Japanese suppliers in Thailand (2): increasing production capacities

NOK, NTN, JTEKT, Daido Metal, Chuo Spring, NHK Spring, and U-SHIN build new facilities

2012/07/27

Summary

 This Report outlines the activities by Japanese suppliers in Thailand, including strengthening production capacities and expanding production items for approximately one year until mid-June 2012.

 The large scale flood in the autumn of 2011 had disrupted auto production in Thailand for a time, but production is recovering quickly after the retreat of the flood waters. The Federation of Thai Industries forecasts an increase in auto production to 2.2 million units, up by 51% y/y through 2012, and to 2.43 million units in 2014.

 Japanese suppliers are actively strengthening production capacities of their existing plants to catch up with Japanese OEMs which are increasing production and exports of parts to neighboring countries. The great flood in 2011 did not stop their activities, although some suppliers are building new plants in different places from those where their existing plants are located in Thailand for risk diversification.

 There are a number of suppliers which will start production of new items. Aisin will launch power transfers for 4WD vehicles, Exedy torque converters, KYB pumps for CVTs, T-RAD EGR coolers, PIOLAX metal parts for CVTs, and Fukoku wiper parts.

 Japanese suppliers' trends to build new plants and R&D centers are outlined in "Japanese suppliers in Thailand (1) - new plants and R&D centers."

Thailand production

Monthly Production by Maker/Brand in Thailand

Related Reports: Japanese suppliers
ASEAN countries (Indonesia, Vietnam and Malaysia), China (North and Northeast) (Jul. 2012), China (East) (Jul. 2012)
India (Mar. 2012), Mexico/Brazil (Feb. 2012), Europe (Dec. 2011), US (Aug. 2012)



