Japanese suppliers in China (2): Eastern China

Denso, Aisin AW, Calsonic Kansei, TACHI-S, Kasai Kogyo, Takata and NTN

2012/07/24

Summary

China_West Map

 Below is a summary of a report about the recent trends among Japanese automotive parts manufacturers operating in China. Part 2 contains the trends in the eastern China area.

 In Shanghai, NTN established a technical center to increase the company's development capability in China while Denso and Takata revamped theirs. Jiangsu province is experiencing a series of moves by Japanese automotive parts manufacturers debuting in China and increasing production capacities there. Aisin AW has built a new plant to produce four-speed automatic transmissions. Calsonic Kansei has built a new plant to produce compressors, and NGK Spark Plug built a plant for manufacturing oxygen sensors.

 There are also moves toward forming joint venture companies with local automakers. Tachi-S has built a seat fabricating plant in Zhejiang province jointly with Geely Holding Group and Kasai Kogyo built an interior trim parts plant in Anhui province jointly with Chery Automobile.

 Related Reports: Japanese suppliers

Thailand (1) (Jul. 2012), ASEAN countries (Indonesia, Vietnam and Malaysia),

China (North and Northeast) (Jul. 2012), India (Mar. 2012), Mexico/Brazil (Feb. 2012),

Europe (Dec. 2011), US (Aug. 2012)



Shanghai: NTN/Takata/Denso revamping their local development facilities

Aichi Steel Corporation: Considering a new neodymium magnet plant in Shanghai's suburbs for use in onboard motors
 As of March 2012, Aichi Steel Corporation is considering a new neodymium magnet plant likely in the suburbs of Shanghai (according to MarkLines research). The magnets, to be made from magnetic powder material supplied from Japan, will be used to make motors mainly in onboard or small power tools. Details such as the completion time or production capacity have not been disclosed.
Advanex to increase production of insert collars at the Shanghai Plant
Advanex added one unit of equipment to produce automotive insert collars at the Shanghai precision spring plant, Advanex (Shanghai) 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.
NSK-Warner K.K.: Quadrupling annual capacity of one-way clutch production for automatic transmissions at the existing plant in Shanghai
 NSK-Warner is expanding facilities of its wholly-owned subsidiary in Shanghai, NSK-Warner (Shanghai) Co., Ltd., to quadruple its production capacity of one-way clutches for automatic transmissions by June 2012 (approximately 10 billion yen turnout).
NTN Corporation: A technical center in Shanghai starts operation in May 2011
 NTN Technical Center, operating since May 2011, is dedicated to the local product designing, evaluation tests, technical service and other development activities by local people for automobiles and industrial machineries. The company plans to increase the number of engineers at the Center to 200.
Showa Corporation: Transferring gas spring production and unit bumper production from Japan and the United States, respectively, to Shanghai
 In February 2011, production of gas springs for automotive doors at Nagoya plant and of unit bumpers in Ohio, U.S., was transferred nearly entirely to Shanghai Showa Auto Parts Co., Ltd. The company will export the products from Shanghai to advanced countries as well.
Stanley Electric Co., Ltd.: Establishing Chinese headquarters in Shanghai
 In May 2011, Stanley Electric established a wholly-owned subsidiary company, Stanley Electric (China) Investment Co., Ltd. The new company, dedicated to controlling Stanley Electric's Chinese operation, will allow for prompt decision making toward strengthening and expanding business in China.
Takata Corporation: A new technical center established in Shanghai
 In January 2012, Takata separated its design and development division at its Shanghai plant and established Takata (Shanghai) Vehicle Safety Systems Technical Center Co., Ltd. in Shanghai Qingpu Industrial Zone. The center, capitalized at 15 million yuan (total investment 1 billion yen) and staffed with 123 employees, centralizes the company's development, designing, evaluation and testing functions for seatbelts, airbags and steering wheels.
Tachi-S Co., Ltd.: Automotive seat parts plant starts operation
 In December 2010, Tachi-S established Shanghai Tachi-S Automotive Parts Co., Ltd. that will produce automotive seat parts (structures, etc.). The new company began production in December 2011 to supply parts to Zhejiang Jee Ju Tai Automotive Seat Co.'s Cixi plant. The new company is capitalized at approximately 700 million yen (54 million yuan) and plans to produce products for 1 million vehicles in FY2015 with the revenues of approximately 9.5 billion yen.
Tsubakimoto Chain Co.: Doubling production capacity for timing chain drive systems
 Tsubakimoto Chain's production capacity for timing chain drive systems at Tsubakimoto Automotive (Shanghai) Co., Ltd. will be doubled by the end of 2014 from the current capacity as of 2010. The company is renting a plant located next to the existing plant to increase production capacity large enough for approximately 4 million vehicles by the end of 2014. Products will be supplied to Dongfeng Nissan Passenger Vehicle Co. (new fuel-efficient engines) and other leading automakers in China.
Denso Corporation: Relocating and expanding Shanghai Technical Center
 Denso will relocate and expand Denso (China) Investment Co., Ltd. Technical Center in Shanghai, which is serving as part of Denso's regional headquarters in China, to Xinhuang Industrial Park, Minhang District in Shanghai. The new facility will start operating in June 2013 (announced in April 2012). Denso will invest 7.2 billion yen in total by FY2013 in new testing equipment including wind tunnels to be better prepared to meet design and development demands. The number of development engineers will also be doubled.
Nichirin Co., Ltd.: Monthly capacity for automotive A/C hose in Shanghai being expanded to 1.3 million meters
 Nichirin has added a new production line for automotive air conditioning hose at Shanghai Nichirin Automobile Accessories Co., Ltd. Trial production began in March 2012. The new line has a monthly capacity of 300,000 meters which will boost the plant's total capacity to 1.3 million meters including that of the existing three lines (1 million meters in total). The new line costs approximately 150 million yen of investment.
Hitachi Automotive Systems, Ltd.: Chinese headquarters established in Shanghai
 In January 2011, Hitachi Automotive Systems established Hitachi Automotive Systems (China) Ltd. which will serve as the company's headquarters in China. The company is capitalized at US$30 million (approximately 2.4 billion yen), with 90% contribution by Hitachi Automotive Systems and 10% by Hitachi (China) Ltd., Hitachi Ltd.'s Chinese headquarters. It started with initial staff of about 50 employees in April 2011 and the number is to be increased to about 70 by the end of 2012.

