Japanese suppliers to build new plants in Russia and Eastern Europe

Asahi Glass, Daido Metal, Tokai Rubber, Toray, Toyota Boshoku, Bridgestone, and U-Shin all planing e

2013/01/17

Summary

 The number of passenger cars registered within 18 European countries between January and November of 2012 dropped 7.2% from the previous year to 11.69 million units. Under these circumstances, Japanese suppliers in Europe are targeting European passenger car OEMs, especially Volkswagen (VW) and German high-end vehicle manufacturers, as their target for expanding their businesses. New plants and production capacity expansion to existing plants are mostly constructed in Eastern Europe where labor is cheaper, but are also built in the U.K., France, Germany, and the Netherlands.

 There are suppliers which acquired or established joint ventures for the purpose of strengthening product engineering capability (Asahi Glass, Mitsubishi Rayon, Sumitomo Electric Industries/Sumitomo Wiring Systems), to achieve a global top-level market share (U-Shin and Nisshinbo Brake), to utilize European OEM sales channels owned by the local partners (Asahi Glass and Howa Textile Industry), and to establish a production base for the European, Middle Eastern, and African markets (Sumitomo Rubber).

 Some reorganized business structures by upgrading their local office to local subsidiary in order to strengthen their sales capability (Tokai Rubber), by establishing a sales company (Pacific Industrial), or by establishing a European holding company (Keihin). Others established new facilities such as an R&D site in France (Akebono Brake) and a designing office in Italy (Toyota Boshoku).


 The sales volume in Russia is estimated to increase by 9.4% from the previous year to 2.9 million for 2012. The production volume is also expected to show a constant increase of 11.5% y/y to 2.22 million units. Non-Japanese automakers are also partnering with local OEMs to expand their production structures.

 In the situation given, the Japanese suppliers are constructing new plants, securing production sites through acquisition, and expanding capabilities of their existing plants. The suppliers are not only constructing their own plants (Yokohama Rubber, Unipres, and Takata), but also producing parts at the Nissan plant (Calsonic Kansei and Kasai Kogyo). Many suppliers are shipping parts to AvtoVAZ (Takata, under a Toyota Tsusho's project, and Sanoh). Daido Metal increased its production capability in response to the increased orders from European OEMs' local plants. Bridgestone, U-Shin, and Yorozu are in consideration of constructing new plants.

 Jatco, which will be supplying parts to AvtoVAZ for the first time, established a local office and KYB established a subsidiary for import and export sales covering the entire Russia and former CIS regions in order to strengthen their sales structure.



Germany and Austria: Mitsubishi Rayon acquires German and Japanese suppliers to strengthen development capability of carbon fiber products; Daido Metal increases production with expansion of business with BMW

Asahi Glass to own German glass supplier, Interpane Glas Industrie AG

 In December 2011, Asahi Glass (AGC) announced that it has reached an agreement with Interpane Glas Industrie AG (IP), a German glass supplier, to make it AGC's subsidiary by acquiring a 51% stake through its European subsidiary, AGC Glass Europe (AGEU). AGEU and Interpane will develop sites for production and processing glass, and mutually complement their products and lineups. Through this subsidiary the AGC Group plans to strengthen its presence in the German sheet glass market and also drive its innovativeness in the glass coating sector which adds functions to applications such as construction, automobile, and solar power.

Sumitomo Electric Industries/Sumitomo Wiring Systems establish a joint venture with REMA to develop Combo compliant EV battery charging connector

 In November 2012, Sumitomo Electric Industries and Sumitomo Wiring Systems jointly established a battery charger connector manufacturing company, SUMI REMA EV Solutions GmbH, in Germany. The company was capitalized at 500K Euros with Sumitomo Electric Industries having a 36% share, Sumitomo Wiring Systems 24%, and REMA 40%. Sumitomo Electric Industries and Sumitomo Wiring Systems also acquired skills and knowledge relating to base technologies for battery charging connectors owned by REMA. A new battery charger connector for electric vehicles (EVs) complying with the Combined Charging System (a.k.a. Combo) standard in Europe and the U.S. will be developed and designed at the joint venture to be commercialized by FY2013.

