Japanese suppliers in Mexico/Brazil: rush to build plants and increase production

Activities of H-One, Akebono Brake, Jatco, Unipres, Aisin Seiki and Denso

2012/02/08

Summary

 This report summarizes the activities of Japanese suppliers in Mexico and Brazil. Japanese OEMs unveiled their plans to build new plants in both countries one after another. A rush to build plants and increase production by Japanese suppliers in both countries has begun to cope with the trends of the OEMs.

 In Mexico, Nissan already has two plants in the states of Aguascalientes and Morelos States. Nissan announced it has plans to build a third plant at the adjoining site of its Aguascalientes plant, in January 2012. Honda is building a 200K-unit plant in Guanajuato State in addition to the existing plant in Jalisco State. Honda's new plant will go on stream in the first half of 2014. Mazda will build a new plant with an annual production of 140K units in Guanajuato State, with plans to start operations within 2013. Besides, Mexico serves as an auto parts export center not only to North America, but also to South America thanks to the customs-free trade between Mexico and Brazil.

 The Brazilian market had sales of more than 3.5 million units in 2010. As a result, it has become the world's fourth largest market. It is also expected to have more than 3.5 million units in 2011. As for Japanese OEMs, Toyota is building a new compact car plant in Sao Paulo State where it already has a plant. It plans to start production at an annual production scale of 70K units in the latter half of 2012. Nissan also unveiled plans to build a plant with an annual production scale of 200K units in the state of Rio de Janeiro, which will start running in the first half of 2014.

For the information, Brazil has made the move to raise the so-to-called IPI tax on industrialized products by 30 percentage points for imported vehicles and locally produced vehicles with a low local content since December 16, 2011.

 

Related Reports:
  Japanese Suppliers' reports:
  in Europe (Dec. 2011) , in US (Aug. 2011) , in ASEAN(Thailand) (1) (Jul. 2011)/in ASEAN(Ohers) (2) (Jul. 2011)



Mexico: H-One and G-Tekt establish a joint venture, while Akebono Brake has plans to build a plant

 To cope with an increase in production by Japanese OEMs in Mexico, H-One and G-Tekt have plans to establish a local joint venture. Exedy is building a plant to produce torque converters, and Topre a plant to produce pressed parts. Daido Metal in September 2011 announced the establishment of a local subsidiary in Mexico after the close of the US plant in 2010. Daido will resume the production in North America.

 Akebono Brake, Koito, Tigers Polymer, and U-Shin are also planning to have factories in Mexico.

