Announcement of establishment of a production subsidiary in Guangdong province in China

Mabuchi Industry Co., Ltd., a subsidiary of Mabuchi Motor Co., Ltd., has obtained the certificate of incorporation of Mabuchi Precision (Dongguan) Co., Ltd. in Dongguan city, Guangdong province, China.
Mabuchi Industry Co., Ltd. has been doing business in the form of the outward processing trade in China of the motor precision parts, particularly the shaft for motors since 1996 by providing Dongguan Humen Ludong Mabuchi Precision Factory with manufacturing and quality control technology at Ludong District, Humen Town, Dongguan City, Guangdong Province, China.
We decided to establish Mabuchi Precision (Dongguan) Co., Ltd. at the same place of and by taking over employees and facilities of Dongguan Humen Ludong Mabuchi Precision Factory so as to put our precision parts manufacturing base on a sound footing in long-term perspective as well as to comply with recent policies of Dongguan City and Guangdong Province urging companies utilizing the outward processing trade system to establish the foreign investment company instead.
The new company aims at the plant with the sound business footing and the competitiveness by succeeding the volume production know-how accumulated so far and the managerial resources such as employees.

Outline of the new plant

Company name	MABUCHI PRECISION (DONGGUAN) CO., LTD.
Location	Fenghuangshan Industrial Area, Ludong District, Humen Town, Dongguan City, Guangdong Province, China
Share holders	100% owned subsidiary of Mabuchi Industry Co., Ltd.
Capital	10M U.S. dollars
Total Investment	15M U.S. dollars
Business content	Manufacturing and sales of precision parts for small electric motors
Establishment	December 2, 2009
Ground-floor area	9,500 m2
Production capacity	800 million shafts per annum (Plan for 2012 year)
Employee number	300 (Plan for 2012 year)