 

 



Jiangsu province: Much activity seen among Japanese suppliers with Aisin AW, Calsonic Kansei and NGK Spark Plug building new plants

Aisin AW Co., Ltd.: A new plant established in Suzhou for manufacturing four-speed automatic transmissions for front-wheel drive vehicles
 In April 2011, Aisin AW established AW Suzhou Co., Ltd., a wholly-owned subsidiary for manufacturing automatic transmissions for front-wheel drive vehicles, in Suzhou, Jiangsu. The company began construction work in November 2011 to build a plant to manufacture four-speed automatic transmissions for front-wheel drive vehicles. Production will start in mid-2013 with an initial capacity of 240,000 units a year. The new company is capitalized at US$100 million and the company will invest approximately 18 billion yen in total. Products will be supplied to Toyota and the company plans to expand sales to Western and Chinese manufacturers as well in the future.
Aisin Seiki Co., Ltd.: Starting sun-roof production at a joint venture company in Wuxi
 In September 2011, Aisin Seiki established a joint venture company, Aisin Wuxi Body Parts Co., Ltd. in Wuxi, Jiangsu, jointly with Elite Sewing Machine Manufacturing and Hsin Chong Machinery Works. In March 2012, the new company started manufacturing automotive sun-roofs at a line leased by a local subsidiary of Hsin Chong Machinery Works. The new company is capitalized at US$5 million with 51% contribution by Aisin Seiki, 40% by Hsin Chong Machinery Works and 9% by Elite Sewing Machine Manufacturing with the sales goal of approximately 2.5 billion yen in 2015.
 In September 2011, Aisin Seiki established a subsidiary development company, Aisin (Nantong) Technical Center of China Co., Ltd., in Nantong, Jiangsu. The new company began operating with an initial staff of 14 employees and plans to increase the number to around 50 in 2015. Capitalized at US$2 million.
Aichi Electric Co., Ltd.: A new company established for manufacturing motors for HV/EV use at an existing plant in Suzhou
 In July 2011, Aichi Electric established a joint venture company, Suzhou Aichi Gauss Motor Co., Ltd., in Suzhou, Jiangsu, jointly with its wholly-owned subsidiary Aichi Elec, Xiamen Tungsten Co., Ltd. and Cross-Strait Development Fund. A completion ceremony was held in March 2012 for a new plant with the plan to start manufacturing electric compressors and drive motors for EV and HV use for Japanese and local manufacturers by the end of 2012. The new company is capitalized at US$6 million with 20%, 35%, 25%, and 20% contributions by the four companies, respectively. The plant is being built by altering portions of the existing plant (where compressor motors for air conditioners are manufactured) of Aichi Electric's existing subsidiary in Suzhou (Suzhou Aichi Technology).
Ashimori Industry Co., Ltd.: Expansion plan of the Wuxi plant postponed
 Ashimori Industry has decided to postpone (as of April 2012) the expansion plan of the plant at its wholly-owned subsidiary, Ashimori Technology (Wuxi) Co., Ltd., in Wuxi, Jiangsu. It was the company's original plan to start operation of the new plant in the second half of 2011 and manufacture electric sun-shades and electric curtains for upscale cars to be supplied to Western carmakers operating in China.
Advics Co., Ltd.:A development center established in Changzhou
 In June 2011, Advics established an automotive parts development center in Changzhou, Jiangsu, called ADVICS China Co., Ltd., capitalized at US$20 million (approximately 170 million yen). The center will play the role of incoming material evaluation and technical education for suppliers to help Advics increase the number of procurement sources from among the local suppliers of high competitive standing.
NOK Corporation: Planning to increase annual capacity of oil seals at the Wuxi plant by 1.2 times by the beginning of 2013
 In February 2012, NOK disclosed its plan to increase the annual capacity of oil seals at Wuxi NOK-Freudenberg Oilseal Co., Ltd. by 1.2 times by the beginning of 2013. A new facility is being erected in the Wuxi plant (partial operation already started in March 2012). In addition to increasing production of existing products, NOK will transfer some of the production of oil seals for automatic transmissions (for 300,000 transmissions a month) from Japan (where all quantities are produced at the present) to the Wuxi plant.
Ohkuma Seisakusho: Building a new plant in Taicang for manufacturing pressed parts for trucks
 Ohkuma Seisakusho is leasing a second plant in Taicang, Jiangsu, where the first plant is located, to manufacture brackets and other pressed parts for trucks starting in September 2012. The plant will initially manufacture enough parts for 30,000 vehicles a year with the expected annual revenue of 800 million yen. The new pressing line will cost approximately 150 million yen and the products will be delivered mainly to Japanese and European truck manufacturers.
Calsonic Kansei Corporation: Producing compressors for car air conditioners in Haimen
 In April 2011, Calsonic Kansei established a wholly-owned subsidiary, Calsonic Kansei (Haimen) Car Air Conditioning Compressor Corp. in Haimen, Jiangsu, through its Chinese headquarters. In March 2012, the new company began manufacturing aluminum vane rotary compressors for car air conditioners and their parts. The new company is capitalized at US$10 million with initial investment of approximately 2 billion yen, and has an annual capacity of compressors for around 600,000 vehicles.
Kyowa Kogyo Co., Ltd.: Kunshan plant starts operation with plans of adding products for automotive use
 In January 2011, Kyowa Kogyo established a joint venture company, Kyowa Industry (Kunshan) Co., Ltd., in Kunshan, Jiangsu, jointly with Taiwanese Aurotek and GMB (with 51%, 30% and 19% contribution, respectively). In October 2011, the new company started manufacturing universal joints for steering to be used in local Taiwanese and Japanese manufacturers of agricultural equipment at a part of Aurotek's Kunshan plant. They plan to produce automotive components as well for Japanese automotive parts suppliers in China.
