26 Feb, 2011
Source: The Mainichi Daily News
OSAKA (Kyodo) -- Sumitomo Electric Industries Ltd. will build manufacturing plants for automotive wire harnesses in Cambodia and the Philippines later this year to manage risks arising from the concentration of production of its mainline product in China, the president of the Osaka-based company said during a recent interview with Kyodo News.
"A labor shortage and wage hikes are occurring in China," Masayoshi Matsumoto said in reference to emerging risks in the country.
Outside Asia, Brazil is important for Sumitomo Electric because the South American country is "friendly to Japan and rich in natural resources," said Matsumoto, 66.
Sumitomo Electric is aiming to raise the proportion of overseas sales to 50 percent in fiscal 2011 from 40 percent in fiscal 2009 and will promote competent workers to executive posts regardless of nationality in order to expand overseas operations, he added.
(Mainichi Japan) February 26, 2011