Japanese suppliers in China (3): Southern China - Guangdong Province

Akebono Brake, JATCO, Koito Mfg, Asahi Tec, Ahresty, Denso, Unipres, Aisin Seiki, Topre and Aisin Ta

2012/08/01

Summary

トヨタ/日産/ホンダの中国での生産台数 Below is the third of the serial research report about the recent trends among Japanese automotive parts suppliers operating in China. Part 3 contains results of MarkLines' research on the recent trends in eight cities (Guangzhou, Dongguan, Foshan, Shenzhen, Yunfu, Zhongshan, Shaoguan, Qingyuan) in the Guangdong province in the southern China in the past two years up to June 2012.

 The main customers of the Japanese parts suppliers are three largest Japanese automakers that are rapidly expanding their existing plants or building new ones (new production lines) in Guangzhou city, Guangdong province.

 Toyota plans to increase its annual capacity at the Guangzhou plant from 360,000 vehicles in 2011 to 600,000 by 2015.

 In December 2011, Nissan started operation at its second Huadu plant of Guangzhou with an annual capacity of 270,000 vehicles. Nissan plans to increase its capacity in Guangzhou, including the first Huadu plant, from 600,000 vehicles at the end of 2011 to up to 800,000 vehicles by 2013.

 Honda will start construction work at the end of 2012 of the third line at its Zengcheng plant to increase its annual capacity in Guangzhou from current 480,000 to 720,000 vehicles in 2015.


 In response to these moves, Japanese parts suppliers are vigorously expanding their existing plants or building new plants in Guangdong province, especially in the city of Guangzhou and neighboring cities such as Dongguan and Foshan.

 In addition, some suppliers including Tachi-S, NHK Spring and Unipres have established local headquarters in Guangzhou to control respective operations in China. Other companies, namely Hitachi Automotive Systems, F-Tech and Calsonic Kansei, have established development centers and Faltec has newly established a local development function.

Related Reports: Japanese suppliers

China (East) (Jul. 2012), China (North and Northeast) (Jul. 2012),
ASEAN countries (Indonesia, Vietnam and Malaysia) (Jul. 2012),
Thailand (1)
(Jul. 2012)/(2) (Jul. 2012), India (Mar. 2012),
Mexico/Brazil (Feb. 2012), US (Aug. 2012), Europe (Dec. 2011)

Guangzhou

Annual capacities of Toyota, Nissan and Honda in their production sites in China including their plants in Guangzhou

Figures after * include passenger cars and commercial vehicles; figures without * represent passenger cars only
(including SUV/MPV and mini-vans)
OEM Passenger car
plant in China
Annual production capacity (1,000 units)
End of 2011 July 2012 After expansion
(planned year)
Nissan Dongfeng
Nissan
Passenger
Vehicle
Dalian plant (Construction work started in June 2012) 150 (2014)
→ 300
First Huadu plant,
Guangzhou
330 670 800(2013)
Second Huadu plant,
Guangzhou
270
Xiangyang plant, Hubei prov. 100 200 (by August) 250(by the
end of 2012)
Zhengzhou new plant
(or second plant) *Note
140 180 - 200 200
Zhengzhou
Nissan
Automobile
Zhongmu (first) plant,
Henan prov.
40
(*90)
40
(*90)
n.a. (*180)
(by the end
of 2012)
Henan new plant, Henan prov. (Reported as "undecided" on some media) 200
(about 2015)
Toyota GAC Toyota
Motor
First line of Nansha plant,
Guangzhou
200 200 600(2015)
Second line of Nansha plant,
Guangzhou
160 160 → 200 (Later of 2013)
Guangzhou new plant (Reported as "undecided" on some media)
Tianjin FAW
Toyota Motor
Tianjin new plant (Construction approval pending) n.a.
Xiqing plant of Tianjin 120 120 120
TEDA plant of Tianjin 300 300 350
Sichuan FAW
Toyota Motor
Chengdu (new) plant *30 *30 *50
Changchun existing plant 10 10 10
Changchun new plant 100 100 and over 200 → 300
Honda Guangqi
Honda
Automobile
Huangpu plant
(Guangzhou first line)
240 240 240
Zengcheng plant
(Guangzhou second line)
240 240 240
Zengcheng plant
(Guangzhou third line)
(Construction work to start at the end
of 2012, engine plant to be affixed)
120 (2014)
→ 240 (2015)
Honda
Automobile
(China)
Guangzhou export plant 50 50 50 (by 2014)
Dongfeng
Honda
Automobile
First plant of Wuhan 240 240 240 (2015)
Second plant of Wuhan - 100 120 (2013)
→ 240 (by 2015)

Note: The Zhengzhou plant is currently operated by Dongfeng Nissan Passenger Vehicle Company and Zhengzhou Nissan Company.