In Mexico, Japanese suppliers to build factories

(Activities for about one and nine months by December 2011)
Akebono Brake is detailing plans to build a Mexican Plant
 Akebono Brake is detailing plans to build a plant in Mexico, aiming to start operation in 2013 (as of November 2011). The supplier plans to invest 20 million to 30 million USD to begin production with drum brakes and brake calipers and increase the production items such as brake rotors and friction materials in series. At present, exports to Mexico account for eight to nine percent of its North American business. Coping with the expansion of local production by Japanese, US and European OEMs, Akebono Brake will aim to expand the market share to at least 30% in Mexico. It also intends to export products from Mexico in the future.
Ashimori to establish a seatbelt & airbag manufacturing subsidiary in Mexico
 Ashimori in November 2011announced to establish a Mexican subsidiary to produce and sell seatbelts and airbags, which is tentatively called as Ashimori Mexicana S.A. de C.V. in Guanajuato State. Akebono will complete all processes to establish the subsidiary in January 2012, planning to start operation in September 2013. Ashimori will capitalize the subsidiary at a hundred million MXN (about 560 million JPY), planning to have sales of 200 million JPY in 2013 and 2 billion JPY in 2015. For Ashimori, it will be the first plant in Americas.
H-One and G-Tekt to establish a joint venture in Mexico
 H-One and G-Tekt, which produce body frame parts, announced in December 2011 to establish a joint venture in Mexico on a fifty-fifty basis for the production of the auto parts. They are in line with their main customer Honda which will build a new plant in Mexico. They will establish the subsidiary with capital of about 20 million USD in February 2012, and with plans to start operation in April 2014. The official name and address of the joint venture are not yet decided.
Exedy builds an AT torque converter & clutch pack plant
 In December 2010, Exedy established EXEDY DYNAX Mexico S.A de C.V. in Mexico with its subsidiary Dinax in Aguascalientes State at a capital of 24 million MXN. The new company will start operations at the beginning of 2012 by renting a plant to produce torque converters and clutch packs for ATs. Exedy plans annual production capacities of 250K torque converters and 800K clutch packs. In addition, Exedy will buy a site in the same state to build its own plant to produce torque converters for CVTs. The supplier will invest 5 billion to 6 billion JPY, aiming to start operation in September 2013.
Koito is detailing plans to build a plant in Mexico
 Koito began to detail plans to build a new plant for lighting in Mexico, aiming to start operations in 2013 to 2014. To cope with expanding production by Japanese OEMs in Mexico, Koito aims to reduce transportation costs and increase competitiveness. Koito has a local plant in the US, although it has its only technical licensee in Mexico.
Tigers Polymer is planning to establish a subsidiary in Mexico
 According to the announcement in October 2011, Tigers Polymer is planning to establish an auto parts manufacturing and sales subsidiary in Guanajuato State. The supplier mainly produces air intake parts for Honda and Mitsubishi at its US subsidiary. The new subsidiary is intended to coincide with expanding demand in Mexico. Tigers Polymer will establish the subsidiary in spring 2012. It is reported that Tigers is discussing whether it will build a new plant or contract out the production.
Daido Metal builds a bearing plant
 Daido Metal announced in September 2011 to establish Daido Metal Mexico S.A.de C.V. in Jalisco State, Mexico, which will produce and sell bearings. It will capitalize the new company at 100 million MXN (about 560 million JPY), with plans to establish it in January 2012. Daido liquidated its US subsidiary in 2010, while it is considering the establishment of a subsidiary in the North American region to respond to expanding demand in the region.
Topre to build a pressed parts plant
 Topre announced in November 2011 to build a pressed parts plant in Mexico. It will capitalize the plant at about 2 billion JPY with plans to establish it in February 2012. The Japanese supplier is selecting a plant site around the central part of Mexico. It will invest about 4 billion JPY to start operations in January 2014. It sets a 2015 sales target at 4 billion JPY.
NGK starts operation of a particulate filter system plant two years behind schedule
 In July 2011, NGK started operations of a particulate filter system plant, NGK CERAMICS MEXICO, S. de R. L. de C. V. in Nuevo Leon State, Mexico. It produces diesel particulate filters (DPFs), a ceramic catalyst carrier. The plant has an annual production capacity of 900K units. It was supposed to start running in September 2009 in the initial schedule. Budgeting about 12.5 billion yen for investment, NGK started construction in May 2008. However, it suspended the construction in FY2008 due to the financial crunch. The construction was resumed in FY2010.
Yamashita Rubber starts operations at Mexican Plant in October 2011, while second phase of construction starts
 Yamashita Rubber started operations of the Mexican Plant, YUSA Autoparts Mexico in Zacatecas State in October 2011. It spent about two billion yen to build the plant. It aims to have sales of 34 million USD in 2012 and 44 million USD in 2013. The Mexican Plant produces mainly molded products of vibration dampening rubber. In addition, Yamashita Rubber spent two billion yen to begin the second phase construction. This will be complete in March 2013 as scheduled. At the new plant building, YUSA will masticate rubber and produce metal parts for hoses. In the future, YUSA has plans to add rubber tubes and hoses to production. The US plant of the Japanese supplier will mainly produce high value-added products to differentiate its position from the Mexican plant. Yamashita Rubber will respond to an increasing demand in Americas through the series of its activities. Its main customers are the Honda plants in the US, Mexico and Brazil. Yamashita Rubber plans to promote local purchase of raw materials at the Mexican Plant.
U-Shin to build keyset plant
 U-Shin plans to build a plant in Mexico to produce keysets and door latches, aiming to start operations in 2013. It had plans to supply products to VW's Mexico plant from Thailand to fulfill the orders received in 2010. Mazda and other OEMs are building new plants in Mexico one after another, which made U-Shin decide to build a local plant there in the prospect of increasing demand.
Yutaka Giken to build a plant for exhaust and driveline parts
 Yutaka Giken in December 2011 announced the production of exhaust and drive system parts in a Mexican subsidiary in Guanajuato State. The company will capitalize the subsidiary at 27 million USD, with plans to establish it in March 2012 and start operations in April 2014. It coincides with Honda which will build a new Mexican plant in 2014. The supplier intends to make the subsidiary a supply center to North and Central American markets.

