Japanese suppliers expand production in Mexico and Brazil

Increased capacity spurred on by the demands of OEM customers

2013/06/07

Summary

Thailand Map The 2012 vehicle production volume in Mexico increased by 18% to 3.02 million units y/y exceeding a volume of three million units for the first time. With the sales volume increasing by 9.4% to 1.03 million units and the exported volume increasing by 9.9% to 2.36 million units (excluding heavy-duty buses and trucks), both in-country and overseas demands show signs of improvements. Under the circumstances, Japanese automakers are constructing new plants; increasing the estimated total production capacity from 700,000 units in 2012 to over 1.2 million units in 2014. For example, in 2012, Ford expanded its existing automobile plant and GM constructed a new transmission plant and both automakers started production of new models. (click on the linked map ion the  right for details).

 The Japanese suppliers are responding to the activities of these OEMs by entering the Mexican market and making investments to expand production capacity. The products are delivered to different automakers, not targeted at just one company.

 The 2012 sales volume in Brazil increased by 4.7% to 3.8 million units, but the production volume decreased by1.9% to 3.34 million units along with a decrease in imported vehicles. The Brazilian government decided to reduce industrial product taxes on automobiles to OEMs under the new automobile policy, "Inovar-Auto", issued in October 2012 for spurring local production and advancing auto-related industry in Brazil. Currently, all Japanese, European, and U.S. OEMs with local production bases in Brazil have been granted the tax reduction privilege.

 A large portion of investments by Japanese automakers were made for starting new businesses in Brazil.

 The following will report on the activities of Japanese suppliers in Mexico and Brazil (the report includes activities up to the mid-May 2013 in the span of nine months).

Construction of new plants in Mexico

Plan for delivery to several Japanese OEMs Koito, Tsubakimoto Chain, NSK, Furukawa Electric,
Mitsubishi Electric
Plan for delivery to European/American OEMs For VW group: Keihin, Yorozu,U-Shin; for GM: F-Tech

To Improve production capacity and strengthen business structure in Mexico

To meet production increase demand at Nissan Kasai Kogyo, Jatco, and TACHI-S
Delivery to several Japanese OEMs Tokai Rubber, Nishikawa Rubber, and Nihon Plast
To Place Mexico as the supply hub across North America Kiriu, Showa, TS Tech, NSK, Hitachi Chemical
Establishment of new business hubs R&D site: Nippon Kayaku; new company for merged business:
TS Tech ; Sales company: Stanley Electric

New business developments in Brazil

To meet increased production capability demand at Japanese OEMs Calsonic Kansei, TACHI-S, Toyoda Gosei, Yorozu
Delivery consideration to European OEMs Kinugawa Rubber, Koito, Sumitomo Rubbers, Unipres
Plan for expansion into other type of business Nippon Steel & Sumitomo Metal, Nitto Denko


 

Related Reports: Japanese suppliers

Thailand (Apr. 2013), ASEAN (Mar. 2013), 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), US (Aug. 2012),



Building production sites in Mexico: F-Tech, Keihin, KYB, Koito, NHK Spring, NSK, Furukawa Electric, Mitsubishi Electric, U-Shin, Yutaka Giken launch operation

FCC to determine to establish plant by mid-2013

 FCC is considering opening a new plant in Mexico, where a new Honda plant is under construction, to prevent future capacity overload at three locations in the U.S. which supplies parts to North America. The suppler is said to make its final decision by mid-2013.

F-Tech to focus on suspension parts for new GM models at new plant

 In 2012, F-Tech established F&P MFG.DE MEXICO S.A. DE C.V. (at CIG industrial park in Irapuato, Guanajuato State). The company will construct a new plant with a total investment of 25 million dollars with plans to produce suspension parts such as sub-frames and pedals starting in July 2014. The production will mainly target GM's new models for the time being, but the company also plans to manufacture small parts for Honda in the future. It is estimated that this plant will achieve $79 million in sales in FY2018, when it will be in full operation.

Kitagawa Iron Works to start production of casting parts for CVTs in July 2013

 In August 2012, Kitagawa Iron Works began the construction of the plant KITAGAWA MEXICO S.A. de C.V (at PILA industrial park in Aguascalientes). The production of casting parts for CVTs will start in July 2013. Materials will be shipped from Japan for the time being, but with the start of mass production of casting in July 2014, the plant will have an end-to-end production capability from material to processing. It is reported that a casting line with a monthly production capacity of 700-800 tons will be introduced and 150,000-160,000 parts will be manufactured monthly.

