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The following report outlines the trend of automotive parts business by Toyota/Daihatsu/Hino and seven Toyota group companies as well as seven Toyota keiretsu main suppliers in China during the last two years.
Toyota has built up an annual production system for a total of 980,000 engines - 130,000 in Changchun, 350,000 in Tianjin, and 500,000 in Guangzhou - as an engine production system that responds to the expansion of the Tianjin passenger car plant (Tianjin FAW Toyota Motor) and the full-scale production by the Guangzhou passenger car plant (Guangzhou Toyota Motor).
Seven Toyota group companies and Toyota keiretsu main suppliers newly established auto-parts production bases in North China area centered on Tianjin, in South China area centered on Guangzhou/Foshan, and East China area centered on Jiangsu province, which is conveniently located, and Shanghai, as a supply system for the expanded passenger car plant of Tianjin FAW Toyota Motor as well as Guangzhou Toyota Motor and Guangqi Toyota Engine (the Guangzhou powertrain plant). The new bases were mostly established in 2004 and 2005, starting production in 2006.
■Toyota increased its annual production capacity for engines to a total of 980,000 - 130,000 in Changchun, 350,000 in Tianjin, and 500,000 in Guangzhou
In April 2007, Toyota started production of 1.6/1.8L ZR engine for new Corolla, which Tianjin FAW Toyota Motor produces, at its second Tianjin engine plant. With the start of operations at the second plant, Toyota boosted its annual engine production capacity to a total of 980,000 - 130,000 in Changchun, 350,000 in Tianjin, and 500,000 in Guangzhou.
■Toyota establishes an annul production system for 130,000 engines in Changchun and 350,000 engines in Tianjin
■Toyota builds up a production system for 130,000 engines in Changchun, also planning to begin production of transmissions by 2010
| Toyota's Changchun engine plant, FAW Toyota (Changchun) Engine Co., Ltd., which is equally-owned with China FAW, increased its annual production capacity to 130,000 in 2006 (production of 3.0/2.5L V6 VVT-i GE began in December 2004 with an annual production capacity of 50,000). FAW Toyota (Changchun) Engine mainly supplies the product to Tianjin FAW Toyota Motor and FAW Car Co., Ltd., which is under the umbrella of China FAW. The company plans to start producing transmissions by 2010. |
■The second engine plant in Tianjin began production in April 2007 with an annual production capacity of 220,000
| Tianjin FAW Toyota Engine Co., Ltd., which is equally-owned by Toyota and China FAW, began production of 1.6/1.8L ZR Dual VVT-i engines at its second engine plant in April 2007. Tianjin FAW Toyota Engine supplies the product to New Corolla, which Tianjin FAW Toyota Motor starts producing in May 2007. |
| The construction of the second Tianjin plant began in 2005. The plant has an annual production capacity of 220,000 and has a site area of 280,000 square meters. The total investment is worth USD270 million. The combined annual production capacity with the first plant, which manufactures 1.3/1.5L A-type/1.3/1.5L SZ-type engines, is 350,000. (With the start of ZR engine production at the second plant, the first plant terminated production of 1.8L ZZ engine at the end of May 2007). |
| In Tianjin, Tianjin FAW Xiali Automobile also produces Daihatsu-base 1.0L TJ376Q, 1.1L 378Q, and 1.4L 4GB1 engines. |
■Toyota doubled its annual production capacity for large dies in Tianjin, starting production for export
| Toyota FAW (Tianjin) Dies Co., Ltd. (90% by Toyota and 10% by China FAW), which started production in December 2004 and supplies large dies for Tianjin FAW Toyota Motor and Tianjin FAW Xiali Automobile, doubled its annual production capacity, or equivalent to six models, in May 2006. The company started production for export, which includes Toyota Motor Manufacturing UK (TMUK) and Toyota Motor Manufacturing Turkey (TMMT). |
■With the start of operations of its second production line, Toyota's Guangzhou engine plant increased its annual production capacity to 500,000
| Guangqi Toyota Engine, which is Toyota's Guangzhou engine plant (owned 70% by Toyota and 30% by Guangzhoun Automobile Group), began production of 3.0/2.4L AZ engine on the second production line in November 2006 (The construction of the plant began in October 2005. Prior to the engine production, the company started production of engine components such as camshafts and crank shafts in the middle of 2006). Guangqi Toyota Engine has an annual production capacity of 200,000. The combined annual production capacity with the first production line numbers 500,000. |
| The first line began production of 2.4L 2AZ-FE engine, which is exported to Japan (used in Camry/Ipsum and other models), in November 2005. Later, it added production of 2.0L 1AZ-FE engine and an engine that is used in Camry, which Guangzhou Toyota Motor produces. (Before the start of the engine production, the company started production of engine components such as camshafts and crank shafts that it exports to Japan in January 2005) |
In May 2007, Daihatsu, jointly with FAW Jilin Automobile, started production of body assys and its components of a world strategy car, Xenia. In June 2007, FAW Jilin Automobile started the consignment production of Xenia.
