Japanese suppliers in ASEAN countries - Indonesia, Vietnam and Malaysia

Suppliers are expanding their business and boosting production capacities in promising Indonesia

2012/07/11

Summary

 This report summarizes the recent activities of Japanese suppliers in ASEAN countries with the exception of Thailand. The Report covers those within one year by the end of May 2012.

 Expecting Indonesia to grow over the medium-term range, Japanese OEMs as well as US, European and Korean OEMs have been actively investing in the country to expand their production capacities. A number of Japanese suppliers are building new plants, and invest to expand production capacities of their existing plants. Booming relocation of production facilities from Thailand after the flood in 2011 has spurred investments in Indonesia.

 Vietnam has become a parts production base to export to Japan, the US, Europe and other neighboring Southeast Asian countries. Japanese suppliers are building new plants, adding new products or increasing the capacities of their existing plants. Some suppliers are converting their plants into R&D centers.

 In the other ASEAN countries of Malaysia, Singapore, Philippines and Cambodia, Japanese parts suppliers are not so visible but they are reinforcing their capacities for country-specific products, or establishing new companies.

 The trends in Thailand are reported in "Japanese suppliers in Thailand."

 

Related Reports: Japanese suppliers

Northern and Northeastern China (Jun. 2012), India (Mar. 2012), Mexico/Brazil (Feb. 2012),
Europe (Dec. 2011), US (Aug. 2011)



Indonesia: A number of suppliers to build their new plants, such as Techno Park of Toyota Tsusho

 Auto sales in Indonesia recovered to a record of 869 K units in 2011, up 17% y/y. As a result, Indonesia overtook Thailand and reached the rank of top market in Southeast Asia. The Indonesian Government plans to provide tax breaks for fuel efficient and low price compact cars. Taking the government policy as an advantage, Japanese OEMs are increasing their production capacities in 2012 to 2014. Toyota will increase their capacity by 120K units, Nissan by 150K units, Honda by 120K, and Daihatsu by 100K. Following the carmakers, Japanese suppliers are building new plants, or increasing their production capacities as well.

 