Activities to strengthen production capabilities

NOK will build a plant building at Thai N.O.K. to start production of AT seals
 NOK will build one more plant building in its production subsidiary Thai N.O.K. in Chonburi Province. There are plans for the new plant to start production in early 2013. NOK plans to produce 300K BPSs (bonded piston seals) for auto transmissions at the new plant. It has produced all of these parts at its Nihonmatsu Plant in Japan. NOK intends to meet the needs of transmission suppliers for local procurement, while reinforcing risk diversification capabilities.
NTN to have a second plant in Thailand to increase production capacities of CVJs
 NTN will spend about 2.5 billion yen to build a second plant in NTN Manufacturing (Thailand) (NMT) in the Pinthong Industrial Estate of Chonburi Province. The plant will start running in October 2012. NTN plans to have 220 employees in FY2014. NTN produces constant velocity joints (CVJs) at the existing plant in the Eastern Seaboard Industrial Estate of Rayong Province. The CVJs production will be transferred to the new plant and its production capacity will be increased. Both plants will also reinforce the production capacities of hub bearings and ball bearings in a phase-in manner.
NTN and Takao establish a joint venture for forging and machining in the second plant premises of NMT
 NTN and TAKAO established a joint venture, NTPT, in the premises of the second plant of NMT (the Pinthong Industrial Estate of Chonburi Province) in February 2012. Both companies aim to realize the start-to-finish production facilities. The new plant will start running in February 2013. NTN takes an 80% stake and TAKAO 20% in the joint venture. NTPT will supply half-finished products for vehicles to the NTN Group's plants in Thailand, other Southeast Asian countries, Europe and Americas.
Endo Manufacturing to enlarge forged parts plant floor space by 30%
 Endo Manufacturing is investing 760 million yen in Endo Forging (Thailand) which produces forged parts in Chachoengsao Province to enlarge its plant floor space by 30%. Endo Manufacturing obtained the plant site next to the existing plant, where it will build a 7,000-square meter plant building. The new plant will start operations around June 2012. Endo Manufacturing will install three more air hammers; it will thereby have a total of 12 machines with nine of them at the existing plant. The plant will produce and supply forged parts related to engines, gears and wheels to Japanese suppliers which have production plants in Thailand.
Okawa Screw built a second plant to double the production of brake hose couplings
 Okawa Screw invested about 500 million yen in Thai Okawa to build a second plant. The plant has been running since May 2012. Since the first plant in the Hemaraj Eastern Seaboard Industrial Estate of Rayong Province has become small for the business scale, Okawa Screw has decided to build the second plant in the adjacent site. Okawa Screw plans to double the annual production capacities of both first and second plants from the current levels to a total of 16 million of brake hose couplings and stud bolts by March 2014. Okawa Screw will catch up with increasing orders from Japanese and other Asian OEMs in ASEAN countries and India. It plans to increase the percentage of overseas production from the current 30% to 50% in 2014.
Ogura Clutch to build an extension to the plant to produce 3.5 million air-conditioner clutches/year in 2013
 Ogura Clutch will invest about 1.0 billion yen in Ogura Clutch Thailand (Rayong Province) to build an extension to the existing plant to increase the production of air conditioner clutches in the beginning of 2013. Ogura Clutch will build a 3000-square meter extension to the existing 10,000-square meter plant building. Ogura Clutch will introduce press forming machines by the end of 2012 to increase the annual production capacity by 70% from the current level to 3.5 million units. Ogura Clutch will supply the products to Japanese parts suppliers in Thailand. It set the sales target of the year ending December 2013 at five billion yen, up by two billion yen compared to those in the year ended December 2011.
Kiriu to double the monthly production capacity of cast components to 5,000 tons
 Kiriu will build one more foundry plant in the premises of Kiriu Thailand in Rayong Province. The new plant equipped with four electric furnaces and a molding line will start running in August 2013 under the plan to produce forged and machine parts such as brake disks and drums. Total monthly production capacity of both new and existing plants will reach 5,000 tons, up by two-fold from the current level. Kiriu will invest 2.5 billion yen. Kiriu plans to supply the products to Nissan, Honda and GM in Thailand as well as ASEAN countries plus India. Kiriu aims to increase the world market share of brake disks and drums to 10% in 2015 from 8% as of 2012.
Sanko Gosei builds a new plant to coat plastic parts
 Sanko Gosei built a new plant to coat plastic parts at Sanko Gosei Technology (Thailand) in Rayong Province. The plant has been running since April 2012 with a daily production capacity total of 4,000 interior and exterior parts. Since the existing plant became small for the business scale, the Japanese supplier acquired the site to build the plant. Its Ayutthaya Plant was flooded, while its Rayong Plant remained intact, and continues normal operation.
