About Shimadzu

Shimadzu Corporation has announced a sales target of 4.5 billion yen annually by the fiscal year ending March 2011 (1.5 times higher than the fiscal year ending March 2008) for Russia and the CIS* region, a part of the global market that has shown particularly rapid growth in recent years, through expansion and strengthening of its sales and service structure for analytical and measuring instruments, and medical equipment.
*CIS (Commonwealth of Independent States): A grouping of 11 countries, including such countries as Ukraine and Armenia, that were formerly part of the Soviet Union

Since the financial crisis of 1998, Russia has experienced nine years of continuous economic growth, and with a year-on-year GDP growth rate of 7.0 percent (projected figure) in 2007, the economy is accelerating still more. With increasing demand for the world’s largest reserves of gas, oil, and other natural resources, the area is expected to continue seeing an increase in exports and a massive balance of trade surplus, making Russia and the CIS region a market with great potential for stable growth.

In Russia, where energy and other core industries are controlled through central government direction, economic liberalization is also advancing with the introduction of foreign capital and privatization of corporations, and trade with Western countries has expanded. In addition, the special character of the diversified industrial structure that exists in vast regions, centering on the mineral resources industry and also including the machinery, automotive, pharmaceuticals, foodstuffs, and chemicals industries, as well as increasingly active efforts to acquire advanced technology.

To address and serve the Russian and CIS markets, Shimadzu opened the Moscow office in January 1992 (supervised by SHIMADZU EUROPA GmbH (Headquarters: Germany)), and it is now the core of a network of five sales offices, in St. Petersburg, Nizhny Novgorod, Ekaterinburg, Novosibirsk, and Vladivostok, with approx. 30 people engaged in sales and service. Total sales of analytical and measuring instruments, and medical equipment in Russia and the CIS region in the fiscal year ending March 2008 is expected to reach approx. 19 million Euros (approx. 3.0 billion yen, of which analytical and measuring instruments accounts for 1.9 billion yen, and medical equipment, 1.1 billion yen).

To better serve the growing Russian and CIS regions, which are positioned as important components in its global growth, Shimadzu plans to strengthen the local sales and service structure to expand business activities.

In the area of analytical and measuring instruments, Shimadzu is responding to the diverse industrial restructure over vast regions, and to progress in privatization and other liberalizing moves, with increases in personnel and capabilities that will bring "sales and service into closer contact with the market." And in the medical equipment sector, where business is strongly colored by government direction, Shimadzu plans to use a strategy of "better central government penetration” to expand its business.

Specific policy plans are listed as follows.

Increase Staff in Sales and Representative Offices as 'Strategic Business Partners'-Plan for 150 People by 2010

Staff levels at the Moscow office, the strategic center of Shimadzu operations in Russia and the CIS market, and at the other sales offices, has grown from just four people immediately after the economic crisis of 1998 to around 30 in 2007. Shimadzu plans to continue expanding this group, to reach a total of 45 employees by 2010.
Moreover, Shimadzu plans to establish “strategic business partners” at each sales office. These partners, specializing in the sale and service of analytical and measurement instruments, will augment the Shimadzu staff and expand the sale of Shimadzu products within the territory.
Staff members at the three “strategic business partners” listed below will reinforce the planned 45 employees from Shimadzu to form a total sales and support structure of 150 people for the Russian and CIS markets in 2010.

   Interanalyt Ltd. (Moscow: Handling the Central and Southern regions)
   Analyt Ltd. (Saint Petersburg: Handling the Northwest and Volga regions)
   Element Ltd. (Ekaterinburg: Handling the Ural and Siberia regions)

Strengthen Functionality of Analytical and Measurement Customer Support Centers in Moscow, St. Petersburg and Ekaterinburg-Localize Analytical Methods Development with 'Applications Laboratories'

Customer support centers offering Shimadzu’s main analytical and measurement instrument products, and equipped with facilities for lectures and training sessions, have been established in Moscow, Saint Petersburg, and Ekaterinburg. Shimadzu plans to strengthen their functionality by turning these centers into "applications laboratories" for analytical and measurement instruments. The emphasis will be on localized development of analytical methods suited to market needs, and establishment of a solutions-oriented customer support system ahead of the competition.

Promote Participation in the Presidential Office's Medical Project-Strengthen Ties with Local Medical Equipment Companies to Penetrate the Market

In the medical equipment sector, Shimadzu is cognizant of the strong role played by central government guidance, and therefore seeks active participation in the Presidential Office’s medical project. Toward this end, Shimadzu is promoting ties and expanding business with local medical equipment companies having influence with the Ministry of Health. In 2008, Shimadzu commenced OEM supply of X-ray CT units to local companies for the local market, and plans OEM supply and joint development of X-ray diagnostic systems for cardiovascular applications, to expand the range of joint venture products.

Based on the above policies, Shimadzu plans to increase sales of analytical and measurement instruments, and medical equipment, in the Russian and CIS markets to at least 4.5 billion yen in the fiscal year ending March 2011, or approx. 1.5 times the current level.