News Release2019.6.11
Nissin Electric Co., Ltd.

Nissin Electric to Establish a New Production Company in Myanmar to Launch theContract Manufacturing Business of Industrial Equipment and Parts— Promoting Optimal Local Production and Sales to Accelerate the Expansion of Order
Taking and Market Share —Nissin Electric Co., Ltd. today announced that Nissin Electric (Thailand) Co., Ltd., one of the groupcompanies, will establish Nissin Electric Myanmar Co., Ltd. (tentative name) in June 2019 to expand theIndustrial Equipment and Parts Contract Manufacturing Business (“Equipment and Parts Business”) andestablish the foundation of the Power System Equipment Business of the Nissin Electric Group inMyanmar. Nissin Electric Myanmar will start operation in March 2020, and will become the third
production company following those in Thailand and Vietnam for the group’s Equipment and PartsBusiness.
Nissin Electric (Thailand) will supervise the business operations and technology development in theASEAN and India regions, while Nissin Electric Vietnam Co., Ltd. and Nissin Electric Myanmar will
provide the foothold to enter the local markets in the respective countries. The characteristics of thesecompanies (difference in labor costs, type of production) will be fully utilized to attain optimal local
production and sales and achieve net sales of 10 billion yen in the Equipment and Parts Business byFY2020.
Recently, the investment environment in Myanmar has been improving. The industry in Myanmar isexpected to grow significantly in the ASEAN region. Many Japanese-affiliated companies have launched
operations in the country because the labor costs are very low and inexpensive labor can be secured. The
demand for equipment and parts from Japanese-affiliated companies is expected to increase. Meanwhile,
demand for electricity has been growing due to the economic development. The Myanmar government
aims to fully electrify the country by 2030 (electrification rate: 40% in FY2018). Investment in the power
distribution field is expected to increase, and the demand for power system equipment is expected toexpand.
[Objectives of Launching Operations in Myanmar]
1. Expand the Equipment and Parts Business (third production company following those inThailand and Vietnam)
 Increase the competitiveness of the Equipment and Parts BusinessNissin Electric Myanmar will undertake the fabrication (of metal parts whose production is difficult toautomate, such as mounting structure and welded parts) from Nissin Electric (Thailand) and Nissin
Electric Vietnam, by taking full advantage of inexpensive labor in Myanmar and thereby expanding theoverall order taking of the group.

 Supply parts and equipment to Japanese-affiliated companies operating in Myanmar
Nissin Electric Myanmar will offer parts and plant auxiliary equipment to Japanese-affiliated equipment
manufacturers operating in Myanmar, whose economy has been developing. It will also supply
construction steel materials and parts, whose demand is expected to expand in line with the economicdevelopment.
2. Seek Opportunities to Enter the Power System Equipment Market in Myanmar
Nissin Electric Myanmar will set up sales offices and cooperate with local companies to quickly identify
opportunities to meet the growing needs for power system equipment in Myanmar. The company will
provide a foothold to enter the power system equipment market, which is expected to expand.
[Profile of the New Company]
Name: Nissin Electric Myanmar Co., Ltd. (tentative name)
Representative: Hideki Amagai, President (Managing Executive Officer of Nissin Electric Co., Ltd.,
President of Nissin Electric (Thailand) Co., Ltd.)
Location: Thilawa special economic zone industrial park (about 20 km southeast of Yangon)
Establishment: June 2019 (planned)
Capital: US$1.5 million (165 million yen)*1*US$1 = 110 yen

Ownership: Nissin Electric (Thailand) Co., Ltd.: 55%; Nissin Electric Co., Ltd.: 40%; others: 5%
Items of business: Fabrication of equipment and parts and manufacture of electrical equipment