GS Yuasa to increase the annual production capacity by 58% to six million automotive lead batteries
 GS Yuasa in February 2012 announced the reorganization of the production structure of its three affiliated companies in Thailand, and an investment in building up the production capabilities.
 Siam GS Battery (Samut Prakarn Province) spent about 1.5 billion yen and bought a 50,000-square meter parcel of land next to the current plant in 2011. The construction of the new plant was complete in March 2012. GS Yuasa will increase the current production capacity of three million automotive lead batteries for start/stop systems to five million units by 2014. On the other hand, the annual production capacity of batteries for motorcycles will remain at two million units.
 Yuasa Battery (Thailand) (YBTH) in Samut Prakarn Province sold the second plant to GS Yuasa Siam Industry in Chachoengsao Province to consolidate the entire production of automotive batteries to the first Plant. YBTH will divert the resources on business primarily to the motor cycle battery business. It will increase the annual production capacities from three million to four million motorcycle lead batteries, and 80K to one million automotive lead batteries by 2014.
 GS Yuasa Siam Industry bought the second plant from YBTH to increase production of lead batteries for battery-powered forklifts. It plans to increase the annual production capacity of batteries from 8,000 to 16,000 forklifts by 2014.
GMB to transfer bulk of production of water pumps from Japan to Thailand
 GMB produces 150K units/month of water pumps for engine cooling at its main plant in Nara, Japan. It will transfer the bulk of the production to Thai GMB Industry in Prachinburi Province in FY 2014 according to the news report in January 2012. The monthly production capacity of Thai GMB is estimated as 450K units in 2014, up from the current 350K units. The total expenditure will be 600 to 700 million yen to transfer production equipment and build a new plant building in the Thai Plant, which will be complete within 2013 according to the schedule. GMB expects to cut the production cost by 25 to 30% compared with the current cost through the transfer of production.
JTEKT built a new plant building and increased the production capacity of power steering systems by 50%
 JTEKT set up a new line to produce column type electric power steering systems at JTEKT Automotive (Thailand) (JATH) in Rayong Province in November 2011. JTEKT has supplied the products for Mitsubishi's global small car Mirage since March 2012. JATH has produced the parts primarily for Toyota. It is the first time for the supplier to supply steering system-related parts to Mitsubishi Motors.
 JTEKT announced in January 2012 to build a new plant building to produce electric power steering systems in the premises of JTEKT Automotive (Thailand) in January 2012. The construction will start in 2012 under the plan to start operation at the end of 2013. JTEKT will make an investment of 500 million to 600 million yen. The production capacity is expected to increase by 50% over the current level.
Jidosha Buhin Kogyo to drastically increase production of propeller shafts and ring gears
 Jidosha Buhin Kogyo (JBK) will drastically increase the production capacity of Jibuhin (Thailand) in Chonburi Province according to the news report in November 2011. To start with, JBK will spend about 700 million yen to increase the annual production capacity of propeller shafts by 15% to 750K units, and plans to supply them to the Thai plant of Isuzu and Indonesian plants of Daihatsu and Suzuki. For ring gears, JBK will spend about 500 million yen by the end of 2012 to increase the annual production capacity by 50% to two million units, with plans to supply the products to Toyota, Mitsubishi and Isuzu.
SNT increases monthly forged part production by 15% to 2,300 tons
 SNT invested about 700 million yen in Siam Metal Technology in Rayong Province. It introduced a 2,500-ton press machine in March 2012 to increase the current monthly production capacity by 15% to 2,300 tons. SNT intends to replace the aging machines and meet new demand. SNT plans to produce forged parts of axle shafts, knuckles and gears, and supply them to Japanese OEMs such as Isuzu and Nissan in the middle of 2012.
 In addition, SNT has shifted the purchase of molds to self-manufacturing to reduce the costs. It spent 250 million yen to build a new plant. As of June 2012, the plant is ready for production, and the employees are in the middle of the training. The plant building area is 1,258 square meters.
Sumikei Techno to increase one more line to raise output of aluminum-alloy pipes for heat exchangers by 60%
 Sumikei Techno, a consolidated subsidiary of Sumitomo Light Metal Industries, decided in February 2012 to invest about 1.4 billion yen in its production subsidiary Sumikei Techno (Thailand) to set up one more line to produce injection perforated aluminum pipes in the 304 Industrial Estate of Prachinburi Province. Sumikei Techno will install extruders, coating machines, cutting machines and peripheral equipment, planning to start operations in September 2012. The new line will have an annual capacity of 2,200 tons. The total annual capacity with the existing facilities will reach 5,800 tons.
