Yaskawa Electric has announced a significant expansion of its robot production base in Slovenia. This investment is a strategic move aimed at capturing automation demand and optimizing supply chains in the European market.

5 billion yen investment and transition to a monthly production capacity of 850 units

Yaskawa Electric will significantly expand its existing robot factory in Kocevje, Slovenia, doubling its production capacity. About 5 billion yen (32 million euros) was invested in this project, and on April 24, 2024, the groundbreaking ceremony (foundation stone installation) for the new factory was written on site. With this expansion, the production capacity of industrial robots is planned to increase from the current approximately 425 units per month to 850 units per month. The new building is planned not only for robot manufacturing but also for logistics functions covering all of Europe, with manufacturing facilities planned to be introduced sequentially starting in 2024. This investment marks a significant step for Yaskawa Electric to expand its business activities across a wide range of regions, including Europe, the Middle East, and Africa (EMEA).

Journey as a strategic hub supporting the European market

The Slovenia base was announced in 2018 as Yaskawa Electric’s first robot production site in Europe, and opened in 2019. This expansion reflects the market momentum that required further production ramp-up just a few years after opening. Two new facilities are planned to be constructed adjacent to the existing factory, and once completed, the total employment capacity on site is expected to expand to about 500 people. Slovenia is geographically close to the heart of the European market, offering not only good access but also an environment where it is easy to secure a highly skilled workforce. Yaskawa positions Slovenia as a strategic hub in Europe, and while deploying a common platform established at its Japanese mother factory, it is strengthening its system for supplying high-quality products locally. The chart below shows global investment plans aimed at strengthening productivity.

Efficiency improvement through consolidation of logistics and engineering functions

This investment goes beyond simply increasing robot production to include enhancements aimed at improving service and delivery quality. By fiscal year 2025, robotic distribution centers (logistics functions) across Europe and state-of-the-art facilities for engineering and production of robotic systems are scheduled to be built. By consolidating logistics functions that were previously scattered across various locations in Slovenia, we aim to speed up decision-making and optimize inventory management. Additionally, by strengthening engineering capabilities that build systems tailored to individual customer requirements, we aim not only to provide hardware but also to enhance our ability to propose high value-added solutions. This enables us to respond more quickly and flexibly to the complex automation needs unique to the European market.

Background of Management Strategy: Accelerating production at demand locations and managing risks

Responding to geopolitical risks and strengthening supply chains

The core of Yaskawa Electric’s overseas strategy is the thorough implementation of “production at demand (local production for local consumption),” where production occurs where there is demand. Currently, the global economy remains uncertain due to U.S. tariff policies and rising geopolitical risks. In this context, relying on production in specific regions carries significant risks. Yaskawa Electric has established a four-pillar system covering Japan, China, Europe, and the Americas, and is working to build a resilient supply chain that is less affected by local demand fluctuations and import/export regulations. The expansion of the Slovenia plant is precisely the embodiment of this “glocal management,” aiming to increase the production ratio within Europe to reduce logistics costs, shorten delivery times, and mitigate tariff risks.

Positioning in the Medium-Term Management Plan ‘Realize 25’

This investment is one of the key initiatives in Yaskawa Electric’s medium-term management plan “Realize 25” (FY2023–FY2025). Under this plan, a cumulative investment of 150 billion yen is planned over three years, with much of it directed toward strengthening and automating the global production system. In particular, for fiscal year 2025, we plan to invest 49 billion yen in capital annually, and expanding our Slovenia base is a core investment initiative. Yaskawa Electric has adopted the concept of “i3-Mechatronics,” aiming to realize smart factories that utilize digital data and AI. At the new factory in Slovenia, advanced automation utilizing our own products is also underway, and it is expected to serve as a model case embodying the next generation of “manufacturing that does not rely on human labor.”

Europe’s Severe Labor Shortage and Absorption of Automation Demand

In the European market, labor shortages and rising labor costs due to declining birthrates and aging populations have become serious social issues, making the demand for automation in manufacturing more than ever before. The adoption of robots is accelerating not only in the traditional automotive industry but also in general sectors such as food, agriculture, and healthcare. Yaskawa Electric aims to expand its revenue by capturing the needs of these broad industrial sectors globally. In Europe, the operating profit margin for the fiscal year ending March to November 2025 is 9.6%, showing a steady trend. With the expansion of the Slovenian plant, we plan to ensure robust automation demand and further strengthen our presence in the European market.

Future Developments and Highlights: The Fusion of Next-Generation Technology and Physical AI

Market Expansion of the Autonomous Robot ‘MOTOMAN NEXT’

The key supporting Yaskawa Electric’s future growth is the autonomous robot “MOTOMAN NEXT” series, announced in November 2023. This robot is an innovative product that integrates AI, robotics, and motion technologies, capable of autonomously making judgments and generating movements while adapting to its surroundings. It enables tasks that conventional robots struggled with such as “undirected tasks” and handling irregular objects. Yaskawa Electric is strengthening partnerships with innovative companies such as NVIDIA in the United States, aiming to take leadership in the field of “physical AI,” where AI operates in the physical world. The expansion of the Slovenian factory will serve as the foundation for rapidly delivering these cutting-edge robots to European customers.

Growth scenarios beyond 2026 and milestones for the 110th anniversary of the company’s founding

For Yaskawa Electric, which will celebrate its 110th anniversary in 2025, we are currently at a critical turning point looking ahead to the next 100 years. The formulation of the next long-term management plan targeting fiscal years 2026 to 2035 is underway, with automation in new fields such as food, agriculture, and healthcare becoming an even bigger theme. The expanded facility in Slovenia is scheduled to begin operations during fiscal year 2025, with a significant performance contribution expected from fiscal year 2026. In the market, there is growing bullish outlook for Yaskawa Electric’s long-term business outlook, driven by expectations for the semiconductor cycle recovery and physical AI. After marking the milestone of its 110th anniversary, attention is focused on how Yaskawa Electric, by combining a global production system with cutting-edge AI technology, will lead global industrial automation.

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