Mori Seiki breaks ground on first North American manufacturing plant

Location, exchange rate factors in machine tool company’s decision to build in CA.


Mori Seiki broke ground on a 200,000-square-foot factory to be situated on 14.5 acres in Davis, CA in June. The plant will be Mori Seiki’s first manufacturing facility in North America, and will employee between 100 and 150 people.

At capacity, the new facility will produce as many as 100 units per month, focusing on the popular new X-Class line of precision machines. “Our initial targets are our horizontal machining centers – the X-Class NHX4000 and NHX5000 Series,” says Mark Mohr, President of DMG / Mori Seiki USA. “Our next product under consideration is the DMU 50 and potentially other X class machines.”

The plan of locating a new manufacturing facility in the United States is based on the possibility of the continuing decrease in the exchange rate between the U.S. and Japan. “If the value of the U.S. dollar declines, it will become fiscally advantageous to manufacture machine tools in North America, eliminating the cost of importing from Japan,” said Dr. Masahiko Mori. The addition of a new North American factory is expected to offset any disparity in the exchange rate between the two currencies and would ensure Mori Seiki customers the continued quality, precision and value they have come to expect in their machine purchase.

Mori Seiki currently operates a total of four factories in the Nara, Mie and Chiba prefectures of Japan. The company’s manufacturing presence in North America builds upon an existing overseas unit in Le Locle, Switzerland (DIXI Machines). Mori Seiki acquired DIXI in 2007 to manufacture and market products under the DIXI brand, but also to expand its capacity in order to manufacture and sell Mori Seiki branded products.

Manufacturing in the U.S. enhances the company’s existing infrastructure in North America. Engineering operations are already established in the U.S. at the Digital Technology Laboratories in Davis, CA. Software and machinery has been designed at DTL since 2000, when the group was launched. Today, the group boasts more than 80 employees; the creation of a North American manufacturing plant creates further opportunity for R&D collaboration in the U.S..

The Davis site offers several other advantages as well. “The west coast location makes it very easy to work with our Japanese colleagues,” says Mohr. “For instance, we will be importing ball screws and spindles from our own manufacturing facilities in Japan—not for purposes of cost saving, but because they’re simply the highest quality.” The nearby UC-Davis and Berkeley campuses ensure that the available workforce is also top-quality; the area is regarded as a proving ground for the latest advances in technology, engineering, and computer sciences.

The addition of the new North American factory will raise Mori Seiki's total monthly output capacity by approximately 100 units to slightly more than 900, preparing Mori Seiki for the anticipated global expansion of machine tool sales in the coming decade. Construction is slated for completion in fall of 2012. Mori Seiki

No comments
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2015 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
Safety for 18 years, warehouse maintenance tips, Ethernet and the IIoT, GAMS 2016 recap
2016 Engineering Leaders Under 40; Future vision: Where is manufacturing headed?; Electrical distribution, redefined
Strategic outsourcing delivers efficiency; Sleeve bearing clearance; Causes of water hammer; Improve air quality; Maintenance safety; GAMS preview
SCADA at the junction, Managing risk through maintenance, Moving at the speed of data
Safety at every angle, Big Data's impact on operations, bridging the skills gap
The digital oilfield: Utilizing Big Data can yield big savings; Virtualization a real solution; Tracking SIS performance
Applying network redundancy; Overcoming loop tuning challenges; PID control and networks
Driving motor efficiency; Preventing arc flash in mission critical facilities; Integrating alternative power and existing electrical systems
Package boilers; Natural gas infrared heating; Thermal treasure; Standby generation; Natural gas supports green efforts

Annual Salary Survey

Before the calendar turned, 2016 already had the makings of a pivotal year for manufacturing, and for the world.

There were the big events for the year, including the United States as Partner Country at Hannover Messe in April and the 2016 International Manufacturing Technology Show in Chicago in September. There's also the matter of the U.S. presidential elections in November, which promise to shape policy in manufacturing for years to come.

But the year started with global economic turmoil, as a slowdown in Chinese manufacturing triggered a worldwide stock hiccup that sent values plummeting. The continued plunge in world oil prices has resulted in a slowdown in exploration and, by extension, the manufacture of exploration equipment.

Read more: 2015 Salary Survey

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.
This article collection contains several articles on the vital role of plant safety and offers advice on best practices.
This article collection contains several articles on the Industrial Internet of Things (IIoT) and how it is transforming manufacturing.
This article collection contains several articles on strategic maintenance and understanding all the parts of your plant.
click me