Indonesia: Suppliers to build new plants

(Activities for about one year till the end of May 2012)
NT SEIMITSU to build a plant to make forged parts for motorcycles and automobiles
 NT SEIMITSU will begin to produce forged parts for motorcycles and automobiles in August 2012, including retainers to be equipped to valves or lifters. For Japanese OEMs in the country, NT SEIMITSU will conduct press forming, machining and grinding of cold-forged products. It will spend about 200 million yen for a forging press machine, a machining center (MC), a numerical control (NC) lathe, and a grinding machine. NT SEIMITSU will start operations at the rental warehouse built by Toyota Tsusho in the Supplier Park in Karawang Regency of West Java Province. The total investment is about one billion yen. NT SEIMITSU will aim for sales of 1.5 billion yen in 2015.
F-TEC starts preliminary studies to build a new plant within 2012
 F-TEC will start preliminary studies to build a new plant in Indonesia within 2012. It will consider building its own plant or utilizing the existing plant through cooperation with a local supplier. The production will begin with pedals, and will expand to underbody parts of suspensions and sub-frames. F-TEC produces and exports its products from Thailand to Indonesia with plans to shift to local production.
Kinugawa Rubber will build an auto sealing parts satellite plant
 Kinugawa Rubber announced its long-term business plan in November 2011, in which it unveiled its plan to build and begin the operation of a satellite plant in Indonesia in 2012. The company will export semi-finished products from Thailand and finish the products, such as auto body sealing parts, in Indonesia. This is a part of its global operation plan. The new plant site is unknown, but it is said that the plant will be built near an OEM's plant.
JTEKT begins start-to-finish production of 40 million units of bearings and EPS
 PT. JTEKT INDONESIA is a subsidiary of JTEKT, which began to produce bearings for motorcycles and automobiles at the new West Java plant in December 2011. It will produce 40 million units in the first year. Most of them are for motorcycles, while the products for automobiles are built at the several hundred thousand-unit scale. It invested about 6.5 billion yen.
 As for the production of electrically-assisted power steering systems (EPS), the subsidiary merely assembled major components imported from Thailand and Malaysia at the adjacent existing plant. JTEKT invested about 1.5 billion yen in this existing plant to set up the start-to-finish production lines, and started forming process and heat treatment. The start-to-finish production began at the new building in October 2011, aiming to strengthen the supply system for the expanding market.
G-TEKT to build first Indonesian plant for auto body framework parts and CVT parts
 G-TEKT established its subsidiary PT. G-TEKT Indonesia Manufacturing in West Java Province in 2012. It plans to begin to produce auto body framework parts in January 2013, and heavy gauge precision stamped parts for CVT in September 2013. The subsidiary was capitalized at about 2.5 billion yen, and 99.9% owned by G-TEKT. The supplier will install a large transfer press machine and produce the parts for its main customers of Honda, Suzuki, and JATCO, which are expanding their local production. It aims for sales of 3.2 billion yen in FY2015. This will be the first time for G-TEKT to expand its business to Indonesia, as well as produce parts for CVTs outside Japan.
Shiroki built first plant for window regulators and seat parts
 Shiroki established PT.SHIROKI INDONESIA in Bekasi Regency of West Java Province in September 2011. It was capitalized at 200 million yen. The Indonesian subsidiary will produce and sell window regulators and seat parts. The subsidiary is Shiroki's first plant in Indonesia. It plans to start production in the latter half of 2012. The initial investment was 430 million yen. Shiroki will additionally invest 240 million yen by March 2016. The Japanese supplier will catch up with increasing local production by its customer OEMs. It plans to establish a total production capacity of 400K to 500K units per each product, and post sales of 1.5 billion yen in the year ending in March 2016.
Sugiura Seisakusho to build a new nut & bolt plant
 Sugiura Seisakusho plans to establish PT.SUGIURA INDONESIA in Karawang Regency of West Java Province to produce nuts and bolts in 2012. It will invest about 1 billion yen. Sugiura will respond to its customers Toyota and Daihatsu, which plan to expand production capacities, respectively, and meet their needs for local procurement by strengthening its production capabilities. It aims for sales of 2.5 billion yen in the year ending December 2018.
Sumitomo Electric to build a new WH and sintered part plant
 Sumitomo Electric in March 2012 announced to build a new plant to produce wire-harnesses (WH), sintered products and cutting instruments. The company will invest 1.4 billion yen in PT. Sumi Indo Wiring Systems, a joint venture with a local plant, and build an additional WH plant to increase the current production capacity three-fold by 2015.
 As for sintered parts, Sumitomo Electric capitalized 1.28 billion yen in the joint venture PT. Sumiden Sintered Components Indonesia in May 2012. It invested 2.5 billion yen to build a plant, with plans to begin production of engine parts and transmission parts for automobiles and motorcycles in February 2013.
SEIREN to establish a new plant to produce interior materials
 According to the announcement in March 2012, SEIREN will obtain a site for a new factory in the KAWASAN INDUSTRI JABABEKA Tbk., PT. in Bekasi Regency of West Java Province in July 2012 to establish a subsidiary to produce auto interior materials. At the start, the supplier will build a plant as its third plant in Asia, which the Japanese supplier considers as a promising market, following Thailand and China. Then, it will strengthen the global supply structure. Capital in the new company and its business scale are yet to be decided.
