Japanese suppliers continue to expand in South East Asia

Vehicle parts production strengthened in Indonesia; Vietnam and Malaysia for product export

2013/03/11

Summary

 This report summarizes the recent activities of Japanese suppliers in ASEAN countries with the exception of Thailand. The report covers those within ten months by the middle of February 2013.

 The automobile sales volume in Indonesia continued to expand with 742K units for 2010 (52.7% y/y increase), 869K units for 2011 (17.1% y/y increase), and 1.08 million units (24.3% y/y increase) for 2012. With further market growth expected in the future, major auto manufacturers such as Toyota, Nissan, Honda, and Daihatsu are strengthening their production capabilities.

Production enhancement plan by major Japanese OEMs in Indonesia

Toyota 2014 annual production capacity: 250K units (180K units until August 2013)
 The annual production capacity of the first plant to be increased from 110K to 130K by September 2013. The second plant with an annual production capacity of 70K units completed at the beginning of 2013 (the start of production at this plan is still unknown). Its annual production capacity will be extended to 120K units by early 2014.
Nissan 2014 annual production capacity: 250K units (50K units until August 2011)
 The annual production capacity of the existing plants will be increased from 50K units to 100K units in September 2011. It will be further increased to 180K units in 2013. Moreover, the annual production capacity is targeted to reach 250K units by 2014.
Honda 2014 annual production capacity: 180K units (60K units until 2013)
 The annual production capacity of the existing plant is 60K units. The new plant currently in construction (with annual production capacity of 120K units) will complete by 2014.
Daihatsu The annual production capacity since October 2012: 450K units
 The annual production capacity of the existing plant is 330K units. The operation at the new plant (with an annual production capacity of 120K units) began in October 2012.

(Source) Based on plants announced by respective companies.


 In response to these plans, the Japanese suppliers are planning to construct new plants in new regions, strengthen production capacities at their existing companies, and produce new parts. Construction of new plants is still a trend with these companies in Tier 1 and Tier 2. Companies in Tire 1 include: Aoyama Seisakusho (vertical production of bolts and nuts), H-One/G-Tekt (auto body frame components), Nippon Steel & Sumitomo Metal (steel sheets), Fujitsu Ten (established two production and sales companies), and Topy Industries (wheels). Companies which established new sites to cope with local demands in Indonesia as well as to serve as a point of export are: Sekisui Chemical (injection molds), Press Kogyo (frames), Seiren (interior materials), Tiger Sash (door parts), Nishikawa Rubber (rubber and plastic parts). Other companies like NHK Spring, Fuji Oozx, and Yamashita Rubber are also studying the details for starting a business in Indonesia.

 Companies enhancing the production capability at their existing plants and launching new products are: Aishin Takaoka (added casting lines), Akebono Brake (transferred production of drum brakes to in-company production), F.C.C. (added CVT production capability), Sumitomo Electric Industries (added oil quenched and tempered wire production capability), T.Rad (added automobile radiator production capability), Yutaka Giken (exhaust parts, catalytic converter) and Unipres (body press parts). Companies that are establishing new companies/plants and making additional investments include: Denso (third plant for electronic control units), TS-Tech (a new seat plant), Chuo Precision Industrial (a new aluminum wheel company), Tokai Rika (a new switch parts plant/new seatbelt company), Tokai Rubber (an own plant and a new vibration insulating rubber company) and Toyota Auto Body (a new plastic plating company).

 Some of the suppliers (F.C.C., Eagle Industry, and Press Kogyo) made changes to their plans to increase production and delayed schedules for going into full production due to lagged demand for vehicles in 2012 caused by Indonesian government's measure to limit loan for automobiles.

 Yokohama Rubber (consolidated two production and sales companies converting it to a supply hub for mini spare tires), Nidec Tosoku (a second site for electric fuel pumps), Muro Corporation (vertical production of pressed parts at existing plants), and Yokowo (begins production at an on-board communication unit plant and pushed up the start of the second phase of the construction) enhanced global export sites in Vietnam. Additionally, Mitsui Mining and Smelting established a catalytic production and sales company to conform to more strict gas emission regulations set by the Vietnamese government.

 In other countries (Malaysia, Singapore, and the Philippines) Showa Denko established a new casting company for casting aluminum parts in Malaysia, and enhanced its production capacity at the Singapore parts forging company. Other companies which established new companies in Malaysia are: Tachi-S (seat assembly), Toyo Rubber (including low-fuel consumption tires), and Nippon Kayaku (safety parts). Yokohama Tire (shift to low-fuel consumption tire) and Gunma Gohkin (aluminum die casting) enhanced their production capacity in the Philippines to strengthen their function as the global export hub.

 Activities of Japanese suppliers in Thailand will be provided in a different report.

Related Reports: Japanese suppliers

Russia and Eastern Europe (Jan. 2013), India (Nov. 2012),

Mexico and Brazil (Oct. 2012), Central & Southwestern China (Aug. 2012), Southern China (Aug. 2012),

Eastern China (Jul. 2012), Northern and Northeastern China (Jul. 2012), the US (Aug. 2012),

Thailand (1) (Jul. 2012)/Thailand (2)(Jul. 2012)



Indonesia: Japanese suppliers to build new plants

(Activities within ten months by the middle of February 2013. Companies are in Japanese phonetics order)

Aoyama Seisakusho establishes bolts and nuts production subsidiary

 In 2012, Aoyama Seisakusho established Pt. Automotive Fasteners.Aoyama Indonesia at KIM industrial park in Karawang prefecture in a suburb of Jakarta with an investment of approximately 1.2 billion yen. A nuts and bolts and nuts plant will be established by this company which is scheduled to start production in April 2013. Approximately one billion yen will be spent for this project (not including land). At the start of operations, half-completed components will be shipped from the Thailand plant to be heated and surface treated. Cold pressure and rolling processes will be introduced by the end of 2013 to establish a vertical environment. Parts produced at this plant will be provided to local plants for Toyota and Daihatsu.

Aska establishes production and sales subsidiary for body-pressed parts

 In July 2012, Aska established PT. AUTO ASKA INDONESIA in Karawang prefecture in a suburb of Jakarta. It was capitalized at eight million US dollars. A body pressed parts plant is set to go into production in December 2013. This is to establish a production structure in the ASEAN region where the demand for auto parts is expected with the localization of production by Japanese OEMs. This is the first wholly owned plant established outside of Japan.

