Japanese suppliers in China (1): Northern and Northeastern China

Denso, Toyota Boshoku, Aisin AW, Takata, and Shiroki Corporation

2012/07/02

Summary

 This Report will feature the recent trends of Japanese suppliers in China by region (for the past one year and nine months till April 2012).

 The first report summarizes the trends of parts suppliers in Northeast and North China, and across China. In North China, an air conditioner plant is built by Denso and an interior parts plant by Toyota Boshoku in Changchun City to keep up with the scheduled 2012 start of operations in Toyota's new Changchun Plant. Japanese suppliers are also active in Tianjin in North China, where Aisin AW, Takata, Tsuda Industries and Nifco are building their new plants.

Related Reports: Japanese suppliers

India (Mar. 2012), Mexico/Brazil (Feb. 2012), Europe (Dec. 2011)

US (Aug. 2012), Thailand (Jul. 2011), Indonesia, Vietnam, Malaysia and others (Jul. 2011)



Northeast China: Denso and Toyota Boshoku build new plants, while joint ventures with FAW are increasing

 Northeast China consisting of Liaoning, Jinlin and Heilongjian Provinces enjoys the boom from an inflow of Japanese suppliers along the schedule of Toyota's new Changchun Plant which started operations in May 2012. Joint ventures between Japanese suppliers and FAW are increasing there.

 In Changchun, Jilin Province, Denso has built a car air conditioner plant, and Toyota Boshoku has built a new interior parts plant. IHI will increase production of turbo chargers.

 In Dalian, Liaoning Province, Nidec began operations in the third plant to produce onboard motors, while Mitsuba plans to increase production of EPS motors.

 Toyota Boshoku, Mitsubishi Electric and TBK launched the new joint ventures with FAW, respectively