Daido Metal receives first orders from German automaker, BMW, for DE bearings; delivery to start in the fall of 2013

 During mid-2012, Daido Metal received the first orders for bearings used for new diesel powered engines equipped on the German automaker BMW's major sedans, the 3 Series and the 1 Series in the compact class. Bearings will be delivered to BMW plants in Europe starting from the fall of 2013. The production capacity is expected at several tens of thousands of units for the initial year, but Daido Metal plans to increase the volume to 150K units by FY2015, further expanding the figure to one million units in the mid to long term. The supplier has been focused on engineering lead-free bearings. Daido Metal won the orders from BMW with a head-start into the European market over its competitors and its aggressive promotion of the German automaker.

DIC to start PPS production at new Austrian plant in January 2013

 DIC will expand the sales of its PPS (Polyphenylene Sulfide) compounds to the European auto market. In September 2011, DIC agreed with Solvay, one of the major chemical manufacturers in Europe, to purchase its PPS compound business, and in October the same year, confirmed the construction of a new plant by its Austrian subsidiary, DIC Performance Resins GmbH. The manufacturing of products shipped to the European market will start from January 2013. The annual production capacity of the new plant at the beginning of its operation is expected at 6,000 tons. The plant can be expanded to cope with an annual production capacity of 10K ton in the future. With the production capacity of the Belgian company DIC acquired in 2012, DIC as a group is aiming to exceed a 20% share in the European PPS compound market within a few years.

TS Tech considers construction of plants in Europe

 TS Tech will start supplying seats to VW in Germany from 2014. It is considering constructing plants in Europe while also establishing a supply chain by partnering with other companies.

Tokai Rubber upgrades German local office to subsidiary to drive expansion of sales activities

 In July 2012, Tokai Rubber upgraded its local office in Germany to a subsidiary, TRI Europe GmbH (TRIEU), to strengthen its auto parts sales activities in Europe. TRIEU is a Tokai Rubber's wholly owned subsidiary capitalized at 120K Euros. It has already received orders from a German OEM, Porsche, and has also received orders for vibration insulating rubber from VW, Audi, and BMW. In response, the subsidiary opened a second plant and a development site in Poland to establish a development and production structure targeting European automakers (refer to the following for details).

Mitsubishi Rayon acquires German supplier to enhance carbon fiber-reinforced composite material business

 In November 2012, Mitsubishi Rayon announced the acquisition of a German carbon fiber fabric developing and manufacturing company, TK Industries GmbH (TK). The company made the acquisition to expand its carbon fiber-reinforced composite material business. Mitsubishi Rayon plans to apply TK's carbon fiber based multi-axial non-crimp fabric to its high-performance large-tow, and drive development of intermediate materials suitable for molding applications such as automotive and general-purpose industrial projects and expand its business in Europe.

 

 



Activities of Sanden, Nidec, Bridgestone, Hitachi Cable, Toyota Boshoku, Nippon Kayaku, and Daido Metal in Eastern Europe

Tokai Rubber constructs second plant in Poland as supply hub to European OEMs

 In October 2012, Tokai Rubber Industries announced the construction of a new plant at its subsidiary in Poland, TRI (Poland) SP.zo.o (TRP). While the existing first plant has been delivering vibration insulating rubber and noise insulating materials mainly to Japanese manufacturers in Europe, the construction of the second plant will allow the subsidiary to comply with the increased orders from European companies. The second facility is located near Ukraine and it may also serve as a supplying hub to Russia in the future. The plant is set to begin production in August 2013 with TRP's estimated production value for FY 2015 to reach 7.6 billion JPY (1.8 times increase from FY2011).
 A portion of facilities at the first plant will be moved to the second plant. The space at the first plant after the transfer will be used as a developing site for prototyping and endurance testing. This will allow Tokai Rubber to have a comprehensive environment from development to production within a single site. This will be the fifth developing site established following Japan, the U.S., Thailand, and China.

Sanden constructs new compressor core component plant in Poland

 Sanden completed the construction of its new plant in Polkowice where the existing plant (Sanden Manufacturing Poland Sp.z.o.o.) is located. The manufacturing of core components used in compressors for automotive air conditioners will begin between January and April 2013. Parts imported from Japan comprise 50% of the products supplied to VW. By switching the core components to local production, Sanden will prevent effects from the strong yen and save time on transportation.