 In the first announcement in August 2011, Sumikei had planned to set up the above line in the Rojana Industrial Estate of Ayutthaya Province where the existing plant of Sumikei Techno (Thailand) is located. When the existing plant was inundated during the flood in autumn 2011, Sumikei changed the construction site to minimize and disperse the flood risk. Accordingly, Sumikei revised the investment from 1.0 billion to 1.4 billion yen, and rescheduled the start of the line operation from March to September 2012.
Daido Metal builds a second plant to increase the production capacity of bearing metal by half
 Daido Metal built a second plant in Chachoengsao Province of Dyna Meta which produces bearing metal in the same province, and started operations at the end of April 2012. Daido Metal will increase the production capacity in a phase-in manner by 2014, up by half over the level before the start of operations. Daido Metal will address expanding production by Japanese OEMs in Thailand.
Takahashi Spring expands the spring plant and implements press works by itself
 Takahashi Spring expanded the spring plant of Takahashi Spring Thailand in Bangpha-In Industrial Estate of Ayutthaya Province, and started the operation in May 2012. Takahashi will introduce six more press machines for press working by itself to establish the start-to-finish production from making springs, press work to assembling components. It will employ 25 more workers. Takahashi aims to have sales of 840 million yen in Thailand in the year ending December 2013, up by 20% (The plant was inundated during the flood in autumn 2011. In November, part of the production was resumed. Since March 2012, it has been running at its full-capacity).
Datecs builds a second plant to increase interior and exterior parts production by 60 to 70%
 Datecs built a second plant in Datecs (Thailand) which produces interior and exterior parts in Bangkok. The floor area is expanded by 60% to 5,500 square meters. The production capacity was up by 60 to 70%. It invested a total of 300 million yen.
Tanaka Seimitsu Kogyo to build a new plant to increase rocker-arm production by five times in 2014
 Tanaka Seimitsu Kogyo decided in April 2014 to build a new plant near the existing plant of Tanaka Precision (Thailand) in Lamphun Province. Tanaka obtained the 64,000-square meter plant site for about 300 million yen with a plan to start construction of a plant within a year and production of rocker arms in 2014. Tanaka Seimitsu expects that, in FY2016, its production volume of rocker arms in Thailand will become fivefold larger than the current level.
 In addition, Tanaka will expand the existing plant to increase the production capacity of engine parts for automobiles and motorcycles by half by May 2012. It will transfer the unneeded production facilities from Japan to Thailand, and refurbish them for the plant.
Chuo Spring to build a second plant to double the production capacity of door lock cables
 Chuo Spring will invest 250 million yen in Chuo Thai Cable in Rayong Province to build a second plant, planning to produce door lock control cables according to the news report in January 2012. Chuo Spring will double the monthly production of the cables to 1.4 million units to respond to increasing orders from the body related parts suppliers (the schedule is unknown).
Tsubakimoto Chain to increase production capacity of timing chain drive systems by 50%
 Tsubakimoto Chain will build a fourth plant in Tsubakimoto Automotive (Thailand) in Chonburi Province, planning to start the operation in the latter half of 2012. Tsubakimoto Chain will renovate the land and the building with a floor area of 4,000 square meters next to the existing plant. It plans to increase the annual production capacity of engine timing chain drive systems by 50% over the current level to 2.5 million units, and three million units in 2014. Tsubakimoto intends to catch up with increasing demand in ASEAN regions such as Indonesia plus India. It estimates the investment as totaling hundreds of millions of yen.
 With the start of the operation of the fourth plant, Tsubakimoto will end the supply from Japan and start production of key parts, link plates for chains and tensioner parts to establish the start-to-finish production of timing chain drive systems. The supplier is promoting transfer of production of key parts to overseas plants from Japan to prepare against natural disasters such as the Great East Japan Earthquake.
TS Tech to set up a second plant of seats after FY2014
 TS Tech started studying the setup of a second seat plant in Thailand in the next medium term business plan starting from FY2014 according to the news report in June 2012. The existing plant, TS Tech (Thailand), stands in Saharattana Nakorn Industrial Estate of Ayutthaya Province. It was inundated during the flood in autumn 2011. The new plant site will be decided by taking into account the production plan of its main customer Honda and the trend of new orders from other OEMs, and from the risk diversification perspectives. The annual production capacity will be similar to the existing plant, i.e., seats for 250K vehicles. TS Tech positions Thailand as a key center of production, sales, development and purchase in Southeast Asia.
