Nishikawa Rubber_Business Report FY2008
Business Highlights
Financial Overview | (in million JPY) |
- | FY2008 | FY2007 | Rate of |
Factor |
Overall | ||||
Sales | 50,148 | 58,033 | (13.6%) | - |
Operating income |
37 | 3,268 | (98.9%) | - |
Ordinary income |
(129) | 4,107 | - | - |
Net income |
(1,744) | 2,397 | - | - |
Automotive | ||||
Sales | 45,944 | 52,610 | (12.7%) | Auto production volume significantly dropped all over the world. In particular, the production volume in Japan of eight Japanese automakers decreased on a year-on-year basis for the first time in seven years. These factors had a substantial negative impact on the Company's operating income |
Operating income |
(50) | 3,079 | - |
Highlights overseas
-India
The Company has decided to increase its investment ratio in Anand Nishikawa Co., Ltd. (ANCO) by acquiring additional shares in the manufacturer and seller of automotive rubber and seal products operating in Delhi, India. The company intends to further strengthen its production and sales activities in the Indian automotive industry, the market with growth potential. This will allow the Japanese supplier to increase its equity investment in the Indian company to 1,350,000 shares, or 20% of all outstanding stocks, and make ANCO its equity method affiliate. (From an article in the Nikkan Jidosha Shimbun on Apr. 23, 2008)
R&D
R&D Expense | (in million JPY) |
FY2008 | FY2007 | FY2006 | |
Automotive parts | 106 | 104 | 164 |
R&D Activities (FY2008)
(1)Development of technology to make lighter products
The Company is trying to develop
lighter seal products by making the best use of its foaming
technology.
(2) Development of technology to improve sound performance
Based on its foaming technology, the Company is continuing to develop
products that not only improve sound performance but also block sound better.
(3)Development of technology to comply with environmental needs
In order to cut certain in-vehicle VOCs (Volatile Organic Compounds), the Company is trying to
alter the particular organic solvents used in its products.
The company has already changed some
adhesives and primers
its uses.
The Company began
mass-producing exterior seals for doors, using
resin (TPE: thermoplastic
elastmer) instead of rubber
to shape
the corners.
The Company started manufacturing and supplying new, high-quality bio-plastic
materials, which were developed under an R&D project based on a consortium
of industry, academia, and government. The new materials are now being
used in interior parts on some environmentally friendly vehicles.
Investment Activities
Capital Expenditure | (in million JPY) |
FY2008 | FY2007 | FY2006 | |
Overall | 5,493 | 8,120 | 6,132 |
Automotive parts business | 5,238 | 7,830 | 5,863 |
Automotive parts business
-FY2008
Production facilities for new seal products
Production facilities to support rationalization investments that reduce costs.
-FY2009 (Planned Developments)
The Company has a plan to build a new mass production line for sealing parts made of thermoplastic elastomer (TPE) within fiscal 2009 at the earliest. This will allow the company to respond to future needs from major automakers who are now studying the possibility of applying TPE to window seals as a low-cost and easy-to-recycle material. The supplier is to determine how much to invest and when to start the mass production, responding to orders from major automakers. Nishikawa Rubber currently has one finishing line for TPE products at its Yoshida Plant in Akitakata-shi, Hiroshima Prefecture. This line is currently mass producing glass run channels with TPE corners that completely close gaps between door frames and windows. It also has a line to extrude TPE on a trial basis and the company is preparing for the future launch of mass production. (From an article in the Nikkan Jidosha Shimbun on Sep.19, 2008)
The Company has decided to continue a four-day workweek at its four auto parts plants in Japan and halve its facility investment in the new fiscal year. Although Mazda Motor Corp. will ease its Friday shutdown at the end of March and resume the five-day workweek, Nishikawa Rubber, which does business with almost all the automakers in Japan, predicted that domestic auto production should continue to decline for some time and has decided to stop operations at least on Fridays till the end of the first quarter of the fiscal year ending March 2010. (From an article in the Nikkan Jidosha Shimbun on Mar. 6, 2009)
New equipment installations
Plant | Equipment to be introduced | Estimated amount of investment (million JPY) |
Project Period | |
From | To | |||
Nishikawa Rubber | ||||
Shiraki Plant (Hiroshima, Japan) |
- Manufacturing equipment for automotive seals - Components for general industry |
501 | Jun. 2008 |
Mar. 2010 |
Asa Plant (Hiroshima, Japan) |
- Manufacturing equipment for automotive seals - Components for general industry |
689 | Jun. 2008 |
Mar. 2010 |
Yoshida Plant (Hiroshima, Japan) |
- Manufacturing equipment for automotive seals and interior/exterior components - Manufacturing equipment for exterior walls for housing |
513 | Aug. 2008 |
Mar. 2010 |
Mihara Plant (Hiroshima, Japan) |
- Manufacturing equipment for automotive door seals. - Manufacturing equipment for exterior walls for housing |
631 | Sep. 2008 |
Mar. 2010 |
Others | - Buildings and R&D equipment and others | 422 | Jun. 2008 |
Mar. 2010 |
Domestic subsidiaries | ||||
Nishikawa Bussan (Hiroshima, Japan) |
- Manufacturing equipment for automotive seals - Manufacturing dies |
66 | Apr. 2009 |
Mar. 2010 |
Seiwa Kougyo Co., Ltd. (Hiroshima, Japan) |
- Manufacturing equipment for automotive seals - Components for general industry |
33 | Dec. 2008 |
Mar. 2010 |
Nishikawa Big Ocean Co., Ltd. (Hiroshima, Japan) |
- Manufacturing equipment for automotive seals | 114 | Dec. 2008 |
Mar. 2010 |
Nishikawa Rubber Yamaguchi (Yamaguchi, Japan) |
- Manufacturing equipment for automotive seals | 150 | Apr. 2009 |
Mar. 2010 |
Nishikawa Big Well Co., Ltd. (Hiroshima, Japan) |
- Manufacturing equipment for automotive seals | 94 | Apr. 2009 |
Mar. 2010 |
Overseas subsidiaries | ||||
Nishikawa Tachaplalert Rubber Co., Ltd. (Thailand) |
- Manufacturing equipment for automotive seals | 307 | Apr. 2008 |
Dec. 2009 |
Shanghai Nishikawa Sealing System Co., Ltd. (Shanghai, China) |
- Manufacturing equipment for automotive seals | 869 | Apr. 2008 |
Dec. 2009 |
*Investments in overseas subsidiaries were made to respond to more orders.