Daido Metal to expand production capability at existing plant in Czech Republic

 Daido Metal will add a new plant to its Czech subsidiary, DAIDO METAL CZECH s.r.o., within the property of its existing plant to increase production capability of bearings for automotive use. (Source: Seigo Hanji Chairman & CEO, from a report released in November 2012)

Toyota Boshoku establishes first Czech production company to cope with orders from European OEMs

 In May 2012, Toyota Boshoku's European subsidiary, BOSHOKU AUTOMOTIVE EUROPE GmbH (BAE), established its first Czech interior parts production company, BOSHOKU AUTOMOTIVE CZECH s. r. o. The company was capitalized at 300 million JPY fully invested by the Toyota Boshoku Group. The production of interior parts including molded ceilings and door trims will start in mid-2013. BAE will establish a production system optimized for European car manufacturers to comply with orders received from companies in Europe. The company is open to the idea of reorganizing its existing German production as well.

NGK Insulators to construct second plant in Poland and expand production at existing plant

 In March 2012, NGK Insulators (NGK) announced its plan to construct a new factory for manufacturing large-size Honeyceram substrate for diesel engine exhaust gas cleaning systems through its production subsidiary in Poland, NGK CERAMICS POLSKA SP. Z O.O., in the vicinity of its existing plant. The production will begin in January 2014 with an expected production capacity of 1.2 million product units or eight million Honeycerams. It will also enhance its production facility for Silicon carbide (SiC) diesel particulate filters (DPFs) at the existing plant aiming to increase the production capability by 20% from FY2012 by FY2013.

Nippon Kayaku constructs second plant in Czech Republic to cope with increasing demand for safety components

 Nippon Kayaku will construct a second plant next to its Czech subsidiary's existing plant, INDET SAFETY SYSTEMS a.s., to enhance its production capacity by 30%. The operation is set to begin in 2013. It was decided that the expansion would cope with increased demand for safety components in Europe. Inflators (device used to release gas to inflate airbags), micro gas generators (MGGs) for a device used to fasten seatbelts on impact, and squibs (firing mechanism for these two devices) will be manufactured at this plant.

Nidec to mass produce rare-earth-element-free motor in Poland

 Nidec will invest 200-300 billion JPY to establish a global mass production structure that will allow it to produce switched reluctance (SR) motors without rare earth elements by around 2015. The motors will mainly be used to drive electric vehicles (EVs) and hybrid vehicles (HVs). Overseas mass production sites are in China, Poland, and Mexico. The production of motors for electric power steering will begin in 2014 at Nidec Motors & Actuators (NMA) Poland.

Hi-lex to add new production line for window regulators at subsidy plant in Hungary

 Hi-Lex Corporation will add new lines for window regulators to its Hungarian subsidiary, HI-LEX HUNGARY Kft's plant in northern Hungary. Production of regulators for the initial orders received from Ford of Europe began at the plant from November 2012.

Hitachi Cable constructs new brake hose plant in Czech Republic; scheduled to start production in February 2013

 In June 2012, Hitachi Cable announced the establishment of a new brake hose plant, Hitachi Cable Europe Limited, Czech Branch in the Czech Republic in February 2012 by its U.K. subsidiary, Hitachi Cable Europe Ltd. (HCE). The plant was built in the Czech Republic because HCE's Wales plant ran out of expansion space. The factory was built within the property of Hitachi Automotive Systems' group company, Hitachi Automotive Systems Czech, s.r.o. to save initial and maintenance costs at the plant. The facility is set to begin production in February 2013. The supplier aims to double its brake hose production capability from the current volume by fiscal year ending March 2016, three years after the operation begins.