Northeast of China: Activities by Japanese Parts Suppliers

(for the past one year and nine months till April 2012)
IHI to increase its annual production capacity to 1.2 million turbochargers in China by expanding two Wuxi Plants in Changchun
 IHI announced its medium term plan in May 2011 to increase production of turbochargers in China. IHI will increase the current total annual production capacities of its two plants in Wuxi and Changchun Plant from 450 thousand to 1.2 million units in FY2013. IHI made a total investment of several hundreds of millions of yen in the three plants in FY2011. Changchun FAWER-IHI Turbo Co., Ltd., a joint venture with FAW, produces the turbocharger for VW and Audi. IHI will increase the annual production capabilities of the joint venture from the current 350 thousand to 1.0 million units in FY2012.
Advanex to increase production of insert collars at the Dalian Plant
 Advanex added one unit of equipment to produce automotive insert collars at the Dalian precision spring plant, Advanex (Dalian) Inc. An insert collar is a metal reinforcement part to bolt castings. Advanex has been producing the insert collars as of the end of March 2012, although the details are unknown. To produce the insert collars, Advanex does not use the cutting work method but its proprietary production method using the specialized machine for denting and rounding metal sheets, which ensures low-cost production.
Kitanihon Seiki's new automobile bearing assembling plant starts production in Harbin
 Kitanihon Seiki established Harbin Kitanihon Precision Bearing Co., Ltd. in Harbin City of Heilongjang Province in February 2011. It began operations in August 2011. Since then, it has produced bearings used for automobiles. It invested a total of one million US dollars (about 80 million yen) to build the plant. The new company has 50 employees who are all Chinese. It sets the monthly production target at one million units. The new plant is run by its Shanghai subsidiary, Shanghai Precision Bearing Co. Ltd.
JTEKT is in negotiation to establish a new automotive bearing joint venture plant in Liaoning Province
 JTEKT and Wafandian Bearing Group Corporation (ZWZ) drew up an agreement of intention in September 2010 to cooperate and establish Wafangdian JTEKT Bearing Co., Ltd. (temporary name), a fifty-fifty joint venture to produce automotive bearings for engines, transmissions and wheels. The negotiation have gone poorly; however, as of April 2012, they are continuing to negotiate the new joint venture. The total investment in the new company will reach about one billion Yuan. Lianing Province is nominated as a possible location to establish the joint venture.
Sumitomo Chemical begins production of PP compound at the Changchun Joint Plant PP, while the Dalian Plant to start running in the middle of 2012
 Sumitomo Chemical and Jilin Xindongtai Engineering Plastics, a plastic compound supplier, established a joint venture Jilin Dongcheng Sumika Polymer Compounds Co., Ltd. on a fifty-fifty basis in the Gongzhuling Economic development zone in August 2011. The plant began running in January 2012. Since then, it has produced polypropylene (PP) for bumper and interior materials. The plant started with an initial annual production capacity of 20,000 tons.
 Sumitomo Chemical also established a new plant in Dalian, Liaoning Province to produce PP compound in August 2011. The new Dalian plant will operate at full capacity in the middle of 2012, and supply products mostly to Japanese OEMs in North China. It invested a total of 1.2 billion yen to build the new plant with an annual production capacity of 10,000 tons. After the new Dalian Plant starts production at full capacity, the supplier plans to increase the production volume of PP compound for automotive bumpers and interior materials to total 52,000 tons with those of its existing plants in Gongzhiling, Changchun Province and Guangdong, Zhuhai Province.
TBK establishes a new joint venture to produce commercial vehicle brakes in Changchun
 In October 2011, TBK established and began operations of the joint venture Changchun FAW Sichuan TBK Co., Ltd. with the FAW-owned Changchun Sichuan Brake. The joint venture takes over the business from Changchun Sichuan Brake to produce brakes and related parts for commercial vehicles. TBK forecasts that the joint venture will produce sales of 961 million Yuan (about 12.5 billion yen) in 2012. TBK made a 40% cash investment of 64 million Yuan (about JPY 840 million), and Changchun Sichuan Brake in Changchun invested 60% in kind.
Denso builds an air conditioner plant in Changchun