Hino began producing engines for heavy-duty commercial vehicles in Shanghai in July 2005.
■Daihatsu entrusts production of Xenia under DaFa brand to FAW Jilin Automobile
| In May 2007, FAW Daihatsu (Jilin) Body Components Co., Ltd. started body assembly of Daihatsu Xenia (Chinese name: SenYa), which it jointly developed with Toyota Avanza, and production of components. |
| FAW Daihatsu (Jilin) Body
Components, was established in Jilin city, Jilin prov. in May 2006
as an equally-owned company between Daihatsu and FAW Jilin Automobile
in the China FAW Group. FAW Jilin Automobile will start consignment
production of Xenia from Daihatsu in June 2007. The annual production
capacity is planned to be 30,000 (3,000 in 2007). The product is
marketed under DaFa (Daihatsu) brand. |
■Hino will increase the annual production capacity for large DEs in Shanghai from 25,000 to 45,000
| Hino will boost the annual production capacity for large diesel-powered engines (DE) at Shanghai Hino Engine Co., Ltd. to 45,000 in 2008. Shanghai Hino Engine was established in Shanghai in October 2003 as an equally-owned company with Shanghai Diesel Engine Co., Ltd. The company started production of 10.52L P11C DE in July 2005 (with annual production capacity of 25,000. It also produces cylinder blocks/cylinder heads/cam shafts/connecting rods). It will add production of Hino J08C/J05C series DEs that meet Euro III emission standards (which employs Denso ECD-U2 common rail system). |
■Outline of auto-parts business in China by Toyota/Daihatsu/Hino
| Location |
Plant in China
(Those in blue are
engine plants) |
Establishment
(Start of
operations) |
(1) Main product(s) (2) Annual production capacity
(3) Ownership stake (4) Number of employees
(5)Sales (6) Production volume (2006: 1,000 units)
(7) Main customer(s) |
Jilin prov.
Changchun |
FAW Toyota
(Changchun)
Engine Co., Ltd. |
March 2004
(December 2004) |
(1)V6 Dual VVT-i (2.5/3.0L) GE
(2)130,000 units → 150,000 units
(3) 50% (4) 760 (6) 92.11
(7)Tianjin FAW Toyota Motor, FAW Car Co., Ltd. |
| Tianjin |
Tianjin FAW Toyota
Engine Co., Ltd. |
The first plant in
Xiqing District
May 1996
(July 1998) |
(1)A (1.3/1.5L), SZ (1.3/1.5L) GE
(2) 220,000 nits→ 130,000 units (3) 50%
(5) 2.01 billion RMB (6)184.97
(7)Tianjin FAW Xiali Automobile, Tianjin FAW Toyota Motor, FAW Haima Motor |
The second plant in
Development Zone
2005
(April 2007) |
(1)ZR (1.6/1.8L) GE (2) 220,000 units (3)50%
(7)Tianjin FAW Toyota Motor |
Toyota FAW (Tianjin)
Dies Co., Ltd. |
March 2003
(December 2004) |
(1) Large stamping die
(2) Equivalent to 3 → 6 models a year (3)90%
(4)167 (7)Tianjin FAW Toyota Motor, Tianjin FAW Xiali Automobile, China FAW, Toyota plants in the UK/Turkey |
Tianjin Toyota Forging
Co., Ltd. |
February 1997
(January 1999) |
(2) Constant-velocity joint forging coarse material equivalent to 1.2 million finished cars
(3)100% (4)190 (7)Tianjin FAW Toyota Motor, Tianjin FAW Xiali Automobile |
Tianjin Fengjin Auto
Drive Parts Co., Ltd. |
December 1995
(June 1998) |
(1) Constant-velocity joint, drive axle
(2) 150,000units (3)90%(4)759 (5) 819 million RMB
(7)Tianjin FAW Toyota Motor, Tianjin FAW Xiali Automobile |
Tianjin Toyota Press
Parts Co., Ltd. |
February 2001 |
(1) Automotive stamping parts (3)50% (7)Tianjin FAW Toyota Motor, Tianjin FAW Xiali Automobile |
Tianjin Toyota Plastic
Parts Co., Ltd. |
February 2001 |
(1) Automotive plastic parts (3)50% (7)Tianjin FAW Toyota Motor, Tianjin FAW Xiali Automobile |
Tianjin Jinfeng Auto
Parts Co., Ltd. |
February 1997
(July 1997) |
(2) 240,000 steering, 110,000 propeller shafts
(3)30% (4)400 (5) 73 million RMB (7)Tianjin FAW Toyota Motor, Tianjin FAW Xiali Automobile |
Guangdong
prov.