Bridgestone to expand production capabilities at Poland and Hungary plants

 In July 2012, Bridgestone announced the production capacity enhancement of truck and bus radial tires (TBRs) at its Polish subsidiary, Bridgestone Stargard Sp. z o.o. Daily production capacity is planned to reach 3,750 by the latter half of 2014 from 2,400 at the end of April 2012. The company will invest a total of 120 million Euros (12.6 billion JPY) for this project.
 In October 2012, the supplier announced the enhancement to its production capacity for radial passenger car tires (PSRs) at Bridgestone Tatabanya Termelo Kft plant in Hungary. The company expects to increase its daily production volume from 6,000 at the end of June 2012 to 18K during the first half of 2017. The company will invest a total of around 267 million Euros for this project.

Yagi Industries expands plant in Poland to increase production capability

 Yagi Industries have completed its expansion of its Polish manufacturing subsidiary, YAGI POLAND FACTORY in the beginning of 2012. The property of the plant was expanded by 45% to 8,600 square meters, equipped with machining lines transferred from its Japanese headquarters. The expansion doubled the monthly production volume of hub parts, its major product, to 200K. Yagi Industries is planning to further increase the monthly production capacity to 300K by expanding machining lines. The supplier made the expansion to its facility to cope with the increased production of Japanese OEMs in Europe. It aims to increase its revenue from 2.1 billion JPY (estimated) for fiscal year ending March 2012 to five billion JPY by fiscal year ending March 2016.

 

 



U.K., France, the Netherlands, Belgium, Switzerland, and Luxembourg: Nisshinbo Brake acquires TMD and U-Shin acquires a department from French supplier, Valeo

Akebono Brake to establish new subsidiary for the establishment of new R&D center

 In November 2012, Akebono Brake announced the establishment of a new French subsidiary, Akebono Engineering Center, Europe S.A.S. (temporary name), to establish a new R&D center for foundation brakes (mechanical parts such as brake calipers) in 2015. Akebono Brake already owns a brake friction materials R&D site (CREA) and a friction materials R&D site, but it aims to start a full-scale foundation brake business in Europe with the addition of this brake mechanism R&D center. In its new mid-term business plan for 2020, Akebono Brake is also considering to construct a new brake caliper plant in Europe. Its location, schedule, and size have not been decided. The company is also planning to expand production capacity of its friction material plant as well as reducing cost by establishing a production site for brake systems.

Eagle Industry to double production capacity of French subsidiary; promotes local procurement of components

 Eagle Industry will double its annual production capacity of compressor control valves for automotive air conditioners from the current volume to six million during FY2012 at its French subsidiary, Eagle Industry France S.A.S. (EIF in Faulquemon, Moselle). The supplier will expand its plant and add an assembly line to accomplish this goal. It will also install machining facilities for in-house production of components during the latter half of FY2012. The initial cost of this project is approximately two billion JPY. Components imported from Japan will be replaced by locally procured products by FY2015 to avoid risks from exchange rate fluctuation and lower cost fluctuation rate of materials for enhancing profitability. Production of core components needing precision machining will also be transferred from Japan to EIF.

Sanko Gosei to expand production capacity of U.K. subsidiary by 25%

 Sanko Gosei spent around 300 million JPY to increase the production capacity of plastic auto-parts by 25%. The operation began in June 2012. (Source: report released in January 2012)

Showa and Nissin Kogyo dissolute their joint venture; Showa to continue operation

 In January 2012, Showa and Nissin Kogyo announced the dissolution of their U.K. joint venture, NISSIN SHOWA UK LIMITED (NSUK), around March 2013. This was decided due to decreased sales in Europe as well as Nissin Kogyo's withdrawal from NSUK at the end of 2012 with the termination of production of brakes for current models as a part of Nissin Kogyo's strategic restructuring of automobile brake business in Europe. Showa will acquire all NSUK's shareholding and continue the operation specializing in shock absorbers and power steering for automobiles.

Pacific Industrial to set up TPMS sales company in Belgium

 In March 2012, Pacific Industrial announced the establishment of auto-parts sales company, Pacific Industries Europe NV/SA, near Brussels in Belgium in July 2012. The new company was capitalized at one million Euros (about 100 million JPY). The new European company was set up to sell and provide after-care services of tire pressure monitoring systems (TPMSs) expecting an increase after the system becomes a legal requirement within Europe.