 Denso began operation of the car air conditioner plant (Changchun Branch of TIANJIN FAWER DENSO AIR-CONDITIONER CO., LTD.) in December 2011. It aims to set up the annual production capacity of 560 thousand units and have sales of 1.2 billion Yuan by 2015. The Changchun Plant enables Denso to supply parts more effectively to Toyota, VW and FAW Car.
Toyota Boshoku built a new interior parts plant in Changchun, Jilin Province
 Toyota Boshoku established a production subsidiary, Changchun Faway Toyota Boshoku Auto Parts Co., Ltd., in Changchun, Jilin Province in August 2010. The plant has produced interior parts such as seats, door trims, carpet, luggage trims for the Corolla at the new Changchun Plant of Sichuan FAW Toyota since April 2012. It has an annual production capacity of parts for 100 thousand vehicles.
 Changchun Faway Toyota Boshoku Auto Parts was capitalized at 18 million US dollars, in which Toyota Boshoku (China) takes a 60% and Changchun Faway Automobile Components takes a 40% stake. The former is Toyota Boshoku's Chinese regional headquarters and the latter is FAW's investment subsidiary. The new subsidiary has a site area of 53 thousand square meters and a building area of 22 thousand square meters. The total investment was 183 million Yuan.
 Toyota Boshoku has produced seats for the Land Cruisers at the Changchun Branch Plant of its indirectly-owned subsidiary, Tianjin Intex Auto Parts Co., Ltd. Toyota Boshoku has supplied them to Toyota Changchun (existing) Plant.
Nidec begins operation of the R&D center attached to the third Dalian plant
 In May 2011, Nidec completed construction on the third plant of NIDEC (Dalian) Limited in Dalian, Liaoning Province, and started production of onboard motors with specialized brushes for seat adjustment and cooling engines. The plant started with an initial production capacity scale of several hundred thousand units, while Nidec plans to increase its capacity to three million units by 2015. In time with the start of the production, the R&D center attached to the third plant also started development of products mainly for local suppliers.
Mitsuba to increase production of sun roofs and EPS motors at the Dalian Plant
 Mitsuba plans to increase capital in the Dalian Plant of Mitsuba Electric (Dalian) Co., Ltd. (as of November 2011). Mitsuba intends to address the increasing production of sun roofs and EPS motors. Mitsuba will invest about 1.3 billion yen to increase the gross floor area of the building by 10% to about 11 thousand square meters according to the source. In the Dalian Plant, Mitsuba also produces power window motors and door lock actuators. It is said that Mitsuba will transfer part of the production to its Wuhan Plant (Mitsuba Shihlin Electric (Wuhan) Co., Ltd.).
Mitsubishi Electric to jointly produce car navigation systems in Changchun
 Mitsubishi Electric and Qiming Information Technology, an IT subsidiary of FAW in August 2011 jointly established Changchun Qiming Lingdian Automotive Electronics Co., Ltd. It will be engaged in the development, designing, manufacturing and sales of automotive multimedia including car navigation systems. The new joint venture is capitalized at about 2.24 billion yen (175 million Yuan). Qiming Information Technology takes a 51% stake, Mitsubishi Electric a 33% stake, Mitsubishi Electric (China) a 10% stake, and a technology trading company Koshida a 6% stake. The joint company will have 400 employees by 2015, aiming for sales of 25 billion yen in FY2015. The two companies have tied up for the development of software for automotive multimedia products in China since 2004.
NSK to acquire capital in a Chinese major bearing supplier
 In April 2012, NSK announced the acquisition of 10% capital in a Chinese major bearing supplier Gongzhiling Bearing Co., Ltd. in Gongzhuling of Jilin Province (pre-emptive right for the third party allocation of new shares). After the completion of the procedures in June 2012, the ownership of Gongzhiling Bearing held by other shareholders will be changed to 63% by Lianyungang Banyi Timber and 27% by the government of Jilin Province.
Ryobi begins operation of the second plant of its existing subsidiary in Dalian
 Ryobi built a second plant in its wholly owned subsidiary Ryobi Die Casting (Dalian) Co., Ltd. It already started production at its full capacity as of March 2012. The new plant produces automotive castings mainly for the Dalian Transmission Plant of Shanghai GM and VW as well as Donfeng Nissan Passenger Vehicle like the existing first plant in Dalian. The Dalian subsidiary's building areas are ten thousand square meters for the first plant and 16 thousand square meters for the second plant.