Guangzhou city: Akebono Brake, JATCO and Koito increasing capacity; Asahi Tec, Ahresty, Denso and Unipres building new plants

Akebono Brake Industry Co., Ltd.: Adding two production lines to boost brake and caliper production capacity to 1.7 million sets a year

 In response to Nissan's brisk production in China, Akebono Brake is investing approximately 1 billion yen in total to increase capacities at its Guangzhou subsidiary, Akebono Corp. (Guangzhou) Co., Ltd. The company is increasing the number of brake caliper lines from two to four by the fall of 2012 after which the annual capacity of disk/drum brakes and brake calipers will increase from current 850,000 to 1.7 million sets.
 In 2011, Akebono Brake transferred part (10 percent) of its share holdings in Akebono Corp. (Guangzhou) to Itochu Corporation that has outstanding sales expertise in China, to build stronger ties between the two companies. The local Chinese subsidiary is now owned 30 percent by Itochu and 70 percent by Akebono Brake.

Note: In 2011, Akebono Brake formed a development division at Akebono Corp. (Suzhou) Co., Ltd., a friction material plant in Suzhou in which Akebono has 70 percent equity. The new division has about five development staffers including Chinese members as of July 2012.

Asahi Tec Corporation: Building a new plant to increase aluminum wheel production capacity to three million wheels a year

 In the summer of 2011, the construction work started to build a new plant attached to the Guangzhou existing plant of Asahi Tec's automotive aluminum wheel production subsidiary, Guangzhou Wheelhorse Asahi Aluminium. The new plant is to be completed in 2013 after which the company's annual capacity, including that of the Guangzhou existing plant, will increase to three million pieces. Part of the new plant is already in operation as of July 2012 to increase the capacity from 1.5 to two million pieces. The products are delivered to Japanese automakers in China and also exported to Japan.
 In building a new plant, Asahi Tec exercised allocation of new shares to Guangzhou Wheelhorse Asahi Aluminium after which the subsidiary's capital increased from 600 million yen to approximately 900 million yen as of July 2012 (Asahi Tec's equity increased from 30 to 49 percent).

Alpha Corporation: Adding a die fabrication plant in a subsidiary in Guangzhou

 In March 2011, Alpha began construction work to add a plant building at its subsidiary in Guangzhou, Alpha (Guangzhou) Automotive Parts Co., Ltd. The building will be used as a new die fabrication plant so that all dies are prepared in-house for making automotive key sets and door handles and so on. This will help achieve a 30 percent reduction in the manufacturing costs of products made in China.
 Alpha is investing several hundred million yen in total including the transfer of some of the machine tools (MC) and electric discharge machines from its Japanese plant (located in Tatebayashi, Gunma prefecture). Die fabrication in the new plant is to start within 2012. The company plans to increase production capacity at its automotive parts plant by 30 percent compared with that in March 2011.
 In medium to long range perspective, Alpha plans to export dies made at the Guangzhou plant to Japan after which the plant in Tatebayashi will concentrate on die fabrication to meet demand for engineering change by automakers.

Ahresty Corporation: Building a new die-casting plant next to the existing plant in Guangzhou

 In May 2012, construction work started to build a new die-casting plant next to the existing plant of Ahresty's subsidiary in Guangzhou, Ahresty Precision Die Mold (Guangzhou) Co., Ltd. When completed in March 2013, the new plant will start producing die-cast parts for automotive engines, transmissions and chassis.
 Ahresty is investing 6.3 billion yen in total (3.3 billion yen in 2011, 3 billion yen in 2012) for the construction work including the revamping of the existing plant. The die-casting capacity of Guangzhou plant is expected to increase by approximately 30 percent from 2,500 tons as of June 2011 to 3,250 tons.

Imasen Electric Industrial Co., Ltd.: Increasing capacity at Guangzhou plant with plans to switch supplies to Nissan and Honda's Hubei plants to Imasen Electric's Wuhan plant

 Imasen Electric has invested approximately 300 million yen in press and welding machines. As a result, the annual capacity at its Guangzhou plant, Guangzhou Imasen Electric Industrial Co., Ltd., for making electric and manual seat adjusters increased at the end of 2010 by approximately 30 percent to 850,000 vehicle sets (the new capacity remains unchanged in June 2012).
 As of June 2012, products at Imasen's Guangzhou plant are delivered to Guangqi Honda Automobile's Guangzhou plant, Dongfeng Nissan Passenger Vehicle's Guangzhou and Xiangyang plant, and Dongfeng Honda Automobile's Wuhan plant. Imasen plans to switch the production for Dongfeng Nissan Passenger Vehicle's Xiangyang plant and for Dongfeng Honda Automobile in phases from Guangzhou to the Wuhan plant that started operation in May 2012.