Toray acquires all shareholding of French carbon fiber manufacturing and sales joint venture; considers production expansion

 In January 2012, Toray announced that it has acquired all shareholding of a French carbon fiber manufacturing and sales company, Societe des Fibres de Carbone S.A., which Toray formally owned 70%, making it a wholly owned subsidiary. The name of the company was changed to Toray Carbon Fibers Europe S.A. (CFE) with the acquisition. The current annual production volume of carbon fiber calcination is 5,200 ton. However, the company is planning to establish a comprehensive production system and drive expansion of the business by increasing calcination capability and additional production of precursor used as a material for carbon fibers and prepreg for aircrafts, foreseeing a global increase in demand for carbon fibers.

Toyota Boshoku to partner with Autoneum (Switzerland), Nihon Tokushu Toryo for comprehensive enhancement of soundproofing materials

 In August 2012, Toyota Boshoku announced that it has signed an agreement with a Swiss supplier, Autoneum, and Nihon Tokushu Toryo to jointly develop vehicle interior systems. With Toyota Boshoku's interior department combined with high quality acoustic technologies (soundproofing technologies for engine rooms and cabin floors) provided by Autoneum and Nihon Tokushu Toryo, Toyota Boshoku will act as an interior system integrator to promote and provide the best mobility space to automakers around the world. The companies will develop systems for HVs and EVs in addition to traditional gasoline powered vehicles.

Nisshinbo Brake becomes market leader in the world with acquisition of friction material supplier in Luxembourg

 In November 2011, Nisshinbo Brake acquired all shareholding of Luxembourg based TMD Friction Group S.A., becoming the top brake friction material supplier in the world with more than 15% share. The aims of the acquisition were business expansion with technology complementation, cost synergy effect from streamlining of logistics and consolidation of material procurement, and acquisition of global human resources and organization.

Nifco establishes new plant at U.K. subsidiary

 In February 2012, Nifco transferred and expanded the plant for its U.K. subsidiary; Nifco U.K. Ltd. The transition was made due to aging of its 40 year-old building at the existing plant. A total of 7.8 million pounds (approximately 975 million JPY) was spent for the purchase of 56K square meters of property just a few kilometers away from the old plant and for the construction of the new building with a 1.6 times larger total floor area of 12K square meters. The new plant is currently producing fasteners with facilities transferred from the old plant.

Howa Textile Industry acquires entire shareholding of French interior component supplier

 In July 2012, Howa Textile Industry announced the signing of an agreement to acquire a 100% stake of Tramico Automotive France SAS, a company which owns the auto-parts department of a France based company, TRAMICO SAS. Tramico Automotive France SAS manufactures and sells interior parts, namely ceiling materials, in Europe and Russia and there are a total of six sites in France, Slovakia, Russia, and Spain. Its major accounts include major European OEMs such as Peugeot Citroen, Renault-Nissan, and VW. The acquisition will allow Howa Textile to have transactions with these companies. The company name will be changed to HOWA TRAMICO after the acquisition.

Mitsubishi Heavy Industries to increase production at plants in Europe to expand sales of superchargers to German OEMs

 Mitsubishi Heavy Industries (MHI) is planning to increase its turbocharger sales to German companies, including BMW, Daimler, and VW. The company aims to increase the sales percentage of German OEMs from 40% in 2012 to 70% by FY2016 (based on unit sales). MHI plans to double its production capacity at the European sites to 4.5 million units to reach this goal. The supplier will also increase its engineers at the manufacturing site in the Netherlands from the current 60 employees to strengthen designing and engineering capability for joint development with its clients. Moreover, it is currently considering to switch the procurement of major components used for turbochargers (turbo nozzle assemblies for VG turbochargers) to strengthen cost competitiveness at the Netherlands site.

U-Shin to acquire key set and door handle departments from French OEM, Valeo, in March 2013

 In November 2012, U-Shin announced the acquisition of key set and door handle departments from a major French supplier, Valeo, on March 29, 2013 with about 17.1 billion JPY. Valeo will set up the headquarters for these departments in the Netherlands which U-Shin will acquire all its shareholding. This acquisition will allow U-Shin to expand its sales channels to OEMs in Europe where it had small share and grow its overseas revenue to over 70% at the earliest from the current percentage of a little less than 30%. With the acquisition of Valeo's departments, U-Shin will have the number one share (30% share) in the world in key set and will lead in door handle related products as well. The departments acquired from Valeo currently have 12 plants located around the world including Brazil and Germany. "After the completion of the acquisition, we will reorganize and restructure our business sites and production items. A giant increase in revenue is expected starting from November of FY2014," said Chairman & President of U-Shin, Kohji Tanabe.