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

 



North China: Aisin AW, Takata, Tsuda Industries and Nifco to build new plants in Tianjin City

 In North China, parts suppliers are building their new plants and increasing their production one after another around Tianjin City. Aisin AW will build a plant to produce ATs, planning to begin operations from the end of 2014. Takata, Tsuda Industries and Nifco also began operations of their new plants in Tianjin, while Tokai Carbon, Bando Chemical and Bridgestone will increase local production there.

 Aisinseiki and Pacific Industrial built their regional headquarters in Tianjin.

North China: Activities by Japanese suppliers

(for the past one year and nine months till April 2012)
Aisin AW builds a new Tianjin Plant to produce six-speed ATs for FF vehicles
 Aisin AW established the new company Aida (Tianjin) Auto Parts Co., Ltd. to produce automatic transmission systems in Tianjin City (West Ward of Tianjin Economic-Technological Development Area) in April 2012. The new company will start running at the end of 2014, and produce six-speed ATs for front-wheel drive (FF) vehicles. It will have an annual production capacity of about 400 thousand units. Aisin AW spent about 16 billion yen on the new company, which is capitalized at 100 million US dollars. It plans to have 750 employees. The site area is 46 thousand square meters, and the building area is about 24 thousand square meters. Aisin AW produces six-speed ATs for rear-wheel drive (FR) vehicles at the existing Tenjian Plant with an annual production capacity of 120 thousand units, which are supplied to Toyota's Chinese Plants.
Aisin Chemical starts production of disc brake friction materials in Tangshan, Hebei Province
 Aisin Chemical established Tangshan Aisin Chemical Co., Ltd. in Tangshan, Hebei Province to produce disc brake friction materials in July 2010. The new subsidiary has produced them at full capacity since 2011. This is the first plant for Aisin Chemical in China. It will set up the production line in the local plant of Aisinseiki, Tangshan Aisin Automotive Parts Co., Ltd., planning to have a total of three lines by 2013. It invested about 1.5 billion yen. Aisin Chemical plans to post sales of 1.6 billion yen in China by 2015. Its subsidiary is capitalized at 600 million yen, in which Aisin Chemical takes a 60% stake, Aisinseiki 20%, and Advics 20%.
AISINSEIKI establishes regional headquarters in Tianjin
 Aisinseiki established Aisin Seiki (China) Investment Co., Ltd. as its Chinese regional headquarters in Tianjin in June 2011. It increased its stake by 65.53 million dollars in Aisin Seiki (Tianjin) Sales & Trading Co., Ltd., which used to import and sell auto parts, and changed its business line and renamed it. It increased employees from 31 as of December 2010 to 51 in FY 2011 according to the plan. Aisinseiki aims to quicken strategy development and decision-making for the Chinese market expected to expand further.
Kyowa Leather Cloth to double the annual production capacity of synthetic leather plant in Hebei Province
 Kyowa Leather Cloth increased its stake in the joint venture Kyowa-GSK Plastics (Langfang) Co., Ltd. in Langfang, Hebei Province by five million US dollars (about 400 million yen) (This was announced in September 2011; and its stake has already increased as of May 2012). The joint venture is producing automotive interior materials such as synthetic leather. Its partner Youlide Holdings assigned shares (10%) to Kyowa Leather Cloth, and as a result, its ownership was up to 60%. With the capital increase in Kyowa-GSK Plastics (Langfang), Kyowa Leather Cloth will add one synthetic leather production line, and double the current total production capacity of the plant to 15.6 million meters. The new production line is planned to start running in February 2012, although the progress is unknown. As of November 2011, the plant had 232 employees, and posted sales of 246,389 thousand Yuan in 2010.
Koito to study the feasibility of business in North and Northeast China
 Koito began to study the business feasibility to build a new lamp plant in North and Northeast China according to a news report in January 2012. It supplies the products to the Tianjin Plant of Toyota from the Shanghai and Guangzhou plants, while it faces the issue of cost reduction including transportation fee. It is considering Tianjin or Changchun for the location.
Pacific Industrial to establish regional headquarters for China business in Tianjin
