of 2.6 trillion yen ($17.8 billion), up 11.1% from the previous year.

Nidec’s China expansion comes as the company positions itself in the electric vehicle market, where it aims to sell 3.6 million e-axles by fiscal 2025. The Japanese manufacturer, which first entered China in 1992, is betting heavily on the market despite rising trade tensions and supply chain risks.

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