F.Tech Inc.: A development center established in Guangzhou dedicated to local automakers

 In April 2012, F.Tech invested 200 million yen to establish a development center in Guangzhou, F.Tech (Guangzhou) Technical Center. The center will conduct market research and gain insights for developing frames and chassis parts such as suspension modules and pedals. The company plans to open similar development centers in Beijing and Shanghai as well.

Ohashi Technica, Inc.: A new subsidiary established in Guangzhou for manufacturing automotive pressed parts

 In July 2011, Ohashi Technica established a 70-percent owned subsidiary for making pressed parts for engines, Ohashi Nakahyo Precision Parts (Guangzhou) Co., Ltd. The new company, capitalized at US$6 million, is to start operation by the end of 2012 initially with twelve employees.

Calsonic Kansei Corporation: Expanding Guangzhou plant and increasing development personnel head count to expedite local development in China

 In 2011, Calsonic Kansei expanded the plant building and installed new lines at its Guangzhou plant, Calsonic Kansei (Guangzhou) Components Corp., to increase production capacities for heat exchangers and air conditioners and meet the growing demand among Dongfeng Nissan Passenger Vehicle and other automakers.
 Calsonic Kansei is strengthening its local development function in China. The company increased the number of development staffs at CK KS Engineering (Guangzhou) Tooling Center Corp. and two development sites in Shanghai from 253 at the end of 2010 to 320 at the end of 2011. The company plans to increase the number further to 409 by the end of 2012.

Koito Manufacturing Co., Ltd.: Building a second plant to increase capacity at its wholly-owned subsidiary in Guangzhou

 Koito is building a second plant next to the existing Guangzhou plant of its wholly-owned subsidiary, Guangzhou Koito Automotive Lamp Co., Ltd., for producing headlamps and signaling lamps starting in the spring of 2013. The new plant will double the company's total capacity to one million vehicle sets.
 Koito is investing 3 billion yen in the second plant with an initial annual capacity of 300,000 and eventual capacity of 500,000 vehicle sets (1.2 million sets combined the Guangzhou first plant). The products are currently supplied to Japanese carmakers (Toyota, Nissan, Honda, etc.) and Koito plans to sell to European and American automakers in China as well.

JATCO Ltd.: Increasing annual capacity at CVT plant in Guangzhou to 900,000 units in the spring of 2013

 JATCO plans to increase annual capacity at its CVT plant in Guangzhou, JATCO (Guangzhou) Automotive Transmission Ltd., to 900,000 units by the spring of 2013 (announced in March 2012). The company is investing approximately 20 billion yen in total (approximately 1.5 billion yuan) to meet the rapidly increasing production of Nissan in China.
 Earlier, in April 2011, the Guangzhou plant began producing the CVT7 with an auxiliary gearbox (for minivehicles, small front-wheel drive vehicles) used in the new Sunny and so on produced by Dongfeng Nissan Passenger Vehicle, which increased the plant's annual capacity to 380,000 units. The company had invested another 20 billion yen to improve the machining process and install an additional heat treatment process, and increased the annual capacity to 730,000 units in the spring of 2012.
 As a way to reduce production costs, JATCO is producing in Guangzhou, since the spring of 2012, the core components of CVT that the company used to export from Japan. JATCO plans to increase the local content ratio of parts delivered by Japanese suppliers in China from over 75 percent (as of November 2011) to over 90 percent by the end of 2012.

Tachi-S Co., Ltd.: A Chinese operation management subsidiary company established

 In November 2011, Tachi-S established a wholly-owned Chinese headquarters subsidiary in Guangzhou, Tachi-S China Co., Ltd. (capitalized at US$3 million). The new subsidiary's main role is to manage and supervise Tachi-S's group companies in China to help prompt and smooth implementation of plans. The company plans to increase the employee head count from the initial 10 to 20 in 2013.

Denso Corporation: Relocating the Guangzhou-based car air-conditioner plant in 2013

 Denso will move its Guangzhou subsidiary, Guangzhou DENSO Co., Ltd., to Zengcheng Economic and Technical Development Zone (automotive parts industrial area) about 8km northeast to the present location (announced in November 2011). The plant relocation will take place between March and December 2013. The plant currently produces car air-conditioners, condensers, and radiators. The plant relocation was decided to accept the Guangzhou Local government's request to construct an infrastructure (mass transit center, railway stations).
 At this time, Denso will invest 6.3 billion yen in total by 2013 to construct a greater capacity at the new location. Construction work of the new plant started in March 2012. The plant, being built on a 133,800 square meter ground (compared with 74,600 square meters of the present location), will have a floor area of 57,000 square meters (compared with 39,800 square meters of the present plant). The new plant is to be completed by January 2013.