Nichidai to increase production of turbo chargers by 20% at maximum
 Nichidai will build a new plant in Nichidai (Thailand) in Chonburi (in which Nichidai holds 75% voting rights), planning to finish the construction in June 2012. The total floor area will be 8,300 square meters, six-times larger than the current area. Nichidai will set up a new assembly line in the space of 30% of the new building to produce key parts of diesel engine turbochargers and nozzle assemblies in spring 2013. Nichidai will increase the production by 20% at maximum from the current level to supply the products to Japanese OEMs in Thailand. The other space of the new plant building will be used for producing forged scroll parts. For more details, see the Expansion of Production Items.
NHK Spring builds a new seat plant in its Thai subsidiary
 NHK Spring invested about 1.1 billion yen to build a fourth plant in its subsidiary, NHK Spring (Thailand), in the Eastern Seaboard Industrial Estate. The plant has been running since November 2011. A 10,000-square meter plant building stands in a 140K -square meter plant site. NHK Spring produces and supplies assembled seats to the local Thai plants of Mitsubishi and GM. It intends to post sales of about 6.2 billion yen in 2012.
Hitachi Automotive Systems to increase production of engine and drive control electric systems
 Hitachi Automotive Systems will build a new plant building in the premises of the existing plant of Hitachi Automotive Systems Asia to increase production of engine and drive control electric systems. The plant will start operations in 2013 and produce engine control units (ECU). Hitachi Automotive Systems will catch up with Japanese and American OEMs which are increasing production in the Southeast Asian region.
 In addition, Hitachi Automotive Systems stepped up the production of drive control products at its local subsidiary, Tokico (Thailand), in Nakhon Ratchasima Province in April 2012. These products include brakes and suspensions. Hitachi Automotive Systems is promoting an outward shift of production, planning to increase overseas sales ratio in 2015 to 60%, up by ten percentage points compared to the 2010 level.
Hitachi Chemical to double the production capacity of brake friction materials by building a second plant
 Hitachi Chemical decided to build a second plant of Japan Brake (Thailand) which produces brake friction materials in Ayutthaya Province. The second plant site will be in the Gateway Industrial Estate of Chachoengsao Province (May 2012). Hitachi Chemical intends to respond to increasing demand, and ensures stable supply by de-concentrating the production. The plant will start running in February 2013, and produce friction materials for disc brakes and brake assemblies. Hitachi Chemical expects to double its production capacity after the plant starts operation. It plans to build a second plant in the Hi-Tech Industrial Estate, the location of the first plant. The first plant was inundated during the flood in autumn 2011, and consequently changed the plant site.
Hitachi Cable transfers production facilities from Japan to double the production capacity of brake hoses
 Hitachi Cable will transfer part of their production facilities to produce brake hoses from the wire plant in Hitachi City of Ibaraki Prefecture, Japan, to AHCL (Thailand) in Chonburi Province. After the completion of the transfer in FY2013, AHCL will have a two-fold capacity in producing brake hoses from FY2011. Hitachi Cable has supplied brake hoses from Thailand and Japan to its plants around the world. It intends to increase the ratio of the supply from Thailand to improve price competitiveness.
Fine Sinter to build a second plant to increase the production capacity of powder metallurgy parts
 Fine Sinter built a second plant on the premises of Thai Fine Sinter, a powder metallurgy part plant in Rayong Province. The scale is about a half of the first plant. The plant construction was completed at the end of 2011. The plant has sintering furnaces and press machines. Fine Sinter will start production of powder metallurgy parts for engines, shock absorbers and transmission systems at the second plant by the middle of 2012, and will supply the products to Toyota which is increasing production of IMVs and engines in Thailand and other parts suppliers. Fine Sinter invested about one billion yen. It sets the sales target of its Thai Plant at three billion yen in 2014, up by 50% from the 2011 level.
Fuji Kiko to double production of steering columns
 Fuji Kiko will introduce new facilities in Summit Fuji Kiko Kurata Manufacturing in Rayong to double the production of steering columns according to the news report in March 2012. The increase of production will take place in FY2012 to FY2013. Fuji Kiko intends to respond to increasing production by Japanese OEMs in Thailand by increasing the production capacity of small and light steering columns which contribute to fuel efficiency.
Mitsui Chemicals and Prime Polymer to reinforce the production capabilities of polypropylene for automotive parts by 15%
