Several Japanese companies, including Omron, Hitachi and Matsushita, have announced plans to step up their automation activities in China, including new motors and drives joint ventures.

Hitachi is setting up a JV with a Chinese firm to produce high-power inverter drives. The company, provisionally called DongFang Hitachi (Chengdu) Electric Control Equipments, will be based in Chenngdu, with Hitachi controlling 49% of the business. Around £3.5m is being invested in the JV, which is expected to generate sales worth some £17.7m by 2008.

Matsushita Electric is forming a JV with another Japanese company, Daikin Industries, to produce hermetically sealed motors for use in air-conditioning systems. About £11.6m will be invested in the new business, Daikin Motor Suzhou, in which Daikin will have a 60% stake. Production is due to start in December.

Omron`s Industrial Automation Business is establishing a new venture in Shanghai to integrate and expand the existing IAB activities in China, which include the production of sensors, PLCs and temperature controllers. Omron is investing about £25m in the new operation, and hopes that it will quadruple its Chinese sales to £250m by the fiscal year ending March 2008. The number of IAB employees in China will also grow four-fold to 2,600 by 2008.