Keihin to start production of A/C parts for VW Group

 In July 2013, a mass production is planned to start at the KEIHIN DE MEXICO S.A.DE C.V. plant, a company established in February 2012 in San Luis Potosi, and the company now plans to transfer its production line for condensers, heat exchanger module, used for air conditioners on the Volkswagen (VW) Group vehicles from the U.S. to the plant. The transfer is executed as part of Keihin's plan to increase its global annual production capacity to one million units by FY2013. Besides Mexico, the production of the condensers is also planned to be expanded into the Czech Republic and China.

Kayaba Indurstry(KYB) to establish production site for CVT hydraulic pumps; to go into production in September 2014

 In February 2013, KYB announced that it will cope with increased production demand at Jatco, its major client, by establishing KYB Mexico S.A. de C.V.(in Guanajuato) in October 2012 and starting production of hydraulic pumps for CVTs beginning in September 2014. The company will spend JPY 5.4 billion for this project. The production will begin at a monthly volume of 100,000 units of CVT pumps used on small to medium size vehicles. This will be the fourth manufacturing base for CVT pumps after Japan, China, and Thailand. About 60% of the parts will be procured from Japanese and local suppliers in Mexico. The company is also considering manufacturing electric power steering systems for all-wheel-drive vehicles and hydraulic draft gears within the premises.

Koito establishes local subsidiary; to start manufacturing of headlights and signaling lights in July 2014

 In December 2012, Koito established North American Lighting Mexico, S.A. de C.V. in San Luis Potosi. It was capitalized at about one billion yen. About five billion yen will be spent for the construction of the plant and the production of headlights and signaling lights, respectively, will begin from July 2014 with an annual production volume of 500,000 units. The plant will meet the increased demand in Mexico and will constitute a mutual supplemental production structure with North American Lighting (NAL), its U.S. subsidiary. The supplier plans to increase the annual production volume to one million units within several years. A location accessible to Nissan, Honda, and Mazda plants was chosen for the new plant with the incoming orders in mind.

Sanden establishes local subsidiary for manufacturing A/C parts; in full operations since April 2013

 Sanden established Sanden Manufacturing Mexico SA de CV (in Saltillo, Coahuila) for manufacturing air conditioner parts and went into full operations on April 1, 2013. The plant will supply parts used for A/C compressors manufactured at Sanden International (U.S.A.) Inc. in Texas. It will also provide variable displacement compressor composite to European OEMs in South America. Parts for the U.S. subsidiary were manufactured at its Japanese plant and compressors exported to the South American market were made in Japan and in Europe, but all these production will be transferred to the Mexican subsidiary to shorten delivery time and decrease currency exchange risks.

Showa establishes new site for producing electric power steering system

 In March 2013, Showa established SHOWA AUTOPARTS MEXICO, S.A. de C.V. in Guanajuato as its new production site for electric power steering system in North America. Twenty million dollars will be spent in FY2013 for purchase of the land and for its operation. The production is planned to begin in July 2015. Dual pinion EPSs will be manufactured for the first time at the new plant, and will be supplied to plants in North America.

Stanley Electric establishes sales company for lights and electric parts

 In April 2013, Stanley Electric established Stanley Electric Mexico S.A. de C.V. (in Guanajuato). The company was capitalized at ten million pesos (about JPY 80 million). The company will import lights and electric parts manufactured at a U.S. plant and sell them to Japanese and local OEMs in Mexico. It will focus on selling headlights using LED technology, panels for car stereos, solar radiation sensors, and sensors used for door handles.

Daido Metal to consolidate production of engine bearings supplied to North America to new plant in Mexico

 Daido Metal will consolidate the production of engine bearings supplied to North America to the Daido Metal Mexico S.A .de C. V. plant (in Jalisco) by FY2014. The parts have been supplied from plants in Japan and Czech Republic, but the company aims to strengthen its competitiveness by spending less on labor costs and preventing affects from exchange rate fluctuations. The operation at the new plant will begin in the latter half of 2013.