Source: Press Releases of the above companies, and news reports

 



Mexico: Jatco and Unipres to increase production at local plants, while Alpha to transfer production from US

 Japanese suppliers, which already expanded production to Mexico, are in a rush of increasing production. Jatco will increase its annual production capacity from 700K to 810K CVTs. Unipres will establish annual production capabilities from the current 450K to more than 600K units.

 Besides, some of them are transferring the production to Mexico from the US. Alpha will transfer the keyset production and Nihon Plast part of the airbag module production to Mexico to reduce costs.

Mexico: Japanese suppliers to streamline business structures by consolidating and transferring production

(Activities for about one and nine months by December 2011)
Ahresty builds a new mold-building factory and adds a die-cast machine
 Ahresty built a new mold-building factory in the Mexican Plant of Ahresty Mexicana, S.A. de C.V. in Zacatecas State, which makes die-cast products to improve cost competitiveness. The new factory has been in operation since December 2010.
 In addition, Ahresty will install two more forging machines by the end of March 2012. Its Mexican business failed to catch up with an increase in orders in the first quarter of 2011. As a result, the accrued costs from backorders reached about 560 million JPY.
Alpine to double production capacity in 2015
 Alpine plans to double the annual production capacity of the Mexican Plant, ALCOM ELECTRONICOS DE MEXICO, S.A. DE C.V. in Tamaulipas State to 1.6 million units in 2015. The plant produces car audio equipment and navigation systems. Doubling production capacity will enable the Japanese supplier to meet increasing demand in both North and South American regions. Alpine is spending 291 million JPY for the production facilities during the period from April 2011 to March 2012.
Alpha to transfer production equipment from US to produce keysets in Mexico
 Alpha built a keyset factory in the Mexican Plant, ALPHA HI-LEX, S.A. DE C.V. in Queretaro State, and started production in March 2011. Alpha spent about three million USD to build the factory. The Japanese supplier built a new factory in the land next to the existing door handle factory. It is transferring production equipment from the US plant, ALPHA TECHNOLOGY CORPORATION in Michigan. The transfer will be completed in March 2012 as a schedule. The US plant will be used as a center of R&D, sales and logistics. In addition, Alpha plans to have another new door handle plant separately in a different state. It will invest about three billion yen for the plant. The new plant will have an annual production capacity of door handles for two million vehicles. Alpha positions Mexico as an export hub to Americas from the perspective of lower labor costs and cost reduction.
Kamiita Sosei to resume production of cold-forged parts at the beginning of 2012 at the earliest
 Kamiita Sosei resumes production of cold-forged parts at the Mexican Plant, KAMIMEX S.A. DE C.V. (Baja California State) at the beginning of 2012 at the earliest. Kamiita Sosei stopped the production of the plant in December 2008. The company has clear prospects to receive orders from Japanese OEMs that are promoting local buying. It expects to have annual production at the 27 million JPY-scale in the beginning of production and at the 40 million JPY-scale after 2014.
Kiriu to double the die-casting capacity for casted parts, and locally produce brake knuckles
 Kiriu will install the second line in the Mexican Plant, KIRIU MEXICANA S.A.DE C.V. in Lerma to double the die-casting capacity to 5K tons per month. It will add two electric furnaces, a molding line, core-making and finishing equipment to the existing factory, and start operations in April 2012. The plant has manufactured gray iron brake disk drums. In addition, it will start local production of ductile cast-iron parts (brake knuckles and calipers) characterized by a higher tensile strength. In expectation of increasing demand for the cast-iron parts, Kiriu aims to receive orders from various OEMs in addition to its main customer Nissan, and expand business including export to South America.
Jatco to increase annual production capacity to 810K CVTs
 Jatco plans to expand the annual production capacity of the Mexican Plant, JATCO Mexico, S.A. de C.V. in Aguascalientes State from 700K to 810K CVTs in March 2013. It will spend several billion JPY to add assembling equipment and casting facilities to the existing line. Jatco will cope with the increase of production by Nissan and other OEMs in North America.
PEC to increase production items of fuses
 PEC will increase the production capacity of the Mexican Plant of PEC de Mexico, S.A. de C.V. in Baja California by 20% by March 2012 compared to the capacity in 2011. The plant has produced one type of slow blow fuses. PEC will add production items.
Tachi-S to reinforce Mexican Plant and establish R&D center
 Tachi-S will increase its Mexican plant's (Industria de Asiento Superior, S.A. de C.V.) current annual production scale of seats for 600K vehicles for Nissan, while planning to increase the production for Honda, according to the news report in December 2011. Tachi-S will set up an R&D Center in the Aguascalientes Plant, where its Mexican headquarters resides.
