Fuji Kiko Co., Ltd. Business Report FY2010
Business Highlights
Financial Overview |
(in millions of JPY) |
FY2010 (ended Mar. 2011) |
FY2009 | Rate of Change(%) |
Remarks | |
Overall | ||||
Sales | 91,771 | 84,681 |
8.4 |
Since the Company is actively developing its operations in emerging-market countries, while at the same time thoroughly rationalizing and revamping its operations in developed countries, the Company’s sales increased year-on-year in all regions except Europe. This growth is attributed also to a recovery in demand. |
Operating income | 5,461 | 2,636 |
107.2 |
- |
Ordinary income | 5,340 | 2,294 |
132.8 |
- |
Current net income | 3,328 | 1,180 |
182.0 |
- |
Steering column business | ||||
Sales | 42,884 | 40,379 |
6.2 |
- |
Operating income | 2,634 | 1,488 |
77.0 |
- |
Seating business | ||||
Sales | 34,720 | 30,088 |
15.4 |
- |
Operating income | 1,835 | 716 |
156.3 |
- |
Powertrain business | ||||
Sales | 14,166 | 14,213 |
(0.3) |
- |
Operating income | 991 | 431 |
129.9 |
- |
New Companies
ChinaThe Company, jointly with Hsin Chong International Investment Ltd. of Taiwan and Tachi-S Co., Ltd. of Japan, will establish a new company in China in January 2011. The new entity, which will be named Zhejiang Fu Chong Tai Automotive Parts Co., Ltd., will develop and manufacture automotive seat structure components in Jiashan, Zhejiang Province. The joint-venture company will start assembly operations for seat structure parts in November 2011, intending to produce each components in-house as well in the future. The 12 million USD venture will be 51.0 percent owned by Fuji Kiko, 40.0 percent by Hsin Chong International Investment, and 9.0 percent by Tachi-S. (From a press release on December 3, 2010)
Germany
The Company announced that it has established a joint venture with CRH Automotive GmbH, a German seat structure manufacturer, inside the headquarters of CRH Automotive, Solingen, NRW, Germany. A CRH Automotive plant in Hungary will produce auto seat recliner parts for Japanese automakers' plants in Europe, which have been hitherto supplied by Fuji Kiko, and the new joint venture, Fuji Kiko Hammerstein Automotive GmbH (FUHA), will sell these mechanism elements and components of seats. Fuji Kiko holds 51% shares of FUHA, capitalized at 7.5 million yen, while CRH Automotive holds 49%. Approx. 2.25 billion yen sales are expected for 2014. Although having only a sales function right now, FUHA will be adding development and production functions in the medium term. (From an article in the Nikkan Jidosha Shimbun on April. 22, 2010)
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
R&D
R&D Expenses |
(in millions of JPY) |
FY2010 | |
Overall | 1,476 |
-Steering column business | 729 |
-Seating business | 477 |
-Powertrain business | 269 |
-The Company has 364 individuals engaged in R&D activities, including those who are involved with prototypes and testing.
-As of the end of March 2011, the Company had acquired 350 industrial property rights, acquiring 126 within Japan and 224 outside Japan.
R&D Activities
Steering column business-The Company is working to reduce product costs and weight while trying to improve safety and product appeal. It will do this by improving the level of plastic forming technologies it uses. It plans to achieve this by reaching the required level of functions and performance demanded for steering columns by utilizing the most optimal mechanisms and designs.
-The Company is addressing the issues and needs surrounding globalization; enhancing its framework for conducting development activities in three regions (Japan, Europe, and the U.S.A.); and improving its competitive edge and product lineup by taking customer demand in the U.S.A. and Europe into consideration.
-The Company is jointly developing future technologies and products with automakers and system manufacturers to improve running performance.
-The Company conducted joint development activities with JTEKT Corporation, taking in development staff from the other company. The aim is to benefit from synergy effects found between the companies, which include, for example, ways to reduce development time.
Seating business
-The Company worked on developing functional core components and systems used in seats, such as seat recliners, height adjusters and slides. In response to the growing needs for environmental measures, safety, and comfort, the Company is engaged in reducing the size, weight and cost of products, as well as improving their strength and functions in addition. It is also developing products that can satisfy the seating layouts used in RV vehicles, hoping to improve their usability so as to satisfy increasingly diverse customers' demands.
-The Company conducted joint development activities with Tach-S Corporation, taking in development staff from the other company. The aim is to benefit from synergy effects found between the companies, which include, for example, improvement of development speed.
Powertrain Business:
Shifters
-The Company is engaged in R&D activities to develop general, automotive shifters, in order to greatly boost its competitive advantages in the shifter sector through reducing costs and making products lighter in weight by improving product designs. In addition, the Company continues to work on R&D activities that enhance the commercial appeal of its products, such as improving maneuverability and reducing noise. Furthermore, the Company is in the midst of developing products that are compatible with future, compact gear systems.
Engine Parts
-In the area of mechanical drive parts such as pulleys and drive-plates, the Company is making use of its forming technology to add thickness, and its screw-slotting technology to make slots in metal plates, and are typical of its proprietary technology and expertise in plastics forming and analysis. As a result, the Company is continuing its R&D activities on pulleys of various shapes that respond to the market needs for creating sheet metal.
Partts for Large-size Vehicles
-The Company is conducting R&D activities that incorporate fundamental, customer specifications. It is developing parts for large-size vehicles, mainly focusing on control parts for both automatic and manual transmissions.