Sanoh Industrial Co., Ltd.: Expanding Wuxi plant
 Sanoh Industrial is building a new plant in the site adjacent to its Wuxi plant, Sanoh Industrial (Wuxi), located in Wuxi, Jiangsu (announced in February 2011). The company plans to triple its annual capacity of brake tubes from that as of February 2011 and also plans to build facilities for manufacturing plastic parts (tube, snap connectors, etc.) and engine components (fuel delivery pipes, water pipes, etc.). The new plant will cost approximately 1.5 billion yen in total (capitalized at US$12.7 million) and the company expects revenues of 6.3 billion yen in 2015.
Sumitomo Electric Industries, Ltd.: Joint production of tire reinforcement steel cords in Nanjing
 In May 2011, Sumitomo Electric purchased 30 percent equity in Hyosung Steel Cord (Nanjing), a wholly-owned subsidiary of Korea's Hyosung Corporation located in Nanjing, Jiangsu, and started manufacturing steel cords for tire reinforcement. The company name was changed to Hyosung Sumitomo Steel Cord (Nanjing). The joint venture company has an annual capacity of approximately 24,000 tons as of April 2012. The company plans to complete a new plant with annual capacity of 40,000 tons within 2012 to increase the total capacity to 64,000 tons.
Sumitomo Wiring Systems, Ltd.: An automotive connector plant completed in Changshu
 In June 2011, Sumitomo Wiring Systems, a Sumitomo Electric group company, established a wholly-owned subsidiary, SEWS-Components Changshu, Ltd. (China) in Changshu, Jiangsu. The new company is to start manufacturing automotive connectors in June 2012 for its group manufacturers of wire harnesses in central and northern China. The new company is capitalized at US$10 million. The number of employees will be increased to about 360 by the end of 2012 and the monthly capacity in FY2013 will be increased to 50 million connectors.
Seiren Co., Ltd.: Increasing production capacity of synthetic leather for automotive use at the Suzhou plant
 In May 2011, Seiren began manufacturing automotive trim materials (synthetic leather for seats) with a monthly quantity of 100,000 meters at the second plant of its wholly-owned subsidiary, Seiren Suzhou Co., Ltd. The company plans to start manufacturing synthetic leather at the third plant as well by June 2012 with an initial monthly quantity of 200,000 meters (enough for about 40,000 passenger cars). Seiren's medium- and long-range plans with Suzhou plants call for increased monthly quantity of synthetic leather for automotive seats to 500,000 meters (for about 100,000 passenger cars). The first plant manufactures airbags and genuine leather for automotive interior use.
Sekisui Plastics Co., Ltd.: Doubling piocelan production capacity at Suzhou plant to 2,400 tons a year
 In 2011, Sekisui Plastics doubled its production capacity to 2,400 tons of "piocelan," a high-function resin foam for making shock-absorbing material for automotive use, at Suzhou Sekisui Plastics Co., Ltd.
Taiho Kogyo Co., Ltd.: Purchases an aluminum bearing material manufacturer
 In April 2012, Taiho Kogyo concluded an agreement with Hengye Bearing Materials Co., Ltd. (Changzhou) (WBM) to purchase the Chinese aluminum bearing material manufacturer for approximately 45 million yuan. The company plans to reorganize the manufacturer as a wholly-owned subsidiary in July. Taiho Kogyo currently manufactures engine bearings in Shandong province with materials supplied by WBM (for about 50 percent of need for local production). The two companies will jointly develop and produce inexpensive but high-grade material and increase the supply from WBM to 70 to 80 percent by 2014. They are currently importing high-grade material from Japan to manufacture bearings in China for Toyota, Honda and Volkswagen.
Diamond Electric Mfg. Co., Ltd.: Increasing annual capacity of automotive ignition coils at the Suzhou plant
 Diamond Electric has increased the annual capacity of automotive ignition coils of Diamond Electric (Suzhou) Co., Ltd. by approximately 10 percent to 2.2 million units. The decision is said to meet the growing need among Japanese, U.S. and local Chinese manufacturers as well (reported in May 2011).
Chuo Malleable Iron Co., Ltd.: Doubling ductile cast iron production capacity at the Suzhou foundry
 In May 2011, Chuo Malleable Iron announced it was to build a new ductile cast iron foundry at its wholly-owned subsidiary in China, Suzhou Chuo Malleable Iron Co., Ltd. The construction work began in August 2011 and the new plant is to start operation in the middle of 2012 with an annual capacity of 27,000 tons (the existing plant has 33,000-ton capacity). The company will manufacture and sell ductile iron parts for automotive and industrial use.
Chuo Spring Co., Ltd.: A new plant in Kunshan Development Zone
 Chuo Spring is building a new plant in Kunshan Economic & Technical Development Zone, about 2.5km from its local subsidiary, Kunshan Chuo Spring Co., Ltd. (75 percent owned by Chuo Spring). The new plant will start manufacturing automotive precision parts in June 2012. The company is investing approximately 1.1 billion yen in total to the plant construction and is adding production lines for manufacturing springs for engines and seats.
THK Co., Ltd: The new automotive parts plant in Changzhou to start operating in June 2012
 In March 2011, THK established an automotive parts manufacturing subsidiary, THK Rhythm Changzhou Co., Ltd., in Changzhou, Jiangsu. The new plant will start manufacturing steering tie-rods, suspension ball joints and other automotive parts in June 2012. The scale of production and other details have not been disclosed.
Topura Co., Ltd: A new automotive fastener manufacturing plant in Changzhou
 In December 2010, Topura established a wholly-owned subsidiary, Topura Precision Fastener (Changzhou) Co., Ltd., in Changzhou, Jiangsu (Xinbei). The new company will start operating within 2012 and manufacture screws and other automotive fasteners, metal parts, etc. The company, capitalized at 1.7 billion yen, is starting initially with a hundred employees. Revenue of 6 billion yen is aimed for 2013.
