As part of the company's measures to strengthen global competitiveness, NEC Corp. has announced that production of its ultra compact microwave communications system, PASOLINK, will begin in India in addition to existing production at NEC Network Products Ltd. in Japan.
Until now, NEC Network Products Ltd. has been the exclusive manufacturer of PASOLINK, where cost reduction is managed through innovation of production and the impact of exchange rate fluctuations is minimized by expanding the procurement of materials in foreign currencies.
However, NEC now plans to expand PASOLINK internationally and its efforts include increasing its competitiveness against global vendors in the face of a rapidly strengthening yen and taking proactive measures to gain presence in expanding markets such as India.
Under these conditions, NEC Network Products, as a central production facility, is expanding the production of PASOLINK into India, one of the world's leading markets, by capitalizing on its accomplishments and know-how in product quality management and material procurement.
The new PASOLINK production unit will be established in the Special Economic Zone of Chennai, India as a part of NEC India Pvt. Ltd. Operations are planned to commence within the fiscal year ending March 2012. The company also plans to expand local procurement of materials within India in the future.
In April 2011, NEC established NEC Network Products Ltd., a production company for communications equipment, by consolidating three former subsidiaries in Japan. NEC Network Products is a central production factory within NEC's global supply chain which provides highly evaluated and standardized manufacturing technologies and know-how. Looking forward, this factory will lead NEC's global production organization and enable the expansion of carrier network business by leveraging its exceptional levels of manufacturing quality and efficiency.