(Yicai) Aug. 7 -- Murata China Investment, a subsidiary of Japanese electronic components maker Murata Manufacturing, will increase its business with local companies as part of a new three-year plan, according to its president.

Murata China hopes to strengthen its alliances with advanced local companies and jointly contribute to the country's development, Toshiyuki Sato told Yicai.

Since entering the Chinese market in 1973, Murata has set up 18 sales offices, seven factories, and three research, development, and design bases in the country, with its Wuxi plant being its largest worldwide.

Murata's China sales can account for half its total and even higher, according to Sato. After some customers moved their production lines to India, Mexico, Vietnam, and other countries, the proportion of the turnover in China has relatively decreased, he noted.

Murata's sales fell 2.8 percent to JPY1.64 trillion (USD11.2 billion) in the 12 months ended March 31 from a year ago, while its operating profit dropped 28 percent to JPY215.4 billion (USD1.5 billion).

However, Murata's orders have been improving this year. Its net sales rose 14.7 percent to JPY421.7 in the three months ended June 30 from a year earlier, with operating profit surging 32.5 percent to JPY66.4 billion (USD450 million).

Murata aims to become the world's top component supplier by 2030, Sato pointed out.

International geopolitical relations influence multinational companies such as Murata, Sato said, adding that when the economic situation is not very optimistic or the sales are unsatisfactory, the company will focus on the cycle of technology, products, and demand, returning to the origin of production. In the short term, economic changes will not affect the Kyoto-based firm's long-term technological development, he noted.

Editor: Martin Kadiev