Tokai Carbon Co., Ltd.: Building a friction materials plant in Suzhou
 In March 2012, and prior to incorporating a local company, Tokai Carbon began construction work for a new plant in Suzhou to manufacture friction materials that will be used in brakes and clutches on motorcycles and vehicles. The new plant is being built with approximately 500 million yen investment and is slated for operation starting in January 2013.
Toyo Tire & Rubber Co., Ltd.: A new tire manufacturing plant in Zhangjiagang starts operation
 In December 2011, Toyo Tire (Zhangjiagang) Co., Ltd., a tire manufacturing plant wholly owned by Toyo Tire & Rubber, began manufacturing tires for passenger cars and light trucks. The new plant houses the latest manufacturing equipment and started with an initial annual capacity of 2 million tires. The company plans to increase the capacity to more than 6 million tires.
Toyobo Co., Ltd.: A new plant completed in Changshu for making airbag fabrics
 In May 2011, Toyobo and Toyota Tsusho established a joint venture company, Toyobo Automotive Textiles (Changshu) Co., Ltd., for manufacturing airbag fabrics. The new plant began operation in April 2012 with plans to expand sales to Japanese and local parts manufacturers. It has a monthly capacity of 500,000 meters and is capitalized at approximately 500 million yen (70% contributed by Toyobo) and required investment of 1.1 billion yen in total.
Toyota Tsusho Corporation: Toyota Tsusho (Taicang) Special Steel Processing Co., Ltd. starts full operations
 In June 2011, Toyota Tsusho's affiliate company established in April of that year in Taicang, Jiangsu, began full operations. The new company, Toyota Tsusho (Taicang) Special Steel Processing, is responsible for the storage, cutting, inspection and logistics of special steel material. The material will initially be used to make engine components with plans to expand use to chassis components as well. The new company, capitalized at 15.7 million yuan, expects annual revenue of 3 billion yen in 2016.
Nisshinbo Brake Inc.: Building a friction material plant for brakes in Changshu
 In February 2011, Nisshinbo Brake and its Korean subsidiary, Saeron Automotive Corp., established a fifty-fifty joint venture, Nisshinbo Saeron (Changshu) Automotive Parts Co., Ltd., for manufacturing friction materials for brakes. The new company, capitalized at approximately 1.08 billion yen and costing 5 billion yen investment in total, is to start production in July 2012 with equipment capable of manufacturing 400,000 pieces a month. Products will be supplied to local plants run by Japanese and Korean automakers.
Nifco, Inc.: New synthetic plastic molding plant in Zhangjiagang
 In January 2011, Nifco (Jiangsu) Co., Ltd. was established by Nifco's local subsidiary, Nifco Hong Kong Ltd. The new company is to start manufacturing, in June 2012, fasteners and other synthetic resin molded parts for European and American manufacturers in China. The plant has 34 employees as of the end of 2011.
 In December 2011, Nifco executed US$3 million capital increase to increase the capital to US$10 million through its subsidiary in Hong Kong to install additional equipment in the new plant in Zhangjiagang. Nifco plans to expand sales to non-Japanese automakers including the local makers. Nifco also has plans to build a new plant for making synthetic resin molded parts in Yancheng, Jiangsu, in support of Kia's Yancheng plant.
NGK Spark Plug Co., Ltd.: Building an oxygen sensor plant for automotive use in Changshu
 NGK Spark Plug has established (April 2012) a new company, NGK Spark Plug (Changshu) Co., Ltd., in Changshu, Jiangsu, to manufacture oxygen sensors for automotive use. The new plant will start volume production in the summer of 2013 for Japanese and other foreign automakers. It will have an initial capacity of about 2.4 million sensors a year. NGK Spark Plug will then have a total capacity of 8.4 million sensors including quantities at other plants in Shanghai and Tsingtao, Shandong.
Japan Power Fastening Co., Ltd.: A new plant built by the subsidiary company in Taicang
 Japan Power Fastening (a leading manufacturer of special screws in Japan) has a new plant constructed in the premises of its Chinese subsidiary, Suzhou JPF Co., Ltd., located in Taicang, Jiangsu. The plant began production at the end of 2011 with approximately 250 million yen invested in the plant construction (including 100 million yen for the plant building). As a result, the company's production capacity of screws and fasteners for automotive use increased by 10 to 20 percent from March 2011.
Nippon Piston Ring Co., Ltd.: Merging existing plants in Yizheng and Zhenjiang and increasing production capacity for engine components
 In March 2012, Nippon Piston Ring (NPR) restructured two engine component manufacturing subsidiaries in Jiangsu. A subsidiary in Yizheng, NPR Auto Parts Manufacturing (Yizheng) Co., Ltd. (manufacturing piston rings, valve seats and liners, etc.) absorbed another subsidiary in Zhenjiang, NPR Auto Parts Manufacturing (Zhenjiang) Co., Ltd. (manufacturing valve seats).
 The Yizheng plant's monthly capacity for piston rings (iron) will be doubled to 2 million units by June 2012 when some of the equipment will be transferred from NPR's main plant in Iwate prefecture in Japan to the Yizheng plant. An expansion work is under way at the Zhenjiang plant to increase its monthly capacity for engine valve seats from 1 million pieces in November 2011 to up to three million in 2012.
Hitachi Metals, Ltd.: Production of piston ring material starts at Suzhou plant
 Construction work started (November 2010) for a new plant at Hitachi Metals' subsidiary in Suzhou, Hitachi Metals (Suzhou) Technology Co., Ltd., for manufacturing piston ring material for automotive engines. The plant is to start operation around November 2011 specializing in rolling and heat treatment of steel material supplied from Japan. The company will have production bases in two regions, Japan and China. The company has invested approximately 2 billion yen with a sales target (as of November 2010) of 1.2 billion yen in FY2012 and 2 billion yen in FY2015.