Guangzhou |
Guangqi Toyota
Engine Co., Ltd. |
February 2004
(November 2005) |
(2) 500,000 3.0/2.4L AZ engine, crank/cam shafts, etc. (3)70% (4)490 (5) 240 million RMB (6)155.14
(7)Guangzhou Toyota Motor, Toyota's plants in Japan |
■Daihatsu
Jilin prov.
Jilin |
FAW Daihatsu (Jilin)
Body Components
Co., Ltd. |
May 2006
(May 2007) |
(1) Body components, body assy equivalent to 30,000 finished vehicles (3)50%
(7)FAW Jilin Automobile |
■Hino
| Shanghai |
Shanghai Hino
Engine Co., Ltd. |
November 2003
(July 2005) |
(1) 10.5L large DE (P11C/J08C/J05C series, 325-380 PS)
(2) 25,000 units → 45,000 units (large DE 15,000 units, Medium-sized DE 30,000 units) (3)50%
(7)China National Heavy Duty Truck Group |
■Aisin group expanded production of transmissions in Hebei province while it started production of automotive parts in Guangdong prov.
The Aisin group expanded production of transmissions and its components in Tangshan, Hebei province while it started production of auto-parts in Guangdong province to supply the product to Guangzhou Toyota Motor and Toyota's Guangzhou engine plant.
■Aisin group expands production of transmissions in Tangshan city, Hebei province
■Aisin Seiki started production of engines and aluminum die-casting for ATs
| In November 2006, TAAC (Tangshan Aisin Automotive Parts Co., Ltd., which Aisin established as its wholly-owned company in Tangshan, Hebei prov. in March 2005) initiated production of engines and aluminum die-casting for ATs. The company plans to post sales of 3.5 billion Yen in 2007 and 5.1 billion Yen in 2010. The investment in the plant is worth approximately 7.6 billion Yen. The site area is 222,000 square meters. Aisin Seiki is reported to have produced approximately 1,000 tons of aluminum die-casting in China in 2004 and to plan to produce 22,000 tons in 2008. |
■Aisin Seiki and Aisin AI started mass-production of MTs for Corolla, planning an annual production capacity of 450,000 MTs in 2010
| In April 2007, Aisin Tangshan Gear Co., Ltd. started mass-production of C50/C66 -- MTs to be used in Corolla (it newly started production of drive plates in March 2007). The company plans to produce 30,000 C50 and 10,000 C66 in 2007. The product is mainly supplied to Corolla, which Tianjin FAW Toyota Motor manufacturers. |
| In 1996, Aisin Tangshan Gear was established in Tangshan, Hebei Province as a joint venture between the Aisin group, Toyota Tsusho Corporation and a local joint company in China. In April 2003, the company was switched to a wholly-owned company by the Japan side. The investment ratio is 77% by Aisin Seiki, 20% by Aisin AI, and 3% by Toyota Tsusho Corporation. The 2006 production volume of MTs was 160,000. The annual production capacity is planned to be 300,000 in 2008 and 450,000 in 2010. Aisin Tangshan Gear supplies the product to Toyota's bases as well as to numerous Chinese auto manufacturers. |
| (Note) |
According to Nikkan Jidosha Shimbun (June
13, 2007), Aisin AI plans to boost MT production in China to 300,000
in 2008 (200,000 are for Toyota's bases in China) and to 400,000
in 2010. It is reported that the combined total production of MTs
in Japan, China, and Thailand is planned to be 3 million in 2010. |
■Aisin group expands its auto-parts production in Guangdong province for Guangzhou Toyota Motor and Guangqi Toyota Engine
■Aisin Takaoka produces automotive cast iron parts in Guangzhou