TACHI-S starts outsourcing production of seats in November 2011, with plans to produce on its own
 TACHI-S established PT. TACHI-S INDONESIA in Karawang Regency of West Java Province in November 2011. It was capitalized at 540 million yen. The subsidiary produces and sells seats and seat parts. At the start it will outsource its production, and plans to spend 2 to 3 billion yen to build a new plant to relocate production to its own plant in 2013. TACHI-S will begin production at the full capacity of 150K units by 2015 and aims for 4 billion-yen scale sales. It will supply the products to Nissan and Honda.
TAMANO has first production base abroad to adapt to high yen, plans to export to China, Thailand and the US
 TAMANO established PT.TAMANO INDONESIA in Karawang Regency of West Java Province in March 2011. It spent about 700 million yen on the plant. The plant has operated and produced plastic parts since April 2012. It will begin production of its main products, washer nozzles, with a monthly output of about 100K units around January 2013. In 2014, the Japanese company will increase the capacity by 300K per month, with plans to expand to one million within five years. The Japanese supplier decided to have production abroad for the first time ever to improve its cost competitiveness against severe impact from sharp appreciation of the yen. It will shift most of the export from Japan to production in Indonesia. It eyes exports to China, Thailand and the US.
Tokai Rubber establishes a wholly-owned subsidiary to produce anti-vibration rubber systems
 Tokai Rubber established PT. Tokai Rubber Indonesia, its third plant in Indonesia, in the KIM Technopark in Karawang of West Java in August 2011. It was capitalized at 960 million yen. The Japanese supplier will produce anti-vibration rubber systems. It has already produced the item at PT. Fukoku Tokai Rubber Indonesia since 2004. The production will start in July 2012. Tokai Rubber expects to have sales of about 3 billion yen in FY2015. Tokai Rubber is also planning to produce and sell plastic and rubber hoses at its second plant PT. Tokai Rubber Auto Hose Indonesia, which has produced plastic hoses for motorcycles since February 2012. It expects to have sales of about 900 million yen in FY2015.
Toyamaken Kanagata Cooperatives establishes a new company for mold maintenance and material processing
 Toyamaken Kanagata Cooperative consists of 18 local mold-related companies, established TOYAMA PRECISION MOLD in the outskirts of Jakarta in September 2011. The plant began operations in March 2012. The cooperative will be engaged in mold maintenance and material processing for its customer auto-parts suppliers, while making efforts to win new orders for molds. The construction cost of about 150 million yen was borne among member companies. The member companies contributed used drilling machines, surface grinding machines and laser machining equipment, while they bought a new machining center, CAD and CAM, and three-dimensional measurement instruments. It aims to have monthly sales of seven to eight million yen in three years.
Toyota Tsusho built a Techno-Park in the outskirt of Jakarta, accepting 25 to 26 suppliers
 Toyota Tsusho established PT. TT Techno-Park Indonesia in KIM Industrial Complex, 60 km east of the center of Jakarta and kicked off the techno-park business in September 2011. Toyota Tsusho intends to provide facilities for auto parts suppliers which want to have plants in Indonesia. From PT. TT Techno-Park, such suppliers can lease land, a plant and office, and receive back-office support for general affairs, accounting, finance and human resources. Toyota Tsusho expects that PT. TT Techno-Park will contribute to such suppliers to reduce the initial investment and risks in connection with expanding business abroad. It was capitalized at about 960 million yen. Toyota Tsusho initially planned to spend a total of about 4 billion yen for a site of 150K square meters and six buildings. Responding to a number of applicants, it decided to buy another site of 150K square-meters and build two more buildings in October of the same year. The techno park will be able to accommodate 25 to 26 suppliers. It plans to finish constructing two buildings in the first phase, and complete the second to fourth phases by 2014.
NAGOYA TOKUSHUKO builds a new start-to-finish plant for molds, planning to begin production in August 2012 as well as to export products to Japan and the US
 NAGOYA TOKUSHUKO established PT. Meitoku-Wadayama Indonesia jointly with Wadayama Seiki in March 2012. NAGOYA TOKUSHUKO will initially take a 90% stake. They plan to change the proportion to 60% vs. 40% between NAGOYA TOKUSHUKO and Wadayama Seiki. It stands in P.T. TT Techno-Park Indonesia established by Toyota Tsusho in KIM Industrial Complex. It is the first time for the supplier to have production in Asia. The joint venture will start producing molds in August 2012. They will invest about 400 million yen in the venture to set up machine tools and heat treatment facilities to increase production step-by-step. Based on the growth of demand for molds by Japanese OEMs and parts suppliers, the Indonesian subsidiary aims for annual sales of 600 million yen. If the local production is on the right track, the supplier will export low-cost molds to Japan and the US to improve the cost competitiveness as an entire Group.
NISSIN to establish a joint venture to produce cast wheels for automobiles and motorcycles