 Pacific Industrial announced in March 2012 to establish its regional headquarters for China business in Tianjin City (Tianjin Airport Industrial Park) in May 2012. Following the movement, the new company will acquire shareholdings in two Chinese subsidiary of Pacific Industrial (Tianjin Pacific Auto Parts Co., Ltd. and Changsha Pacific Hanya Auto Parts Co., Ltd.) to own them as its subsidiaries.
 The new company is capitalized at 30 million US dollars (about 2.49 billion yen) and wholly owned by Pacific Industrial. The regional headquarters will commit to streamlining operations in China including preparation for production and development of products, and will strengthen management capabilities. The Tianjin Plant will produce parts for Toyota and Great Wall Motor and the new Changsha Plant planned to start operations in July 2012 will produce parts for Mitsubishi.
Takata started operations of Tianjin Branch Plant
 In April 2011, Takata started operation of the Tianjin Factory of Takata (Shanghai) Automotive Component Co., Ltd., a branch plant of its Shanghai subsidiary. The branch plant has produced seatbelts, airbags, and steering wheels. Takata made an initial investment of about 65 million Yuan (about 900 million yen) in the new plant. As of September 2011, the new plant has about 800 employees. Takata aims to strengthen the supply chain to OEMs near Tianjin and in North China.
Tsuda Industries runs the new Tianjin Plant
 Tusda Industries built the new cold forging plant, Tsuda (Tianjin) Automotive Precision Co., Ltd. On the other hand, it closed the old plant in Tianjin, and transferred and centralized the production to the new plant (the transfer was completed as of May 2012). It spent about one billion yen for the new plant. Tsuda transferred the production facilities from the old plant, and relocated one 600-ton capacity class cold forging press from Japan. As a result, the new Tianjin Plant is fully equipped with the start-to-finish production systems for cold-forging parts. Tsuda will increase the number of employees from the current 74 to 130 in 2013. It will expand the business of driving parts in China, aiming for sales of cold-forged parts in 940 million yen in China in 2013.
TPR to establish regional headquarters in Tianjin
 In April 2012, TPR established a wholly-owned subsidiary TPR (Tianjin) Co., Ltd. in Tianjin City, which will be engaged in controlling group companies in China and selling parts to Japanese OEMs. It plans to start operations in July 2012. The new subsidiary is capitalized at 12.8 million Yuan. TPR invested a total of 18.28 million Yuan. TPR has production at a total of eight plants around Anhui Province of China. It produces piston rings in Hebei Province of North China.
Tokai Carbon to increase annual production capacity of Tianjin Carbon Black Plant to 110 thousand tons
 Tokai Carbon will expand the annual production capacity of "carbon black", a reinforcing filler in tires, at the joint venture plant in Tianjin, Tokai Carbon (Tianjin) Co., Ltd., from 50 thousand tons as of March 2012 to 110 thousand tons at the end of September 2012. Tokai Carbon has just spent 700 million to 800 million yen in January 2011 to increase the annual production capacity by 25% to 50 thousand tons through renovating two existing lines.
 As of March 2012, Tokai Carbon spent 6.2 billion to 6.3 billion yen to build a new plant within the premises of its existing plant. It will add two new production lines in the new plant. Aiming to start production in September 2012, Tokai Carbon will set up an annual production capacity of 60 thousand tons. The new line will additionally produce special carbon products for low noise and low fuel consumption tires, with plans to increase production of the entire plants by 20 to 30%. Tokai Carbon has supplied the products to Japanese and other foreign OEMs. It will ship them to local OEMs from now on.
Tokai Rubber establishes a joint venture to produce automotive anti-vibration rubber in Tianjin City, while starting operations of the die plant
 In January 2011, Tokai Rubber and Tianjin Huanyu Rubber & Plastic Products Mfg. Corp. jointly established Huanyu Tokai Rubber (Tianjin) Co., Ltd. (HTR in Tianjin City) to produce and sell automotive anti-vibration rubber. HTR started production for Chinese local suppliers in June 2011. It is capitalized at 100 million Yuan. Tokai Rubber takes a 60% stake, and Huanyu takes the rest of the stake. It plans to have sales of 370 million Yuan in FY2015.