Nanbu Plastics Co., Ltd.: Increasing capacity at the automotive plastic parts plant in Guangzhou

 Nanbu Plastics is increasing production capacity for automotive plastic parts at Guangzhou plant, Guangzhou Nanbu Plastics Co., Ltd. The company is strengthening its operation in China including plans to increase capacity at its Dongguan plant as well with plans to increase sales revenue in China for the year ending December 2013 by 17.3 percent to 16.3 billion yen.
 As of March 2012, Nanbu Plastics has increased the number of injection molding machines at the Guangzhou plant to 70 and the company had added an automotive mirror vapor deposition machine in the first half of 2011. The plant's products are delivered mainly to Guangqi Honda Automobile and Dongfeng Nissan Passenger Vehicle.

Nishikawa Rubber Co., Ltd.: A 50 percent increase in capacity for automotive rubber seals at Guangzhou plant

 In July 2012, Nishikawa Rubber announced the Guangzhou Subsidiary was to build a new plant building at its existing Huadu plant, Guangzhou Nishikawa Sealing Systems Co., Ltd. The subsidiary plans to increase the capacity by 50 percent for making rubber seals used in automotive doors and window frames at the end of 2013 or around.
 Nishikawa Rubber is investing 1 billion yen in total by the end of 2013 including an expansion work at the existing plant in Shanghai, and expects annual revenue of 9 billion yen.

NHK Spring Co., Ltd.: Building a new automobile seat component and coil spring plant in Guangzhou and establishing a Chinese operation management company

 In December 2010, NHK Spring established a wholly-owned subsidiary, NHK Seating (Guangzhou) Co., Ltd., with plans to produce automobile seat components starting in 2016 with an initial head count of 77 employees. The revenue goal for the new company in FY2016, capitalized at 174 million yuan (total investment 277.6 million yuan), is set at 595 million yuan. NHK Spring plans to establish a development center in the plant's ground as well.
 The company is also building a second plant next to the existing first plant of its wholly-owned subsidiary. NHK-Uni Spring (Guangzhou) Co., Ltd., currently manufacturing automotive suspension coil springs and stabilizers. The new plant is to start production within 2012 with 109 employees and a total investment of 210 million yuan. The new plant has monthly capacity of 250,000 suspension coil springs, which will increase the company's capacity at two plants combined to 750,000 pieces. The annual capacity at the existing plant as of January 2012 was 5 million suspension coil springs and 3 million stabilizers.
 In the spring of 2012, NHK Spring established a Chinese headquarters company, NHK (China) Co., Ltd., in Guangzhou.

Hitachi Automotive Systems, Ltd.: A new subsidiary established in Zengcheng for developing, engineering and manufacturing automotive systems

 In February 2012, Hitachi Automotive Systems established a new developing, designing and manufacturing subsidiary, Hitachi Automotive System (Guangzhou) Co., Ltd., in Zengcheng city in the outskirts of Guangzhou. The new company, jointly established by Hitachi Automotive Systems (10 % equity) and the parent company, Hitachi, Ltd. (90% equity), is to start operation in April 2013. It will be engaged in designing and research and development of automotive system products (including development of manufacturing technologies), and in the development, designing, production and sale of environmental and safety products including direct fuel injection engine control systems, anti-skid brake systems (ABS) and vehicle dynamics control (VDC).
 The new plant, capitalized at 420 million yuan, stands on a 230,000 square meter ground. The company plans to increase the number of employees to 350 in 2014.

Unipres Corporation: A Chinese headquarters subsidiary established in Guangzhou and a precision pressed parts plant starts operation

 In March 2011, Unipres's manufacturing subsidiary, Unipres Precision (Guangzhou) Corp., completed phase 1 of its Huadu plant construction work in Guangzhou. The new plant has started manufacturing CVT clutch packs and drums, carrier packs, piston plungers, oil pans and sun gear assemblies that are delivered to JATCO's Guangzhou plant. Among the production items, the pressed parts produced in the month of May 2011 were for CVT for midsize vehicles powered by 2 to 2.5-liter engines, and those in the summer of 2011 were for CVT for small size vehicles ranging from 1.2 to 1.8-liter engines, and for large size vehicles in excess of 2.5-liter engines. The company plans to increase the number of employees to about 160 and increase the plant capacity by about five folds from the initial quantity (with a sales goal of 150 million yuan in 2013).
 In February 2012, Unipres established a wholly-owned Chinese headquarters subsidiary, Unipres (China) Corp., in Huadu district of Guangzhou city. The new company, capitalized at US$30 million, has started operation with about 50 employees.

Yorozu Corporation: Shifting production in Guangzhou for customers in central China to Wuhan plant

 Yorozu Corporation is in the process of shifting supplies of automotive suspension parts and auxiliary parts for customers in the central China (Nissan's Zhengzhou and Xiangfan plant, Honda's Wuhan plant, etc.) from Guangzhou to its Wuhan plant. The Wuhan plant started operation in October 2011. Yorozu plans to use the unused capacity in Guangzhou to meet growing needs among Japanese customers in southern China (Nissan, Honda, Toyota and Suzuki).