C. Uyemura establishes new plastic plating company

 In October 2012, Uyemura established PT.UYEMURA INDONESIA in Karawang prefecture in a suburb of Jakarta. It was capitalized at 12 million US dollars. A plant will be completed by the summer of 2013 with plastic plating line. Plastic parts such as emblems as well as door handles and front grills will be plated at this plant. More lines will be added according to demand in the future. It is also considering introducing production facilities for plating chemical used for plating.

H-One/G-Tekt establishes joint venture for body parts weld assembly company

 In December 2012, H-One and G-Tekt established a joint venture, PT. Auto-Body Manufacturing Indonesia at Bukit Indah industrial park in Karawang prefecture in a suburb of Jakarta on a fifty-fifty basis. It was capitalized at 600 million yen. The company will start mass production from August 2013 to cope with Honda's business expansion. G-Tekt already owns an automotive body stamped parts plat in Karawang prefecture. Parts molded at this plant will be delivered to the new company for welding. This is the first time for H-One to develop business in Indonesia.

F-Tech establishes new company to produce suspension components

 In January 2013, F-Tech established a production subsidiary, PT.F.TECH INDONESIA at Karawang industrial park in Karawang prefecture in a suburb of Jakarta. It was capitalized at 500 million yen. The production of suspension components is scheduled to begin by September 2013. The production capacity for the first year is expected at 100K units. It aims to increase the number to 200K between 2014 and 2015. F-TEC is currently importing this product from Thailand to Indonesia, but plans to shift to local production.

Katsuyama Finetech establishes production company for seatbelt parts

 In June 2012, Katsuyama Finetech decided to establish PT. KATSUYAMA FINETECH INDONESIA at GIIC industrial park in Bekasi state, West Java. It was capitalized at 300 million yen. A plant is set to start production by 2014 annually producing 500K sets of plastic and metal parts to adjust and fix a seatbelt position. A total of 900 million yen will be invested into the construction of this plant. The parts will be supplied to local Japanese seatbelt suppliers. This is the second plant to be established outside of Japan after the Thailand plant.

Kyowa Metal Works establishes MT components manufacturing subsidiary; to start operation in 2014

 Kyowa Metal Works established PT.KYOWA TECHNOLOGY INDONESIA at GIIC industrial park in Bekasi state, West Java. Construction will start in July 2013 and the operation is planned to begin in April 2014. An investment of 1.6 billion yen will be made for the purchase of the land and the construction as well as for the deployment of machineries. Six million synchronizer rings, a component of MT, are set to be produced raising one billion yen sales for the first year. It is considering constructing an R&D center within the premises in the future.

Kinugawa Rubber establishes production subsidiary; begins production of body seals in 2012

 In 2012, Kinugawa Rubber Industries established PT.KINUGAWA INDONESIA in West Java and started production of body seals in June of the same year. Kinugawa Indonesia's plant will realize high quality products for model lines right from the designing stage by utilizing knowledge and skills built at Kinugawa Oita. Parts produced at this plant will be supplied to Nissan and Daihatsu. The supplier plans to expand sales by proposing parts fit for models popular with local drivers. Kinugawa Rubber aims for FY2015 sales of about 600 million yen.

Keihin Metal to produce springs for transportation equipment at new plant

 In February 2012, Keihin Metal Industry established PT. KHN-METAL INDONESIA at Suryacipta industrial park in Karawang prefecture, West Java. It was capitalized at one million US dollars. A plant will be constructed with an initial investment of 300 million yen; to go into production from April 2013. Springs for motorcycle kick-pedals and automobile handles will be manufactured initially at the plant and supplied to local Japanese OEMs like Honda. The supplier aims to reach sales of 500 million yen in three years.

Kodama Chemical Industry begins production of plastic parts from 2012

 In February 2012, Kodama Chemical Industry announced the establishment of PT. Echo Advanced Technology Indonesia in Karawang prefecture, West Java. It was capitalized at about 480 million yen. The plant will go into production with 12 injection molding units in September 2012, increasing the units to 32 in two years. Polypropylene and acrylonitrile-butadiene-styrene (ABS) plastic parts such as instrument panels will be produced at this plant and sold directly to local Japanese automakers. "The plan was to launch the project in 2014, but with the 2011 Great Japan Earthquake, flooding in Thailand, and strong yen, we decided to push up the schedule and transferred the production of interior parts in Thailand exported to Indonesia and started with prototyping" (Ken Ishii, President).

Jatco adds Indonesia as candidate for new oversea location

 Jatco aims to reach a revenue of one trillion yen for the fiscal year ending in March 2019. In order to attain this goal, "we need to double the production capacity of ATs and CVTs to ten million units from the current volume (as of 2012) " (Takashi Hata, President). Based on an estimate that the foreign production ratio will reach 72% by the fiscal year ending in March 2019, the supplier is expanding its plants in China and Mexico and constructing a plant in Thailand. Additionally, "we are taking various locations into account including Brazil, India, Indonesia, and Russia as the new manufacturing site. We hope to come to a decision within 2013 and start production by the fiscal year ending in March 2019" (President Hata, in report announced in January 2013).

Nippon Steel & Sumitomo Metal (NS&SM) considers establishing steel sheet joint venture with a local company

 In December 2012, NS&SM announced that it has agreed with an Indonesian thin sheets manufacturer, PT Krakatau Steel (Persero) Tbk, to talk in details regarding the establishment of the automobile steel sheet production and sales joint venture. This is to expand its business in response to expected mid- to long-term growth in high-end auto steel sheet demand. The supplier will first establish a joint venture, P.T Krakatau Nippon Steel Sumikin in Cilegon City, Banten state to acquire concession for the property at nearby industrial park. NS&SM will have 51% of shareholding and Krakatau 49%. The Japanese supplier hopes to sign an official contract within the first half of 2013.

Sugiura Seisakusho to start operation at new nuts and bolts plant in 2013

 In October 2011, Sugiura Seisakusho established PT.SUGIURA INDONESIA in Karawang prefecture, West Java. Production of nuts used for assembling body parts will begin at the beginning of 2013 and start delivery around spring. Production facilities for manufacturing "hub nuts", its major product, to fix tires will be introduced by the end of 2013 to start production. Manufacturing of the product currently imported from Japan to Indonesia will be transferred to this plant targeting sales of approximately 1.5 billion yen in three years.