Nishikawa Rubber to build second plant in Mexico
 In November 2011, Nishikawa Rubber built a second Mexican Plant in Guanajuato State, NISHIKAWA COOPER MEXICO S.A. de C.V., which produces and sells rubber parts. The new company is wholly owned by Nishikawa Rubber's US subsidiary at present. After the start of production in 2013, its partner Cooper Standard Automotive will have a 20% stake in the new Mexican company. Nishikawa Rubber's first plant, Cooper Standard Automotive Sealing de Mexico S.A. de C.V., stands in Aguascalientes State neighboring Guanajuato in central Mexico.
Nippon Sheet Glass to increase production capacity of windshield glass by 30%
 Nippon Sheet Glass in December 2010 announced the reinforcement of the auto glass plant in Mexico (L-N Safety Glass SA de CV in Mexicali City). A second factory is under construction in the premises next to the existing one, which will be complete at the beginning of 2012. Nippon sheet Glass will increase the windshield production capacity in Mexico by 30% to serve 2.5 million vehicles. At the Mexican Plant, the Japanese supplier will cope with increasing demand in the Americas for high value-added products such as heat absorbing type glass.
Nippon Kayaku to cope with localization of gunpowder production
 Nippon Kayaku will localize production of gunpowder for micro gas generators and inflators at its three overseas plants including the Mexican Plant of Kayaku Safety Systems de Mexico, S.A. DE C.V. in Nuevo Leon State according to the news report in February 2011. Since gunpowder production requires special skills, Nippon Kayaku is supplying it from Japan. The gunpowder supplier will train foreign employees in Japan, with plans to begin overseas production around 2014.
Nippon Seiki builds new instrument plant in Mexico
 Nippon Seiki's Mexican subsidiary Nippon Seiki De Mexico S.A. De C.V. (MSMX) in Nuevo Leon State, started construction of its factory in March 2010 to manufacture substrates for automotive instrument meters. It was completed in February 2011. (Construction would have been started in February 2009 in the initial plan.) Nippon Seiki spent about 1.3 billion JPY for the new factory. Since the factory started mass production in July 2011, MSMX has supplied the products to Nippon Seiki's US plant New Sabina Industries, Inc. in Ohio, which produces instrument meters. With a view to start-to-finish production in Mexico, Nippon Seiki set aside a space in MSMX to assemble instruments.
 Nippon Seiki has produced indicators and dials for instrument meters at its Mexican production subsidiary, Nissei Advantech Mexico S.A. De C.V. (MSVM) in Nuevo Leon State since August 2009. MSMX has produced substrates using part of the MSVM plant since March 2010. MSMX aims to improve its production capabilities and efficiency through mass production at its own plant. In addition, Nippon Seiki is planning to supply parts from Mexico to the Brazilian Plant, NS Sao Paulo Componentes Automotivos Ltda., to establish the production and supply structure for the Americas.
Nihon Plast builds airbag module plant
 Nihon Plast established a new plant NEATON AUTO MEXICANA, S.A DE C.V. in Queretaro State to produce air bag modules in November 2010. The plant started running in May 2011. Nihon Plast capitalized the plant at eight million USD. It sets the sales targets at 28 million USD in FY 2011 and 88 million USD in FY 2012. Nihon Plast aims to reduce costs and improve competitiveness by transferring part of the airbag module production to the new plant in Mexico from its US Plant Neaton Auto Products Manufacturing Inc. in Ohio. It is reported that Nihon Plast expects to increase orders by three to four times for the next five years in the North American region.
 Nihon Plast plans to transfer the airbag module production to the new plant from the Nihon Plast Mexicana S.A.de C.V., in the neighborhood of the new plant. Nihon Plast will switch the production of air conditioner outlets from contracting-out to self-manufacturing by utilizing the vacant space after the transfer. It is planning to self-manufacture other products of which production is now contracted out.
Piolax incorporates Mexican Plant
 In July 2010, Piolax incorporated its Mexican Plant in Nuevo Leon State, which produces auto plastic moldings and springs, as an independent local corporation PIOLAX MEXICANA S.A.de C.V. in Mexico. It was operated as a factory of its US corporation Piolax Corporation in Georgia. This is intended to strengthen the business structure in Mexico. PIOLAX MEXICANA was capitalized at 495.32 million MXN. Piolax itself takes a 60.2% stake, and Piolax Corporation a 39.8% stake.
Unipres to build new 2,500-ton press facilities
 Unipres will invest 900 million JPY to set up a 2,500-ton press machine in January 2013 in the Mexican Plant of Unipres Mexicana, S.A. de C.V. in Aguascalientes State, which produces framework parts. It attempts to increase the production capacity from around 450K units in FY2010 to over the 600K-unit level in FY2013. Unipres increases investment around the world to cope with the business expansion by Nissan. The investment in Mexico is part of it. In Mexico, Unipres received orders for the parts for the V platform sedan locally produced by Nissan. It aims to receive orders from the local plants of Honda and Mazda.