Unipres to install additional large-size stamping machine for high-strength steel production in U.K. in 2013

 Unipres is expanding its worldwide supply chain for high-strength steel and increasing the total number of large-size transfer (TRF) presses installed globally to 21, adding seven units to the current 14 (as of November 2012) by 2014. In Europe, a 3,000 ton TRF will be installed in Unipres (UK) Limited in the U.K. during 2013.

 

 



Portugal, Italy, and Spain: Nichirin funds brake hose supplier in Spain; Toyota Boshoku establishes designing office in Milan

Uchiyama Manufacturing establishes new production facility for bearing seal parts at Portugal subsidiary plant

 Uchiyama Manufacturing will increase the production of bearing seal parts at its overseas plants (China, Vietnam, and Portugal). A new production facility will be added to its plant at the Portugal subsidiary, UCHIYAMA Portugal - Vedantes Lda., to start the production of magnetic rubber rotors by the end of 2012.

Kasai Kogyo to consolidate customer center with Spanish partner supplier

 Kasai Kogyo is currently in partnership with Spain's major supplier, Grupo Antolin, establishing a mutually complementing structure globally. The companies will be consolidating their point of contact for customers: the two companies will set up a joint venture in Japan to act as a headquarters for receiving orders relating to collaborative cases and role-sharing. The joint venture will manage which company will lead the production and designing of each order.

Toyota Boshoku establishes a first Europe located designing office in Milan, Italy

 In September 2011, Toyota Boshoku opened a vehicle interior designing studio, TOYOTA BOSHOKU MILAN DESIGN BRANCH, in Milan, Italy, as its first designing site in Europe. The studio engages in activities such as collection of design information, creation and proposals for customers. Designers from Japan and other countries are working together to grasp the latest trend in Europe to nurture their designing sense, collaborate in creative activities to create high quality interior designs rich in originality, and to search for new possibilities in leather materials.

Nichirin funds the Spanish subsidiary of a French supplier for a synergistic effect and expansion of sales in Europe

 In November 2012, Nichirin announced its funding to a new company based on a department separated from a Spanish subsidiary of a French enterprise Total group's Hutchinson Spanish subsidiary, Palamos Hutchinson.S.A. It will own 30% of the company (amount funded is around 300 million JPY). The joint venture, HUTCHINSON NICHIRIN BRAKE HOSES, S.L., will be established in January 2013. Nichirin aims to create a synergy effect by utilizing technologies, skills and knowledge both companies posses and collaborate in areas such as manufacturing, sales, and purchases expanding its brake hose business in Europe and ultimately, globally.

 

 



Russia: Yokohama Rubber, Unipres, and Takata construct new plants; Calsonic Kansei and Kasai Kogyo to begin parts production at Nissan plant

Calsonic Kansei establishes Russian subsidiary; to produce parts at Nissan's vehicle plant

 In May 2012, Calsonic Kansei established a subsidiary, Calsonic Kansei Russia, in Saint Petersburg, Russia. A production facility will be installed at Nissan's plant with 750 million JPY to produce cockpit modules and heating, ventilation, and air conditioning (HVAC). The plant is set to begin production in December 2013. "The production of parts for AvtoVAZ has not been decided, but we wish to keep our spending low at the initial stage of the project," commented President, Bunsei Kure (reported on October 2, 2012).

Kasai Kogyo to establish production system in Russia by supplementing production capabilities with Antolin and producing parts at Nissan plant

 Kasai Kogyo will be "supplying parts to Nissan's St. Petersburg plant from Antolin plant, and Nissan components produced at the AvtoVAZ plant will either be manufactured at the Nissan site or from KDs shipped from Guangzhou, China for assembly" for production in Russia, stated President, Kuniyuki Watanabe in a report released on August 22, 2012.