 In January 2012, NISSIN's subsidiary PT.Chemco Harapan Nusantara and Australian Alcar's subsidiary PT. Alcar Wheels Indonesia jointly established a venture company PT. Alcar Chemco Indonesia to produce cast wheels for automobiles and motorcycles in West Java Province. The joint venture was capitalized at 20 million US dollars. Alcar takes a 51% stake and Chemco takes a 49% stake. It plans to produce and sell 1.5 million units per year in FY2014. The cast wheels for automobiles will be exported to the European markets of Alcar, and those for motorcycles are for the Asian market of Chemco. NISSIN will strive to penetrate the Indonesian automobile market, which is expected to expand.
Nisshinbo Brake to build a new plant to produce friction materials for brakes
 Nisshinbo Brake will build a new plant to produce friction materials for brakes according to a April 2012 news report. Requests from its customers prompted the supplier to build a plant to expand its business in Indonesia. TMD, European friction materials supplier bought out by Nisshinbo Brake, does not have any plants in Indonesia, and has difficulties to fill the void in production. Thus, the supplier will consider utilizing the Indonesian plants owned by the Nisshinbo Group.
NIFCO to build a new plant for plastic products
 NIFCO established PT. NIFCO INDONESIA as an importer in May 2011. The supplier increased its stake in the Indonesian company in August of the same year to expand its business lines to create it as a supplier of molded synthetic resin products. The capital was increased to 10 million US dollars. The Japanese company will build a plant in the Karawang Industrial Complex in West Java and attempt to begin operations there within 2012. NIFCO will supply plastic products such as fasteners to Japanese motorcycle and automobile OEMs.
PIOLAX to build a new plant to produce automobile and motorcycle plastic fasteners and fuel system parts
 PIOLAX established the subsidiary PT.PIOLAX INDONESIA in Karawang Regency of West Java in June 2012. It was capitalized at eight million US dollars. Its business line is production and sales of plastic fasteners and fuel system parts for automobile and motorcycle. By autumn 2013, PIOLAX will begin with the production of the parts for motorcycle to address the purchase cost reduction of OEMs. It will proactively explore new customers by distributing products corresponding with the market. It plans to post sales of about 20 million US dollars in FY2016.
Futaba Industrial to start production of exhaust manifolds, chassis and body parts at the second new plant
 Futaba Industrial established PT. Futaba Industrial Indonesia in December 2011 in Bekasi Regency of West Java Province. It was capitalized at 1.3 billion yen. It plans to start operations of the plant in September 2012. The core products are exhaust manifolds, chassis and body parts. It invested 1.5 billion yen. Futaba will catch up with the increasing local production by Toyota and Daihatsu.
Marugo Rubber to produce anti-vibration rubber and high-performance rubber hoses for engines
 Marugo Rubber established PT. Marugo Rubber Indonesia in Karawang Regency of West Java Province in November 2011. It plans to start operations in January 2013. It invested about 1 billion yen. The plant will produce anti-vibration rubber and high-performance rubber hoses for engines. It aims for sales of 300 million yen in the first year when the plant starts production and 800 million yen in the year ending in December 2015.
Meidoh to start operations of the plant to produce high-strength bolts and long and large-diameter bolts in 2013
 Meidoh incorporated a wholly-owned local company in January 2012. In February or March 2013, it will start operations of the bolt plant in the Karawang Regency, West Java Province. It invested about 2 billion yen. This is the first plant in Indonesia for the Japanese supplier. The plant has a monthly production capacity of about 1000 tons. It will produce high-strength bolts and long and large-diameter bolts, and will begin actual supply in summer 2013. It intends to reduce the costs and accelerate the delivery by localizing production of the products which have been imported from Japan. It will purchase iron from Japan in the beginning, with plans to purchase the raw material from China or Taiwan in a phase-in manner according to customer needs. It aims for sales of 4 billion yen in 2020.
Yachiyo Industry builds a new plastic fuel tank plant
 Yachiyo Industry established a new company, PT. Yachiyo Trimitra Indonesia which produces plastic fuel tanks for automobiles in April 2012. This is the first time for the supplier to have a plant in Indonesia. PT. Yachiyo Trimitra Indonesia is a joint venture capitalized at 23.50 million dollars, in which Yachiyo Industry takes a 70% stake, a local company 25% and Kanematsu 5%. It stands in West Java Province. It is 2 km south of Honda's automobile plant. Yachiyo Industry aims to set up local supply capacities to catch up with Honda, which will build a new plant with an annual production of 120K units in 2014. The plant will start operations in August 2013. It will have an annual production capacity of 240K units.
UNIPRES changes the plan to establish a joint venture instead of a new company
 UNIPRES in June 2011 announced the establishment of a wholly owned subsidiary PT. Unipress Indonesia in West Java. However, according to the additional announcement in April 2012, Marubeni and PT. IMG Sejahtera Langgeng would take a stake of 20% and 10%, respectively on June 13, 2012. PT. IMG Sejahtera Langgeng is an investment firm of the Indian Mobile Group. The new plant will produce body frame parts at a 50K-unit scale per year (on a vehicle basis).
Yorozu to produce suspension parts in 2013
 In January 2012, Yorozu established PT. Yorozu Automotive Indonesia in the Mitrakarawang Industrial Complex. It will produce and sell underbody parts such as suspensions. It was capitalized at an amount equivalent to 4 billion yen. The total investment was about 6 billion yen. Yorozu plans to start production at the plant in October 2013, and full-scale production in 2015. It expects to have sales of 3.6 billion yen.