Seiren establishes a new company for interior materials and airbag business

 In June 2012, Seiren established PT.SEIREN INDONESIA at Jababeka industrial park in Bekasi prefecture, West Java. It was capitalized at about 1.59 billion yen. 2.7 billion yen will be spent on the construction of the plant (the first investment between 2012 and 2014) and the production is set to begin in August 2013. Its aim is to fully enter into the Indonesian market, currently showing significant growth, and to expand and enhance its global supply site. The new company will be responsible for planning, development, production, and sales of textile goods. Seiren aims to post sales of 1.5 billion JPY in 2016.

Sekisui Chemical enters into auto-parts market with the establishment of joint venture for injection molded products

 In January 2013, Sekisui Chemical established a joint venture, PT ADYAWINSA SEKISUI TECHNO MOLDING at Jababeka industrial park in Bekasi prefecture, West Java with a local injection molded parts manufacturer/seller, PT ADYAWINSA DINAMIKA (ADW). Sekisui Chemical will own 51% of shareholding and ADW 49%. This is the first company Sekisui Chemical established in Indonesia. The operation is set to start in April 2013 (planned). Cowls and cover sheets for motorcycles and bumpers and windshields for automobiles will be produced and supplied to local Japanese motorcycle/automobile OEMs. The company is open to the idea of exporting the products to respective countries in ASEAN region.

Tiger Sash begins operation at door parts plant

 In 2011, Tiger Sash established P.T. Tiger Sash Indonesia at Gobel industrial park in Bekasi prefecture, West Java. This is the first overseas location for Tiger Sash. The operation at the plant started at the end of February 2013 producing door parts, mainly door sashes made of iron. The plant has a monthly production capacity of 300K units per shift. As of 2012, 40% of the components produced in Japan are exported to countries like Thailand and Pakistan as well as countries in Europe, but it is planning to gradually shift the production to Indonesia. The production cost in Indonesia is expected to be 30% less than the cost in Japan. Sales for the fiscal year ending in December 2014 is projected at 50 million JPY.

Tsuchiya acquires local Japanese supplier for its local production site

 In 2012, Tsuchiya acquired all shareholding of a Japanese supplier located in MM2011 industrial park in Bekasi state, West Java, renaming the company to P.T. Tsuchiya Manufacturing Indonesia. Tsuchiya took over all sales rights to home appliances and molding of plastic precision parts for motorcycles from this company while additionally producing stripe tapes for automobiles and descriptive labels, its field of expertise. The construction of the new plant will start from January 2013 and operations to begin in January 2014. It will spend about one billion JPY for this project. The supplier plans to position the plant as a production site for the South East Asian region as with the Thailand plant.

TDF and Jidosha Buhin Kogyo establish three-company joint venture with local subsidiary to manufacture forged and casted products

 In December 2012, TDF and Jidosha Buhin Kogyo (JBK) jointly established PT. TJForge Indonesia in Karawang prefecture, West Java. It was capitalized at 2.4 billion yen. TDF will own 50% of shareholding, JBK 25.2%, and the local subsidiary 24.8%. The operation of the plant will start in May 2014. The company will manufacture and sell raw materials for forging, machine forged and casted parts, and assemble parts (e.g. front axles) at this plant. The production capacity in forged product volume basis is 10K tons per year.

Toshin establishes joint venture to produced parts such as flanges

 In October 2012, Toshin established a joint venture, PT.Toshin Prima Fine Blanking in Surabaya city, East Java state, with an Indonesian financial combine, Indoprima group. Flanges for exhaust manifolds and auto parts fine blanking (precision punching) products will be produced. The company is capitalized at 4.7 million dollars with Toshin owning 26.6% of shareholding. The plant will initially be equipped with one 400-ton press. One 800-ton press for fine blanking will be transferred from a Japanese plant and the production will begin in mid-March. Toshin will provide technical assistance. It will add one 1000-ton press to the plant accordingly, based on production and quality management skill levels. Products made at this plant will be shipped to suppliers within Indonesia as well as other countries in the ASEAN region.

Topy Industries establishes manufacturing and sales joint venture for truck and bus wheels

 In December 2012, Topy Industries announced its plan to establish a joint venture, PT. TOPY PALINGDA MANUFACTURING INDONESIA at Suryacipta industrial park in Karawang prefecture, West Java with a local company, PT. PAKOAKUINA. It was capitalized at about three billion yen with Topy owning 70% of shares. A new plant will be built with about 5.5 billion JPY; the operation is scheduled to start during the first half of FY2014. It expects to manufacture 110K to 150K wheels for trucks and buses monthly between FY2014 to FY2016. Topy has been establishing a supply network within ASEAN through technical support deal to a wheel production company under PAKOAKUINA Group, but it will strengthen its supply infrastructure with the operation of this new plant foreseeing an increase in demand.

Nishikawa Rubber establishes joint venture to produce automobile rubber and plastic products

 In December 2012, Nishikawa Rubber established a joint venture, PT.NISHIKAWA KARYA INDONESIA in Sumedang prefecture, West Java with a local company, PT.KARYA PUTRA SANGKURIANG. It was capitalized at 16 million US dollars. Nishikawa Rubber will own 80% of shareholding. After the completion of the plant, it will start the production of automobile rubber and plastic products from January 2014. The company targets sales of around one billion yen for the fiscal year ending in December 2018.

Nissen Chemitec establishes new interior/exterior parts manufacturing company

 In 2012, Nissen Chemitec established PT. Nissen Chemitec Indonesia at Suryacipta industrial park in Karawang prefecture, West Java. It was capitalized at about 1.8 billion yen. Approximately 2.5 billion yen will be spent for the construction of a new plant, aiming to start operations in September 2013. In addition to door linings for plastic parts used inside doors, parts for motorcycles will also be manufactured. For the time being, the estimated annual revenue within Indonesia is about 1.3 billion JPY. This will be the third overseas subsidiary following the U.S. and Thailand.

