Yokogawa Electric reorganizes to spur growth
Tokyo, Japan—Yokogawa Electric Corp. reports that it’s accelerating restructuring and integration of three major subsidiaries to help reach its goal of 50 billion yen in operating income by fiscal year 2005.
Tokyo, Japan— Yokogawa Electric Corp. reports that it’s accelerating restructuring and integration of three major subsidiaries to help reach its goal of 50 billion yen in operating income by fiscal year 2005. The firm’s corporate strategies, Vision-21 and Action-21, also call for Yokogawa to position itself as a high-value-added, high-growth-solution provider with core technologies in measurement, control, and information by fiscal year 2010.
Yokogawa explains that its reorganization is focusing on its main measurement and control businesses, and that it’s consolidating and merging subsidiaries, and redistributing management resources. Also, human resources in Yokogawa’s indirect business operations and its subsidiaries will be relocated.
In its measurement business, which includes Yokogawa’s communication, test and measurement, and automatic test equipment (ATE) segments, the strategy will be to focus on products and solutions that add the highest value. Products in the communications and test and measurement areas that have met this requirement include waveform, optical, digital, and wireless measuring instruments. ATE has also been designated as a business that adds high value, and so it also will be strengthened.
Also, allocation of management resources, such as research and development staff to the communications, test and measurement and ATE divisions, will be coordinated to ensure timely and appropriate resource use.
In the test and measurement area, Yokogawa is seeking to become one of the world’s top three suppliers by fiscal year 2008. In ATE, the company plans to have more than 50% share of se-lected markets by fiscal year 2005.
Reorganization of the firm’s control business will focus on three broad areas: overseas mar-kets, high value added products, and business solutions. Yokogawa will invest in priority world markets, especially in China, and will continuously introduce new products. Yokogawa also plans to enhance its ability to extend solutions throughout the lifecycle. Using these strategies, the company aims to secure more than 50% of Japan’s industrial automation market, and gain the largest of the world’s industrial automation market by fiscal year 2010.
Control Engineering Daily News Desk
Jim Montague, news editor