 In December 2011, Tokai Rubber started production of automotive anti-vibration rubber-related dies for press machines at the joint venture Tokai Jinrong Die (Tianjin) Co., Ltd. Tokai Rubber holds a 50% stake. In addition to the supplier, Metex holds a 25% stake and TianJin JinRong TianYu Precision Machinery Co., Ltd. a 25% stake. The new company is located in Tianjin New Technology Industrial Zone (with a plant site area of 3,300 square meters and a building of 2,340 square meters). It is capitalized at 20 million Yuan. Its total investment was 35 million Yuan.
Toyota Boshoku strengthens Chinese business control structure
 In December 2011, Toyota Boshoku assigned its entire holding (75%) in the subsidiary Tianjin Intex Auto Parts Co., Ltd. to its wholly-owned subsidiary Toyota Boshoku (China), which controls the Chinese business. This is intended to establish a Chinese business control structure centering on the subsidiary to realize efficient management setup. FAW-owned parts supplier Changhun Faway Automobile Components also takes a 25% stake in Tianjin Intex Auto Parts Co., Ltd. which produces automotive seats and interior parts. It had sales of 60,462 million yen in 2010.
Nisshinbo Brake to increase production of friction materials in Beijin
 Nissinbo Brake spent about 500 million yen in Saeron Automotive Beijing Corporation wholly owned by its Korean subsidiary Saeron Automotive by the end of 2011 to increase the monthly production of friction materials from the current 80 to 100 tons. Nisshinbo Brake will increase the production of friction materials for automotive brakes to achieve more than a 20% share in the passenger car friction material market of China.
Nifco starts to produce fasteners at the Tianjin Plant, while making a further capital investment
 In July 2011, Nifco started production of plastic molding including plastic fasteners for Toyota's local plant at its subsidiary Nifco Tianjin Co., Ltd. in Tianjin City. In addition, Nifco will make an additional investment of 5.2 million US dollars in the subsidiary to increase the capital to 18.5 million US dollars to allocate it to capital investment for additional equipment.
 Nifco also plans to increase the capital in Beijing Nifco Co., Ltd. owned by its Korean subsidiary from 11.8 million to 22.7 million US dollars for additional capital investment by July 2012 according to the announcement in January 2012.
Japan Vilene builds a new floor mat plant in Tianjin
 Japan Vilene built a new plant adjacent to the existing floor mat plant (Tianjin VIAM Automotive Products Co., Ltd.) in Tianjin City. Japan Vilene doubled the annual production capacity to 1.2 million units, and began operations at the beginning of 2012. Japan Vilene transferred all production to the new plant as it was expected that demand would expand, and the existing plant became crowded.
Bando Chemical strengthens production capacity of drive belts in Tianjin
 Bando Chemical strengthened the production capacity of the Tianjin Plant (Bando Belt (Tianjin) Co., Ltd.) which produces drive belts for engines and transmissions by 30% to about 3.5 million belts according to the news report in March 2011. Bando Belt supplies the products to the joint venture plants of Toyota, Mitsubishi, Hyundai and VW in the Chinese market.
Bridgestone to strengthen production capacity of the passenger car radial tire at the Tianjin Plant
 Bridgestone made a capital investment of about 8.3 billion yen (563 million Yuan) in the Tianjin Plant, Bridgestone (Tianjin) Tire Co., Ltd. to strengthen the production capacity of radial tires for passenger cars according to the announcement in August 2011). In May 2012, Bridgestone will increase the daily production capacity by 8,800 tires to a total of 25.3 thousand tires. While increasing the production capacity, Bridgestone will localize the production of the ECOPIA brand "green" tires as well as winter tires.
Pegasus Sewing Machine to strengthen the die-casting parts production capacity of Tianjin Plant
 Pegasus Sewing Machine doubled the production capacity of automotive aluminum die-casting parts at its Chinese subsidiary (Tianjin Pegasus-Shimamoto Auto Parts Co., Ltd. in Tianjin City) automotive aluminum die-casting parts by March 2012. The subsidiary produces seatbelt retractors, headlight circuit protector parts, shafts and covers. It will set up a monthly production capacity of four million units. Pegasus Sewing Machine invested a total of around 280 million yen for adding the plant building and production equipment in 2011.