Tsubakimoto Chain strengthens supplying structure with establishment of manufacturing subsidiary; to start production in January 2014

 In October 2012, Tsubakimoto Chain established Tsubakimoto Automotive Mexico S. A. de C. V. (in Silao, Guanajuato). It was capitalized at about 780 million yen. An estimated investment of 800 million yen will be made in the next five years. The production will start in January 2014 supplying engine timing chain drive system to several Japanese OEMs in Mexico. The company is considering the plant as the production site for the South American market and as a global parts procurement base in the future. The production will start on a  knockdown basis with an annual manufacturing capacity of 360,000 units in 2014. The expected output will be 1.1 million units in 2016 and 1.6 million units in 2018.

TPR begins research on possible entry into markets in Mexico and Brazil

 TPR started a research on possible local production of engine parts complying with local productions of OEMs in Mexico and Brazil in the next five and ten years.

Nanjo Sobi & Midori Anzen jointly establishes manufacturing company for door parts for Mazda

 In 2013, Nanjo Sobi Kogyo and Midori Anzen jointly establish Midori-Nanjo Auto Interior (temporary name) in San Luis Potosi within the premises of Midori Anzen's plant. Door supplies will be manufactured at this plant. Midori Anzen owns 51% share of the company while Nanjo Sobi holds 49%. The production is set to start in January 2014 supplying parts for the Mazda3 for the initial operation at Mazda's Mexico plant. The companies plan to increase their clients to other OEMs through Midori Anzen's channel and reach a revenue of 2.3 billion yen by 2018.

Nisshin Kogyo establishes new brake parts manufacturing company; to go into mass production in January 2014

 In November 2012, Nissin Kogyo established Nissin Brake de Mexico,S.A.de C.V (in Irapuato, Guanajuato). The mass production will start in January 2014. Brake parts and aluminum engine mounts for vehicles assembled in Mexico with the potential demand growth will be manufactured here. Additionally, a portion of brake parts currently manufactured at the U.S. plant will be transferred to Mexico. The company will take advantage of lower production cost and North American Free Trade Agreement (NAFTA) to supply to Japanese OEMs including Honda in the U.S. and Canada.

NHK Spring to establish its first overseas subsidiary in August 2013; to begin mass production of chassis springs in 2015

 In April 2013, NHK Spring announced the establishment of suspension spring manufacturing company, NHK SPRING MEXICO S.A.DE C.V,(in Guanajuato) in August 2013. NHK Spring already has two suspension spring manufacturing subsidiaries operating in the U.S. The new company will be established to cope with expected production capacity overload from increased demand in the Mexican market. Production is scheduled to start in October 2015. The plant will initially produce stabilizers and then gradually increase items manufactured.
 In April 2013, NHK Spring's subsidiary, Topura, announced that it would establish a production and sales company for screws and bolts in Mexico, Topura Fastener de Mexico S.A. de C.V (in Guanajuato), in June 2013. The new plant will be constructed within the premises of NHK SPRING MEXICO S.A.DE C.V., and is expected to begin production in April 2015.

NSK establishes bearing company; to start operations in plant in 2014

 In April 2013, NSK established NSK Bearings Manufacturing Mexico S.A. de C.V. in Silao, Guanajuato. The company will provide bearings to the North American market including Mexico. The new company will increase production in North America with the capacity of the existing four plants and establish a system less affected by currency fluctuations. NSK's aim is to increase cost competitiveness and better product quality with the introduction of state-of-the-art automated manufacturing lines. The production at the new plant is scheduled to start in the spring of 2014. The company capitalized the subsidiary at 70 million dollars. The supplier aims to post sales of JPY 7 billion in 2016.

Japan Vilene starts operation of floor mat manufacturing subsidiary in March 2013

 In March 2013, operation started at VIAM Mexico S.A. de C.V. (El Llano Industrial Park, Aguascalientes) plant providing floor mats to Japanese OEMs. The company plans to establish a global-four-country structure for its floor mat business in Japan, U.S., China, and Mexico.

Furukawa Electric establishes wire harness subsidiary; set to start operations in January 2014

 In April 2013, Furukawa Electric announced that it would establish an auto-parts company (name not decided) in Acambaro, Guanajuato in May 2012 and start operations at the new plant in January 2014.The new plant is established in response to increased orders for wire harnesses from Japanese automakers due to their expanded operations in Mexico. About JPY 1.2 billion will be spent for this project. A revenue about five billion yen is expected for FY2016. The company plans to expand its business to South America and the European market. The new company will also sell air bags and battery sensors manufactured outside of Mexico.