 

 



Dongguan city: Ogura Clutch, Piolax and Hitachi Chemical increasing production capacities while Clarion shifting part of car navigation production in Japan to China

Asahi Rubber Inc.: Producing automotive rubber products in Dongguan

 In July 2010, Asahi Rubber established Dongguan Asahi Rubber Precision Co., Ltd. in Dongguan city. The plant began operation in January 2011 producing automotive rubber parts such as rollers and O-rings (packing) for car audio systems. The plant, capitalized at US2.5 million, has a sales goal of 500 million yen in FY2013. Some of the parts will be exported to Southeast Asian markets. Asahi Rubber used to manufacture those parts in Dongguan under contract manufacturing using supplied materials according to the "Contract Processing" in China (with the sales revenue scale of 100 million yen).

Ogura Clutch Co., Ltd.: Increasing capacity for electromagnetic coils to 3 million pieces at the revamped Dongguan plant

 Ogura Clutch completed plant expansion work in August 2011 or round at its Dongguan manufacturing subsidiary, Ogura Clutch (Dongguan) Co., Ltd. In addition to electromagnetic clutches, the plant is now making component parts such as electromagnetic coils, pulleys and armatures. The company invested 140 to 150 million yen in the expansion work and increased the number of employees from current 320 to 400. The plant has capacities to produce 3 million electromagnetic coils and 1.7 million pulleys a year as of June 2012.

Note: In the plant expansion plan announced in August 2010, Ogura Clutch was to increase annual capacity for electromagnetic clutches for car air-conditioners from 1.5 to 2.5 million sets by April 2011. According to a MarkLines research, as of July 2012, the clutch capacity has not reached 2.5 million sets goal as yet.

Clarion Co., Ltd.: Shifting part of car navigation production from Japan to two plants in Dongguan

 In the fall of 2011, Clarion transferred part of its car navigation production at its Koriyama plant in Fukushima prefecture, Japan, to two plants in Dongguan; the Dongguan plant of Clarion (H.K.) Industries Co., Ltd. that manufactures car audio system components, and Dongguan Clarion Orient Electronics Co., Ltd. that assembles them.
 Clarion is installing two additional lines and other production facilities in the plants in Dongguan to increase the monthly capacity of car navigation systems from 10,000 sets in April 2012 to up to 30,000 sets by March 2014. Clarion will also produce next car navigation system models in Dongguan when they are ready. The Clarion products from Dongguan are primarily for exports but the company plans to increase shipments to automakers in China as well.
 Clarion has indicated intent to increase the local content ratio of parts at three plants in China, including the one in Fujian, from approximately 20 percent to 50 percent by 2012 at the earliest.

Sunaga Corporation: Centralizing and strengthening blow molding business in Dongguan after closing down the Foshan plant

 Sunaga Corporation closed the Foshan plant in 2010 and centralized its plastic molding operation in Canton to the plant in Dongguan, Sunaga (Dongguan) Co., Ltd. At the same time, Sunaga installed an additional blow molding machine in the Dongguan plant to strengthen its blow molding operation by increasing the plant's capacity in the summer of 2011 by 50 percent compared with the capacity as of March 2011.
 As of July 2012, Sunaga's Dongguan plant has about 450 employees and 47 injection machines (24 of the 100t to 350t machines and 23 of the 30t to 80t machines).

Nanbu Plastics Co., Ltd.: Increasing automotive plastic parts production capacity in Dongguan

 Nanbu Plastics is increasing production capacity of automotive plastic parts at Nanbu (Hong Kong) Co., Ltd. The company increased the number of injection molding machines to 80 as of the end of March 2012. The company had added an automotive mirror vapor deposition machine in the first half of 2011. The plant's products are delivered mainly to Guangqi Honda Automobile and Dongfeng Nissan Passenger Vehicle. The plant also fabricates dies.

Piolax, Inc.: Increasing capacity for metal fasteners in Dongguan

 In 2011, Piolax began transferring production of clips, fasteners and other plastic molded parts for Nissan and Honda's plants in China from Japan to its Dongguan subsidiary, Dongguan PIOLAX Co., Ltd. Transfer will be completed at the end of 2012. The company is investing approximately 700 million yen in total in installing additional lines and relocating certain equipment from Japan. Other than the transfer, Piolax will increase capacity for making metal fasteners used to attach interior and exterior parts and piping to the auto body. The fasteners are delivered mainly for Nissan vehicles.