NHK Spring jointly construct seat plant with French company, Faurecia

 NHK Spring aims to construct a plant to manufacture seats for Nissan vehicles with its French alliance, Faurecia during 2013. The investment was made to efficiently cope with Nissan's low-cost models targeting developing countries. (Source: report released in November 2012)

Nippo establishes new plastic parts production company; manufacturing to start in 2013

 In May 2012, Nippo announced its plan to establish a subsidiary, P.T. Nippo Mechatronics Indonesia in Bekasi prefecture, West Java in August 2012, and construct a plastic parts plant. It is scheduled to start operation in January 2013. The subsidiary will be capitalized at about 450 million JPY, and about 500 million JPY will be spent on this project. Plastic parts including electronic controls will be produced and supplied to local Japanese automakers and suppliers.

Pioneer opens representative office and begins production of car stereo systems under contract

 In September 2012, Pioneer announced that it will establish a local office, Pioneer Electronics Asia Centre Pte. Ltd. Indonesia Representative Office, in Jakarta in October 2012. Also, it will start production of car stereo systems under a contract at a local EMS production company from spring of 2013. The production volume will initially start from one million units, gradually increasing production later. This will strengthen the sales structure of consumer car stereo systems and enhance its business targeting local OEMs by cooperating with the EMS production company. It will also disperse risks relating to centralized production in Thailand and expand business within South East Asia.

Mannoh Industrial and Tsuda Industries establish shift lever production company for transmissions

 In July 2012, Mannoh Industrial and Tsuda Industries established PT. MTAT INDONESIA at Jababeka industrial park in Bekasi prefecture, West Java. The company was capitalized at 64 billion rupiahs (about 600 million JPY). About 600 million yen will be spent for the construction of a new plant, aiming to start operations at the end of 2013. Initially, transmission shift levers will be assembled at the plant with components sent from Thailand and also procured locally. Mannoh Industrial and Tsuda Industries will produce parts for MT and AT, respectively, on separate lines and supply products to nearby plants including for Toyota. Machining of forged and casted parts will also be done at this plant expanding production to other parts such as carriers for spare tires. The estimated sales for 2015 is about 700 million JPY.

Fuji Oozx studies embodiment for Indonesian market

 "in response to requests made from OEMs, Fuji Oozx is currently studying the details for entering into Indonesian market" (Kengo Fukaya, President). The company provides engine valves and valve parts and now has five overseas locations in the U.S., Korea, Thailand, and Beijing and Guangzhou, China. (Source: report released in December 2012)

Fujitsu Ten jointly establishes sales company with manufacturer in 2012

 In October 2012, Fujitsu Ten established a car stereo products and electric controller manufacturing company, PT. FUJITSU TEN MANUFACTURING INDONESIA in Bogor prefecture, West Java. It also established a joint sales company, PT FUJITSU TEN AVE INDONESIA at Special Capital Region of Jakarta, with an Indonesian distributor, PT. Anugrah Valova Electrindo. Operations at the plant will begin in July 2013 and mass production in December of the same year. Car audio products like CD tuners and touch screen car stereo systems as well as electronic controllers such as electronic units for controlling engines and airbags will be manufactured at this plant. Fujitsu Ten will own 60% of the sales company's share providing marketing, sales, and post-sales services.

Press Kogyo produces construction machine parts and frames for medium- and heavy-duty trucks at new joint venture

 In October 2011, Press Kogyo jointly established a construction machine and automobile parts production company, PT. P K Manufacturing Indonesia in Karawang prefecture, West Java with Marubeni-Itochu Steel. The plant was originally scheduled to start the production of construction machine parts from the end of September 2012, but the plan is still in prototyping phase from decreased demand in the market. "We will go into full production of construction machine parts from 2013. By adding a 500-ton press and a laser cutter, we plan to start the production of frames for medium- and heavy duty trucks at the beginning of 2014. The plan is to provide truck frames throughout South East Asia with the Indonesia plant" (Shuichi Magara, President). The company is also planning to produce pressed parts like outer panels, and establish a supplementing network with sites in Thailand.

Howa Textile Industry to start operations of interior parts plant in 2013

 Howa Textile Industry will build an interior parts manufacturing company at Delta Silicon industrial park in Bekasi prefecture, West Java. It will start running in fall of 2013. Howa Textile is expected to make an investment between 500 million to one billion yen excluding the cost for the land. Produced interior parts will be supplied to local Toyota, Nissan, and Honda plants. This is the first time for Howa Textile to supply its products to Indonesia. The supplier aims to post sales of 1.5 billion JPY in 2016. (according to the news report on July 3rd, 2012)

Mitsui Kinzoku Act to start operation at the door lock plant in 2013

 In March 2012, Mitsui Kinzoku Act established a production and sales company for mechanical parts including door locks, PT. Mitsui Kinzoku ACT Indonesia in Karawang prefecture, West Java. The plant will go into full operation utilizing a leased facility in September. Mitsui Kinzoku Act hopes to expand its business in Indonesia and ASEAN.

Murakami Corporation acquires local outer mirror manufacturer

 In June 2012, Murakami Corporation announced that it will acquire 51% shareholding of an automotive outer mirror manufacturer, PT. Delloyd in Bekasi prefecture, West Java. The supplier is under a technical support deal with PT. Delloyd, but it hopes to establish a production base in response to expanding market due to increased production at local Japanese OEMs. One Japanese representative will be dispatched once the acquisition is complete. In addition, it will rename the company and increase the production capacity in accordance with the growing market.

Muro Corporation establishes drive parts manufacturing and sales subsidiary

 In August 2012, Muro Corporation established PT. MUROTECH INDONESIA at Suryacipta industrial park in Karawang prefecture, West Java. It was capitalized at 3.75 million US dollars. A plant will be constructed with a total investment of about one billion yen; to go into production from August 2013. Muro will transfer the production of KD parts from Japan to Indonesia to focus on expanding local sales of drive parts.

Meidoh to start operations of plant to produce high-strength bolts and long and large-diameter bolts in 2013

 Meido constructed a new plant at Suryacipta industrial park in Karawang prefecture, West Java which is set to start mass production by the end of 2013. Delivery of products will begin in January 2014. High-strength bolts used for brakes and crankshafts on engines will be manufactured with its area of expertise, cold-forging technology. The monthly production volume will start from 250 tons.