Beyonz establishes new transmissions and engine parts plant; to start operations in March 2015

 In March 2013, Beyonz announced the establishment of Beyonz Mexicana in Aguascalientes to construct parts manufacturing plant for transmission, engine, and suspension parts. The plant is scheduled to start operations in March 2015. A total of JPY 3.5 billion is expected to be spent on this project. Transmission parts will initially be manufactured at the plant followed by engine and suspension parts. The plant is expected to be in full operation by March FY2019. Products will be provided to Japanese automakers in NAFTA region, mainly in Mexico. Beyonz have been importing parts manufactured at plants in Japan and China to Mexico, but the switch to local production will enable the company to respond to clients' requests with more ease.

Mitsubishi Electric establishes production and sales company for vehicle equipment; operation to start in October 2014

 In March 2013, Mitsubishi Electric established Mitsubishi Electric Automotive de Mexico, S.A. de C.V. in Queretaro. It was capitalized at about 3 billion yen. It will construct a new plant to produce alternators and starters planned to start operations in October 2014. The supplier aims to expand orders from Japanese and U.S. OEM clients in North America and South America reaching revenue of 30 billion yen in FY2017. The company is planning to expand its production capability in collaboration with the existing U.S. sites and to execute its plan to continue operations in the U.S. by dispersing production sites. The new site will also serve as a point of delivery taking advantage of FTA.

Musashi Seimitsu Industry to start operations of new plant by the end of 2013

 Musashi Seimitsu Industry will start operations of the new plant for Musashi Auto Parts Mexico, S.A. de C.V. (San Luis Potosi) by the end of 2013. Manufactured items at this plant will start with suspension parts and then engine and transmission parts will be added. It is reported that the supplier will utilize the Mexican site to cope with increased demand for the production in North America due to the lack of capacity estimated in 2014.

Murata Springs establishes clutch spring manufacturing subsidiary; plant to start operation in April 2013

 In August 2012, Murata Spring established Mexico Murata Spring Cooperation in Aguascalientes and started operations of its new plant from April 2013 to manufacture springs used as cushions for clutches. A total of around 200 million yen will be invested and the land and building will be rented. To establish a local manufacturing structure matching its major Japanese clutch manufacturers' plans to increase production, the floor area of the plant will be doubled from the end of 2014 to the end of 2015. The estimated revenue for FY2015 is around five million dollars.

Molitec Steel establishes supply manufacturing company; plant to start operations in August 2014

 In March 2013, Molitec Steel established Molitec Steel Mexico, S.A. de C.V. in Aguascalientes. It was capitalized at about 770 million yen. The company will sell steel materials in Mexico and also start production of automotive parts in August 2014 at its new plant. The new plant will be its third overseas production site after Vietnam and Thailand.

U-Shin to complete construction of new plant in spring of 2013

 The construction of U-SHIN AUTOPARTS MEXICO,S.A. DE C.V.'s new plant will be complete in the spring of 2013 (Irapuato, Guanajuato). Factors for U-Shin's decision to start operations in Mexico were: the opening of Mazda's new plant, delivery to VW plant, transfer of equipment due to the closing of its Tennessee plant, and new orders received from European automakers. Locksets, heater controls, panels, door latches, and switches are planned to be produced at the plant.

Yutaka Giken establishes new company; plant to start operations in January 2014

 In March 2012, Yutaka Giken established YUTAKA TECHNOLOGIES DE MEXICO S.A. DE C.V. in Guanajuato. The company capitalized the subsidiary at 27 million dollars. This is to cope with increased production of Honda in North America. Operations at the new plant are scheduled to start in January 2014. It is reported that the plant will manufacture exhaust components such as torque converters and silencers for 200,000 vehicles in FY2016. Additionally, a part of procedure requiring manual-handling tasks currently conducted in the U.S. will be transferred to the Mexico plant. The supplier aims to reduce cost by switching to intensive production.

Riken establishes new engine parts company; operation to start in July 2014

 In November 2012, Riken announced the establishment of its new company, RIKEN MEXICO, S.A. DE C.V. (Aguascalientes). It was capitalized at about 600 million yen. A new plant will be constructed and start operations in July 2014. It will spend about JPY1.7 billion for this project. The plant will initially produce valve lifters for engines and add more items based on market demands. The new company will respond to demands in the Mexican auto market where growth is expected, and increase orders.