 The subsidiary company in Suzhou used to be called Hitachi Metals (Suzhou) Electronic Co., Ltd. until it was renamed in August 2010.
Hibino Industry Co., Ltd.: Building an aluminum die-casting foundry in Changshu, transferring production from Shanghai
 In December 2011, construction work started in Changshu, Jiangsu, to build an aluminum die-casting foundry called Hibino Casting (Changshu) Co., Ltd. (total investment of US$45 million). The new plant is to start operation in October 2012. The company plans to transfer its automotive parts production in 2013 from a die-casting plant in Shanghai to centralize all of automotive parts production in China to the Changshu plant and increase capacity by 75 percent to 700 tons a month.
Fine Sinter Co., Ltd.: Revamping the powder metallurgy plant in Wuxi
 Fine Sinter is increasing production capacity of Precision Sintered Products (Wuxi) Co., Ltd., a subsidiary company in Wuxi, Jiangsu, specializing in manufacture of powder metallurgical parts, by 50 percent to 3 billion yen in terms of revenue by 2014. This is a decision made to meet the growing demand in China for unit components and chassis parts among the company's main customers such as Toyota and local parts suppliers. The company is investing approximately 1 billion yen to expand the plant building and install new sintering furnaces and machine presses.
Futaba Industrial Co., Ltd.: A Chinese headquarters subsidiary established in Changzhou
 In September 2011, Futaba Industrial restructured its wholly-owned subsidiary, Changzhou Futaba Metal Products Co., Ltd., and established Futaba Changzhou Engineering & Marketing Co., Ltd. as a Chinese headquarters subsidiary. The new company is capitalized at US$2 million.
Fujitsu Ten Limited: Transferring car navigation system production to Wuxi
 Fujitsu Ten transferred part of its car navigation device production from the main plant (closed) in Kobe, Japan, to its subsidiary in Jiangsu, Fujitsu Ten Electronics (Wuxi) Ltd. Production in Wuxi started in April 2012, which will represent about 30 percent of Fujitsu Ten's car navigation products manufactured in 2011.
Bridgestone Corporation: Increasing production capacity of radial tires for passenger cars at the Wuxi plant
 Bridgestone is investing approximately 15.5 billion yen for equipment at its Wuxi plant, Bridgestone (Wuxi) Tire Co., Ltd., to increase production capacity of radial tires for passenger cars (announced on August 8, 2011). The company plans to increase daily capacity by 4,100 tires (mainly ECOPIA brand and other eco-friendly tires) by May 2012 at the earliest, to increase its total capacity to 16,300 tires a day.
Press Kogyo Co., Ltd.: Expanding business in Suzhou
 In November 2011, full operations started at Press Kogyo's wholly-owned subsidiary in China, Press Kogyo Manufacturing (Suzhou) Co., Ltd., which is engaged in manufacturing large-size stamped parts for construction and agricultural machineries. The company plans to add production, development and design of automotive parts and stamping dies and jigs to expand its business. Toward that goal, Press Kogyo announced plans in March 2012 to make additional investment in the subsidiary and increase its capital from US$6 million to US$11.7 million.
 In the meantime, Press Kogyo established a new wholly-owned subsidiary in Suzhou in February 2012, Press Kogyo Mini Cabin (Suzhou) Co., Ltd. (capitalized at US$17 million). In April 2012, the new plant began manufacturing small hydraulic shovels. It plans to expand the line of business to production, development and design of automotive components in the future.
Mabuchi Motor Co., Ltd.: A new automotive motor plant in Jiangsu to start operation in 2012
 Mabuchi Motor's new plant at a subsidiary company, Mabuchi Motor (Jiangsu) Co., Ltd., located in Wujiang Economic Development Zone, will start operation within 2012. The plant will manufacture motors for power windows and power seats.
Mitsuchi Corporation: Operating a customized fastener plant in Suzhou
 In June 2011, Mitsuchi's wholly-owned subsidiary, Mitsuchi General Parts (Suzhou) Co., Ltd., began operating. The plant will manufacture customized fasteners for Japanese seat manufacturers and window regulator manufacturers in China. The plant, capitalized at US$2.7 million, has installed two new cold forging machines.
Mitsubishi Electric Corporation: Manufacturing car navigation and audio system devices in Changshu
 In June 2011, Mitsubishi Electric, jointly with its Chinese headquarters, established a new company Mitsubishi Electric Automotive (China) Co., Ltd. in Changshu (southeast economic development zone) with 90% and 10% capital contribution, respectively. The new company, capitalized at US$30 million, began operation in May 2012 manufacturing electric power steering devices and onboard multi-media products (car navigation, audio, etc.).
Murata Spring Co., Ltd.: Manufacturing automotive springs in Wuxi
 In March 2011, Murata Spring established a subsidiary, Murata Spring (Wuxi) Co., Ltd., in Wuxi, Jiangsu. In October 2011, the new company began making coil springs and other springs for use in transmissions installed in commercial vehicles. When full production begins, the plant will be making 390,000 valve springs for passenger cars and other springs for transmissions a month. The company expects revenue of 500 million yen after 2013 as it will promote sales to local manufacturers as well. Murata Spring has invested approximately US$4.8 million in total (capitalized at US$2.5 million).
Ryobi Limited: A new die-casting plant constructed in Changzhou
 In November 2010, Ryobi established a manufacturing subsidiary, Ryobi Die Casting (Changzhou) Co., Ltd., and a marketing subsidiary in Changzhou, Jiangsu. The new plant is to start operation in August 2012 and supply die-cast parts to automakers in and around the Changzhou area. The company has invested approximately 8 billion yen in total.