 Mitsui Chemicals and Prime Polymer (in which Mitsui Chemicals takes a 65% stake and Idemitsu Kosan 35%) will build a new line to produce polypropylene (PP) for automotive parts in Grand Siam Composites (in which Mitsui Chemicals takes a 45.2% stake, Prime Polymer, a 3.0%, among others). The production line will start operations in the third quarter of 2012; the annual production capacity of PP will be up by 15% to 140,000 tons. To ensure quick and accurate delivery, an automatic multi-level warehouse will be built as well. Mitsui Chemicals and Prime Polymer will meet increasing demand in Indonesia and neighboring countries as well as Thailand.
Mitsubishi Heavy Industries to step up the production capacity of turbo chargers
 Mitsubishi Heavy Industries will increase production of turbo chargers at Mitsubishi Turbocharger Asia in Chonburi Province from 2012 to 2014. Mitsubishi Heavy Industries posted global sales of 4.3 million turbo chargers (equal to a 21% share) in FY2011. It plans to expand the sales to seven million units in FY2014 (equal to a 25% share). For this purpose, it will build a new plant in the US and also reinforce production capabilities in China and Thailand. It plans to increase the global production capacity in FY2016 to 10 million units (of which 750K units will be built in Thailand), up by 2.3 times from the current level.
Mitsubishi Electric to increase production capacity of car audio systems
 Mitsubishi Electric plans to reinforce the production facilities of car audio systems at Mitsubishi Electric Thai Auto-Parts in Rayong Province. The production on the reinforced facilities will start in the latter half of 2012, although the production scale and investment amount are not disclosed. Mitsubishi Electric will supply the products to Japanese OEMs producing in Europe and the US. The plant had difficulties to procure parts due to the flood in autumn 2011, and got through a temporary production cut. Fortunately the production turned toward recovery at the end of 2011.
Yamashita Rubber to build a second plant to consolidate Thai and Japanese production of extruded products
 Yamashita Rubber will build a second plant in the premises next to the existing plant of its wholly-owned subsidiary Y-TEC (304 Industrial Estate, Prachinburi Province) to respond to increasing demand by Honda and others. Yamashita Rubber held the corner stone ceremony in May 2012, and plans to start operations within the year. The first plant produces molded and extruded products. After the second plant starts production, Yamashita Rubber will transfer all production of extruded products such as hoses and tubes. In the future, it will also transfer most of the production of extruded products from Japan to Thailand to supply them all over the world. The investment will be 2.0 billion yen. When the second plant starts operations, the production capacity will double from the current level. Yamashita Rubber sets Y-TEC's sales target at 3.0 billion yen in the year ending December 2013 and 5.0 billion yen in the year ending December 2014 (it was more than 1.0 billion yen in the year ended December 2011).
U-Shin built a second plant and increases production of key sets in time with construction of Suzuki's Thai plant
 U-Shin built a second plant at U-SHIN (Thailand) which produces key sets in Rayong Province, and started the operation in November 2011. U-shin temporarily shelved the second plant project, for which the supplier started preparation in 2008. As Suzuki resumed the Thai plant building project (the plant has been running since March 2012), U-Shin also resumed the construction at the beginning of 2011. U-Shin bought the land before, and thus, it cost 2.2 billion yen for U-Shin to build the plant and machines. U-Shin expects to double the sales over the previous year in Thailand after the second plant has started operations, because sales to Suzuki will be added.
Yokohama Rubber to increase global production by 12% to 66 million tires in FY2014, while increasing the production capacity in Thailand as well
 Yokohama Rubber will increase the production capacity of tires in Russia, China, Philippines and Thailand during the period of its medium term business plan "GD100" Phase III (2012 to 2014) as announced in February 2012. Its global annual production capacity will be raised to 66 million tires at the end of FY2014 from 59 million tires at the end of FY2011. It will make an additional investment of a total of 140 billion yen in the above period to expand the production capacity to 86 million tires at the end of FY2017. In Thailand, Yokohama Rubber will increase the production capacity of Yokohama Tire Manufacturing (Thailand) in Thailand.
Yorozu builds a second plant to produce suspension parts and related parts
 Yorozu established a second plant in Thailand, Y-Ogura Automotive (Thailand), in which Yorozu holds more than an 80% stake. It spent about 4.0 billion for the second plant in Rayong Province where the first plant is located. The second plant will build and supply suspension parts and related parts to OEMs and parts suppliers which are operating in Thailand. Yorozu aims to post sales of about 4.5 billion yen with 330 employees at full-capacity in 2015.

