Mitsubishi Electric Will Raise The Worldwide Prices of Its General-Purpose AC Servo Motors

Tokyo - Mitsubishi Electric Corporation (TOKYO: 6503) announced on November 11, 2011 that it will raise the worldwide prices of its general-purpose AC servo motors and computerized numerical controllers (CNCs) due to the soaring prices of rare-earth minerals. AC servo motors and CNCs are widely used to control industrial machinery and other automation equipment. As a result of China’s regulation on rare-earth mineral exports, prices have risen significantly for neodymium, a key material for AC servo motors, and other rare-earth resources. Despite Mitsubishi Electric’s intense efforts to further strengthen production efficiency, it is no longer possible for the company to fully absorb the excessive increases in its material costs. In Japan, the prices of general-purpose AC servo motors will rise by 20 percent and CNCs, which includes the CPU, display terminal input/output unit, drive-unit and other equipment comprising the system, by 10 percent for orders received on January 4, 2012 or later. Source: webwire.com