February 17, 2015 | News & Notices Shimadzu Goes Direct in Malaysia - Shimadzu Malaysia Sdn Bhd Will Strengthen Business Operations in the India Subcontinent and ASEAN Regions - New Analytical and Measuring instruments manufacturing plant and in-house Application Laboratory are also scheduled to start operations soon
Kyoto, Japan, Feb 16 2015: Shimadzu Corporation has established Shimadzu Malaysia Sdn Bhd, an indirectly-owned subsidiary, to further strengthen its capabilities in the India subcontinent and ASEAN region, which have shown remarkable economic growth in recent years and are projected to continue growing in the future.
This new company is a wholly-owned subsidiary of Shimadzu (Asia Pacific) Pte Ltd, abbreviated below as SAP (head office: Singapore, Managing Director: Kiminobu Imura). Shimadzu Corporation also plans to establish a new manufacturing facility for Analytical and Measuring instruments and an in-house Application Laboratory, in order to strengthen manufacturing, sales and application support capabilities. Construction on the new plant is scheduled to start in October 2015 and finish in July 2016, with operations starting in December 2016.
The ASEAN and India-subcontinent regions are key growth markets with sales of JP¥ 22 billion (US$ 187.18 million) estimated for FY 2016 in Shimadzu's medium-term management plan (FY 2014-to-FY 2016). Therefore, in order to leverage this massive growth potential, Shimadzu is building a solid business foundation by establishing a timely product supply system and is also developing extensive sales capabilities that can focus on the needs of the local markets.
Shimadzu Malaysia Sdn Bhd – Where 140 Years of Global Knowledge Meets Vast Expertise of Local Distributors
Previously, analytical and measuring instrument sales in Malaysia were conducted through Shimadzu's local distributors. However, this newly established local subsidiary of Shimadzu will now provide direct sales and service capabilities. While starting direct sales of analytical instruments, such as High-Performance Liquid Chromatographs (HPLCs), to markets such as food products, pharmaceuticals, and petrochemical, Shimadzu will continue to rely on the expertise of local distributors for sales of X-ray Fluorescence spectrometers, optical emission spectrometers, X-ray diffractometers, testing machines, and non-destructive inspection systems. This will not only help in maximizing customer convenience but will also help to further build the brand image of Shimadzu.
Consequently, SAP's Malaysian branch office, which was established in 2000 for direct sales of medical equipment, will be merged and integrated into the new subsidiary as its medical systems department. Shimadzu has earned a strong reputation in Malaysia for the quality and extensive service of Shimadzu X-ray systems, which has resulted in the organization securing a 25% market share, with over 50% of the market for general-purpose X-ray systems sold to hospitals. Shimadzu now intends to strengthen efforts to sell more high-end Angiography systems and develop the clinic market.
Owing to these new capabilities, Analytical and Measuring instrument sales are projected to be US$ 15.05 million and Medical system sales US$ 5.20 million in 2018. In total, Shimadzu Malaysia Sdn Bhd is expected to garner sales of about US$ 20.25 million in 2018, which is double the sales recorded in 2013.
Overview of the Sales Subsidiary
Shimadzu Malaysia Sdn. Bhd. (abbreviation: SML)
Wholly owned by Shimadzu (Asia Pacific) Pte Ltd. (abbreviation: SAP)
9.50 million ringgit (about JP¥ 304 million, at 1 ringgit = 32 ¥)
3) Head office location:
Nouvelle Industrial Park 2, Petaling Jaya, Selangor, Malaysia
4) Facility size:
About 945 m2, of which 160 m2 is an application laboratory
5) Managing Director:
6) Number of employees:
44 in first year (1 representative, 19 analytical instrument personnel, 16 medical system personnel, and 8 administrators, including 1 Japanese expatriate)
7) Business description:
Sales and service of analytical and measuring instruments and medical systems in Malaysia
8) Annual sales:
About US$ 20.25 million planned for 2018
9) Start of operations:
January 2, 2015
Malaysia Manufacturing Facility for Analytical and Measuring Instruments to Start Production in 2016
Shimadzu Corporation will establish a new analytical and measuring instrument manufacturing facility in Malaysia for SAP sales to South East Asia, the Indian subcontinent, and Oceania regions. This will improve SAP's ability to accommodate the particular needs of those markets, comply with regulations, and supply products in a more effective manner. Production of SAP's state-of-the-art products, which are expected to witness a substantial growth, such as the Prominence, Prominence-i, and Nexera High-Performance Liquid Chromatographs (HPLCs) and the UV-1800 UV-VIS spectrophotometer, is scheduled to start in 2016. Following these, production will be successively expanded to include other products and models. The facility will also supply some Liquid Chromatograph products to subsidiaries in charge of sales in the Middle East and Africa. This will provide product supply capabilities that are competitive in terms of quality, price, and delivery lead time, which will help expand sales in the medium and long term.
Reference information about Shimadzu (Asia Pacific) Pte Ltd
Shimadzu (Asia Pacific) Pte Ltd. (abbreviation: SAP)
Wholly owned subsidiary of Shimadzu Corporation
3.15 million Singapore dollars
3) Managing Director:
4) Business description:
Shimadzu (Asia Pacific) Pte Ltd provides analytical solutions, scientific equipment, testing machines, balances and medical equipment. It has three subsidiaries, in India, Malaysia and Philippines, and operates in 13 countries across the Indian subcontinent and ASEAN region.