 

 



Trends to expand production items

Aisin AI starts production of power transfers for Toyota Hilux Vigo
 In July 2011, Aisin AI started production of four-wheel-drive power transfers at the second plant of Aisin AI (Thailand) in Chachoengsao Province on consignment from Toyota. The production item is FR Transfer "TV2" for Hilux Vigo, and the plant produces 130,000 units per year. Aisin AI has produced manual transmission systems for Hilux Vigo at the Thai Plant. This is the first time for the company to produce power transfers abroad.
Aichi Steel begins the start-to-finish production of forged parts at new plant
 Aichi Steel was building a new plant at its production subsidiary, Aichi International (Thailand). The first stage construction work was completed. The new plant has operated since June 2012. Aichi Steel set up a new forging line at the new plant in the Pinthong II Industrial Estate of Chonburi Province, and also transferred the entire processing and inspection functions from the existing plant in the Amata Nakorn Industrial Estate. It established start-to-finish production of forged parts. The existing plant will be closed in a phase-in-manner.
Alpine to resume production of car audio systems at the Thai plant
 Alpine will resume production of car audio systems at Alpine Technology Manufacturing (Thailand) in Prachinburi Province in September 2012. Alpine withdrew the car audio system production with the Lehman Brothers' Shock. The plant produces electric equipment through outsourcing. Alpine invested about one billion yen in the plant to install the facilities to produce car audio systems and car navigation systems. It will make efforts to penetrate the ASEAN markets as well as Thailand. Alpine will start with commercial products, while planning to deal car audio systems equipped in OEMs' new vehicles.
Exedy to start production of torque converters at Exedy (Thailand) in Chonburi in 2013
 Exedy will start production of torque converters at Exedy (Thailand) in Chonburi Province in 2013 at the earliest. Exedy will install the facilities in the plant building newly built by Exedy (Thailand) to produce 400K units per year and supply them to Japanese transmission suppliers and OEMs. Exedy intends to export the products to neighboring countries. Exedy (Thailand) has imported torque converters for Thailand from Japan. As AT-equipped vehicles are increasing in Thailand, Exedy has decided to start producing them locally.
FTS to produce plastic fuel tanks for Toyota's new model vehicles in 2013
 FTS will start production of plastic fuel tanks at the plant of Asno Horie (Thailand) (in which FTS holds a 79% stake) in Rayong Province in 2013. The plant is manufacturing iron tanks. FTS will invest hundreds of millions of yen in the plant and set up blow molding machines and assembling lines to supply the products for Toyota's strategic compact vehicles to be produced at a rate of 70,000 units per year in 2013.
KYB to start production of CVT pumps in autumn 2013
 KYB acquired an 88,000-squre meter land in the Amata Nakorn Industrial Estate of Chonburi Province for 780 million yen in May 2012. It will build a new plant to start production of CVT pumps in September 2013, with plans to establish a monthly production capability of 50,000 units. KYB is producing pumps for power steering systems, and shock absorbers at the plant in the same industrial estate, while importing CVT pumps from Japan.
Sumitomo Electric establishes plant to produce copper wire rods and drawn wires, plus aluminum bars for machining
 In April 2012, Sumitomo Electric established SEI Thai Electric Conductor, a wholly-owned production subsidiary in Rayong Province. The plant will start running in April 2014, planning to produce copper wire rods and drawn wires which are buses for electric wires and cables for wire-harnesses, and aluminum bars to be cut into valve parts for automotive transmissions. It aims to sell about 10,000-ton copper products, and 110-ton aluminum products per month, and to post annual sales of about 47 billion yen. Sumitomo Electric will respond to increasing demand in China and the Southeast Asian region.
Tachi-S to set up a new line exclusive for seat frames, and supply products to ASEAN and Indian plants
 Tachi-S will build a new line exclusive for seat frames in the seat plant of TACLE Seating Thailand in Bangkok city. It will invest about three billion yen. It will start production in autumn 2013, with plans to expand production in a phase-in manner to full-capacity production in spring 2014. The plant will have an annual production capacity of more than 100K units (under adjustment). Tachi-S will supply the frames to its own seat plant in Thailand as well as Indonesia and India where it plans to have seat plants for the future. Responding to the plans to increase production in emerging countries by Nissan, Tachi-S plans to concentrate the production of frames in China, Thailand and Mexico, and supply the products worldwide.