 

 



Strengthening production capacity in Mexico and business structure: Kasai Kogyo, Kiriu, Sanoh Industrial, Jatco, TS Tech, Denso, Toyota Tsusho, Nippon Kayaku, Hi-Lex, Yorozu

Ahresty expands casting and machining wings and molding plant

 In October 2012, Ahresty announced that Ahresty Mexicana, S. A. de C .V (Guadalupe, Zacatecas) started the expansion of casting and machining wings. The casting wing is equipped with 17 die casting machines and four more will be installed by the beginning of 2013. There are 22 machining lines and three more lines will be added. The size of the molding plant will be doubled to 2,800 square meters by mid-December of 2012 to consolidate maintenance and production areas for molding.

Kasai Kogyo constructs second plant; to go into full production in January 2014

 Kasai Kogyo added a second plant on land adjoining to the existing plant for Kasai Mexicana, S. A. de C .V (Leon, Guanajuato) to cope with increased production of Nissan. About JPY 2.7 billion will be spent for this project. The plant is expected to be in full operations by January 2014. The supplier plans to double the revenue in Mexico for 2015 to three billion yen from that of 2012.

Kiriu expands third casting plant and machining plant; scheduled to start operations in September 2014

 In March 2013, Kiriu announced the enhancement of production capacity at KIRIU MEXICANA S.A. DE C.V. (LERMA, MEXICO). The subsidiary is currently in full operation and a third casting plant and machining plant will be added to the newly acquired land next to current plants. The addition will increase monthly production of brake disks and brake drums by 50% from the current 5,000 tons to 7,500 tons. The plants are set to start production in September 2014 to cope with increased demand in Mexico and to increase exports to the U.S.

Clarion considers increasing production of audio supplies and circuit boards

 With increased demands expected in Mexico, Clarion is considering increasing manufacturing capacity of audio supplies and circuit boards at Electronica Clarion, S.A. de C.V. plant. It will also serve as a point of export for shipments to Brazil.

Sanoh Industrial plans to expand piping parts plant; switches material used for production of engine parts and water pipes to resin

 Sanoh Indusrial is planning to establish ten new piping part plants in six emerging countries by March 2016. This includes additional plant with an annual production capacity of 100,000-200,000 units in Mexico. The plant may be constructed as a "satellite plant" near Nissan plant. Moreover, as part of effort to challenging new technologies at its existing subsidiary, Sanoh Industrial de Mexico S.A. de C.V. in Aguascalientes, will be replacing iron and stainless steel engine parts supplied to U.S. OEMs with resin parts. Water pipes will also be switched to resin and supplied to German automakers within 2013.

Jatco confirms construction of second plant; production capacity to expand to approximately 1.7 million units by FY2016

 In February 2013, Jatco announced that it will spend approximately 220 million dollars in building a second plant with an annual production capacity of 400,000 units at JATCO Mexico, S.A. de C.V. in Aguascalientes. The production is scheduled to start from the summer of 2014. The plan to expand its production capacity to 1.3 million units by 2013 is already in effect. However, the supplier decided that an additional increase in production capacity was needed with expected increase for CVT demands. Since Jatco does not have enough premises to add the second plant, the new facility will be built within the premises of the new Nissan Mexico plant. The latest CVT8 will be manufactured at the second plant. The production of ATs licensed by Daimler will begin from 2016, supplied to both Nissan and the Infiniti brands. The targeted revenue by 2018 is one trillion yen.

TACHI-S to begin operations at car seat plant supplying seats to Nissan's third plant; makes additional investment to joint venture with JC

 TACHI-S is planning to start production at the second car seat plant at INDUSTRIA DE ASIENTO SUUPERIOR, S.A. De.C.V. (in Aguascalientes) from February 2014 and the second trim cover plant in August 2013. Both plants will be the bases to supply car seats to Nissan's third Mexican plant.
 In April 2013, TACHI-S announced its additional investment into SETEX AUTOMOTIVE MEXICO S.A. De C.V., in Guanajuato currently preparing for the manufacturing of car seats. The capital funding will be increased to 1.92 billion yen, jointly funded with a U.S. company, Johnson Controls. The annual production volume was initially set at 90,000 units at the time of establishment, but with the additional investment, the company now plans to have an annual production volume of 280,000 units in 2017. The plant is set to begin production in February 2014.