Kinugawa Rubber Industries to establish a Russian satellite plant in 2013

 In its five-year mid-term business plan starting from fiscal year ending March 2012, Kinugawa Rubber Industries plans to establish a Russian satellite plant in 2013. Items produced include body seals. Components will be manufactured by assembling half-complete products delivered to the satellite plant.

KYB establishes import and sales company to expand sales and reduce logistics cost

 In November 2012, KYB announced the establishment of an import and sales company for automotive hydraulic shock absorbers and suspensions, LLC KYB Eurasia (KER) in Moscow, Russia. The operations will commence in January 2013. It aims to expand sales of suspension parts including spare parts, off-the-shelf shock absorbers, and coil springs throughout Russia and to former CIS regions. At the same time, the company will optimize its sales and distribution network in Russia to make a large cost reduction in logistics.

Sanoh Industrial to acquire pipe department from major Russian supplier for its production site

 Sanoh Industrial will acquire the metal tube division of a major Russian auto-parts supplier, Metalloprodukcia, in Samara Oblast, by the end of 2012, to gain production sites and sales network in Russia. It plans to start operations of a new pipe manufacturing plant at the headquarters of one of Russia's leading automobile company, AvtoVAZ, Tolyatti by 2014. The supplier will invest approximately three billion JPY into this project including acquisition cost and costs for new facilities by FY2015. In addition to MP's existing plant, Sanoh will also construct a start-to-finish plant in Tolyatti that is capable of bending pipe. The operation is set to start in 2014 with an annual production capability of up to 1.5 million units. A simpler site specializing in bending pipes will be set up in St. Petersburg where many Japanese companies, such as Toyota, have their plant.

Jatco opens local office in Tolyatti, Russia; additional staffing also planned

 In June 2012, Jatco started shipping automatic transmissions (ATs) to a Russian carmaker, AvtoVAZ, and opened a local office in Samara Oblast as well. This is the first delivery operation of ATs in Russia, but also the first AT vehicle to be launched from AvtoVAZ. The office will be staffed with five full-time "sales engineers" with knowledge for transmission products to expand orders in Russia, and will have seven employees working by 2014.

Daido Metal to strengthen production capacity of sliding bearing at Russian plant

 Daido Metal will increase its production capacity of sliding bearings for engines by 50% from 2012 to 1.05 million units by 2014 at its Russian subsidiary, DAIDO METAL RUSSIA LLC, in Nizhny Novgorod Oblast. About 200 million JPY will be spent for this project. This will increase production capability to cope with increased orders from European and American automakers in Russia as well as local manufacturers.

Takata to begin production of seatbelts and airbags at new plant in Russia

 In April 2012, Takata started the production for seatbelts, airbags, and steering wheels for AvtoVAZ at the new plant for its Russian subsidiary, TAKATA-PETRI Rus LLC, in Ulyanovsk Oblast. About two billion JPY will be spent for this project. The plant will be built on approximately 99K square meters of land.

Toyota Tsusho begins FS for business in Russia with several Japanese suppliers to provide components to AvtoVAZ

 In 2012, Toyota Tsusho began feasibility studies (FS) for local provision of components to AvtoVAZ with several other Japanese suppliers. This is in response to a request from AvtoVAZ to Toyota Tsusho to start its business in Russia. Local provision of components used by AvtoVAZ to manufacture Datsun brand vehicles will start from 2014 at the Tolyatti plant. Additionally, a nation-wide mutual logistic network will be established by Nissan, which owns a production site in St. Petersburg, and the Nissan Renault AvtoVAZ group located near Moscow. Toyota Tsusho has set up a local office in Tolyatti for these activities.

Bridgestone to open plant sometime in the future

 Bridgestone is considering starting a business in Russia, and "we will definitely establish a plant sometime in the future," said Tsuya CEO. The company will wait for a business opportunity while studying skills and knowledge from its group company, Nokian Tyres.

Yazaki establishes manufacturing and sales company for wiring harnesses in Russia

 In July 2012, Yazaki announced its plan to start manufacturing and sales of wiring harnesses by acquiring a Russian wiring harness production and sales company, "Industrial Volga Company" Limited Liability Company (IVC), in Nizhegorodskiy Oblast and renaming the company "Yazaki Volga" Limited Liability Company by August 2012. This will be the first site in Russia for Yazaki. The supplier will take over Volga's account to go into full business operations. The revenue is projected at 35 million Euros for 2012.