Hitachi Chemical Co., Ltd.: Building an additional plant in Dongguan, increasing sintered bearing production

 In May 2012, Hitachi Chemical announced a plan to build an additional plant on the ground of its powder metallurgical plant in Dongguan, Hitachi Powder Metallurgy (Dongguan) Co., Ltd. The new plant, when completed in the fall of 2012, will start production of sintered bearing as well. The company plans to double the sales revenue of its powder metallurgical parts in FY2015 from FY2011.

Nachi-Fujikoshi Corporation: Increasing monthly capacity of bearings at Dongguan plant to 1.2 million pieces, further to over 1.5 million pieces in 2013

 Nachi-Fujikoshi is making an investment in the order of 1 billion yen to install an additional line at its plant, Dongguan Nachi C.Y. Corp., to increase monthly capacity for roller bearings for constant-velocity joints used in engines. The capacity had been increased to 1.2 million pieces as of June 2012 and the company plans to increase it further to over 1.5 million pieces by 2013. Nachi-Fujikoshi also plans to start buying from local Chinese sources as well.

Fukuju Industry Co., Ltd.: A powertrain plant in Dongguan to start operation in 2012

 In December 2010, Fukuju Industry established a manufacturing subsidiary in Dongguan city, Fukuju Auto Parts (Dongguan) Co., Ltd., with total investment of approximately 700 million yen. The company's wholly-owned plant is to start operation after the summer of 2012.
 Prior to the new plant operation, the company has been operating a leased plant since 2011 and engaged in precision cutting, followed by manufacturing of engine and transmission components. Once its own plant is completed, the company will engage in forging and pressing operations as well. Products are supplied to Japanese automakers and others in China. The company has set a sales target of 2 billion yen for FY2015.

Mabuchi Motor Co., Ltd.: Absorbing two contract manufacturing plants in Dongguan, organizing a development function in Dongguan

 In October 2010, Mabuchi Motor purchased a contract manufacturing plant in Dongguan and established Dongguan Daojiao Mabuchi Motor Co., Ltd. The new company is capitalized at 149,371 thousand yuan and the company has invested US$30 million. The new plant manufactures small motors for automotive and other use with an annual capacity of approximately 28,000 pieces as of October 2010.
 In November 2010, the company purchased another contract manufacturing plant in Dongguan and established Mabuchi Motor (Dongguan) Co., Ltd. Guancheng Branch that would be a branch of the existing second-generation subsidiary in Dongguan, Mabuchi Motor (Dongguan) Co., Ltd. The new plant has an annual capacity of 26,000 small motors for automotive and other use.
 In addition to above, Mabuchi Motor is organizing a development function by the end of 2012 within the development center which is affixed to the main plant (located in Guanlong Road, Dongguan city) of the indirectly-owned subsidiary, Mabuchi Motor (Dongguan) Co., Ltd. When completed, Mabuchi Motor will have development, manufacturing and marketing functions in China. The development staff will develop electric parking brakes (EPB) jointly with the head office in Japan to enhance the company's higher-end product lineup.

 

 



Foshan city: Aisin Seiki and Yutaka Giken increasing production, Tokai Rika, Faltec, Topre and Fuji Oozx building new plants

Aisin Seiki Co., Ltd.: Starting ECU and sensor production at a new Foshan plant at the end of 2012

 In November 2011, a construction work started for an automotive electronic parts manufacturing subsidiary, Aisin Seiki Foshan Electronics Co., Ltd. When completed in December 2012, the new plant will start manufacturing ECU for ABS and sun-roofs, vehicle height sensors, vehicle speed sensors for ABS, and other types of sensors for Aisin Seiki group companies operating in China. The new company, capitalized at US$14.4 million (total investment 3.4 billion yen) has set sales target at 5 billion yen for 2015.

Kobe Steel, Ltd.: Establishing a steel wire plant for making high-grade springs for automotive engine valves, etc.

 In January 2012, Kobe Steel established a new company in Foshan, Kobelco Spring Wire (Foshan) Co., Ltd., for manufacturing steel wire used in making high-grade springs for automotive engine valves. The new plant is to start operation in the first half of 2013 with a monthly capacity of 600 tons. The new company is built on the premises of a local group company, Kobe Wire Products (Foshan) Co., Ltd., that manufactures cold heading quality (CHQ) steel wires and cold-finished steel bars. The company is capitalized at 650 million yen and wholly owned by Kobelco Holding (China) Co., Ltd., Kobe Steel's China headquarters.

Tokai Rika Co., Ltd.: Production capacity in Foshan increased by 1.5 folds

 In the spring of 2011, Tokai Rika completed expansion work at its manufacturing subsidiary in Foshan city, Foshan Tokairika Automotive Parts Co., Ltd. As a result, the company's production capacity for key locks (including shift levers) and switches (including lever combination switches) was increased by 1.5 folds. The plant expansion cost 500 to 600 million yen and the products are supplied primarily to Toyota's manufacturing sites in China.