Moriroku Technology establishes production site for interior and exterior plastic parts

 Moriroku will start production of interior and exterior plastic parts in Indonesia in mid-2013. It will establish an Indonesian subsidiary and start with molding and painting of parts under contract at a local company and assemble components at a rented plant. Moriroku will consider the possibility of constructing its own plant in the future. (Source: report released in June 2012)

Unicraft Nagura to construct a vertical production plant for MT parts

 In August 2012, Unicraft Nagura established PT. UNICRAFT NAGURA INDONESIA to construct a plant at GIIT industrial park in Bekasi prefecture, West Java state. The production of shaft parts for MTs will begin by December 2014. Its monthly production capacity is around 30K units. This is the first plant Unicraft Nagura built outside of Japan. As with its plants in Japan, the Indonesian facility will handle forging, machining and surface treatment in order to attain quality equal to Japanese plants. The plant will receive orders for constant-velocity joints and engine parts in the future aiming to reach revenue of 800 million yen in 2020. In August 2013, before the start of operation at the new plan, the company is planning to prototype products at a rental facility within the Bekasi prefecture.

Yamashita Rubber plans for construction of new vibration insulating rubber manufacturing plant

 In December 2012, Yamashita Rubber revealed its plan to construct a new plant for producing vibration insulating rubber for automobiles. The plan will be made official by March 2013 and the operation will begin by 2015. About two billion JPY will be spent for this project. This is to cope with increased production with the construction of the new Honda plant. Items produced at the plant are mainly vibration insulating rubber such as engine mounts. These items used in Indonesia are currently imported from plants in Thailand and Japan. They will be switched to local production.

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

 

 



Indonesia: Japanese suppliers construct new companies and enhance capacity/add new product at existing plants

(Activities within ten months by the end of February 2013. Companies are in Japanese phonetics order)

Aishin Takaoka expands production capability by adding casting lines

 Aishin Takaoka will increase its overseas casting capacity by 50% from the current volume (as of 2012) to about 600K tons per year by 2015. As part of its plan to reach this goal, Aishin Takaoka will add new casting lines with approximately 14K tons of annual production capacity at Pt. AT Indonesia in Cikampek, Karawang prefecture, nearby Jakarta. The line will go into operations in May 2013. About one billion JPY will be spent for this project. For further enhancement, the supplier will utilize about 150K square meters of land acquired by the Aishin Group near the plant. The president of Aishin Seiki stated that the land "may be used by a group company like Advics, but details will be dependent on orders we receive".

Akebono Brake is considering making additional investment for transferring production of drum brake to in-company

 Akebono Brake Industry is "planning to make an additional investment to switch the production of drum brakes to in-house from FY2013 and strengthen partnership with our partnering companies" at PT. Akebono Brake Astra Indonesia in Jakarta city (Hisataka Nobumoto, President). Akebono Brake will start delivering brake systems for global platform vehicles to Japanese and European automakers in 2013, but orders from European OEMs will be delivered from Indonesia and Thailand.

Eagle Industry delays operation of floating seal plant to June 2013

 In 2011, Eagle Industry made an additional investment to P.T. Eagle Industry Indonesia in Bekasi prefecture, West Java to start production of floating seals for construction machines and constructed a new plant next to its existing plant for motorcycle parts. However, in response to decreased demand for construction machines with the Chinese economy slowing down and such, the supplier pushed back its schedule for going into operations from January 2013 to June 2013. The company is planning to manufacture mechanical seals for water pumps and lip seals for A/Cs at this plant in the future.

FCC makes downward revision to its 2012 clutch production increase plant; to reach a target volume increase three years from the original plan

 FCC made a downward revision of two million units to its original plans for increasing production at PT. FCC INDONESIA in Karawang prefecture in a suburb of Jakarta in mid-2012. With the delayed deployment of equipments, the production volume was changed to eight million units, an increase of 10% from the previous year. FCC decided to delay the schedule forecasting a drop in consumption due to a new regulation set by the Indonesian government limiting the amount of down payment allowed for loans made to purchase cars. The schedule of the construction of the new building will remain unchanged and aims to establish a production system with an annual capacity of ten million units by 2015, three years from the original plan. Also, with the transition CTV Honda is making to its transmission for models in mid-sized class or under, production lines at PT. FCC INDONESIA will be changed AT to CVT compliant.

NOK to increase production capacity of seals by 20%

 NOK will increase its production capacity of seals at P.T.NOK Indonesia in Bekasi prefecture, West Java in Indonesia and Thailand by 20% in 2013. "The clients are increasing production in countries outside of China after risks relating to China became apparent. We will be leaning towards production in South East Asia from now on" (Masato Tsuru, President, January 2013).

Kiriu starts production of steering knuckles from 2012

 Kiriu will start production of steering knuckles from 2012 at P.T. KIRIU INDONESIA in Bekasi state, West Java. In addition to utilization of existing facilities including electric furnaces, Kiriu deployed special equipment for new production. The company has been producing brake disks, brake drums, gear carriers, differential cases, calipers, but decided to add a new product when it received orders from local Japanese OEMs.

Keihin to build a second plant to produce FI system and automobile parts

 In June 2012, Keihin held a ground-breaking ceremony for PT. Keihin Indonesia's second plant in Cikampek in a suburb of Jakarta. The plant is scheduled to begin production in August 2013. Electronic fuel injection (FI) systems currently growing in demands and automobile parts will be produced at this plant.

Sumitomo Electric Industries builds new oil quenched and tempered wire production facility to enhance business

 In November 2012, Sumitomo Electric Industries announced that it will go into production of oil quenched and tempered wires used for valve springs for engines at PT. Sumiden Serasi Wire Products (SSWP) in Bogor, West Java. The supplier will add 51 million dollars to its investment into SSWP in order to add oil quenched and tempered wire production line and start production from October 2013. This is the first overseas production of this parts. It will supplement the growing demand in ASEAN region by positioning Indonesia as the export hub. Once the new line becomes fully operational, Sumitomo Electric Industry's annual production capacity of oil quenched and tempered wires will increase by 25% from the first half of FY2012 to 18K tons.

Chuo Precision establishes new aluminum wheel production company

 In November 2012, Chuo Precision established a company for second production location for aluminum wheels, PT.CENTRAL MOTOR WHEEL INDONESIA at Suryacipta industrial park in Karawang prefecture, West Java. 16 million dollars was spent for capitalization fully invested by Chuo Precision. The operation will start in January 2014 with an annual production capacity of aluminum wheels of 500K units. A total of 3.5 million units will be produced annually when adding the three million units manufactured for export to Japan at the existing plant. The second plant was constructed to cope with increased demand in Indonesia. Parts manufactured at the second plant will be supplied to Toyota's strategic model for developing countries, the IMV, and other models manufactured at the new Toyota plant scheduled to start production in 2013.

