Malaysian Factory Relocation and 1.5x Increase in Production Capacity
通知
Omron Device & Module Solutions Company (hereinafter “DMB”), to be spun off as Aratas Corporation(hereinafter “Aratas”) starting July 1st and is scheduled to become independent in October with the private equity fund The Carlyle Group as its main shareholder, has decided to relocate and expand Omron's Malaysian factory which is expected to become part of Aratas Group. The factory will increase its production capacity to 1.5 times its current level in anticipation of business growth following the transition under Carlyle. The factory will be relocated from the center of Selangor to a suburban industrial park within the same state, which is being developed under a joint public-private initiative, and will be positioned to meet the growing Asia-Pacific market.
(Design and construction by Shimizu Corporation)
(R):SHIMIZU CORPORATION Malaysia Company, President, KELVIN DING LEE KENG
(L):OMRON Malaysia Sdn Bhd, Managing Director, Ryota Goto
The relocation and expansion of the Malaysia Factory are intended to respond to the ongoing shift of customers for DMB’s electronic components toward the Asia-Pacific region, with a particular focus on the rapidly growing Indian market. In addition, the initiative aims to enhance supply chain stability, including for customers in Europe and North America, amid increasing global uncertainties.
As ESG awareness continues to grow worldwide, major customers in the electronic components industry are seeking greater stability and more environmentally sustainable supply chains. The new factory will therefore be developed with a focus on automation, environmental sustainability, and diversity, reflecting a commitment to creating a next-generation manufacturing facility that supports customers’ ESG initiatives. The decision to relocate to a suburban industrial park was driven by the alignment between the new factory’s concept and the industrial park’s vision of utilizing renewable energy and promoting sustainable development.
Following the relocation, the factory will expand production capacity to 1.5 times its current level, primarily for the growing India and Asia-Pacific markets, and will strengthen the production of relays, sockets, and other products with a strong track record across a wide range of industries.
The new facility is expected to become a strategic hub, accounting for more than 10% of DMB’s total global production capacity. The total investment is approximately JPY 10 billion. Construction is scheduled to begin in October 2026, following necessary approvals, with completion and the start of operations planned for the end of 2027.
As previously announced on March 30, 2026, in “Notice Regarding Absorption-Type Company Split of the Device & Module Solutions Business and Transfer of Shares of the Succeeding Company (Change in Subsidiaries, etc.),” DMB will be spun off on July 1 to establish a new company, Aratas Corporation.
The Malaysian factory is scheduled to be transferred to Aratas and will be renamed Aratas Components MALAYSIA SDN.BHD.
Looking ahead, DMB aims to steadily grow Aratas and significantly expand revenue by 2030, together with related businesses to be integrated into the new company, including industrial components. As the new company, Aratas will continue to proactively promote structural reforms, including investments in facilities, as well as enhancements to how it develops its people and organizes its structure.
Overview of the Current DMB Business (FY2025 Results)
| Net Sales | 118,700 million yen (14% of OMRON Group total), with overseas sales accounting for 74% |
|---|---|
| Business Overview | Advanced electronic components, centered on relays, switches, connectors, and sensors, that seamlessly connect people and machines across diverse fields, ranging from home appliances, mobility (EVs) to factory automation (FA), energy management, gaming, and beyond. |
| Production Sites | 8（Japan (4), Indonesia, Malaysia, Greater China (2)） |
| Sales Locations | 31（Japan (3), Asia-Pacific (10), Americas (4), Greater China (5), Europe(9)） |
| R&D Centers | 4（Kyoto, Okayama, Aichi, Shiga） |
| Production Volume | 2.2 billion units annually |
| Number of Employees | 7,000 (70% of employees are overseas) (as of the end of March 2025) |
| URL | https://components.omron.com/jp-ja/ |
Overview of Aratas Corporation (Planned)
| Name | Aratas Corporation |
|---|---|
| Head Office | Kyoto City, Kyoto Prefecture, Japan |
| Representative | Masahiko Ezaki, President and CEO (Planned) |
| Establishment | July 1, 2026 (Planned) |
| Business | Manufacturing and sales of electronic components and electrical equipment, among others (Planned) |
Overview of the Malaysia Factory
| Name | Omron Malaysia Sdn. Bhd. (OMB) |
|---|---|
| Established | 1973 / Operations commenced: 1974 |
| Capital | MYR 20 million (JPY 590 million) |
| Business | Production of relays and sockets |
| Site area | 46,941㎡ |
| Location | Selangor, Malaysia |
Overview of the Malaysian factory after relocation
| Name | Aratas Components Malaysia Sdn. Bhd. (ACM) (The name is scheduled to change moving forward) |
|---|---|
| Relocation schedule | Construction to begin in October 2026; completion and start of production planned for the end of 2027 |
| Capital | MYR 110 million (JPY 4,000 million) |
| Site area | 68,812㎡ |
| Location | COMPASS Industrial Park @ Kota Seri Langat |
About COMPASS Industrial Park @ Kota Seri Langat
COMPASS Industrial Park @ Kota Seri Langat is an ESG-oriented industrial development area jointly developed by public and private entities, incorporating renewable energy sources such as solar and wind power. Located in Banting, Selangor, the park is situated in a suburban area of Selangor State. It is approximately 25 km from the airport, 42 km from central Kuala Lumpur, and 31 km and 45 km from Northport and Westport, respectively, offering excellent access to major transportation routes, including convenient access to highways.