 

 



Zhejiang province: Tachi-S establishing a seat manufacturing plant jointly with Geely Automobile

Asmo Co., Ltd.: Constructing a joint venture company in Hangzhou for manufacturing small motors for automobiles
 In February 2011, Asmo together with Denso (China) Investment (DICH), the Chinese headquarters of its parent company in Japan, Denso, established a joint venture company ASMO (Hangzhou Xiaoshan) Mini-motor Co., Ltd. in Zhejiang. The new company is capitalized at US$18.1 million (221 million yuan invested in total) with Asmo and DICH having 90% and 10% equity, respectively.  Construction work for the new plant started in August 2011 with plans to start manufacturing small motors for electric power steering and ABS for Japanese and local Chinese manufacturers in August 2012. The plant has annual capacity of approximately 10 million motors and the company expects revenue of 8.3 billion yen in 2016.
Okabe Co., Ltd.: Building a plant in Zhejiang to manufacture automotive lead battery terminals
 Okabe has established a wholly-owned company, tentatively named Water Gremlin (Changxing) Co., Ltd., in Changxing, Zhejiang. The new company is to start production of automotive lead battery terminals for Johnson Controls in 2013, subject to an approval by the Chinese government as of May 2012. Okabe is investing US$10 million in total and the plant has annual capacity of 30 million sets. The company plans to expand sale to local manufacturers as well and expects sales revenue of 600 million yen in 2014 with plans to increase production capacity after 2015.
Sanyo Special Steel Co., Ltd.: Increasing production of automotive bearings at the Ningbo plant, establishing a marketing subsidiary in Shanghai
 In April 2012, Sanyo Special Steel announced it would increase production of automotive wheel bearings at its subsidiary, Ningbo Sanyo Special Steel Products Co., Ltd. The company has already installed a 2,000-ton vertical machine press at the subsidiary costing 700 million yen (monthly capacity of 370,000 bearings) after which the plant's monthly capacity was increased by 60 percent to 1 million bearings (including capacities of the existing 2,000-ton and 2,300-ton vertical machine presses).
Tachi-S: A joint venture seat plant established with Geely
 In October 2010, Tachi-S established a joint venture company, Zhejiang Gee Ju Tai Automotive Seat Co., Ltd., in Cixi, Zhejiang, jointly with Zhejiang Geely Group Holding Co., Ltd. and Zhejiang Jujin Auto-Motor Accessory Co., Ltd. The new company has been manufacturing seats and components for Geely since December 2011 with an initial annual capacity of enough quantities for 100,000 vehicles. The new company is capitalized at approximately 500 million yen with a 40% capital contribution by Tachi-S, 9% by Geely and 51% by Zhejiang Jujin Auto-Motor Accessory Co., Ltd. The total investment for the first year was approximately 200 million yen.
Chubu-rika Co, Ltd.: A new plant in Pinghu starts operation
 In February 2012, Chubu-rika's Pinghu plant, Chubu-rika Alumite (Pinghu) Co., Ltd., was completed and started alumite surface treatment for aluminum parts used in brakes and transmissions (using a single work line). The line has a monthly capacity of 2 million parts and the company expects monthly revenue of 15 to 20 million yen in the second half of 2012. The plant construction cost approximately 120 million yen in investment and has enough room for three more work lines. The company plans to expand sales to non-Japanese and local Chinese manufacturers as well and increase monthly capacity to 8 million parts to meet demand increase.
Tokai Rubber Industries, Ltd.: A wholly-owned development subsidiary in Jiaxing, Zhejiang to start operation in 2012
 In March 2012, construction work began to build Tokai Rubber Technical Center (China) Co., Ltd., Tokai Rubber Industries' development subsidiary in Jiaxing, Zhejiang. The subsidiary is positioned as the development and sales promotional base for anti-vibration rubber, hose and other rubber products, and urethane and other resin products. The plant is to start operation in the fall of 2012. It is capitalized at approximately 630 million yen and the number of employees is to be increased to 20 in FY2015 including 16 local hires.
Nippon Kayaku Co., Ltd: Increasing inflator production at the Huzhou plant to 3 million pieces in the fall of 2012