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

 



China in general: Advics, Shiroki Corporation and Tokai Rubber consider building plants

 A number of the parts suppliers regard China as an important market, and plan to increase sales and production. Advics is considering the construction of a fourth brake parts plant, Shiroki Corporation will build a new window regulator plant, and Tokai Rubber will build an automotive hose plant there. In addition, GS Yuasa plans to strengthen the production capacity of lead batteries, and NSK will strengthen the production capacity of piston rings.

(The following section outlines the activities throughout China or those in unidentified areas of China)

China in general: Japanese parts suppliers build plants

(for the past one year and nine months till April 2012)
Advics to increase sales to 100 billion yen in China by FY2017
 Advics plans to increase the Chinese business of brake parts to 100 billion yen (greater than FY2011 by 2.5 times) through exploring new customers of local OEMs by 2017. Advics will reinforce the existing plants in Guangzhou and Tianjin in addition to the new plant in Fuzhou which is scheduled to start running in 2013. In addition, it is planning to build a fourth plant.
Alpine to expand sales of parts to Chinese OEMs to have annual sales of 50 billion yen in FY2013
 Alpine set the sales target at 50 billion yen in FY2013 for onboard audio/information equipment in China according to the announcement in May 2011. To achieve the target, Alpine will expand sales to current customers of GAC, BAW and Geely Automobiles as well as major OEMs such as SAIC, FAW, DFM and Changan Automobiles, plus Chery Automobile, China National Heavy Duty Truck Group Corporation, Brilliance Auto and BYD.
H-One promotes automation of production at the Chinese Plant, while strengthening R&D structure
 H-One is automating some production lines by proactively introducing robots in the local production subsidiaries. As of March 2011, H-One introduced a total of 138 robots including 53 in GH Auto Parts Industries Inc. (22 as of September 2010), 35 in QH Auto Parts Industries Inc.(Guangdong)(18 as of the same time), and 50 (10 as of the same time) in WH Auto Parts Industries Inc. (Hubei). The supplier is also reinforcing its R&D structure in China. It will organize the parts development function in its Chinese plants to build up the ability to produce dies in-house, and establish cost competitiveness over local suppliers.
Kinugawa Rubber aims for FY2015 sales of 30 billion yen in China
 Kinugawa Rubber will double the current annual production capacities of door and auto body parts, and anti-vibration parts in China to the volume for 1.6 million vehicles by FY 2015. It will also increase sales to 30 billion yen which is 3.7 times the current level. To realize the targets, Kinugawa Rubber will expand five plants in Guangzhou, Tianjin and Wuhu, and build a new plant in Henan Province. In addition to supplying Nissan Plants in China, Kinugawa Rubber will aim to win more orders from local plants of US and European OEMs such as Ford and VW, and Chinese local OEMs such as Chery and BYD (Kinugawa Rubber will start supplying parts to Chery Automobile (May) and BYD in 2012).
Shiroki Corporation is planning to build a new plant in Sichuan Province or Shanghai
 Shiroki Corporation is planning to build a new window regulator plant in Sichuan Province and Shanghai City as a candidate location to respond to the expanding production by Toyota and Nissan, and to establish efficient transportation to Toyota's Tianjin and Chengdu Plants. Schedules to launch building and operation of the plant are yet to be decided. Shiroki Corporation eyes the possibility to transfer the production facilities from Japan or Guangzhou Shiroki Corporation to the new plant. The monthly production capacities of the Guangzhou Plant were 120 thousand window regulators and 200 thousand doorframes at the beginning of 2011.
GS YUASA to set up an annual production capacity of 10 million lead batteries
 GS Yuasa will increase the annual production capabilities from the current six million to ten million automotive lead batteries within a few years in China according to the news report in March 2012. GS Yuasa is producing lead batteries at Yuasa Battery (Shunde) Co., Ltd. (Guangdong) and Tianjin GS Battery Co., Ltd.
Daido Steel to expand Chinese business according to the medium term business plan by 2014
 In a medium term business plan by 2014 (announced in March 2012) Daido Steel positions the magnet, turbo parts and engine valve businesses which it develops in China as a growing business, and plans to strengthen operational capabilities. As for the neodymium magnet business, Daido Steel will build up the production capacities of its subsidiaries, i.e., Daido Electronics (Suzhou) Co., Ltd. and Daido Electronics (Shenzhen) Co., Ltd. Daido Steel aims to expand sales of the turbo parts business in China. In regard to the engine valve business, it will expand FUJI VALVE (Guandong), the joint venture (Foshan, Guandong) of its affiliate Fuji OOZX.
 As for the neodymium magnet business, it is reported that Daido Steel will invest one billion yen in the Suzhou Plant by July 2012 to double the current monthly production volume to 1.3 million units. Daido Steel is planning to supply the neodymium magnet for EPS first, and eventually enter the drive motor business.
Daido Metal to establish the regional headquarters for Chinese business in the year ended March 2018
Daido Metal revealed the plan to establish regional headquarters in the regions of China, Asia, Europe and North America and to establish the global operations structure from FY 2015 to FY2017 for the medium term plan by FY2017 (formed in February 2012). The regional headquarters will seize control of businesses in these regions, and to form business strategies unique to the regions, respectively. Daido Metal will establish a designing function in the Chinese regional headquarters to promote local designing to establish the capabilities of production through to sales.
Tokai Rubber plans to have new plants to produce automotive hoses and interior parts in China
 Tokai Rubber is planning to build new plants for automotive hoses and interior parts with Chinese local suppliers as of April 2012. The location and the production scale are unknown, but it plans to establish a low cost production structure by exploiting the purchase network of joint venture partners, and supply the products mainly to local OEMs. As of April 2012, Tokai Rubber is manufacturing automotive hoses and interior parts at the Tianjin Plant, Guangzhou Plant in Guangdong and Dalian Plant in Liaoning Province.
NHK Spring to set up branch offices of Forcia-NHK Spring
 NHK Spring and French Forcia announced the business expansion of their equally owned joint venture Forcia-NHK Spring (FNK) in March 2012. FNK produces and supplies seats to Nissan in Japan at present. In time with the business expansion by Nissan, NHK Spring is going to have new branch offices of FNK in China and the US. FNK had 2011 sales of more than 600 million Euros, expecting to have 2015 sales of one billion Euros.
NSK to build up production of automotive bearings and their components
 NSK is building up the production capabilities of automotive bearings and their components. It plans to increase sales in China to 200 billion yen by FY2016. It recorded sales in the April-to-December period of 2011 were up by 9.2% over the previous year to 68 billion yen. NSK projects that the sales will reach 90 billion yen in FY2012.
 NSK will start operations of the new Hefey Plant in Anhui Province in August 2012. In addition, NSK is building a new AT bearing plant in the Shanghai Plant NSK-Warner (Shanghai) Co., Ltd., a new needle bearing plant in the Changshu Plant, Changshu NSK Needle Bearing Co. Ltd. in Jiangsu Province, and the new onboard bearing ball plant, NSK-Wanda Electric Power Assisted Steering Systems Co., Ltd. in Hangzhou Province. However, it has not disclosed details, such as production scales.
Nidec introduces rare earth-free SR motors in China
 Nidec carried out trial production of the rare earth-free SR drive motors in April 2012 in Japan. It will begin full-fledged commercial production of the motors in 2013, with plans to begin the production in China after that. It has not disclosed the details, such as the production plant and the production scale for the motors in China.
Riken to invest around 400 million yen in total over three years to 2013 to strengthen annual production capacity
 Riken will invest about 400 million yen in China from 2011 to 2013 to increase the production capacity of piston rings, which are engine components, by 30% compared to the level at the beginning of 2011. Riken has plants in Wuhan, Hunan Province and Xiamen, Fujian Province. It has also invested two billion, 3.7 billion and 0.8 billion yen in India, Indonesia and Thailand, respectively, to strengthen local production capacities.

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

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