Fanuc Corp. said Monday it will spend ¥130 billion to build a new plant and expand an existing research facility.
The maker of industrial robots wants to boost its capacity to turn out products such as digital control machines, a component of machine tools.
The new plant will be constructed at an industrial park in the town of Mibu, Tochigi Prefecture, at a cost of some ¥100 billion. The facility, which is seen as partially starting operations in October 2016, will have an initial capacity of 60,000 servo motors and 35,000 servo amplifiers a month.
Fanuc will spend about ¥30 billion on expanding the facility at its headquarters in the village of Oshino, Yamanashi Prefecture, to help speed up product development. The expansion work will be completed in May 2016.
Supported by strong demand for its factory automation equipment and robots used in automobile production, Fanuc expects its consolidated sales and net profit to reach record heights in the business year ending in March.
Meanwhile, U.S. investment firm Third Point LLC said last week it has acquired an equity stake in Fanuc. It wants the company to buy back its own shares to boost shareholder value.