Source: Press Releases of the above companies, and news reports

 



Brazil: Aisin Seiki, Kanto Auto and Toyota Boshoku to build new plants, while Denso to set up a technical center

 In Brazil, mainly Toyota affiliated suppliers are building new plants one after another. Aisin Seiki established a new company to produce seat parts; and Kanto Auto is building a new plant to produce welded parts. Toyota Boshoku will build an interior parts plant with Aisin Seiki. Denso will start operations of its new plant to produce air conditioners, and set up a technical center in the new plant to localize product development.

Brazil: Construction of new plants by Japanese suppliers

(Activities for about one and nine months by December 2011)
Aisin Seiki to establish a new company to produce seat parts and door frames
 Aisin Seiki established AISIN AUTOMOTIVE LTDA. in Sao Paulo State in July 2011, which produces seat parts and door frames. Aisin Seiki will spend about 65 million Real (about 3.3 billion yen) to build its plant, which will start production in the latter half of 2012. The new manufacturing company started with about 30 employees. The number will be increased to about 200 employees in FY 2015. Aisin Seiki plans to have sales of five billion JPY in FY2015. In the initial plan as of August 2010, it plans to build a new plant as the second factory of its local subsidiary AISIN DO BRASIL COM. E IND. LTDA. in the same state. However, to strengthen sales and designing functions, Aisin Seiki decided to make it as an independent corporation. It also intends to locally produce unit products.
Asahi Glass to build glass plant and start operation in 2013
 Asahi Glass in April 2011 announced to set up AGC Vidros do Brasil Ltda. in Sao Paulo State, which will produce glass for construction and automobiles. Spending about 40 billion JPY, Asahi Glass will build production facilities for laminated safety glass and hardened glass for automobiles. The plant will start production one by one from 2013, under the plan to establish a glass production capacity to glaze 500K vehicles as of 2016.
NTN to increase production of hub bearings and start production of constant-velocity joints
 NTN will spend one billion yen to increase the production capacity of the Brazilian hub bearing plant, NTN-SNR Brazil. It will double the production capacity from the 2010 level by 2015. The plant has supplied products to European OEMs. It will begin production of new products for Japanese and US OEMs.
 NTN has produced constant-velocity joints at NTN do Brasil Producao de Semi-Eixos Ltda. in Sao Paulo, Brazil, since September 2011. This Brazilian Plant was established in June 2010 by buying out the constant-velocity joint division of tedrive Sistemas de Chassis do Brasil Ltda., a Brazilian subsidiary of German tedrive. NTN aims for FY2015 sales of about seven billion yen. In addition, NTN plans to strengthen the R&D structure in Brazil.
Kanto Auto to build a new plant for welded and plastic parts
 Kanto Auto in July 2010 announced to invest about 100 million USD in its Brazilian subsidiary KANJIKO DO BRASIL INDUSTRIA AUTOMOTIVA LTDA. (Sao Paulo State) to strengthen its production capacity. The supplier is going to set up a new factory in the premises of Toyota's new plant to be built in Sorocaba City of the same state in 2012. Kanto Auto's Brazilian subsidiary will produce welded parts such as underbody parts and plastic parts such as instrument panels for new compact cars to be produced at Toyota's new plant. It plans to start operation of the plant in the latter half of 2012. Kanto Auto will also increase the production capacity of the existing Salto Plant, which produces pressed and welded parts. It will also increase the number of employees from 220 to about 270.
KYB to make its Brazilian subsidiary to a joint venture with Korean Mando
 KYB and Korean Mando established a Brazilian joint venture, KYB-Mando do Brasil Fabricante de Autopecas S.A., and started operations in June 2011. KYB transferred a stake of 50% in its wholly-owned local subsidiary KYB do Brasil Fabricante de Autopecas Ltda., which produces shock absorbers, to Mando, and then changed the name. By maximizing the joint business with Mando, KYB aims to expand sales to Hyundai in Brazil.
