OSAKA -- Nidec's charismatic chairman is considering handing the presidency of the company he founded to a much younger successor.
"I cannot turn over the reins to someone in his 60s," Shigenobu Nagamori told reporters Tuesday, noting that the times have changed. Nagamori will turn 74 this year.
"My eldest son is 46," he said. "It wouldn't make sense unless the successor is around that age." Nagamori also said he does not intend to return as president after stepping aside.
Nagamori currently wears three hats as chairman, CEO and president of the Kyoto-based manufacturer of electric-motor products. With group operations now spanning 43 countries, he seeks to appoint an internally groomed chief operating officer to double as president and shoulder 30-40% of his work.
"I am not retiring," said Nagamori, who intends to remain chairman and CEO. But he is focused on developing the next generation of talent. He will chair the board of Kyoto Gakuen University starting this spring.
Nidec plans to spend a record 150 billion yen ($1.32 billion) on capital investment in fiscal 2018, Nagamori said. It intends to maintain around the same level of investment over the next three years to boost capacity for robot parts in Japan and Vietnam. In China, it plans to increase production capacity for energy-saving motors used in home electronics and motors for automobile drive systems. Nidec also plans 200 billion yen in investments by 2025 to consolidate headquarters operations of group members and research facilities.