TS Tech considering constructing new seat plant for Honda's Brio

 TS Tech will produce seats for Honda's Brio, a model targeting developing countries, scheduled to start production at Honda's new plant in Indonesia in 2014. The supplier is also providing seats used for the Brio in Thailand and India as well. Therefore, "we are considering the construction of a new plant in Indonesia. The plant will be run in two-working shifts with an annual production volume of 200K units" (Toshio Komeji, President, January 2013). TS Tech already has a manufacturing subsidiary, P.T. TS Tech Indonesia in Bekasi prefecture, West Java.

T.Rad to additionally produce radiators for automobile in 2013

 T.Rad will start production of automobile radiators from 2013 at PT.T.RAD INDONESIA in Bekasi state, West Java. This will cope with growing demand for automobile. The supplier added a new production line at its existing motorcycle radiator plant. Around 320 million yen will be spent for this project (excluding general-purpose facilities). The expected annual production volume for 2013 is about 100K unit. Radiators will be supplied to local Japanese OEMs such as Honda and Daihatsu. The plant will act as a hub in South East Asia after Thailand to expand profit.

Denso to construct third plant for production of electronic control units

 In September 2012, Denso announced the construction of PT. DENSO INDONESIA's third plant, PT. DENSO INDONESIA Fajar plant in Bekasi prefecture, West Java, on the land adjoining to its existing plant. Engine control parts like engine control ECUs and Variable Cam Timings (VCTs) as well as starters and alternators are planned to be produced at the plant. The building of the third plant will be complete in December 2013 and the operation will start in February 2014. About 9.4 billion JPY will be spent for this project. The company aims to increase the revenue of PT. DENSO INDONESIA to 100 billion yen by FY2020.

Tenma and Daikyo Nishikawa jointly establishes engine exterior parts venture

 In November 2012, Tenma and Daikyo Nishikawa announced the establishment of a joint venture, PT. Daikyo Nishikawa Tenma Indonesia in Bekasi prefecture, West Java, on a fifty-fifty basis. It will be capitalized at 25 million yen. The companies will construct a new plant at Suryacipta industrial park in Karawang prefecture, West Java state through this new company. The main function of the new company is sales and development and PT. Tenma Indonesia (Bekasi prefecture of the same state) will produce products under contract. Items produced at this plant include filters attached to the tip of suction port of an engine oil pump and assist grips. The construction of the plant will start at the end of 2013 and operations in 2015.

Tokai Rubber starts operation of automobile vibration insulating rubber in 2012; hose plant is also under construction

 Tokai Rubber finalized a plan to construct its own plant at Cikarang industrial park, West Java at PT. Tokai Rubber Auto Hose Indonesia in Bekasi prefecture, West Java where it is currently producing motorcycle hose at a leased plant, and held a ground breaking ceremony in October 2012. Production facilities at the leased plant will be transferred to the new plant scheduled to start operation in fall 2013, and add new lines to act as a production site for hose for automobile and motorcycles to establish a stable supplying system. The export of parts to Japan is also considered for the future. In October 2012, full production of automobile vibration insulating rubber began at the other new subsidiary, PT. Tokai Rubber Indonesia at KIM industrial park in Karawang prefecture, West Java.

Tokai Rika constructs new switch parts plant and the new seatbelt company to begin production at rental plant

 In June 2012, Tokai Rika announced the construction of a new plant for P T. TOKAIRIKA INDONESIA (TRI) at MM2100 industrial park in Bekasi prefecture, West Java, moving the company to the same location at the same time. The construction of the plant will begin in July 2012 and is scheduled to finish by April 2013. Parts including lever combination switches, switches for power windows, key sets, and steering locks will be manufactured at the new plant. Expected revenue for the fiscal year ending in March 2016 is five billion yen.
 The company also announced the joint establishment of a new seatbelt production company, PT. TOKAI RIKA SAFETY INDONESIA at Manis industrial park in Tangerang prefecture, Banten in August 2012 with Hsin Chong Machinery Works group of Taiwan. Production will be done at a rented plant utilizing facilities from Tokai Rika's plant to save the amount of investment. The operation will commence from April 2013. Tokai Rika plans to have revenue of 1.1 billion JPY in FY2013.

Toyota Auto Body establishes plastic plating joint venture; to start production in 2013

 In December 2012, Toyota Auto Body announced the establishment of a new parts joint venture, PT. Resin Plating Technology at MM2100 industrial park in Bekasi prefecture, West Java with Kanto Kasei in February 2013. The section for medium and small parts like plastic plating products at its subsidiary, PT. Sugity Creatives at MM2100 industrial park in Bekasi prefecture, West Java will be separated and made into the new company. Plastic plated and plastic parts including grills, moldings, garnish, and emblems will be manufactured from May 2013. Around 1.6 billion yen will be invested into the construction of this plant. The estimated revenue for the first year is approximately 1.8 billion yen. PT. Sugity Creatives started manufacturing a minivan, the NAV1, with CKD under the Toyota brand from December 2012.

Toyoda Iron Works establishes mold development and production subsidiary

 In May 2012, Toyoda Iron Works (TIW) established a mold production subsidiary, PT. Nusa Toyotetsu Engineering in Karawang prefecture, West Java. Its operation is set to begin in 2013. About 1.2 billion JPY will be spent for this project. The company will develop and manufacture molds used to produce parts for Toyota's strategic models targeting developing countries. The molds will be used at TIW's press plant in Indonesia and China for the time being, but expected to be used at plants in Japan and North America in the future. It will receive orders from other companies to create molds  targeting an annual revenue of 600 million yen within a few years.

Noguchi establishes pressed parts plant to expand orders collaborating with existing plating company

 In June 2012, Noguchi acquired a local electrical machinery pressed parts supplier, PT. TEKUN ASAS SUMBER MAKMUR at Jababeka industrial park in Bekasi prefecture, West Java. Production of deep drawing pressed parts for motorcycle/automobile engines started from fall 2012 at a new plant constructed nearby at about 500 million yen. The supplier aims to reach revenue of one billion yen in five years. Noguchi owns a plating joint venture in Karawang prefecture, West Java state, and aims to expand Japanese and local OEM clients by providing vertical production of pressing and plating service.