Source: Each company's news release and news media reports

 



Indonesia: Suppliers to strengthen capabilities of existing plants and add new products

INDONESIA: Japanese suppliers to strengthen production capacities, add new products and restructure their respective plants

(Activities for about one year till the end of May 2012)
Aisin Seiki to additionally produce oil pumps and strengthen the production capacity of clutches
 Aisin Seiki will set up a new production line at the plant of PT. AISIN INDONESIA in Mekasi City of West Java Province in September 2012. It will produce 20K oil pumps per month. Aisin will invest about 200 million yen. It will supply the products for the compact car to be produced at Daihatu's new plant which is scheduled to start running at the end of 2012. The supplier reinforced the production facilities (heat-treating furnace) for clutches by spending 100 million yen at the end of 2011. It will have a larger monthly production capacity by 20% from the current level of 1.7 million units. It will place a few designers in the Indonesian company to promote localization of designing.
Akebono Brake to set up the capabilities to increase production at the first and second plants
 Akebono Brake had prepared to increase production capacity at PT. Akebono Brake Astra Indonesia in Jakarta City. It transferred the production of drum brakes from the first plant to the second plant. The first plant is engaged mainly in disk brakes. The transferred production scale was 120K units per month. The total production capacities of these plants are unchanged after the transfer. This relocation is intended to create more room in the first plant in order to address the future increase of total production with the second plant which already has an affordable space. In addition, Akebono Brake is planning to shift from importing wheel cylinders from Japan to in-house production by the Indonesian company. A new office will open inside the second plant in June 2012.
Kuroda Electric establishes a joint venture to sell electronic materials
 Kuroda Electric established a joint venture PT.KURODA ELECTRIC INDONESIA to sell electronic parts and semiconductors for the auto industry in Bekasi City of West Java, and started the operation in December 2011. The authorized capital is one million dollars and the paid-in capital is half a million dollars (Kuroda Electric Group takes a 70% stake, and the local parts supplier a 30% stake). It plans to have sales of 700 million yen in FY 2012, 1.1 billion yen in FY 2013 and 1.4 billion yen in FY 2014.
Keihin to build a second plant to produce motorcycle and automobile parts
 Keihin will invest about 4.3 billion yen in PT. Keihin Indonesia (Cikampec in the outskirt of Jakarta) to build a second plant. It will begin operations in August 2013 according to the schedule. The production capacity is not disclosed, but the plant will produce electronic fuel injection (FI) systems and automobile parts. It aims to have full-capacity production in 2014.
Sanoh Industrial to build a new plant to additionally produce resin products and produce brazed products
 Sanoh Industrial will build a second plant next to the first plant of P.T. Sanoh Indonesia in Bekasi Regency of West Java Province. It will start running at the end of 2012. Sanoh will produce resin products, tube products and brazed products. This is intended to cope with an increase of local production by OEMs.
SHOWA to establish a new company to produce automobile gear parts to start operations in 2013
 SHOWA in April 2012 announced an investment of 1.54 billion yen to establish PT SHOWA AUTOPARTS INDONESIA (temporary name) as their second Indonesian plant in the Bekasi industrial park in the outskirt of Jakarta in May 2012. SHOWA has had manufacturing and sales of shock absorbers for motorcycles and automobiles and drive gear parts for automobiles via PT SHOWA INDONESIA MANUFACTURING. Since it is expected that demand for drive gear parts for automobiles will expand in the ASEAN automobile markets, the supplier spun off the business and established a new company by spending about 1.8 billion yen to build a new plant. It plans to start operations in June 2013. The plant will have a daily production capacity of 1,000 units, or 240K units per year.
Suzuki Spring to increase production of springs, and to increase sales by 30%
 Suzuki Spring relocated the plant of PT.FUJI SPRING INDONESIA in Karawang Regency of West Java Province within the same industrial park and expanded it. The plant site is twice larger, and the total floor area of the plant building is 1.5 times larger than the old plant. Suzuki Spring invested 300 million yen. This is intended to respond to the plans to increase production by Japanese OEMs in Indonesia. Suzuki Spring will enlarge the building by twice in the future. It plans to increase sales by 30% y/year to 600 million yen in the term ending August 2012.
CHUO PRECISION to increase capacity to three million aluminum wheels by adding machine processing line
 CHUO PRECISION invested about 400 to 500 million yen in the aluminum wheel plant in West Java Province to set up another machine processing line. This added line boosted the annual production capacity by 20% to three million units at the end of 2011. The supplier will take over part of production of aluminum wheels for Toyota of those supplied by UBE, as it will withdraw the aluminum wheel business. CHUO PRECISION also improved the existing facilities of the casting and the coating line to increase productivity. The Indonesian Plant is the company's production center of aluminum wheels, and exports all products to Japan. The Japanese company considers it necessary to plan Indonesian-specific products in the future.
Daido Metal to build a second plant to increase production capabilities
 Daido Metal will build a second plant in PT.DAIDO METAL INDONESIA (engaged in producing and selling friction bearings) in Bekasi Regency of West Java Province. The plant will start running in 2012 or 2013.
Chuo Spring to build a new subsidiary to develop springs
 Chuo Spring established the new wholly-owned subsidiary, PT. Chuhatsu Techno Indonesia, in January 2012. The new subsidiary is intended to accelerate developing and designing suspension springs and precision springs, and developing, designing and building production facilities to catch up with the expanding markets in a timely manner. It was capitalized at about 10 million yen. For Chuo Spring, it is their first R&D subsidiary outside Japan. In addition, Chuo Spring will build a new small-scale line in the new plant of PT. Chuhatsu Indonesia which started production in 2011 to respond to small demand by finished vehicle manufacturers and increase cost competitiveness.