| In November 2005, Takaoka Lioho (Guangzhou) Machinery Industries Co., Ltd. started production of cast iron parts such as disc rotor for Guangqi Toyota Engine. The company has an annual production capacity of 700,000 including disc rotors. It plans to post sales of 2 billion Yen in 2008 by expanding its business including machining cast iron parts to be supplied to Guangzhou Toyota Motor. |
| Takaoka Lioho (Guangzhou) Machinery Industries is capitalized at USD6 million with 51% by Aisin Takaoka and 3% by Toyota Tsusho Corporation. The company was established in Nansha Development Zone of Guangzhou in April 2005. It has a building area of 4,000 square meters. |
■ADVICS produces brake systems and its components in Guangzhou
| In May 2006, ADVICS Guangzhou Automobile Parts Co., Ltd. started production of brake systems and its components for Guangzhou Toyota Motor Camry. The company plans to produce slightly more than 1 million brake systems in 2010 and to post sales of 500 million RMB (approximately 6.7 billion Yen). |
| ADVICS Guangzhou Automobile Parts is capitalized at USD7.3 million with 95% by ADVICS and 5% by Toyota Tsusho Corporation. The company was established in Nansha Development Zone of Guangzhou in November 2004. The initial investment including site/facilities totals approximately 560 million Yen. |
■Aisin Seiki produces power sunroof and motor housing for power seats in Foshan, Guangdong province
| In May 2006, Aisin Seiki (Foshan) Body Parts Co., Ltd. started production of power sunroof and motor housing for power seats for Guangzhou Toyota Motor Camry. The company plans to post sales of 377 million RMB in 2007 and 800 million RMB in 2010. |
| Aisin Seiki (Foshan) Body
Parts is capitalized at USD11.6 million with 55% by Aisin Seiki.
The company was established in Foshan, Guangdong province in December
2004. The total investment is worth USD29 million. The building
area of the plant is 53,400 square meters. (The opening ceremony
was held in January 2007) |
■Denso produces car navigation systems in Tianjin while it manufactures common rails in Jiangsu province
In 2006, Denso started production of car navigation systems and components of car air conditioners in Tianjin. The company also began production of car indicators for a Korea-affiliated vehicle plant in China.
In June 2007, Denso newly established a production company for a common-rail system for diesel-powered engines in Changzhou, Jiangsu province, which will begin production in 2009.
■Denso started production of car navigation systems in Tianjin
■Denso manufactures car navigation systems in Tianjin (Denso's first production of car navigation systems in China)
| In February 2006, Denso (Tianjin)
ITS Co., Ltd. (with a capitalization of USD700,000 with 95% by Denso's
investment company in China and 5% by Tianjin TEDA Group. It was
established in June 2005) began production of car navigation systems.
This is the first time Denso has produced car navigation systems
in China. The company planned to produce 60,000 and to invest a
total of USD1 million in 2006. Denso will supply the product to
auto manufacturers and car navigation makers in China, planning
to further expand its business. |
■Denso produces heat exchangers and radiators for car air conditioners in Tianjin
In July 2006, Denso (Tianjin) Thermal Products Co., Ltd. (Denso's wholly-owned company that was established in February 2005) initiated production of heat exchangers and radiators for car air conditioners. The company supplies heat exchangers to Denso's North China plants for car air conditioners - Tianjin Denso AC, Tianjin Fawer Denso AC and Yantai Shougang Denso - as well as to its South China plant - Guangzhou Denso AC.