Nippon Seiki to start local production of automobile meters from mid-2013

 Nippon Seiki will start production of automobile meters at its Indonesian subsidiary, PT. Indonesia Nippon Seiki in Serang city, Banten, currently producing meters for motorcycles from mid-2013. The company will introduce manufacturing facilities for automobiles. The annual production capacity is 600K units. Automobile meters were supplied from Thailand and Japan because the orders were minimal, but the expansion of the facility was made in response to production capacity enhancement plans of Japanese OEMs in Indonesia. Shipments will initially be made to Honda and expand its clients gradually. (Source: report released in July 2012)

Piolax to build a new manufacturing plant to produce automobile and motorcycle plastic fasteners and fuel system parts

 PIOLAX established the subsidiary PT.PIOLAX INDONESIA in Karawang of West Java in June 2012. It was capitalized at eight million US dollars. Its business line is production and sales of plastic fasteners and fuel system parts for automobile and motorcycles. By autumn 2013, PIOLAX will begin with the production of the parts for motorcycle to address the procurement cost reduction of OEMs. It will proactively explore new customers by distributing products corresponding with the market. It plans to post sales of about 20 million US dollars in FY2016.

Mitsubishi Materials to establish a production base for sintered parts within it existing subsidiary

 In November 2012, Mitsubishi Materials announced its plan to establish a sintered parts production site within it existing subsidiary, PT. MMC Metal Fabrication at MM2100 industrial park in Bekasi prefecture, West Java. The construction of the plant will begin within 2013, and start production from April 2014. This is in response to increased demand for local procurement of sintered parts used in on-board machinery parts and bearings (used for engines and transmissions) due to increased production capacity at local Japanese OEM plants. The operation of the new business will be run by Mitsubishi Materials' wholly owned subsidiary, Diamet (Niigata city).

Yutaka Giken expands existing plant to increase exhaust parts production volume by ten times and start production of catalytic converters

 Yutaka Giken will add a new building at P.T. YUTAKA MANUFACTURING INDONESIA in Bekasi prefecture, West Java to manufacture automobile exhaust parts. "We will increase our annual production capacity to ten times the current (as of 2012) amount to 130K units. This is in response to receiving new orders from Honda for parts used in its new model. We are still in the process of deciding details such as start of operations" (Minoru Okamoto, President, January 2013). There's a speculation that Yutaka Giken is planning to start production by the end of 2013 and gradually increase its production capacity over time. The production of catalytic converters will start once the operation at the new building begins to provide vertical production of exhaust systems.

Unipres enhances production capacity with expansion of plant; to produce pressed parts for bodies manufactured under the Datsun brand

 Unipres will expand its PT. Unipres Indonesia plant in Purwakarta in a suburbe of Jakarta to cope with orders received for pressed parts for bodies used in Nissan's Datsun brand models. A new 2000-ton transfer press and a 600-ton blanking press will be introduced with about 1.7 billion yen. The operation is to start in March 2014. Marubeni (20%) and a local company (10%) made investments to PT. Unipres Indonesia in April 2012.

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

 

 



Vietnam: Japanese suppliers make investment to enhance global production sites; compliance with more strict gas emissions regulations

(Activities within ten months by the end of February 2013. Companies are in Japanese phonetics order)

Nidec Tosoku to produce electric fuel pumps and control valves at the new company's second plant

 In April 2012, NIDEC-TOSOK established a second site, NIDEC TOSOK PRECISION VIETNAM CO., LTD, in Ben Tre Province. The operations at the plant will start in September 2013 producing electric fuel pumps for hybrid vehicles (HVs) and vehicles with start and stop mechanism. All produced products will be shipped to countries outside. New orders for AT/CVT control valves scheduled to begin delivery in FY2014 and FY2015 over time will also be manufactured at this plant.

Mitsui Mining and Smelting establishes catalytic production and sales company; plant to start operations in October 2014

 In 2012, Mitsui Mining & Smelting announced its plan to establish Mitsui Kinzoku Catalysts Vietnam Co., Ltd. (Hanoi) in January 2013. The company will spend about 800 million yen for the construction of the new plant, aiming to start operations in October 2014. This is in response to an expected huge increase in demand for catalysts for motorcycles as well as automobiles in 2017 when more strict gas emission regulations will go into effect in Vietnam due to the growing motorcycle market.

Muro Corporation to go into vertical production of pressed parts at its existing plant

 Muro Corporation revealed its mid-/long-term strategy to cope with the expansion of sales and increased local procurement of its clients in Asia based on production companies in Vietnam, Indonesia, and Thailand. In Vietnam, Muro will establish a vertical production environment for pressed parts at MURO Tech Vietnam Corporation in Long Bien Hoa city, Dong Nai. The plant was used mainly for producing simple molds and molding with presses, but the supplier introduced grinding facilities during Q2 2012 to finish the product, establishing a system which allows Muro to deliver the products directly to clients in India and Indonesia. By doing the finishing process like grinding outside of Japan, the system will cut time and cost of delivery.

Yokowo goes into full production at new plant in 2012; pushes up the second phase of construction by one year

 Yokowo completed the construction of its plant at the new site, Yokowo Vietnam Co., Ltd. at Don VanⅡ industrial park in Ha Nam in a suburb of Hanoi and went into full production from September 2012. Wire harnesses for on-board communication units shipped to Japan will be produced. In 2013, it will add more manufactured items like AM/FM micro antennas and expand delivered markets (ASEAN, U.S., Europe, and Japan) over time. The supplier will also move up the second phase of construction one year from the original plan to January 2013. This will cope with new European customers and increased orders received globally.

Yokohama Rubber consolidated two production and sales companies converting it to a supplying hub for mini spare tires

 In September 2012, Yokohama Rubber announced the consolidation of YOKOHAMA TYRE VIETNAM COMPANY(YTVC), a joint venture, and YOKOHAMA TYRE VIETNAM INC. (YTVI), a wholly owned subsidiary, in Binh Duong province by liquidating YTVC. This will make management more efficient and increase its market presence through enhancement of brand strategy. At the same time, Yokohama Rubber will streamline and strengthen VTVI to act as a global supply hub for mini spare tires.

