This August Daihen will establish a locally registered company called PT OTC Daihen Indonesia located in Delta Silicon Industrial Park, situated, in the vicinity of Jakarta, in the state of Western Java, Bekasi Prefecture. Daihen will put 95% of the capital and its Thai affiliate OTC Daihen Asia will put up the remaining 5%. It will be the 8th Daihen overseas marketing center for its mechatronics welding products, following those in the US, Germany, China, Korea, Taiwan, Thailand, and India.

For activities up to now in Indonesia, Daihen has stationed people at 2 local sales agencies. However as the market is expected to expand in Indonesia, the company decided to establish a local company with the aim of vigorously expanding sales there. Along with auto producers such as Toyota Motor and Nissan Motor, Hitachi Construction Machinery, and Komatsu are among Japanese firms moving into the industrial park where the new company is located.

“The scope of the market for welding machines in Indonesia was considered to be valued at 3 billion in 2011. However the number of cars produced is expected to rise to 1 million cars in 2013. It is also anticipated that demand will expand chiefly for use in setting up an infrastructure,” noted a spokesperson from Daihen. The company would like to expand its sales routes locally to plants producing automobile components, mainly to Japanese companies.

The company constructed a 2 storey office building occupying 950 m2 of its 1,375 m2 premises. It is capitalized at $2 million, with 10 employees. In addition to OTC Daihen Asia in China it also markets welding machine produced by it own Mudanjiang OTC Welding Machines which manufactures welding machine. Its sales target for 2014 is set at 2 billion.