Japanese parts suppliers in Europe: Expanding business to E.U. makers and increasing capacity

M&A in Western Europe, plant construction and capacity expansion in Eastern Europe

2017/05/19

Summary

 According to LMC Automotive, the sales volume of light vehicles in 17 countries in Western Europe increased by 5.8% year-over-year (y/y) to 13.55 million units. In January - March, 2017, it increased by 7.4% to 3.93 million units y/y. Under these circumstances, Japanese automotive component makers are strengthening their production system, development, and marketing, as well as M&A and capital participation. In addition, companies are working to respond to new needs accompanying tightening environmental regulations in Europe and an increase in new vehicles like EVs, as well as in response to expanding orders from European automobile and parts makers.



General trends for Europe

Establishing new production facilities ・Teijin: Considering the establishment of production facilities for high-performance composite material components.
Panasonic:Plans to establish new plants for lithium-ion batteries.
Toyo Tires:Considering the establishment of its 1st tire production plant in Europe.
Increasing production capacity ・JSP:Expanding production capacity of foamed polypropylene in the Czech Republic and France.
Business alliance Pioneer:Expanding business alliance with a major European map company,  HERE to build a next-generation global location information service.



Germany

M&A and establishment of joint ventures ・Nissha Printing: Acquired two German interior component makers to expand automotive business.
Furukawa Electric:Established a joint venture of high-voltage winding wire that would enhance the motor performance for electric vehicles.
Strengthening R&D and marketing systems Akebono Brake:Accelerating the development of brakes by increasing development staff.
Sumitomo Rubber Industries:Established a "European Technical Center.” Developing tires for the European and African markets.
Sumitomo Electric:Establish its second global headquarters in Frankfurt to expand sales to non-Japanese automakers.
Daido Metal:Expanding Germany sales facilities. Making for the country central to European sales.
Enhancing production systems ・Nisshinbo Brake: Consolidating acquired brake maker plants in a single location and adding buildings.
・Sanoh Industrial: Constructing additional production facilities for in-house production of subcontracted processing.



Other Western European countries

M&A and capital participation Sumitomo Wiring Systems:Acquired leading Finnish component maker. Enhancing wire harness business for buses and trucks.
Hitachi Chemical:Acquired 51% stake in an Italian automobile and industrial storage battery maker.
NICHIRIN:Made Spanish brake hose joint venture into a consolidated subsidiary.
・MITSUI & CO.: Acquired 12.525% stake in Spain's leading press maker. Enhanced its high-performance materials business.
Panasonic :Made Ficosa, a leading Spanish component and system supplier, into a subsidiary.
ALPHA:Completed acquisition of a key component business division from Sweden-based ASSA ABLOY.
Sumitomo Rubber Industries:Agreed to acquire a major UK tire dealer.
Increasing production capacity ・Ube Industries: Plans to expand Spanish plant's production facilities for Nylon 6.
Sumitomo Riko:Integrating its subsidiary plants into a single location as part of its Italian hose business restructuring.
・Toray Industries: Increasing its Italian subsidiary's production facility for artificial leather.
・Teijin: Increasing production of its Dutch subsidiary's aramid fiber for tire reinforcement.
Strengthening development and business systems KASAI KOGYO:Establishing a new design office in the U.K.
Akebono Brake:Dissolved its managing company in Europe. From now on, the headquarters will directly oversee business in the region.



Eastern Europe and Turkey

Constructing new plants ・Advanex: Established a production subsidiary for precision springs in the Czech Republic.
・Tsubakimoto Chain: Established a production subsidiary for timing chains in the Czech Republic.
HI-LEX:Established a production subsidiary for door modules in the Czech Republic.
・MABUCHI MOTOR: Established a production subsidiary for electrical equipment motors in Poland.
NHK SPRING:New suspension spring plant starts operation in Hungary.
・MinebeaMitsumi: Constructed a new plant in Slovakia for vehicle-use motors and antennas.
Increasing production capacity SANDEN HOLDINGS:Doubling its production capacity for air conditioner compressors in Poland.
・NGK INSULATORS: 2nd plant in Poland goes on stream.
HI-LEX:Expanded Hungarian plant and production capacity for wind regulators.
Sumitomo Rubber Industries:Increasing the production capacity of a tire joint venture plant for passenger vehicles in Turkey.

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