Drives and Controls Magazine

Rare earths force Mitsubishi to raise servomotor prices by 20%

10 November, 2011

Mitsubishi Electric has announced in Japan that it is raising the worldwide prices of its general-purpose AC servomotors and CNC (computerised numerical control) equipment, due to the soaring prices of rare-earth minerals.

In Japan, the prices of general-purpose AC servo motors will increase by 20% and CNC equipment – including CPUs, display terminals, drives and other items – by 10% for orders received on January 4, 2012 or later. Prices rises in other countries will be decided locally.

Mitsubishi says that prices for neodymium, a key material used in AC servomotors, and other rare-earth resources, have risen “significantly” as a result of China`s regulation of its rare-earth mineral exports. Despite the company’s “intense efforts to further strengthen production efficiency”, Mitsubishi says it is no longer possible for it to absorb fully the excessive increases in its material costs.