Toyo Tire & Rubber Co., Ltd.: A joint venture plant built for making urethane seat cushions for automobiles

 In March 2012, Toyo Tire & Rubber, jointly with a local body sealer manufacturer, Guangdong Shilihe Automotive Industry Group (TGPM, headquartered in Foshan), established a new joint venture company in Foshan city, Toyo TGPM Automotive Parts Foshan Co., Ltd. The new company will start manufacturing and marketing urethane seat cushions for automobiles and other transportation equipment in April 2013. The company, capitalized at 50 million yuan (approximately 600 million yen) is owned 60 percent by Toyo Tire & Rubber and 40 percent by TGPM. It is expected to hire 50 employees in FY2017 with a sales goal of 1.3 billion yen.

Japan Brake Industrial Co., Ltd.: Capacity increasing work completed at Foshan plant for making friction materials

 In July 2011, Japan Brake Industrial completed capacity increasing work at Foshan J.B. Automotive Products Co., Ltd., its wholly owned subsidiary engaged in manufacturing automotive friction materials. Although details are unknown, the company is strengthening its production sites in China, Mexico and Thailand to increase the group's automotive friction material manufacturing capacity by 1.5 folds from March 2011.

Topre Corporation: New plant in Foshan in full operation after May 2012

 Topre's manufacturing subsidiary in Foshan, Topre (Foshan) Automotive Parts Co., Ltd., was completed in May 2012 and started operation the following month (June). The new plant manufactures pressed parts such as A-, B-, and C-pillars and wheelhouses.
 The company is investing approximately 6 billion yen in the new plant construction. As of June 2012, two 3,000-ton presses, one 1,000-ton press, one 400-ton press, and two 300-ton presses have been installed. The plant has about 200 employees and expects orders worth approximately 7 billion yen in the first quarter of 2014. The plant will start production of automotive structural members (A- and B-pillars, etc.) in February 2013 at the earliest, using high-tensile steel supplied by Baosteel Group Corporation, a leading steel manufacturer in China.

Faltec Co., Ltd.: Production of automotive parts starts and a development function formed at a subsidiary in Foshan

 In December 2011, Faltec's manufacturing subsidiary in Foshan city, Foshan Faltec Auto Parts Co., Ltd., started production of automotive parts with an annual capacity of 5.07 million pieces. A second-phase construction work is under way at present (as of March 2012).
 In October 2011, a development function was organized in the Foshan subsidiary initially with three development engineers as of April 2012. Faltec plans to promote localization of development activities including hiring engineers locally.

Fuji Oozx Inc.: Engine valve production at a joint venture company in Foshan

 In August 2010, Fuji Oozx, jointly with TRW Asia Pacific and Shin Han Valve Industries, established a joint venture company in Foshan city, Fuji Valve (Guangdong) Corp. The new plant began operation in December 2011 and is engaged in integrated manufacture of engine valves and technical services. The new company is capitalized at 64.5 million yuan and 67% owned by Fuji Oozx, 25% by TRW Asia Pacific, and 8% by Shin Han Valve Industries. Its annual capacity is 20 million pieces.

Yutaka Giken Co., Ltd.: Increasing torque converter production capacity in Foshan to 740,000 pieces in 2013

 Yutaka Giken is increasing production capacity for torque converters for Honda (Guangqi Honda Automobile, etc.) at its manufacturing subsidiary in Foshan city, Foshan Yutaka Auto Parts Co., Ltd. The company plans to double annual capacity from that in 2010 to 740,000 pieces in 2013. Its capacity for torque converters as of July 2012 is 540,000 pieces in two shifts and 630,000 pieces with maximum working extra days.

 

 



Shenzhen city: Dainichiseika increasing high-performance resin production, Panasonic to produce automotive relays for EV/HV use

Saito-TM Co., Ltd.: Strengthening automotive pressed parts business with a Chinese ally

 It has been reported that Saito-TM having an independent plant in Shenzhen city, Saito-TM Lilai Precision Metal Co., Ltd., has plans to expand its automotive pressed parts business jointly with its local partner, Xinyongxu Metal & Die Co., Ltd., to 100 million yen in scale after April 2014, equal to ten folds compared with the scale as of April 2011. The Chinese partner (with 450 employees as of April 2012) is engaged in pressing and die fabrication and currently delivering sun-roof assembly components and handle bracket parts to the local plants of Yachiyo Industry and NSK Steering Systems, respectively.

Dainichiseika Color & Chemicals Mfg. Co., Ltd.: Increasing annual capacity of high-performance resin production by 2,000 tons to 32,000 tons

 It was reported that Dainichiseika has revamped production facilities at Shenzhen subsidiary plant, Dainichiseika Chemicals (Shenzhen) Factory, Ltd., and increased annual capacity of high-function resins (resin compounds), used in interior and exterior of automobiles and motorcycles, from 30,000 to 32,000 tons in the spring of 2011.