TPR to dissolve joint venture, while producing piston rings at its own new company
 TRP in December 2011 announced that Nippon Piston Ring and TRP agreed to dissolve the joint venture NTRI (PT.NT Piston Ring Indonesia). TPR will sell all its shares in NTRI to Nippon Piston Ring. TPR established the piston ring plant PT. TPR INDONESIA on its own in December 2011 to meet increasing demand along with an increase of production of engines. It was capitalized at about 1.3 billion yen. The plant site in Bekasi of West Java Province is 50,000 square meters. TRP will be able to catch up with the production volume with one fourth of the new site under the current situation, according to the supplier. It plans to start production in March 2013, and expects to produce at a scale of 24 million automobile and motorcycle piston rings in 2014.
Toyoda Gosei added a production line for steering wheels containing airbags
 Toyoda Gosei began to produce steering wheels containing airbags at P. T. Toyoda Gosei Safety Systems Indonesia in November 2011. It used to produce steering wheels without airbags. Toyoda Gosei invested several tens of millions of yen to set up a line to incorporate airbags in steering wheels. It will supply 6,000 steering wheels per month for small minivans built by Daihatsu in Indonesia. It had production of about 330K units. Toyota Gosei expects to produce 400K units in 2013.
TOYODA IRON WORKS to produce auto body framework parts and underbody parts at the second plant
 TOYODA IRON WORKS will spend about 3 billion yen to build a second plant near the first plant of PT.NUSA TOYOTETSU in Bekasi Regency with plans to begin operations in 2012. It will produce auto framework parts and underbody parts at the new plant.
Toyota Boshoku to increase seat production capacity to 140K vehicles
 Toyota Boshoku will reinforce the plant of PT. TOYOTA BOSHOKU INDONESIA in Bekasi Regency to increase seat production capacity for the current 100K to 140K vehicles. It won the order for the seat for Toyota's strategic small cars for emerging countries, of which production will start in 2013.
T. RAD to build a second plant to produce 200K passenger car radiators per year
 T. RAD will build a new second plant in PT.T.RAD INDONESIA. The second plant will produce automobile radiators only in the latter half of 2012. It expects to have an annual production scale at 200K units at maximum. T. RAD will use the first plant exclusive for motorcycle radiators to double the annual production scale to 500K units in 2012. T. RAD intends to increase the productivity of both plants by separating the production items.
DENSO to increase Bekasi Plant's production capabilities; building new powertrain parts plant
 DENSO has increased production of all parts of car air-conditioners, radiators, plugs and filters at the plant of PT. DENSO INDONESIA in Bekasi Regency. In addition, DENSO is planning to produce starters and alternators in Indonesia instead of Thailand which concentrates on the production of these parts. It will acquire a site to build a new plant for powertrain parts.
Nippon Piston Ring dissolves joint venture to make it wholly-owned company
 Nippon Piston Ring in December 2011 announced the dissolution of the joint venture partnership with TPR in NTRI (PT. NT Piston Ring Indonesia) in Karawang Regency of West Java Province. The Japanese parts supplier will acquire all equities owned by TPR in 2012 to 2013 to make the venture a wholly-owned business. Nippon Piston Ring and TPR are discussing an exit to minimize inconveniences to its customers in supplying products and providing services. The workload on NTRI will be halved, and as a result, NTRI will have an affordable production capacity. Nippon Piston Ring will study the possibility to produce parts other than piston rings.
MITSUBA to increase production of motorcycle and automobile electric equipment
 MITSUBA will spend about 1.7 billion yen in Jl. Siliwangi-Kel Keroncong Kec. Jatiuwung-Tangerang in Banten Province to expand the total plant floor area by 20% to 48,000 square meters to add a parts processing line. The works will be completed in October 2012. MITSUBA will increase the production of motorcycle and automobile electric equipment and in-house manufacturing of components to respond to the expansion of production by its customers.
Yutaka Giken to increase production capacity of mufflers
 Yutaka Giken will build a plant building in the premise of PT. YUTAKA MANUFACTURING INDONESIA in FY2013 to increase the production capacity of mufflers for automobiles, because it is expected that its customer Honda will increase production of automobiles. The supplier is producing disc brakes for motorcycles, and AT torque converters for automobiles.
UNIVANCE to establish the start-to-finish production capabilities for gears, aiming to increase sales by five times
 At the end of 2010, UNIVANCE built two more plant buildings in PT. Univance Indonesia, which produce manual transmission parts in West Java Province. The supplier transferred redundant facilities (e.g., a gear processing machine) from three plants in Japan to the new plants. It localized the heat treatment process to establish start-to-finish production capabilities for gears, with plans to have full-fledged production in the spring in 2012. In addition, the company will make the Indonesian plant as a key production center including assembling units beyond the parts production according to its strategy. It plans to invest about 2.0 billion yen. UNIVANCE aims to have a local content of 50%. It will increase sales by about five times from 500-600 million yen (estimated) in FY2011 to 3.0 billion yen in FY2014 or 2015 by responding to the expansion of production by Japanese OEMs, and increasing customers. It also has plans to process gear and shaft parts in Indonesia, and to supply them to Thailand.
RIKEN to increase the monthly production capacity of camshafts by 70% to 5,000 tons
 RIKEN will spend about 3.7 billion yen in its joint venture PT. Pakarti Riken Indonesia (East Java) for three years from 2011 to introduce facilities such as a blast furnace. It will increase the monthly production capacity of camshafts by 70% to 5,000-ton scale. RIKEN will supply the products to Japanese automobile and motorcycle OEMs for low-cost range vehicles. The new plant will start running in Jun 2012. Riken will increase the production capacity in a phase-in-manner.