 Nippon Kayaku is adding a work line at its wholly-owned subsidiary, Kayaku Safety System (Huzhou) Co., Ltd., in Huzhou, Zhejiang, and increasing the inflator production capacity to 2 million pieces (as of March 2012). The company plans to install an additional line in the fall of 2012 and increase the capacity to 3 million pieces. The new line will manufacture more compact and lightweight products, which will help increase the company's capacity and product lineup.
NIDEC TOSOK Corporation: Building a new aluminum die-casting plant in Pinghu
 In January 2012, NIDEC TOSOK together with Uogishi Seiki Interactive Corporation established a joint venture company, NIDEC TOSOK UOGISHI (PINGHU) CORPORATION, in Pinghu, Zhejiang (Economic & Technical Development Zone). The new company is capitalized at US$7,725,000 with 92% and 8% capital contribution, respectively. It is to start operation by the end of 2012 to manufacture aluminum die-cast and molded parts for transmissions. The company plans to add testing, designing and development functions in phases.
 NIDEC TOSOK (ZHEJIANG) CORPORATION, located next to the other new subsidiary, began manufacturing electromagnetic valves, control valves and spool valves for automatic transmissions in June 2011, and of control valves for CVT in October 2011, all for Chery Automobile and Jatco's Guangzhou plant, etc.
Fuji Kiko Co., Ltd.: A seat component plant established jointly with Tachi-S
 In March 2011, Fuji Kiko, together with Tachi-S and Hsin Chong International Holdings, established a joint venture company, Zhejiang Fu Chong Tai Automotive Parts Co., Ltd., in Jiashan, Zhejiang, for the purpose of developing, manufacturing and marketing automotive seat mechanical parts. The new company is capitalized at US$1.01 billion yen (approximately US$12 million), with 51% capital contribution by Fuji Kiko, 9% by Tachi-S, and 40% by Hsin Chong Machinery Works (a Taiwan-based wholly-owned subsidiary of Hsin Chong International Holdings). The new plant is to start operation in July 2012 with targeted revenue of approximately 650 million yen by December 2012. The company aims to increase the revenue to 4 billion yen in a medium-range plan.
Press Kogyo Co., Ltd.: Taking necessary steps to resume construction work at Hangzhou plant
 In August 2011, Press Kogyo sold to UD Trucks a portion (6%) of its holding in PK-UD Axle Co., Ltd., a joint venture company located in Hangzhou, for US$545,000. As a result, Press Kogyo stepped down from the position of the largest shareholder and was replaced by UD Trucks. The Chinese company is capitalized at US$ 11.04 million and 49% represented by Press Kogyo and 51% by UD Trucks. The plant has been idle since January 2009.
Fujikura Rubber, Ltd.: An automotive rubber plant established in Anji
 In January 2011, Fujikura Rubber established a new company, Anji Fujikura Rubber Co., Ltd., in Anji, Zhejiang, to manufacture automotive and industrial rubber products. The new plant is slated for production starting in the second quarter of 2012. The company is investing 850 million in total, including 650 million yen for site acquisition and plant construction and 200 million yen for production equipment.
 Although details are unknown, Fujikura Rubber plans to expand the automotive rubber production capacity at another plant, Hangzhou Fujikura Rubber Co., Ltd. (as of April 2012).
Murakami Corporation: A joint venture company making automotive lamps established in Jiaxing jointly with an Italian manufacturer
 In February 2011, Murakami Corporation established a joint venture company, Jiaxing OLSA Murakami Automotive Accessory Co., Ltd., in Jiaxing, Zhejiang, jointly with OLSA S.p.A, an Italian manufacturer of automotive lamps. The new company is capitalized at US$2.1 million with 45% and 55% capital contribution, respectively. The new plant will start operation within 2012 and manufacture automotive lamps and assemble mirrors for BMW's plant in China (Jiaxing BMW).
Yokohama Rubber Co., Ltd.: Increasing production capacity at the Hangzhou plant with an addition of a new technical center
 Yokohama Rubber increased the automotive tire production capacity at Hangzhou Yokohama Tire Co., Ltd. in Hangzhou, Zhejiang, from 3 million to 3.1 million tires in March 2011, and to 5.1 million tires in December 2011. The company is continuing the plant expansion work as of April 2012.
 The company has built Yokohama Rubber (China) Technical Center in the ground of the tire plant at an investment of 250 million yen. The Center started operation in January 2012 with 14 researchers. The company plans to increase the number to 23 in 2013.