Kurabo builds a seat cushion plant
 In June 2010, Kurabo established Kurashiki Chemical Products do Brasil Ltda at a capital of 17,765 K Real in Sao Paulo State, Brazil. The Brazilian plant started production in September 2011. Kurabo set up the molding equipment for seats, and that for small articles including armrests and head rests. Kurabo aims to post sales of two billion JPY in FY 2014.
CCI to build coolant and brake fluid plant
 CCI will build a plant to produce coolant and brake fluid in Brazil by 2013 according to the news report in August 2011. CCI has already established the local corporation Brazil/CCI Brasil Comercio De Produtos Automotivos Ltda. in Sao Paulo State in September 2010. It supplies products to Brazil from its US subsidiary U.S.A./CCI Manufacturing IL Corporation in Illinois State. CCI intends to improve its price competitiveness through local production.
Sumitomo Rubber builds a Brazilian Plant
 In July 2011, Sumitomo Rubber established Sumitomo Rubber do Brasil Ltda. in Parana State to produce and sell radial tires for passenger cars in Brazil. Sumitomo Rubber will invest about 28 billion JPY in the Brazilian company to build a plant, aiming to start operations in October 2013. The daily production capacity is planned at 15K tires per day at the end of 2016.
Tachi-S to build two seat plants in Brazil
 According to the news report in December 2011, Tachi-S plans to have production in Brazil. For this purpose, it will build two seat plants, planning to start operations in 2013. One will be built in Rio de Janeiro where Nissan will build a new plant, and the other as a joint venture with US Johnson Controls in Sao Paulo State, where a Honda plant stands. It will invest a total of around 2.0 billion JPY. The annual production capacity will be at the 200K-unit scale per each plant. In the beginning, Tachi-S will assemble the seats at Brazilian plants with the main parts exported from its Mexican plant.
THK plans to build an auto parts plant
 THK plans to build an auto parts plant near Sao Paulo, Brazil, according to the news report in January 2011. THK has said that it has already bought the site for the plant. It is producing linkballs for suspensions for automobiles.
Denso starts operations of new plant, while planning to build technical center in new plant
 Denso started operations of its new plant in Sao Paulo State January 2011, which was built by DENSO DO BRASIL LTDA (DNBR) in Parana State. The new plant has built air conditioners, starter motors, and wipers. Denso invested 65 million Real in the plant, where about 300 employees were hired in FY 2011. DNBR has a main plant at the premises of its headquarters and a branch plant in Sao Paulo. The production of the branch plant will be transferred to the new plant in succession.
 In addition, Denso will set up a technical center in this new plant in the beginning of 2012. It aims to localize development of products related to air conditioners, starters, alternators and powertrains. Denso will make an investment of about 4.0 billion JPY by 2015. It plans to have about one hundred employees in FY 2015. Denso has five plants in Brazil and one in Argentina. Sales, technology, business planning and purchase functions in each plant are centralized in DNBR.
Tokai Rika relocates Brazilian Plant and builds new plant
 Tokai Rika relocated its Brazilian subsidiary plant, TRBR INDUSTRIA E COMERCIO LTDA.(TRBR), and built a new plant in Santa Barbara D'Oeste city of the same state Sao Paulo, in which Tokai Rika invested about 1.8 billion JPY. The new plant shipped products for the first time in June 2011. It will produce various switches including lever combination switches, shift levers and wheel caps. TRBR plans to increase 80 employees as of November 2011 to around 100 in 2013.
Toyota Boshoku to jointly produce interior parts and engine intake parts with Aisin Seiki