Technical Transfer Agreements (Inward)
(As of Mar. 31, 2011)
Country | Licensor | Content | Period |
German | Keiper GmbH&Co. | Production technology for seat reclining mechanism and head-rest adjusters | Sep. 25, 1987 - Dec. 31, 2011 |
Patent license for wedge-type seat reclining mechanism | Apr. 18, 1997 - Dec. 31, 2011 |
||
Germany | Winkelman Pannhoff GmbH | Production technology for one piece drive-plates | Jan. 29, 1996 - Jan. 28, 2011 (Automatic renewal) |
Liechtenstein | ThyssenKrupp Presta AG | Patent cross license agreement for steering columns | Jul. 30, 2007 - Apr. 17, 2017 |
Technical Licensing Agreements (Outward)
(As of Mar. 31, 2011)
Country | Licensee | Content | Period |
Taiwan | Taiwan Atsugi Co., Ltd. | Production technology for steering column | Oct. 06, 1992 - Oct. 05, 2011 (Automatic renewal) |
Taiwan | Joyu-Fuji Machinery Co., Ltd. | Production technology for A/T device, M/T linkage and pulley | Oct. 08, 1996 - Oct. 07, 2011 (Automatic renewal) |
China | Shye Fu Koyo (Xiamen) Mechanical Industry Co., Ltd. | Production technology for steering columns | Dec. 01, 2005 - Nov. 30, 2011 (Automatic renewal) |
USA | Douglas Autotech Corporation | Production technology for steering columns and automatic transmission devices | Apr. 01, 2006 - (for as long as the subject vehicles are still under production) |
USA | Fuji Autotech U.S.A L.L.C. | Production technology for seat reclining devices, seat lifters, and seat sliding mechanisms | 5 years from Apr. 1, 2006 or the production life of the specific vehicle models |
Czech | Fuji Koyo Czech s.r.o. | Production technology for steering columns and intermediate shafts | Apr. 01, 2006 - (for as long as the subject vehicles are still under production) |
France | Fuji Autotech France S.A.S. | Production technology for seat reclining devices, seat lifters, and seat sliding mechanisms | Apr. 01, 2006 - (for as long as the subject vehicles are still under production) |
Indonesia | PT. Autotech Indonesia | Production technology for steering columns and intermediate shafts | Apr. 01, 2006 - (for as long as the subject vehicles are still under production) |
China | Fuji Autotech Guangzhou Co., Ltd. | Production technology for seat reclining devices, seat lifters, and seat sliding mechanisms | 9 years from Jan. 1, 2007 |
Thailand | Summit Fujikiko Kurata Manufacturing Co., Ltd. | Production technology for steering columns and intermediate shafts | 5 years from Jan. 1, 2007 or the production life of the specific vehicle models |
China | Guangzhou Changfu Machinery Co., Ltd. | Production technology for automatic transmission shift sectors | 5 years from Jan. 1, 2007 or the production life of the specific vehicle models |
India | Sona Fuji Kiko Automotive Ltd. | Production technology for steering columns and intermediate shafts | 7 years from Feb. 28, 2008 or the production life of the specific vehicle models |
Taiwan | Hsin Chong Machinery Works Co., Ltd. | Production technology for seat reclining devices | 5 years from Mar. 18, 2008 or the production life of the specific vehicle models |
China | Guangzhou Changfu Machinery Co., Ltd. | Production technology for rod hood support | 5 years from Jun. 1, 2010 or the production life of the specific vehicle models |
Germany | Fuji Kiko Hammerstein Automotive GmbH | Production technology for seat reclining devices | May 25, 2010 - (for as long as the subject vehicles are still under production) |
Investment Activities
Capital Investment |
(in millions of JPY) |
FY2010 | FY2009 | FY2008 | |
Overall | 2,494 | 1,488 | 3,587 |
-In FY2010, the Company invested in its production infrastructure in order to produce new products to respond to new program business and vehicle model changes.
Honjo Plant: Purchase of land for Honjo Plant: 1,366 million yen
Steering Parts Production Infrastructure: 547 million yen
Seat Parts Production Infrastructure: 370 million yen
Powertrain Parts Production Infrastructure: 78 million yen
Other: 131 million yen
New Facilities
(As of Mar. 31, 2011)
Company Name | Location | Business | Planned investment (million JPY) |
Start | Completion | Production capacity increase on completion |
Fuji Kiko Co., Ltd. Washizu Plant | Shizuoka Pref., Japan | Seating business | 1,413 | Jul. 2008 |
Mar. 2012 |
No change |
Fuji Kiko Co., Ltd. Arai Plant | Shizuoka Pref., Japan | Steering column business | 809 |
Jan. 2010 |
Mar. 2012 |
No change |
Fuji Kiko Co., Ltd. Honjo Plant | Saitama Pref., Japan |
Powertrain business | 89 | Apr. 2010 |
Mar. 2012 |
No change |
Fuji Autotech AB | Eskilstuna, Sweden |
Steering column business | 395 |
Jan. 2011 |
Dec. 2011 |
No change |
Summit Fujikiko Kurata Manufacturing Co., Ltd. | Rayong, Thailand |
Steering column business | 618 |
Jan. 2011 |
Dec. 2011 |
No change |
Facility Upgrade (automotive parts production facilities)
(As of Mar. 31, 2011)
Company Name | Location | Business | Planned investment (million JPY) |
Start | Completion | Production capacity increase on completion |
Fuji Kiko Co., Ltd. Washizu Plant |
Shizuoka Pref., Japan | Seating business |
109 | Jan. 2011 |
Mar. 2012 |
No change |