This latest investment is part of the company's strategy to maintain leadership in the lithium ion battery market.

 

Sony Corporation is known for its innovative products and unrelenting drive to be at the forefront of the electronics market. And in riding the next wave of change, the organisation had earlier announced that it would invest approximately S$533 million (¥40 billion) in Japan to strengthen its lithium ion battery production operations and reinforce the core areas of its component and semiconductor business over the next three years.

Focusing on this major pillar of growth, Sony is investing S$150 million (US$105 million) to set up its first lithium ion polymer battery manufacturing plant in Singapore, the corporation's first such plant in Southeast Asia. Sony Energy Technology Singapore (SETS), as the plant is known, is a division company of Sony Electronics (Singapore) Pte. Ltd.. It was officially opened on 28 August this year by guest-of-honour Lim Swee Say, Minister, Prime Minister's Office.

Meeting Global Demand

Spanning 109,600 sq m, the facility is highly automated and utilises state-of-the-art technologies and equipment, such as the latest Computer Integrated Manufacturing (CIM) applications. The plant is expected to produce more than 10 per cent of Sony's total lithium ion battery output, or approximately eight million cells per month, when fully operational in 2010.

Packing high energy densities in compact sizes, lithium ion polymer batteries are widely used in portable electronic devices such as cellular phones. Since lithium ion batteries were first commercialised by Sony in 1991, worldwide demand has steadily risen. It is currently experiencing 12 per cent growth and is targeted to reach 2.9 billion cells in 2008, of which more than 40 per cent of these will be used in cellular phones, according to the company.

Building on its commitment to develop technology transfer, the company sent over 100 local engineers to undergo specialised training at Sony's lithium ion battery facilities in Japan, furthering their capabilities and know-how. Currently, there are 270 employees working at the plant and SETS aims to increase this number to 500 by 2010.

"The lithium ion polymer battery business is one of Sony's major pillars of growth and we are committed to expanding this business with the establishment of SETS. As we move up the value chain in our manufacturing to produce lithium ion batteries, we hope to grow in tandem with Singapore's economy," says Dr Ryoji Chubachi, President and Electronics CEO, Sony Corporation.

"The Singapore government has been very supportive of Sony's businesses in this country, especially towards the development and training of human resources for our manufacturing operations." - Dr Ryoji Chubachi, President and Electronics CEO, Sony Corporation

Symbiotic Partnership

To capitalise on this huge and fast growing market, Sony has identified Singapore as a key partner to establish leadership in this sector. In fact, Dr Chubachi noted that in having flexible management and engineering capabilities that can adapt to the changing business environment; infrastructure and the existence of an industry cluster that enables local procurement; and local collaboration with government and the community, Singapore fulfills the company's criteria as a strategic base for its further development.

"The Singapore government has been very supportive of Sony's businesses in this country, especially towards the development and training of human resources for our manufacturing operations," says Dr Chubachi. This sentiment was also echoed by Sir Howard Stringer, Chairman and CEO, Sony Corporation. "We know the country, we know the people, we know the reliability, we know the stability. In this uncertain world which has been devastated in the last few months, stability and certainty are rare commodities in the business world."

But it is not just Sony that has benefited from this partnership. Since the establishment of its local operations in 1973, Sony has invested over S$2 billion (US$1.4 billion) in Singapore. It has also been continuously training its workforce and upgrading its local operations, bringing in high value-added products as its earlier ones mature. As the company diversifies its portfolio, its partnership with Singapore has evolved as well. Today, Sony's presence here spans across a broad array of business groups that covers engineering and manufacturing, sales and marketing, logistics, entertainment, treasury services, IT and regional HQ functions.

This flourishing partnership has contributed significantly to the local electronics industry, which in 2007, contributed S$73 billion (US$51.6 billion) to Singapore's economy, or seven per cent of total GDP.

"We are honoured to be chosen as Sony's partner for this [lithium ion battery] facility. [And] we look forward, as always, to forthcoming innovative products from Sony. I hope that Singapore will continue to play a key role in contributing to Sony's growth as the company marches ahead to break new ground and explore new horizons," says Minister Lim.