Denso supplies car air conditioners and radiators mainly to Japanese-affiliated auto manufacturers in China and will also expand sales to European-affiliated auto manufacturers. |
■Denso produces car indicators in Tianjin
| In December 2006, Tianjin Poon Sung Electronics Co., Ltd. (established in February 2006 with 66.6% by Denso's subsidiary in Korea and 33.4% by an investment company in China) began production of car indicators. The company mainly supplies the product to Korean auto manufacturers' bases in China. The total investment is worth USD2.58 million (approximately 300 million Yen). It is capitalized at USD1.81 million (approximately210 million Yen). Tianjin Poon Sung Electronics plans sales of 2.7 billion Yen in 2010. |
■Denso will produce common-rail systems in Jiangsu province starting in 2009
■Denso began mass-production of automotive ignition coils in Wuxi
| In January 2007, Wuxi Denso Hanshin Automotive Products Co., Ltd. started mass-production of ignition coils including a stick coil with a cylindrical magnetic circuit and a plug-top coil with a square magnetic circuit. The company mainly supplies the product to Toyota and GM. |
| Wuxi Denso Hanshin Automotive Products is a maker that was established in Wuxi city, Jiangsu province in March 2005. The company is capitalized at USD13 million (approximately 1.4 billion Yen) with 75% by Denso's investment company in China and 25% by Hanshin Electric. The total investment is worth approximately 2.1 billion Yen. Wuxi Denso Hanshin Automotive Products plans to produce 7 million and to post sales of 5 billion Yen in 2010. |
■Denso will establish a production company for common-rail systems in Changzhou, planning to start operations in 2009
| In June 2007, Denso established in Changzhou city, Jiangsu province Denso (Changzhou) Fuel Injection System Co., Ltd., which produces common-rail systems. The company is capitalized at USD25.4 million (approximately 2.8 billion Yen) with 54.3% by Denso and 45.7% by Denso's investment company in China. |
| The construction of a plant is scheduled to begin in October 2007 and the production is planned to start in July 2009 with an annual production volume equivalent to 100,000. The total investment is worth approximately 4 billion Yen. The company plans to post sales of 18 billion Yen in 2012. |
■Toyota Boshoku/Toyoda Gosei/Toyota Industries Corporation/JTEKT expanded their business centered on Tianjin and Guangdong province
Among the main suppliers in the Toyota group, Toyota Boshoku started production of oil fileters and air cleaners in Guangdong province in 2006 and will begin producing car seat components in Tianjin in 2007. Toyota Industries Corporation started producing variable capacity compressors in Jiangsu province in 2006 while Toyoda Gosei began production of interior and exteriors parts in Guangdong province in 2006. JTEKT began producing steering components in Guangdong province in 2006 while Toyota Tsusho Corporation initiated production of molten aluminum metal and alloy ingots in Tianjin in 2006.
■Toyota Boshok began production of oil filters in Foshan, Guangdong province and car seat components in Tianjin
■Toyota Boshok started production of oil filters and air cleaners in Foshan, Guangdong province
| In July 2006, Toyota Boshoku Foshan Co., Ltd. initiated production of oil filters and air cleaners. The company initially produces the products for China and Asia and is also planned to produce for Europe in 2007. It plans to post sales of 100 million RMB (approximately 1.5 billion Yen) in 2007 and 2.3 billion Yen in 2010. |
| Toyota Boshoku Foshan is capitalized at USD9.6 million with 60% by Toyota Boshok and 40% by Denso's investment company in China. It was established in Foshan city, Guangdong province in April 2005. The total investment is worth USD24 million. Toyota Boshoku Foshan's plant has a building area of 80,000 square meters. (the opening ceremony was held in January 2007) |
■Toyota Boshok produces car seat components in Tianjin
| In May 2007, Tianjin Feng'ai Automotive Seat Parts Co., Ltd. initiated production of seat components such as seat frame, seat adjuster, and set rail. The company mainly supplies the product to Toyota Boshoku's interior joint plants - Tianjin Intex Auto Parts Co., Ltd. and Tianjin Kahou Automobile Decoration Co., Ltd. The product is built into seats that are supplied to Tianjin FAW Toyota Motor. |