TS Tech establishes new company to consolidate production of car seat parts in North America

 In March 2013, TS Tech announced the establishment of TST MANUFACTUARING de Mexico SA de RL de CV. in Guanajuato in April of the same year. The company capitalized the subsidiary at 35 million dollars. A plant will be constructed with 47 million dollars to start operation from October 2014. The production of car seat and door trim parts currently conducted in several plants including the Ohio plant will be transferred to this new plant to help increase its competitiveness. It has been reported that manufacturing of frames will also be consolidated to Mexico within a few years.

Denso to renew existing facilities at its two subsidiaries to strengthen its production capacity

 Denso is planning to increase the FY2016 estimated revenue from operations in North America (U.S., Canada, and Mexico) by 7% from the FY2013 estimate (as of February 2013) to 660 billion yen. A total of one billion dollars will be invested over the next three years to accomplish this goal. In Mexico, the investment will be used for updating facilities and strengthening capabilities at two subsidiaries.

Tokai Rubber establishes anti-vibration rubber joint venture with German company in Mexico; to start production in October 2013

 In December 2012, Tokai Rubber announced that it has established a joint venture, Tokai Rubber de Mexico, S.A.P.I. de C.V. (in Queretaro), with a German anti-vibration rubber supplier, the Anvis group. In addition to hose manufacturing subsidiary, the new company will create a manufacturing site for anti-vibration rubbers. Tokai Rubber will own 51% share of the company. Anvis' local subsidiary; Anvis group Mexico, owns 49% share, and the new plant will be constructed on the premises of Anvis group Mexico. The production is scheduled to start from October 2013. Products will be provided to Honda, Nissan, and Mazda.

Toyota Tsusho to establish coherent service structure from procurement of steel materials to delivery in Mexico

 In November 2012, Toyota Tsusho announced the expansion of its steel material processing business in Mexico. The new steel material processing center, Toyota Tsusho Processing De Mexico S.A. de C.V. (in San Luis Potosi), was established in October 2012. It will start with processing and sales of steel board products, especially stainless steels, and create a structure to expand local delivery of steel from automotive industry to businesses in various other areas. The production will begin in August 2013. Moreover, the supplier will make an additional investment of approximately 200 million yen to its existing magnetic steel material processing center, Techno Steel Processing De Mexico S.A. de C.V. (in Nuevo Leon) to strengthen its magnetic steel sheet processing capability.

Nishikawa Rubber holds opening ceremony of new rubber plant; production to start at the end of 2013

 In February 2013, Nishikawa Rubber held an opening ceremony of the new plant for NISHIKAWA COOPER MEXICO S.A de C.V.(in Silao, Guanajuato). The plant will become a supply base for rubber products delivered to OEMs in and outside of Mexico. The operations at the plant will begin by the end of 2013.

Nippon Kayaku builds R&D site for seatbelt materials; manufacturing of squibs and airbag inflators is also planned

 Nippon Kayaku constructed an R&D site in 2012 within the premises of its micro gas generator manufacturing plant, Kayaku Safety Systems de Mexico, S.A. de. C.V. (in Nuevo Leon). The new site will provide technical support services to its clients and speed up localized improvements on its seatbelt material products. About 500 million yen was invested into the equipment. Additionally, about one billion yen will be spent to strengthen facilities in Mexico to manufacture squibs and airbag inflators over the next five years. It has been reported that supplies for the South American market currently supplied from Japan and China will be replaced with Mexican made parts.

Nihon Plast to construct new plant by August 2013 to enhance production capacity of steering wheels

 Nihon Plast will build a new manufacturing plant for steering wheels on the property of Nihon Magnesio S.A.de C.V. in Queretaro by August 2013. The total production capability including the capacity of the existing plants in Mexico will increase to 2-2.4 million units in the latter half of FY2013, up 70% from 2011. The firm will invest JPY 1.5 billion in the plant to deal with the production increase by Honda and Nissan.