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

 

 



Malaysia, Singapore, the Philippines: Japanese suppliers invest on enhancing global export sites

(Activities within ten months by the end of February 2013. Companies are in Japanese phonetics order)

Malaysia

Kasai Kogyo invests on local molding manufacturer for providing molds around South East Asia

 Kasai Kogyo will acquire 10% of Lipro Mold Engineering (suburb of Kuala Lumpur), a manufacturing subsidiary of a joint venture partner in Malaysia, Teck See Plastic Sdn. Bhd. in the near future. The share will be acquired at 30 million yen. The supplier places this new company as the supplying hub for molds used for production of interior parts in South East Asia. The company provides molds in various sizes from small to large and has experience delivering products to European and U.S. automakers and Japanese motorcycle manufacturers. (Source: report released in January 2013)

Showa Denko establishes aluminum casting company; establishes Japan- Malaysia two-country casting procedure

 In September 2012, Showa Denko announced its plan to construct a casting plant for aluminum forging materials in Malaysia. The new company, Shotic Malaysia Sdn. Bhd. (Johor state), will be capitalized at 1.2 billion yen. Mass production is planned to start in 2014. Items produced at this facility are continuous casting rods of aluminum alloy and cutting materials. With this construction, Showa Denko aims to strengthen its supplying network to ASEAN and India where rapid growth is expected. The addition of the Malaysia site to Kitakata office, its main force, will establish a two-country casting system and secure its supply chain.

Tachi-S establishes joint venture for seat assembly

 In January 2013, Tachi-S announced the establishment of a seat assembly joint venture, APM TACHI-S SEATING SYSTEMS SDN.BHD. (Selangor state). Its joint partner is Malaysia's leading supplier and technology alliance, AUTO PARTS HOLDINGS SDN. BHD.(APM). APM takes a 60% stake and Tachi-S takes a 40% stake. Production will be done at the APM plant under contract until the construction for the plant of the joint venture completes. The plant will produce 40K units a year from the latter half of 2014 when it goes into operation. Frame parts will be supplied from Tachi-S site in Thailand. Majority of the procedure at the Malaysia plant will be assembly. Tachi-S will increase its investment ratio at the start of the operation at the plant. The estimated revenue for the FY2013 is approximately 2.4 billion yen and 3.2 billion yen for FY2015.

Toyo Rubber begins mass production at new tire plant in 2013; production of low-fuel consumption tire for Europe to be added

 Toyo Rubber will start operations of the tire plant from April 2013 at Toyo Tyre Malaysia Sdn Bhd (company was renamed in December 2012, Ipoh city, Perak state) currently under construction. Around 2.5 million tires for passenger cars and light-duty trucks will be manufactured for Malaysia, nearby ASEAN countries, and other regions. It plans to reach a production capacity of five million tires by 2015. The production of low-fuel tires, the Nanoenergy, will be added once the sales in Europe become stable. Therefore, the supplier will have production of high-class model in mind while deploying the production facility. The name of the company was changed to represent a tire business company when marketing function was added to this company, consolidating production and marketing department.

Nippon Kayaku establishes new safety parts company as supplying hub for Asia

 In January 2013, Nippon Kayaku announced its plant to establish Safety Systems Malaysia Sdn. Bhd. in Seremban city, Negeri Sembilan. All products such as squibs, gas generation agent, inflators for airbags, micro gas generators for seatbelt pretensioners currently produced in Japan will be manufactured at the new company. This is to comply with higher demand for safety parts from a rapid production volume increase in ASEAN and India. The addition of ASEAN (Malaysia) will complete a five-country network consisting of Japan, Europe (Czech Republic), North America (Mexico), China (Zhejiang province). Details of the construction will be decided at a later date, but the operation is set to start in FY2015.

 

Singapore

Showa Denko to strengthen production capacity of aluminum forged parts

 Showa Denko currently owns overseas production sites for aluminum forging parts in Singapore and Portugal selling auto-parts globally and enhancing these site in order to cope with expected increase in demand. There are currently two presses at Shotic Pte. Ltd. in Singapore, but a 600 ton-class press was transferred from the site in the U.S. to produce car A/C parts like rotors and engine pistons. Facilities from Kitakata office in Japan, its major site, will also be transferred accordingly. (Source: report released in June 2012)

 

The Philippines

Gunma Gokin to enhance production capacity for aluminum die casting

 Gunma Gohkin invested 500 million yen to Gunma Gohkin Philippines Corporation (Laguna state) for facility enhancement to increase the production capacity of aluminum die casting for automobiles by 1.7 times from mid-2012. The expansion will cope with increasing demands from companies which are working to prevent risks relating to intensive production in regions like China after experiencing the Great East Japan Earthquake and the flooding in Thailand, and the rapid growth of customer needs for low-cost part procurement. The plant at the Philippines is an export hub to Japan, ASEAN, Europe and, the U.S. and production volumes of parts for wipers and steering wheels will be increased over time. (Source: report released in May 2012)

Japan Climate Systems to produce A/C parts in Mexico under contract used at EMS in Philippines

 Japan Climate Systems (JCS) will produce on-board A/C parts used on Mazda vehicles produced in Mexico at a Philippines Electronics Manufacturing Service (EMS) Integrated Micro- Electronics, Inc. ([IMI] Laguna state) under contract. The parts will be manufactured with existing facility at the IMI plant in Guadalajara city, Jalisco state from the beginning of 2014, but it will consider strengthening its facility around 2015 when an increase of production can be expected. JCS will supply components and design assembly processes and IMI will manufacture molds and assemble components. (Source: report released in February 2013)

Yokohama Rubber to increase manufacturing capacity at its main Philippines plant with the production of low-fuel tire

 Yokohama Rubber will double its global production volume of low-fuel consumption tires at the end of FY2014 to 24 million units a year starting 2012. It aims to expand its share in the European market which introduced a labeling system displaying the performance of the tires and also to cope with increased demand in China. It hopes to produce approximately 40% of the volume produced at overseas plant lead by YOKOHAMA TIRE PHILIPPINES, INC. (Clark Freeport Zone, Pampamga state) in the Philippines. Production capacity volume of plants across the Philippines will be increased from seven million in 2012 to eight million in 2013 and further increasing the volume to ten million in 2014.

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

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