T. RAD to produce 200K EGR coolers
 T. RAD will introduce special facilities in T.RAD (Thailand) in Chachoengsao Province, and start full-capacity production of EGR coolers in the middle of 2012. It plans to produce 200K units per year. While the governmental Eco-Car program is boosting automotive production in Thailand, T. RAD expects an increase in the models to be equipped with EGR coolers, which are effective for fuel efficiency and emission gas reduction. This is the fourth EGR cooler production plant for T. RAD, following Japan, the US and the Czech Republic.
Nichidai to produce scroll forged parts for car air conditioners in December 2012
 Nichidai will build a new plant at Nichidai (Thailand) in Chonburi Province, and introduce press machines, with plans to start production of scroll forged parts for car air conditioners in December 2012. Nichidai has produced the parts at Ujitawara Plant in Japan. It will respond to the activities of Japanese compressor suppliers of which production is expanding. It set sales of scroll forged parts in Thailand at 300 million yen in FY2013 and 900 million yen in 2014. Nichidai will use part of the new building to increase the production of turbo parts. The total investment for the production of scroll forged parts and turbo parts will exceed one billion yen in 2012 to 2014.
Piolax to produce metal parts for CVT for 500K vehicles per year in 2013
 Piolax acquired the existing plant next to Piolax (Thailand) in Rayong Province for the third plant. As a result, the plant building area was doubled from the previous level to 8,200 square meters. The third plant will produce metal parts for CVTs in 2013 to respond to Jatco of which the first Thai CVT plant will start operation. Piolax will have first production of these products in Southeast Asia. The plant will have an annual production capacity for 500K vehicles. It will invest hundreds of millions of yen.
 In 2013 or 2014, Piolax is considering adding metal fasteners as a production item. It plans to supply the products to the ASEAN region as well as India.
Fukoku to build a new plant and start production of wiper parts for Europe and the US
 Fukoku plans to build a third plant of its subsidiary Siam Fukoku (the head office in Samut Prakarn Province) in Nakhon Ratchasima Province. The plant will start running after July 2012. The investment will amount to two billion yen. Its main production item is sealing functional parts at the current two plants. It will produce wiper parts for European and US markets at the new plant. The second Gunma Plant in Japan produces wiper parts for Japan, Europe and the US, of which production for Europe and the US will be transferred to the new plant in Thailand. Fukoku sets the sales target of Siam Fukoku at 2.46 billion yen in 2012, and 3.99 billion yen in 2013 (it was 2.13 billion yen in 2011).
 In the first announcement in January 2011 regarding the construction of a third plant Fukoku had planned to build in Khon Kaen Province, the site was changed to Nakhon Ratchasima Province in September of the same year. Since Siam Fukoku's plant (Khorat Plant) already stands in the same industrial estate that it obtained the new plant site, this decision will bring benefits for both plants from the perspectives of cooperation with the existing plant and reduction of distribution costs.
Molitec Steel starts production of clutch parts
 Molitec Steel built a new plant in the Pinthong Industrial Estate of Chonburi Province through its existing local subsidiary Juthawan Molitec (Thailad) (completed in March 2013). The plant will start running in summer 2012, and produce steel parts of clutches for engines. For Molitec Steel, this is the first time to produce these parts abroad. The first investment is 1.2 billion yen, with plans to make an additional investment of 800 million yen by FY2015. Molitec Steel will supply the parts to Japanese OEMs in Thailand, intending to export them to neighboring countries. Molitec Steel sets the 2015 sales target of the Thai subsidiary at five billion yen (about one billion yen in FY2011). Molitec Steel plans to double the entire company's production capacity of clutch parts for engines from the level at the end of 2011 by FY2015.

(Source: Press releases of above companies and various media reports)

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