Source: Each company's news release and news media reports

 



Vietnam: Suppliers invest more to build global production centers

Vietnam: Japanese suppliers to build and strengthen their plants

(Activities for about one year till the end of May 2012)
Uchiyama Manufacturing to build a new production line for bearing seals
 Uchiyama Manufacturing will set up a production line for bearing seals at the plant of Uchiyama Vietnam Inc. of Binh Doung Province of southern Vietnam in summer 2012. It will also increase employees from 600 to 1000. Uchiyama will increase production of magnetic rubber rotors. In addition, Uchiyama will newly set up the same facilities in its Chinese and Portuguese Plants to expand overseas production to increase the monthly production from 6.7 million units in 2011 to 8.5 million units in 2013.
EIDAIKAKO to build a fourth plant to produce floor mats
 EIDAIKAKO in April 2012 announced the set up of a consolidated subsidiary EIDAI KAKO (VIETNAM) CO., LTD. (EKV). The first, second and third plants of EKV is producing automotive floor mats, extrusion (complicated shaped) products for industrial materials-related members. Expecting to have an increase in production with increases in orders for floor mats, EIDAIKAKO will build a new plant. EIDAIKAKO will invest a total of 2.5 million US dollars. The plant will start running in September 2012.
Sumitomo Electric to produce wire harnesses at two companies
 Sumitomo Electric has a subsidiary Sumidenso Vietnam in Hai Duong Province, Northern Vietnam. The subsidiary's second plant began operations in Ninh Giang in 2011. The subsidiary has manufactured and sold automotive wires. Sumidenso Vietnam Automotive Wire has produced wire harnesses at the second plant of Sumidenso Vietnam Automotive Wire in the same province since spring 2012.
Noguchi to establish a pressed parts plant and start production in spring 2013
 Noguchi will begin to produce deep-drawing pressed parts for motorcycle and automobile engines and electric component-related small pressed parts at its wholly-owned company, Fertile Vietnam (Bac Giang Province). Noguchi will supply the pressed parts to Japanese OEMs which are expanding business to ASEAN countries. It was capitalized at 78 million yen. It plans to expand the total floor area of the plant from 2,000 square meters to 7,000 by 2016. It also plans to post sales of 300 million yen in the first year, and increase the sales to 500 to 600 million yen in three years.
NIDEC-TOSOK establishes a new company to manufacture transmissions and CVT control parts, while reinforcing R&D capabilities
 NIDEC-TOSOK established NIDEC TOSOK PRECISION VIETNAM CO., LTD in Ben Tre Province in March 2012. It is capitalized at 1.55 billion yen. The new company will produce and sell automatic transmissions and CVT control parts. The plant will be completed in September 2012, and start production in April 2013. NIDEC-TOSOK will export the parts from Vietnam to Japan for customer OEMs and parts suppliers. It expects to post annual sales of 3 to 4 billion yen. NIDEC-TOSOK has already had two plants. It intends to establish the new company to get ready for expanding production of existing products and increasing production items for new customers.
NIDEC-TOSOK to double engineers at its R&D center
 NIDEC-TOSOK increased engineers from about 40 to 100 in 2012 at the Vietnamese R&D center to reinforce its R&D capabilities globally. This is intended to improve its capabilities to respond to the needs of parts suppliers and OEMs. It plans to start supplying parts in the latter half of 2013.
FUJIKURA COMPOSITES opens a representative office in Ho Chi Minh City as a research and sales center in Southeast Asian countries
 FUJIKURA COMPOSITES HAIPHONG INC., a local corporate of FUJIKURA COMPOSITES, opened a representative office in Ho Chi Minh City to expand the sales structure in December 2011. The office is named FUJIKURA COMPOSITES HAIPHONG INC. Ho Chi Minh City Representative Office. It commits to market surveys to sell industrial rubber products in Southeast Asian markets such as in Vietnam. To the main customers of automobile and motorcycle OEMs, FUJIKURA will expand sales of rubber products such as diaphragms used for engines and brakes.
Bridgestone builds a new plant to produce passenger car radial tires starting in the first half of 2014
 Bridgestone will build a new plant to produce passenger car radial tires (PSR), and established a new manufacturing and export company in February 2012 because of this. The plant site is in Haiphong City of Dinh Vu Industrial Park. It plans to begin operations in the first half of 2014 at a daily production capacity of 24,700 tires (in the first half of 2016 as a plan). Bridgestone will invest a total of 35.5 billion yen in the plant. The plant will play an export center role of commercial, and supply general-purpose tires to Europe, the US and Japan. Bridgestone has strengthened the production capacity of PSR for these countries at its Thailand and Indonesian plants. It concluded that there is a necessity to respond to further increasing demand, and decided to build the new plant. The new company Bridgestone Tire Manufacturing Vietnam LLC is capitalized at 23.7 billion yen.
Mabuchi Motor to strengthen capabilities to supply air conditioner damper motors
 Mabuchi Motor will strengthen the capabilities of Mabuchi Motor Danang Ltd. to supply air conditioner damper motors by increasing the production to the 20,000-unit scale, as the supply volume to OEMs is increasing. To respond to global expansion of automotive production and increasing models to equip door mirrors, power seats and electric parking brakes, Mabuchi Motor will set up the capabilities to increase production of motors for automotive electric components.

Source: Each company's news release and news media reports

 



In Malaysia, Singapore, Philippines and Cambodia, suppliers are expanding their plant according to characteristics of each country

Activities of Japanese Suppliers in Malaysia, Singapore, Philippines and Cambodia

(Activities for about one year till the end of May 2012)