| Tianjin Feng'ai Automotive Seat Parts is capitalized at USD16.5 million with 51% by Toyota Boshok and 49% by Aisin Seiki. The company was established in Tianjin in January 2005. The total investment is worth USD47.5 million. The plant has a site area of 51,000 square meters. Tianjin Feng'ai Automotive Seat Parts has an annul production capacity of 240,000, which is planned to be increased to 600,000 in response to Tianjin FAW Toyota Motor's expansion of its plant. The company plans to post sales of 400 million RMB (approximately 5 billion Yen) in 2008. |
■Toyoda Gosei started production of interior and exterior parts in Foshan, Guangdong province for Japanese auto manufacturers' joint venture companies in China
| In May 2006, Toyoda Gosei (Foshan) Auto Parts Co., Ltd. started production of automotive interior and exterior parts such as instrumental panel parts, side protection mole, pillar garnish, and console box for Japanese auto manufacturers' joint ventures including Guangzhou Toyota Motor and Guangzhou Honda Automobile. The company plans to post sales of 5 billion Yen in 2008. |
| Toyoda Gosei (Foshan) Auto Parts is capitalized at USD17 million (approximately 1.8 billion Yen). The company was established in Foshan, Guangdong province in October 2004 with 60% by Toyoda Gosei and 5% by Toyota Tsusho Corporation. The site area of the plant is 85,000 square meters and the building area is 15,000 square meters. |
■Toyota Industries Corporation produces variable capacity compressors in Kunshan, Jiangsu province
| In April 2006, TD Automotive Compressor Kunshan, Co., Ltd. started producing variable capacity compressors for car air conditioners. The company plans to produce 280,000 in 2007. |
| TD Automotive Compressor Kunshan is capitalized at approximately 690 million Yen. The company was established in Kunshan, Jiangsu province in May 2005 with 57% by the Toyota Industries group, 35% by Denso, and 4% by Toyota Tsusho Corporation. The total investment is worth approximately 1 billion Yen. The site area of the plant is 20,000 square meters and the building area is 5,000 square meters. |
| In July 2005, in order to improve the efficiency of the distribution in China, Toyota Industries Corporation established Toyota Industries Trading (China) Co., Ltd., its wholly-owned trade and distribution company, in Kunshan, Jiangsu province. |
■JTEKT strengthens its steering production system in Foshan, Guangdong province
| In April 2006, Toyota Koki Auto Parts (Foshan) Co., Ltd. (Toyoda Machine Works, the predecessor of JTEKT, provided all the capital to establish it in Foshan, Guangdong province. in December 2004) started supplying hydraulic power steering to Japanese auto manufacturers' joint ventures in South China area including Guangzhou Toyota Motor. |
| In May 2006, Yamase (Foshan) Auto Parts Co., Ltd. (established in Foshan, Guangdong prov. in September 2005 with 40% by Toyoda Machine Works, 40% by Yamasei Kogyo, and 20% by Yokohama Rubber) started producing auto-parts such as pipe for power steering and supplying the product to Toyota Koki Auto Parts (Foshan). |
| JTEKT will significantly increase the personnel at Toyota-Koki Science & Technical Center (Dalian) Co., Ltd. (Toyoda Machine Works provided all the capital to establish it in Dalian, Liaoning Prov. in March 2005), which is an R&D center for drive line/steering systems including power steering and coupling joint, planning to increase from 21 at the beginning of 2007, to 50 at the end of 2007, and further to 100 in 2010. |
■Toyota Tsusho Corporation
■Toyota Tsusho began supplying molten aluminum for Tianjin FAW Toyota Motor's passenger car plant in Tianjin
| In April 2006, Tianjin Toyotsu Aluminum Smelting Technology Co., Ltd. (Toyota Tsusho Corporation provided all the capital to establish the company in Tianjin in June 2005) started production of molten aluminum alloy and alloy ingots. The company mainly supplies the product to Tianjin FAW Toyota Motor. |
■Toyota Tsusho established a new production base for automotive needle punch carpets in Tianjin
| In February 2007, Tianjin
Toyotsu Otsuka Textile Co., Ltd., which produces automotive needle
punch carpets, was established in Tianjin with 60% by Toyota Tsusho
and 40% by Otsuka. The company is capitalized at USD4.2 million.
It has an annual production capacity of 2,500,000 square meters.