U-Shin considers construction of plants in Russia

 U-Shin is considering constructing a key lock production plant in Russia, but it is under consideration for both independent and M&A establishment. The company is aiming to start business between 2013 and 2014. (Source: report released in November 2012)

Unipres in FS for possible construction sites and business format in Russia

 Unipres is currently studying feasibilities in Russia for vehicle frame production. The company is considering constructing a plant in St. Petersburg where Nissan has a plant. The plant will go into operation by the first half of 2013 at the earliest. Unipres is at the stage of narrowing down a construction site and the business format the company will take.

Yokohama Rubber starts construction of Russian plant in late 2011; begins full operation in June 2012

 Yokohama Rubber started construction of its passenger car tire plant in Lipetsk special economic zone, Lipetsk, near the end of 2011 and went into full operation from June 2012. 4.8 billion roubles were spent on this plant with the floor measuring 4.3 hectares. The annual production capacity at this plant is 1.4 million. The supplier will continue to expand its production capacity in succession.

Yorozu considers local production in Russia; to start operations by 2014 at the earliest

 Yorozu is considering starting "local production of automotive suspensions in Russia. To secure production volume, we wish to expand sales to Renault in addition to Nissan. The production will start by the latter half of 2014 at the earliest," commented Chairman Shido in a report released in September 26, 2012.

 

 



Other countries in Europe: KYB establishes headquarters in Europe; Sumitomo Rubber Industries to set up joint venture in Turkey, NSK increases production rate in Europe

Keihin to restructure sales structure in Europe

 In October 2012, Keihin announced the restructuring of its European sales structure as a part of business expansion in order to realize its vision for 2020 to "become a truly independent system components manufacturer able to compete with mega-suppliers in products and technologies that contribute to a better global environment." A sales location in Germany for European motorcycle OEMs, Keihin Sales and Development Europe GmbH (KSE), will be merged with sales department for heat exchangers in Europe as well as automobile sales department in the U.K., Keihin Europe Ltd. (Glasgow) to obtain new customers under a structure which allows it to promote products as a system.

KYB to establish a holding company to control its group companies in Europe

 In February 2012, KYB announced the establishment of a holding company to control its group companies in Europe and also to transfer six of its existing subsidiaries to the new company. This is to expedite decision making process in the European region and to optimize management resources. The new company in the Netherlands will be named KYB EUROPE HEADQUARTERS B.V.

Sanden to increase local procurement rate of A/C compressors to 80%

 Sanden will increase its local procurement rate of A/C compressors in Europe from 30% in mid-2012 to 75% by the end of FY2012. This is to prevent effects from currency fluctuations and to secure its revenue. The production facilities for components will be transferred from Japan to save localization costs. The company will continue to localize parts production, and targets to achieve an 80% local procurement rate between FY2014 and FY2015.

Sumitomo Rubber builds plant in Turkey

 In September 2012, Sumitomo Rubber Industries announced that it will jointly construct a passenger car/truck tire production plant in Turkey with a local company. The plant will be built near Ankara. The construction will begin in June 2013 and production in July 2015. Estimated daily production capacity is 30K by the end of 2019. The plant will act as a production base for emerging markets such as the Middle East, North Africa, and Russia and also for the European market. The joint venture was capitalized at 30 million dollars (approximately 2.4 billion JPY) with Sumitomo Rubbers owning 80%, and Abdulkadir Ozcan Otomotiv Lastik 20%.

NSK to raise production rate of European site to replace with imported parts

 NSK will increase its production rate at sites in the U.K., Germany, and Poland to reduce imported parts and promote switching to locally produced parts. It has aggressively renewed facilities to improve production and will introduce streamlining strategies executed at plants in other regions to sites in Europe. The import cost accounted for a high percentage of 50% of the revenue in Europe and the continued drop in Euro currency value further pressured its profit. Additionally, a sales site will be established in Russia sometime after 2013.

Source: press releases and media reports

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