Panasonic Corporation: Expanding an existing plant to start production of automotive relays for EV/HV use

 Panasonic is expanding the plant of its manufacturing subsidiary in Shenzhen city, Panasonic Electric Works Taiko Device (Shenzhen) Co., Ltd. An additional plant structure was completed in May 2012 and work is currently under way to install knock-down production equipment of automotive relays for EV/HV use.
 The company is investing several billion yen in the plant expansion work. When completed, the plant's annual capacity of automotive relays for EV/HV and for gasoline-fueled vehicles combined will increase by 50 percent. The company is considering further increase of production capacity to meet growing demand among local automakers.

 

 



Yunfu, Zhongshan, Shaoguan, and Qingyuan: Aisin Takaoka, Advics and Nihon Plast building new plants

Aisin Takaoka Co, Ltd.: A new plant established in Yunfu for automotive parts casting and plastic working

 In May 2011, Aisin Takaoka established a manufacturing subsidiary in Yunfu city, Takaoka Lioho (Yunfu) Industries Co., Ltd., engaged in casting and plastic working of automotive parts. The new plant, capitalized at 120 million yuan (total investment 4.5 billion yen), will start operation in January 2013 manufacturing brake disk rotors (annual capacity 30,000 tons) for Guangqi Honda. Manufacture and machining work of engine parts will be added in the future. Operation will start initially with 200 employees and a sales revenue of about 2 billion yen expected for FY2013.

Advics Co., Ltd.: A new plant established in Yunfu for manufacturing automotive brake components

 In April 2012, Advics established a manufacturing subsidiary in Yunfu city, ADVICS Yunfu Automobile Parts Co., Ltd. When completed in December 2012, the new plant will start production of brake boosters and disk brake calipers. The new company is capitalized at 100 million yuan and 80% owned by Advics and 20% by Lioho Machine Investment (China) Co., Ltd.. It will hire up to 350 employees by FY2016 and expects sales of approximately 400 million yuan for FY2016.

Nihon Plast Co., Ltd.: Building a new plant in Zhongshan with annual capacity in China for 4.3 million vehicles in 2013

 Nihon Plast plans to build a second plant in its automotive airbag manufacturing subsidiary in Zhongshan city, Zhongshan Plast Industry Co., Ltd. As of March 2012, the government approval is pending for the plant construction and the plant operation is expected to start after the summer of 2013. The new plant, located away from the existing plant in Zhongshan, is being built with approximately 1 billion yen investment including facilities for research and development function. Part of the equipment will be transferred from the existing to the new plant. The new plant will have an annual capacity of producing airbags for 2 million vehicles.
 Once the new plant in Zhongshan starts operation, Nihon Plast's airbag production in China will total 4.3 million sets including 1.2 million sets at the existing plant in Wuhan (Wuhan Plast Auto Parts Co., Ltd.) and 1.1 million sets at the first plant in Zhongshan.

Prime Polymer Co., Ltd.: Increasing annual capacity for automotive PP compounds in Zhongshan to 70,000 tons

 Prime Polymer plans to increase annual capacity for automotive PP compounds (for making bumpers, etc.) at its joint venture manufacturing company in Zhongshan city, Mitsui Advanced Composites (Zhongshan) Co., Ltd., to 70,000 tons by the fourth quarter of 2013.
 The plant's annual capacity for PP compounds had increased from 46,000 tons in December 2010 to 60,000 tons as of May 2012 (according to a MarkLines research).

Furukawa-Sky Aluminum Corporation: Increasing automotive aluminum sheet production at Shaoguan plant

 Furukawa-Sky is increasing monthly capacity for automotive and other rolled aluminum parts at the two plants in Shaoguan city of Ruyuan DongYangGuang Foil Co., Ltd., in which the company has a 25 percent equity, to 10,000 tons by the end of 2012. This includes aluminum sheets used in making heat exchanges for automobiles, the monthly capacity for which will be increased from 200 to 300 tons to 1,000 tons after installing additional equipment. The company is enhancing productivity of the Shaoguan plant. This is expected to lead to 20 to 30 percent improvement in production capacity of hot rolling processes.

Yaginuma Press Industries Co., Ltd.: Starting cation electrodeposition coating and electrogalvanizing operation in Qingyuan

 In August 2011, Yaginuma Press Industries established a manufacturing subsidiary in Qingyuan city, Yaginuma (Qingyuan) Co., Ltd. The plant started cation electrodeposition coating in April and electrogalvanizing in May 2012. The new company is capitalized at US$5.2 million and expects yearly sales revenue of 700 million yen. The plant works cylindrical parts primarily for Nissan, Honda and other Japanese automotive parts suppliers operating in China. The company plans to install additional press machines for cylindrical parts and expand business.


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

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