 Toyota Boshoku and Aisin Seiki in August 2010 announced jointly produce seats, door trims and air cleaners. Toyota Boshoku will increase its stake in the Brazilian subsidiary TOYOTA BOSHOKU DO BRASIL LTDA. in Sao Paulo State to 51.70 million Real to switch it to a production subsidiary in which Toyota Boshoku will have an 80% stake and Aisin Seiki a 20% stake. The Brazilian subsidiary will produce parts for new compact cars to be produced at Toyota's new Brazilian plant in the latter half of 2012. It plans to produce parts for 70K cars per year. Toyota Boshoku invested about 3.1 billion JPY in the subsidiary in the period of January to December 2011.
Nittan Valve to set up a valve production line at Eaton's local plant
 Nittan Valve will set up an engine valve production line in the Brazilian Plant of the US Eaton, its largest shareholder, in 2012. Nittan Valve will invest about 100 million JPY to set up the line with a monthly production capacity of 200K valves. Nittan Valve already received orders from Japanese OEMs, but the volume of orders was not enough. Nittan Valve will maximize the Eaton's plant to suppress the investment amount. If the volume of receiving orders goes up, it will plan to build its own plant.
Nippon Sheet Glass expands its automotive glass production capacity
 Nippon Sheet Glass set up a new laminated safety glass production line in the Casapava Plant in Sao Paulo State in February 2011. The line boosted the windshield production capacity by 50% from the initial level to that for 3.7 million vehicles in Brazil. In addition, the plant is increasing the production capacity by adding the hardened glass production line, aiming to start operations at the beginning of 2012. To expand these production capacities, Nippon Sheet Glass invested about 140 million Real.
NSK to build up its hub bearing production capacity in Brazil
 NSK will increase the hub bearing production capacity by the end of 2012, aiming to expand small and severe environment products, according to the news report in May 2011. The company's local plant is the Suzano Plant of NSK BRAZIL LTDA in Sao Paulo State.
Pioneer to establish joint venture to produce navigation system parts
 Pioneer in August 2011 announced to establish Pioneer Yorkey do Brasil Ltda with Asia Optical Co., Inc., a Taiwanese company. The joint venture will be capitalized at 50 million Real, in which Pioneer will take a 51% stake and Asia Optical a 49% stake. The joint venture company will be built in the premises of Pioneer do Brasil Ltda. in Amazonas State, where Pioneer locally produces car navigation systems. The joint company will locally produce car navigation system parts and digital cameras by commissioning.
Fujikura starts producing wire harnesses in Paraguay, while planning the production in Brazil
 Fujikura started producing wire harnesses at its first South American plant in Paraguay in November 2011. It supplies the products to European OEMs in the neighboring country Brazil. It is reported that Fujikura is building a plant in Brazil, aiming to start operations at the end of 2012. Since wire harnesses are manufactured mostly by hand work, Fujikura chose Paraguay for the lower labor costs.
U-Shin has plans for plant in Brazil
 U-Shin is planning to expand its production to Brazil by buying out a local company or building a plant according to its media release in December 2011. In the case of buy-out, U-Shin expects to start local production within 2012. In the case of building a plant, it expects to start plant operations after 2013. U-Shin produces electric components such as key sets for its main customer Mazda.
Unipres starts feasibility study to expand its production to Brazil
 Unipres unveiled in November 2011 that it was studying the feasibility of having production in Brazil. It will cope with its main customer Nissan which is building a local plant with a 200 K-unit scale of annual production.

Source: Press Releases of the above companies, and news reports

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