Omron working towards harmony

How has Asia responded in embracing these new technologies?

With Asia fast becoming the manufacturing centre of the world, the influx of imported production systems and machinery has helped to elevate Asian know-how in the application of advanced sensing and control solutions.

Can you define Omron’s target groups?

We offer sensing and control products and solutions, from factory automation to public automation, for a wide range of industries. The manufacturing sector is the key to growing our industrial automation business. We also have a significant presence in both building and utility automation.

What business model has Omron adopted in Asia?

We operate mostly through channel distribution.

What innovations are we likely to see this year from Omron?

One is a smart automation platform with seamless integration from the device level to the host controller. Another is a self-configurable device for easy maintenance and shortened downtime.

Is there a particular challenge that Omron faces each day?

Our corporate motto is “At work for a better life, a better world for all”. We always consider how our business contributes to society. We challenge ourselves to constantly improve the harmonious interaction between people and automated systems. We are committed to developing more advanced and intelligent control components, in order to provide greater operational efficiencies.

What has Omron’s recent performance been like in the Asia-Pacific market?

Although still feeling the heat of the “China Rush”, Omron Asia Pacific managed to return to a positive growth path in terms of sales revenue since the downturn in 2001. Active investment in the automotive industry in the region, especially in Thailand, has greatly contributed to sustainable growth.

Business-wise, how was 2003 for Omron?

Despite the unexpected SARS outbreak early last year, we expect to finish above our 2003 target. For this, we have to thank the boom in the United States market, as well as the recovery in the semiconductor and electronic industry in the last two quarters of 2003.

What are your expectations for 2004?

A strong US market and the recovering Japanese market will ensure continuous positive growth across the Asian region. Also, improving relations between India and Pakistan will help improve our prospects in South Asia.

Given the deterioration of results in the previous fiscal year, we carried out structural reforms to raise productivity across the entire Omron Group. Specifically, we implemented an early retirement program, consolidated or closed operating bases, accelerated the shift of production to overseas factories, particularly to China, and withdrew from low-profit and unprofitable businesses. These initiatives yielded steady results.

In addition, the R&D results from the Omron Keihanna Innovation Centre, which opened in May 2003, will support the long-term maximisation of corporate value.

What are Omron’s goals this year?

We will focus on solving end-users’ difficulties in factory automation, as well as other markets. Our coverage is extensive as we have sales offices throughout the Asia Pacific region. However, our sales network is widest and strongest among factory automation components supplier companies in Japan. We will also continue to develop customised products to fulfil customers’ needs. Our goal is to be the leading solutions provider in South East Asia.

Is there any single geo-political development that would reshape the landscape of South East Asian markets?

A full Free Trade Agreement (FTA) needs to be launched as soon as possible. This will bring tremendous gains and benefits to the region.