Mitsubishi Electric (OTCPK:MIELY) (OTCPK:MIELF) and Robert Bosch agreed to terminate operations of their joint venture Nippon Injector Corporation by the end of 2025 and then dissolve the company and complete the liquidation.

Nippon Injector, which was set up in 1986, has been supplying more than 300M gasoline fuel injectors for OE customers in Japan and abroad, the company said in a Sept. 1 press release.

Mitsubishi said that due to the impact of technological shift towards electrification in the automotive industry, it is estimated that the demand for fuel injectors for combustion engines will decline in the future. Thus to cope with this market development and to optimize manufacturing, it is intended to transfer production of gasoline fuel injectors step-by-step to Bosch's manufacturing site in Hemaraj, Thailand (Robert Bosch Automotive Technologies) beginning 2023, subject to antitrust approvals where needed.

Mitsubishi added that it plans to receive supplies from Bosch's Hemaraj factory which is expected to be the main factory in Asia for port fuel injectors for gasoline engines in the future.

Nippon Injector will start discussions with its labor union on measures, under coordination with Mitsubishi and Bosch to help associates for further employment, the company noted.