(Tianjin Toyotsu Otsuka Textile is Toyota Tsusho's second production
base for automotive needle punch carpets in China following Shanghai
Fenghu Automotive Carpet Co., Ltd.(40% by Toyota Tsusho)) |
■Toyota Tsusho increased its annual production capacity for automotive catalyst to 1.8 million in Wuxi
| In March 2007, Cataler (Wuxi) Automotive Environment Technology Co., Ltd. (jointly established with Cataler in Wuxi, Jiangsu prov. in 2002. Production began in November 2004) started to expand its plant, boosting its annual production capacity for automotive catalyst to 1.8 million. The total investment in the expansion is worth USD15.75 million. |
■Toyota Tsusho establishes a new plant for PP compounds in Foshan, Guangdong province
| In June 2007, Beijing JuLingYan Plastic Co., Ltd. (jointly established with Mitsubishi Chemical in Beijing in 1998), which produces PP compounds for Japanese auto manufacturers, announced that it would build a new branch factory in Foshan, Guangdong province. The new plant has a site area of 15,300 square meters. Construction is scheduled to begin in August 2007 and operations are planned to start in April 2008. The total investment is worth USD4.9 million. The company plans to increase its annual production capacity to 10,000 tons by 2009. |
| The company has already reached an agreement on the purchasing of material, PP (polypropylene), with a supplier - Beijing Yanshan Petrochemical Co., Ltd. of China Petrochemical Corp. |
■Toyota Tsusho established an automotive parts distribution service company in Guangzhou, Guangdong province
| In February 2006, Toyota Tsusho and a trading subsidiary of Guangzhou Automobile Group Trade Co., Ltd.) (Guangzhou Automobile Group) each provided 45% and 55%, respectively, to establish GTL (Guangzhou Automobile Toyotsu Logistics Co., Ltd.), a distribution company for automotive parts, in Guangzhou city, Guangdong province. GTL is capitalized at USD5 million. The total investment is worth USD12.5 million. |
| The new company opened its distribution center in the Guangzhou Nansha Development Zone and started operations in May 2006. For the time being, it mainly distributes parts for Guangzhou Toyota Motor and Guangqi Toyota Engine. |
■Koito Manufacturing established a three-base structure while Tokai Rika founded a full-scale production base in Foshan, Guangdong province
Among Toyota keiretsu main suppliers, Aisan Industries consolidated its production system for throttle bodies in Tianjin while Chuo Spring consolidated its stabilizer business into Tianjin. Koito Manufacturing built up a three-base structure, setting up its China office in Shanghai.
In addition, Futaba Industrial initiated production of exhaust manifold, suspension parts and other products in Guangdong province. in 2006. Tokai Rika began production of key-locks and other products at its full-scale production base, not just assembly, in Guangdong province in 2006.
■Aisan Industries restructures its throttle body production system in Tianjin
■Aisan Industries reorganizes its throttle body production system in Tianjin
| In July 2006, responding to the future change of the market, Aisan Industries announced a restructuring plan in which Aisan (Tianjin) Auto Parts Co., Ltd., which produces electronic throttle bodies and other products, would acquire Tianjin Aisan Automobile Parts Co., Ltd., which produces products including throttle bodies. |
■Aisan Industries strengthens its production system for fuel pumps in Shenyang
| In August 2006, Aisan Industries increased the capital of Shenyang Hyundam Automobile Parts Co., Ltd. (its wholly-owned company that produces fuel pump modules. It was established in 2002. It mainly supplies the product to the Hyundai Motor group) to 1.5 times, or USD4.2 million. Aisan Industries plans to enhance its production facilities including local production of fuel pump rotors. |
■Koito Manufacturing established a three-base production structure in Shanghai/Fuzhou/Guangzhou
■Koito Manufacturing opened its China office in Shanghai, enhancing cooperation of its three plants in China and streamlining its operations
| In March 2006, Koito Manufacturing
opened its China office in Shanghai. The new office promotes the
enhancement of cooperation among Koito Manufacturing's three Chinese
plants in Shanghai/Fuzhou/Guangzhou including mutual complementarity
and the streamlining of operations. |
■Koito Manufacturing made an automotive lamp maker in Fuzhou into its subsidiary
| In October 2005, Koito Manufacturing invested 230 million Yen to acquire a 51% share of Fuzhou Tayih Lamp Industrial Co., Ltd., an automotive lamp maker that supplies the product to the Soueast Motor group and other companies, making it into a subsidiary (Koito Manufacturing also holds a 33.5% stake in Tayih Transportation Industrial Mfg., which holds the remaining 49% share of Fuzhou Tayih Lamp Industrial). |
■Koito Manufacturing started production of automotive lamps in Guangzhou for Japanese auto manufacturers that operate in South China area