 

 



Anhui, Shandong, Fujian: Kasai Kogyo establishing a joint venture company with Chery Automobile

Anhui province

Kasai Kogyo Co., Ltd.: The interior trim parts plant in Wuhu to start operation in the spring of 2013
 In September 2010, Kasai Kogyo established Wuhu Kasai Interior Trim Parts Co., Ltd. in Wuhu, Anhui, jointly with Chery Automobile's subsidiary. The plant is to start operation in the spring of 2013 and the parts will be delivered mainly to Chery Automobile. The plant will start with an initial capacity of interior trim part sets for 100,000 vehicles with a plan to increase capacity to 500,000 vehicles.
 In this regard, Kasai Kogyo established, in January 2011, an interior trim parts design office in Shanghai to meet local needs. The office started with three designers initially as a development base for Chery Automobile. It eventually will meet needs among Japanese and Western automakers as well and increase the staff to about 10 designers in three years from now when the office will be incorporated as a new subsidiary.
NSK Ltd.: A wholly-owned subsidiary established in Hefei for manufacturing automotive bearings
 In October 2011, construction work started in Hefei, Anhui, to build NSK's wholly-owned subsidiary plant, Hefei NSK Co., Ltd., for manufacturing bearings for automotive and industrial machineries. The plant is to start production and sale in August 2012 with 500 employees. The new company is capitalized at US$62 million with a total investment of approximately US$150 million.

Shandong province

GMB Corporation: Production of CV joints starts at a new plant in Qindao
 In November 2011, construction work for a new plant building was completed at GMB's subsidiary, Qingdao GMB Machinery Product Co., Ltd., in Qindao, Shandong. Production of constant-velocity joints has started at the new plant with a monthly capacity of 1 million units. GMB now has a total capacity of 1.5 million joints including an existing plant.
Taiho Kogyo Co., Ltd.: Doubling bearing production capacity with plans of local production of bimetals
 Taiho Kogyo is increasing production capacity of engine bearings at its Chinese plant, Taiho Kogyo Corporation of Yantai with a plan to double monthly capacity to 5.5 million pieces by FY2015 (from 2.5 million pieces in FY2010). The decision was made to increase its market share of the products for European and local Chinese automakers.
Toyo Tire & Rubber Co., Ltd.: Purchase of the Silverstone plant
 In June 2011, Toyo Tire & Rubber acquired 75% equity for US$ 21.59 million in Shandong Silverstone Luhe Rubber Tire Co., Ltd., a wholly-owned Chinese subsidiary of Lion Rubber Industries SDN. BHD. (Malaysia). The company changed the name of the new subsidiary to TOYO TIRE (ZHUCHENG) CO., LTD.
 TOYO TIRE (ZHUCHENG) produces and sells tires mainly for commercial vehicles and has an annual capacity of 400,000 tires. Toyo Tire & Rubber has already begun manufacturing Toyo Tire-branded tires for commercial vehicles for supply to automakers in and out of China including those in North America. The company plans to invest in equipment in 2012 to increase annual capacity to 500,000 tires. The Silverstone brand will be phased out in two to three years and entirely replaced by the Toyo Tires brand.
Parker Corporation, Inc.: A Chinese rubber product manufacturing subsidiary is renamed
 In January 2011, Parker Corporation changed the name of the Chinese subsidiary engaged in the manufacture and sale of rubber and plastic products for automotive and home appliances industries, Qingdao Huadie Plastic Products Co.,Ltd., to Qingdao Parker M&E Parts Co., Ltd. The new corporate name containing "Parker" was chosen to strengthen manufacturing and marketing forces.
Central Glass Co., Ltd.: A new joint venture company in Qingdao to start operation in September 2012
 In November 2011, Central Glass together with Saint-Gobain Group of France established a joint venture company for manufacturing automotive glass, Saint-Gobain Central Sekurit (Qingdao) Co., Ltd., in Qingdao, Shandong. The new plant is to start operation in September 2012 and they plan to increase the plant's production capacity to quantities enough for 1.5 million vehicles in 2014 at the end of the third phase of construction work. The two companies invested in the new company through their respective subsidiaries. The new company is capitalized at 13 million euros (to be increased to up to 50 million euros in 2014) with 32.5% contribution by Central Glass and 67.5% by Saint-Gobain Group. The new plant is located in the ground of the Saint-Gobain Group's Qingdao plant, Qingdao Saint-Gobain HanGlas Glass.

Fujian province

Advics Co., Ltd.: Building a new ABS plant in Fuzhou
 In July 2011, Advics established an ABS control system parts manufacturing company, ADVICS Fuzhou Automobile Parts Co., Ltd., in Fuzhou, Fujian. The plant is to start production sometime after April 2013. The new company, capitalized at US$31 million, will hire 220 employees in FY2014 and expects annual revenue of US$175 million in FY2017.
Tachi-S Co. Ltd.: Hiring 100 prototype designers at the development subsidiary in Fujian by the end of 2013
Tachi-S is operating under a policy of revamping its research and development capabilities. Accordingly, the company will increase the number of prototype designers for automotive seats at its development subsidiary, Tachi-S Engineering China Co., Ltd. located in Fuzhou, Fujian, to 100 by the end of 2013. The company had only 10 designers when it started operation in 2008.
Topy Industries: Increasing steel wheel production capacity for passenger cars at the Fuzhou plant to 300,000 units in 2015
 Topy Industries is increasing an annual capacity of automotive steel wheel production at its wholly-owned subsidiary, Fujian Topy Auto Parts Co., Ltd. in Fuzhou, Fujian, from 200,000 to 300,000 units in 2015 (reported in February 2012). The company plans to achieve the goal by a speedier painting process and other productivity increasing measures, rather than by a large investment in production equipment and other facilities.

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

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