Malaysia

Toyo Rubber built a passenger car tire plant, beginning with annual production of 2.5 million tires, and plans to establish production capabilities of five million tires in FY2015
 Toyo Rubber built a tire plant in Perak Province. For this purpose, Toyo Rubber established Toyo Tire Manufacturing(Malaysia)Sdn Bhd in Ipho City of Perak Province in April 2012. The new plant stands on a 480,000-square meter plant site. The investment in the first phase was about 20 billion yen. The plant will start production at full capacity in April 2013. The plant will produce 2.5 million tires per year for passenger cars and light trucks, and aims to establish annual production capabilities of five million tires in FY2015. It will supply the products to Malaysia, neighboring ASEAN countries and other regions. It plans to expand the annual production to the ten million-tire scale in the future. Silverstone of the Toyo Rubber Group has a Malaysian Plant in the outskirts of Perak Province. Toyo Rubber will pursue the synergy of these two plants.
Polyplastics to make a record capital investment in polyester polymer polymerization facilities to increase production capacity by four times
 Polyplastics will make a record capital investment in the Kuantan Plant (Pahang Province) of Polyplastics Asia Pacific Sdn. Bhd. to add the polyester polymer polymerization equipment. It aims to increase the annual production capacity of polyester (POM) by four times from 33K tons in 2011 to 123K tons. The plant facilities will be complete in September 2013, planning to start commercial operation from the beginning of 2014. Polyplastics aims to have the world highest energy-saving performance in the new equipment, improve its cost competitiveness and supply quality products. Polyplastics will supply products mainly to South China, and plans to use the plant as a supply center to ASEAN countries and India.
Kasai Kogyo to establish a joint venture and increase production and sales of interior parts
 Kasai Kogyo and Teck See Plastic Sdn. Bhd. in Malaysia (TSP) agreed to establish a plant in Malaysia to further strengthen their alliance in the ASEAN region. They drew up the joint venture agreement in April 2012. The new company Kasai Teck See (Malaysia) Sdn. Bhd. owns part of TSP's existing plant and facilities. TSP holds a 75% stake and Kasai Kogyo a 25% stake. The new company's business lines are designing, manufacturing and selling auto interior parts, and manufacturing and selling automotive exterior parts, of which current trade rights are held by TSP. Kasai Kogyo plans to expand interior parts business with Proton and Japanese OEMs.

Singapore

Asahi Chemicals to build a new plant with annual production capacity of 100K-ton S-SBR for fuel-efficient type high performance tires
 Asahi Chemicals is building a new plant at Jurong Island of Singapore to produce Solution Styrene-Butadiene Rubber (S-SBR) for fuel-efficient high performance tires. The first plant (an annual production capacity of 50K tons) is under construction to start operations in May 2013. Following this, Asahi Chemicals will make an additional investment of over 10 billion yen to build a second plant (an annual production capacity of 50K tons) to start operations in January 2015. After the completion, Asahi Chemicals expects to have annual sales at the 40-billion yen scale. The Japanese supplier also plans to build a new plant with a 100K-ton scale production capacity in Asia (except Japan) in 2017.
Sumitomo Chemical to build new plant with annual production capacity of 140K-ton S-SBR for fuel-efficient type high performance tires
 Sumitomo Chemical will spend about 10 billion yen to build a new plant to produce Solution Styrene-Butadiene Rubber (S-SBR) for fuel-efficient high performance tires (at a 100K-ton annual production scale). The construction started in January 2012. Sumitomo Chemical plans to start commercial operations in the period from October to December in 2013 to post sales of 10 billion yen or greater per year. The plant will have an annual production capacity of 40K tons. The business entity is Sumitomo Chemical Asia PTE LTD.
ZEON Corporation to build a new plant with an annual production capacity of 60K to 80K-ton S-SBR for fuel-efficient type high performance tires
 ZEON Corporation will build a new plant at Jurong Island of Singapore to produce Solution Styrene-Butadiene Rubber (S-SBR) for fuel-efficient high performance tires. For the first stage, the plant will start commercial production in July 2013 with an annual production capacity of 30K to 40K tons. In the second stage, it will start commercial production in the first half of 2016 at an annual production capacity of 30K to 40K tons.

Philippines

Sumitomo Electric starts production of wire harnesses at the third plant in March 2012
 Sumitomo Electric started production of wire harnesses (WH) at its third plant Sumi Philippines Wiring Systems Corporation (SPWS) in March 2012. SPWS was established in May 2011 as a subsidiary wholly owned by Sumitomo Wiring Systems of the Sumitomo Electric Group. It stands in Hermosa Ecozone and Industrial Park (HEIP) of Battan Province. Sumitomo Electric did not unveil the production scale.
KOGA AS establishes new wire harness plant, aiming to start operations in 2013
 KOGA AS established Furukawa Automotive Systems Lima Philippines Inc.(FASP)in January 2012 as its automotive wire harness sales and production center at LIMA TECHNOLOGY CENTER in Lipa City of Batangas Province. It was capitalized at one billion yen (wholly owned by KOGA AS). It plans to start operations in March 2013. The plant area is 50,000-square meters and the plant building is 21,000-square meters. The new company will play an export center mainly for Japan, and thereby, KOGA AS will make a start to further expand its plants in Asia.

Cambodia

Sumitomo Electric starts production of wire harnesses at a new company
 Sumitomo Electric Group established Sumi (Cambodia) Wiring Systems Co., Ltd. (SCWS) in the Special Economic Zone of the capital Phnom Penh in 2011. This is its first plant in Cambodia. Sumitomo Electric plans to produce wire harnesses in April 2012. A Vietnamese group company will supply parts including wires and connectors to Cambodia. The Group intended to cope with labor shortages and wage increases in China by spreading the plants which produce wire harness, its core product, to Cambodia and the Philippines.

Source: Each company's news release and news media reports

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