| In March 2007, Guangzhou Koito Automotive Lamp Co., Ltd., which is Koito Manufacturing's wholly-owned company, began producing automotive lamps for Japanese auto manufacturers that operate in South China area. The new company is capitalized at 1.5 billion Yen. The total investment is worth 4.5 billion Yen. The new plant has a site area of 80,000 square meters and a building area of 18,000 square meters. The 2007 sales are planned to be 2.6 billion Yen. Guangzhou Koito Automotive Lamp plans to produce 500,000 sets of automotive lamps including head lamps and rear combination lamps in 2010. |
| (Note) |
According to Nikkan Jidosha Shimbun (May 9, 2007), Koito Manufacturing will build up a mutual complementary system between Japan and China in a few years. By leveraging a geographical advantage on distribution to the Chinese continent, Koito Manufacturing accommodates components of automotive lamps between the three plants in China and production facilitates in Kyushu, Japan. After its Kyushu plant, which started production of head lamps and rear combination lamps in October 2006, gets on a track to its initial goal of an annual production of 1 million, Koito Manufacturing plans to undertake a trial of the mutual complementary system. |
■Chuo Spring consolidates its stabilizer business into Tianjin
| In April 2007, Chuo Spring announced that it would consolidate its stabilizer business in China into Tianjin Chisca Auto Parts Co., Ltd., which was established in Tianjin in June 2005 as a fifty-fifty joint venture between Chuo Spring and Shanghai Chisca Auto Parts. When it was established, the company planned to produce 560,000 in 2007. |
| With this move, Chuo Spring will sell off all the stake it holds in Shanghai Chisca Auto Suspension Components Co., Ltd., which was established in Shanghai in July 2005 with 25% by Chuo Spring and 75% by Shanghai Automotive Co., Ltd., to Shanghai China Spring Co., Ltd. (the former China Spring Factory), which is under the umbrella of Shanghai Automotive Industry Corporation (Group). |
■Tokai Rika produces key locks and other products for Japanese auto manufactures in Foshan, Guangdong province
| In May 2006, Foshan Tokairika Automotive Parts Co., Ltd. started production of security products (key lock and shift lever)/switches (lever combination switches, etc.)/associated electronics parts. The company mainly supplies the product to Japanese auto manufacturers that operate in the southern parts of China. It posted sales of 1.4 billion Yen in 2006 and plans to post sales of 5 billion Yen in 2010. |
| Foshan Tokairika Automotive Parts is capitalized at USD10 million with 95% by Tokai Rika group and 5% by Toyota Tsusho Corporation. The company was established in Foshan, Guangdong province in July 2004. The total investment is worth 2.6 billion Yen. Foshan Tokairika Automotive Parts is Tokai Rika's fourth production base in China following the ones in Tianjin (switches), Wuxi (seat belts), and Suzhou (security products for Korea). The company assembles the product as well as undertakes operations such as casting of steering locks, chip implementation on printed-circuit board, and plastic moulding. |
■Fine Sinter produces automotive sintered metal parts in Wuxi, Jiangsu province
| In April 2006, Precision Sintered Products (Wuxi) Co., Ltd. started production of sintered metal parts for automotive shock absorbers/power steering/engines, starting to supply the product mainly to Toyota keiretsu plants in China (trial production began in April 2005). Precision Sintered Products (Wuxi) plans to prepare an annual production capacity for 1,200 tons. |
| Precision Sintered Products
(Wuxi) is capitalized at USD14 million. The company was established
in June 2004 in Wuxi, Jiangsu province with 51% by Fine Sinter,
Toyota group powder metallurgy products manufacturer, and 49% by
Sumitomo Electric Sintered Alloy Ltd. (Sumitomo Electric Industries'
wholly-owned subsidiary). The total investment is worth USD33 million. |
■Futaba Industrial produces exhaust manifolds and body and suspension parts in Guangdong province
■Futaba Industrial starts producing exhaust manifolds and suspension parts in Dongguan, Guangdong province
| In April 2006, Dongguan Futaba Metal Products Co., Ltd. (a wholly-owned company that Futaba Industrial Co., Ltd. established in Dongguan, Guangdong prov. in August 2005) began producing exhaust manifolds and suspension parts. Dongguan Futaba Metal Products supplies the product to Dongfeng Honda Enging and Chongqing Changan Suzuki Automobile and also supplies suspension parts to Guangzhou Futaba Auto Parts. |
■Futaba Industrial started production of body parts/fuel system parts/suspension parts for Guangzhou Toyota Motor in Guangzhou, Guangdong province
| In May 2006, Guangzhou Futaba Auto Parts Co., Ltd. (a wholly-owned company that Futaba Industrial established in Guangzhou, Guangdong prov. in November 2004) started production of body parts/fuel tanks/fuel in-let pipes/suspension parts for Guangzhou Toyota Motor. For the time being, Guangzhou Futaba Auto Parts plans to post annual sales of 6.4 billion Yen. |
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