NEC reinventing into Aerospace & Defence Empire

The NEC boldly made a statement claiming it provides military equipment to Japanese Defence Forces. To the last March NEC claimed an order of 12- billion yen worth over the two years as it made recent announcements regarding its military business. How the military equipment is tested was shown to the reporters during a tour to its plant in Fuchu, western Tokyo where the media examined tests along the ground forces.

Executives were certain that in the near future, NEC was likely to export some of this military hardware. This came out very striking in Bidnessetc.com, since it would have been barely been appreciated two years back. Some of the equipment has been already showcased such as military truck compatible mini cell towers, manpack radio systems and portable high-speed wireless networks. The vice president at NEC’s aerospace and defence public business unit, Mr Yasuhiro Ito claimed that if we can remove software design for SDF, we might be able to export this communication equipment during a news conference while focusing on security issues.

After the 2011 earthquake and tsunami, the Japanese public seem to be experiencing a shift in perception of the Japanese forces as NEC now openly flaunts it role as a military equipment supplier while in the past it has also been in different shoes as mobile phone powerhouse according to Bidnessetc.com. The dejavu of the Japanese Imperial forces during the WWII was in order after the public saw their troops looking for survivors in the ocean leapt surface of the debris.

Mr Ito mentioned the same point of perception for the Japanese troops. This is not related to any discrete dealings with the Japanese government or remaining underground, NEC listed the aerospace and defence systems as a part of its business in the public sector. The company was the centre for a lot of controversy regarding the scandal of swiping the avariciously from the defence ministry, NEC has admitted overcharging the ministry however it denies any underground activity against the interests of the Japanese public and has apologised for the financial impact and the occasional resignation of the executive. Even after a rise in orders last year still its 5% from its overall sales are military, since NEC has always rejected concentrating to the military portion of its operations.

NEC has evolved into an aerospace and defence company by eradicating most of its past. The computer operations incorporated a joint venture with Lenovo Group Ltd. of China while its giving over the chip technology sector from its affiliate Renesas Electronics Corp to government backed organization. During the reinvention of its fabric, NEC had faced major crackdowns involving strategies to lay off more than 10,000 of its employees.

The Itochu Corp sold its Cyber Defence Institute to NEC in March, thus allowing it to strengthen its cyber security business against threats. The new aerospace and satellite assembly plant being built in Fuchu is expected to be completed this year. Against many of its competitors in the stock market such as Mitsubishi Heavy, Mitsubishi Electric Corp and Kawasaki Heavy, NEC became the no.2 supplier for defence ministry at the end of March.