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Japanese Omron's RFID Div targets Wal-Mart suppliers & others

30 Nov '05

3 min read

Automation & sensing products maker Omron Corporation announced that company will invest $20 million worldwide over 2005 and 2006 as a first step in seizing a larger share of the US and global radio frequency identification (RFID) market.

The company's investment signals major RFID growth initiative targeting Wal-Mart Suppliers, other markets.

The company's aggressive entry into the US marketplace focuses on its RFID label inlay and reader products. It aims to take advantage of Wal-Mart Stores' RFID shipping tag mandate to its top 100 suppliers while leveraging Omron's web site 20 years of global RFID product development and application experience.

Wal-Mart's RFID mandate now requires its largest 100 suppliers to put RFID tags on shipping crates and pallets. Starting in 2006, this mandate will be rolled out to Wal-Mart's next largest 200 suppliers.

Omron President and Chief Executive Officer Hisao Sakuta, who has appointed himself as project leader, said "RFID is an important, global initiative which requires a large investment. I believe RFID could be a major growth engine for the company.

Sakuta stated that certain market conditions in the US and Omron's own history in RFID product development and testing are creating these opportunities. He added that applications involving Wal-Mart suppliers and others that focus on supply chain management are purely RFID-related and thus it will enable us to put to use our decades of experience in automation and sensing markets.

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