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Fujitsu announces Victorian manufacturing joint venture with AEMS

Fujitsu Australia Limited

Sydney, September 19, 2001

Fujitsu Australia Limited has reaffirmed its manufacturing commitment to Victoria with the announcement it will consolidate its manufacturing operations in a joint venture with Australian Electronic Manufacturing Services (AEMS).

The joint venture will see the operation of the AEMS factory in nearby Keysborough being integrated into Fujitsu's manufacturing facility at Dandenong. Fujitsu and AEMS will each hold 50 per cent ownership of the new company, AEMS Victoria Pty Ltd.

The initiative ensures a long-term future for the formerly separate manufacturing facilities and will deliver economies of scale through reduced overheads and operating costs.

The joint venture is the result of a 12-month strategic review by Fujitsu and reflects the company's long-term commitment to maintaining a manufacturing capability in Victoria, according to Fujitsu Australia Executive Director John Kranenburg.

"Fujitsu began joint venture negotiations with AEMS in April of this year following an evaluation of a number of Australian and multinational contract manufacturers. The consolidation of our Victoria manufacturing assets into a joint venture is a good result for both organisations - Fujitsu and AEMS bring to the partnership synergies across electronic manufacturing assets, management and component purchasing," he said. "Moreover, by choosing AEMS as our partner, we will maintain the focus on quality standards for which we have become renowned." The Managing Director of AEMS, Hugh Kelly, commented on the industry trend towards specialist manufacturing organisations.

"The trend to consolidating manufacturing is well established in Australia and globally. The rapid rate of productivity improvement and automation in manufacturing has required manufacturers to undertake significant investments in plant and equipment. However, these investments can be justified only if production volumes grow at a commensurate level.

"By consolidating the manufacturing operations of both factories into a single facility as a new joint venture company we will improve asset utilisation and labour productivity, thereby maintaining our competitive edge in the industry.

"This is a positive move for Fujitsu, AEMS, Victoria and our customers," said Kelly.

AEMS will undertake overall operational responsibility for the new facility under the leadership of General Manager Neil Boyle, formerly General Manager of the AEMS Keysborough plant. Fujitsu will contribute operationally at the process level by managing the quality systems and procedures within the new venture.

AEMS Victoria Pty Ltd is expected to generate revenue of approximately $70 million in its first year of operation. The newly created company will begin operating from 1 October with the consolidation at the Dandenong site targeted for completion by year-end.

About AEMS

Australian Electronic Manufacturing Services, (AEMS), is Australia's leading Contract Electronic Manufacturer (CEM). Since commencement of operations in Sydney in 1992 it has continued to be the fastest growing CEM in Australia with 650 employees and FY 2001 revenues of A$140 million. AEMS' generic growth strategy, combined with selected expansion programs, has seen the company establish a presence in the East Coast State capitals of Australia as well as in New Zealand. The success of AEMS is founded upon its ability to meet a variety of customer demands for both quantity and product mix. The company enjoys a broad customer and technology base.
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About Fujitsu Australia Limited

Fujitsu is one of the world's leading e-services organisations. Fujitsu technology solutions, from servers to e-Business applications, are powering the new Internet economy. In Australia and New Zealand Fujitsu is helping corporate and government customers to design, build and operate solutions which offer competitive advantage in the Internet world, from state-of-the-art infrastructure through to complex e-Business solutions. Our portfolio of IT services includes consulting, systems integration, prime contracting and a full range of professional services. Fujitsu Australia Limited is a wholly owned subsidiary of Fujitsu Limited of Japan.
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About Fujitsu Limited

Fujitsu is a leading provider of Internet-focused information technology solutions for the global marketplace. Its pace-setting technologies, best-in-class computing and telecommunications platforms, and worldwide corps of systems and services experts make it uniquely positioned to unleash the infinite possibilities of the Internet to help its customers succeed. Headquartered in Tokyo, Fujitsu Limited (TSE:6702) reported consolidated revenues of 5.48 trillion yen for the fiscal year ended March 31, 2001.
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Company:Fujitsu Australia Limited

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Date: 19 September, 2001
City: Sydney
Company: Fujitsu Australia Limited