Japanese parts suppliers in Central and Eastern Europe: Expand business with European companies

Promoting to develop and manufacture materials and components to support the shift to EVs

2018/02/05

Summary
Central and Eastern Europe: New plant construction and start of operations (Kasai Kogyo, JSR,G-TEXT, Central Glass, Toray, Nippon Sheet Glass, Nippon Paint, etc.)
Central and Eastern Europe: Increased production capacity (Keihin, Sanden AS, NHK Spring, NGK Insulators, Bridgestone, etc.), Business withdrawal (Sumitomo Chemical)
Russia: New plant operations (Bridgestone), Expansion of business and revenue (Clarion, Hitachi High-Technologies)
Turkey: Expanded production capacity (GS Yuasa)

Summary

According to LMC Automotive, the sales volume of light vehicles in 17 countries in Western Europe increased for the fourth consecutive year, up 2.7% to 16.2 million units in 2017. Sales volumes in the 15 countries of Central and Eastern Europe (including Turkey and Russia) increased by 4.4% to 4.22 million. Russia has recovered to just under 1.6 million units, up 11.9%.

With the recovery of new car sales in Europe, Japanese auto parts suppliers are working to build new plants and increase production capacity, with the aim of expanding business with European automakers and parts suppliers. Kasai Industries and G-TECT are building new plants in Slovakia, with the aim of supplying parts to Jaguar Land Rover (JLR) for its new models produced in the country and to win orders from other European automakers.

In addition, noticeable among Japanese suppliers are initiatives to construct production systems for materials and parts related new demands of European automakers related to environmental and fuel efficiency regulations and vehicle electrification for applications such as EVs. Toray plans to establish a separator factory for lithium ion batteries in Hungary. Minebea Mitsumi will establish a new factory in Slovakia for on-board motors and develop electronics related products and embedded software for EVs and ADAS. Meanwhile, Sumitomo Chemical has decided to withdraw from the diesel particulate filter (DPF) business as European manufacturers are shifting from diesel to EVs, having announced the dissolution of its Polish subsidiary.

Related Reports:
Japanese suppliers in Western Europe: Meeting new demands for electrification and autonomous driving (Dec. 2017)
European market: Passenger vehicle sales exceed 15 million units, diesel vehicles drop below 50% (Sep. 2017)

<Japanese Supplier Reports>
North America (Oct. 2017)
Mexico and Brazil (Sep. 2017)

Map of automobile plants in Central and Eastern Europe
(Click to open site map)
Russian automobile plant map
Turkey automobile plant map

Central and Eastern Europe:

New plant construction	Advanex: Opening precision spring plant in the Czech Republic
	Kasai Kogyo: Constructing plant and expanding design and development capability for door parts in Slovakia
	JSR: Opening plant in Hungary to manufacture high-performance synthetic rubber for fuel efficient tires
	G-TEKT: Constructing plant in Slovakia for aluminum chassis parts
	Central Glass: Establishes company in the Czech Republic for the manufacture of electrolytes for lithium-ion batteries
	Tsubakimoto Chain: New timing chain plant is operational
	Toray: New PPS resin compound production facility to be established in Hungary
	Toray: Planning to established a new plant for the manufacture of separators, a key material in lithium-ion batteries
	Nippon Sheet Glass: New plant in Poland operational for the manufacture of glass fiber cord
	Nippon Paint: Established a subsidiary in the Czech Republic for the production of automotive paint and coatings
	Mabuchi Motor: Established a new company in Poland for the manufacturing and sales of electric motors
	Minebea Mitsumi: Automotive motor plant in Slovakia operational, including research and development functions
	Yazaki: Wire harness plant is operational in Serbia
Increased production capacity	Keihin: Increased production capacity of condensers for air-conditioning units in the Czech Republic
	Sanden AS: Started manufacturing products such as HVAC units for heavy truck air-conditioning systems in Poland
	Takata: Expanding its airbag plant in Hungary
	NHK Spring: Constructing a new plant for suspension springs in Hungary
	NGK Insulators: Increasing production capacity for exhaust gas purification parts and NOx sensors in Poland
	HI-LEX: Expansion of production capacity of window regulator in Hungary and implementation of development project
	Bridgestone: Gradually increasing the production capacity at its two plants in Poland for the production of tires for passenger cars, trucks and buses
	U-Shin: Plans to renovate the production equipment for products such as key sets at its Eastern European and other manufacturing sites
Business withdrawal	Sumitomo Chemical: Decided to withdraw from the diesel particulate filter (DPF) business and dissolve its DPF subsidiary

Russia, Turkey:

New plant construction	Bridgestone: Russian plant for the production of radial tires for passenger vehicles becomes fully operational
Increased production capacity	GS Yuasa: Building a new plant in Turkey to produce lead-acid batteries for vehicles with idling stop systems
Expansion of business areas and revenue	Clarion: Targeting to increase the sales of components for emergency call systems in Russia
Expansion of business areas and revenue	Hitachi High-Technologies: Strengthening production support to local parts suppliers in Russia, and mediating consignment manufacturing

(Time period: About 10 months starting from March 2017)

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