Japan's Tsugami hiring more machine tool workers in China

TOKYO (Nikkei) -- Japan's Tsugami Corp. (TSE:6101) plans to bolster its workforce at a key Chinese plant by 50 per cent to accommodate increased production of machine tools.

The midsize machine tool manufacturer has built up a plant in Zhejiang Province that employs 650-700 workers and turns out 600 automated lathes and small machining centers each month. The enlarged facility's full capacity comes to 1,000 units. With the need for 300 more employees, the company recently began full-scale hiring activities.

To make full use of the plant's capacity, Tsugami faces the task of quickly training the new employees in machine processing and assembly. It is hurrying to increase Chinese production, anticipating that demand remains robust.

Monetary tightening and the European debt crisis have dampened the local machine tool market. Smaller clients have pulled back, yet some large customers in smartphone-related businesses are not holding back on investment. This, coupled with demand related to rebuilding after the floods in Thailand, helped Tsugami win a record 57.47 billion yen (US$747 million) in orders in December.

 (c) 2012 Asia Pulse Pte Ltd.