Piolax considering construction of new plant

 Piolax is currently manufacturing CVT modules, resin moldings, open/close mechanism components for zippers at PIOLAX MEXICANA S.A. de C. V, PM (in Nuevo Leon) in Mexico. The company is considering constructing a new plant because its manufacturing capability may be overloaded by 2015. It has been reported that Piolax considers Mexico as an export base to the U.S. as well as countries in South America including Brazil.

Hi-Lex to build second plant in early 2014

 Hi-Lex Corporation is planning to construct a second plant nearby its first plant at HI-LEX MEXICANASA DE CV (in Queretaro) by early 2014. About JPY 600 million will be spent on this project. With the first plant already in full operation, the new plant will deal with the expected increase in demand from several Japanese OEMs which are planning to expand or build new manufacturing plants. As with the first plant, control cables and window regulators will be manufactured at the second plant. The operations at the second plant will begin with one shift increasing the production by 50% from the current volume to fulfill existing orders.

Hitachi Chemical to strengthen production capability of powder metal products in North America

 In January 2013, Hitachi Chemical announced that it would expand its U.S. subsidiary, Hitachi Powdered Metals (USA), Inc. (in Indiana) plant to cope with increased demands for powder metal products in North America. At the same time in Mexico, a powder metal processing facility will be introduced within the premises of Hitachi chemical Mexico, S.A. de C.V. (in Nuevo Leon), which currently manufactures brake friction materials, to strengthen its supply capacity. Both plants will go into production in the fall of 2014.

Mitsuba consolidates three subsidiaries; to enhance production sites from FY2013

 As of January 1st, 2013, Mitsuba consolidated three of its Mexican subsidiaries which had been split by produced items. CORPORACION MITSUBA DE MEXICO,S.A. DE C.V. in Nuevo Leon is the surviving company. The supplier aims to shorten the decision making period in Mexico and cut costs by merging back-office departments such as general affairs and human resources. The company is also preparing to strengthen the production of motors in Central and South America including Mexico from FY2013.

Yamashita Rubber starts operation at its second plant in Mexico in January 2013

 In January 2013, Yamashita Rubber started operations at the second plant for YUSA AUTOPARTS MEXICO (in Zacatecas). The supplier plans a four billion yen investment into facilities to expand overseas sites during FY2014. The fund will be spent on equipment complying with Honda's global strategic models in Mexico, Thailand, China, and India.

Unipres constructs new transmission module plant; to start operations in July 2014

 In October 2012, Unipres announced the construction of a transmission module plant at Unipres Mexicana, S.A de C.V. (in Aguascalientes). The company will spend JPY 5.3 billion for this project. The construction will enable the supplier to cope with increased production at its major account, Jatco in Mexico. Operations are planned to start in July 2014. The estimated revenue for 2016 is 6.7 billion yen. This is the second overseas transmission module manufacturing site for Unipres after China. Unipres will also encourage activities for receiving orders to expand sales to companies other than Jatco.

Yorozu to start production of suspension parts for VW's Golf

 Yorozu will start production and delivery of suspension links used on the Golf produced at VW's Mexico plant from January 2014 at its new plant (operation to start in October 2013) for Yorozu Automotive Guanajuato de Mexico, S.A. de C.V. (Guanajuato), established in March 2013. Yorozu has been supplying splash guards and oil pans for engines used on VW's Jetta and Beatle since 2012, but this is the first time to receive orders for suspension parts which are Yorozu's major production item.

 

 



Establishing production sites in Brazil: Kinugawa Rubber, Nippon Steel & Sumitomo Metal, Sumitomo Rubbers, TACHI-S, Tokai Rubber, Toyoda Gosei, Nitto Denko, Mitsubishi Chemical, Unipres, Yorozu

Calsonic Kansei plans onsite production at Nissan's new plant

 In July 2012, Calsonic Kansei established a local subsidiary, Calsonic Kansei do Brazil LTDA., in Sao Paulo. It has been reported that the company will manufacture onsite at Nissan's new plant currently in construction.

Kinugawa Rubber to construct sealing plant; to start operation in 2014

 Kinugawa Rubber will establish a new sealing plant in Rio de Janeiro and plans to start operation in 2014. Kinugawa Rubber will invest JPY 1-2 billion to set up a plant with an annual production capacity of sealings for 200,000 vehicles. The plant will serve as an end-to-end manufacturing site from extruding to molding. The products will initially be provided to Nissan, but the supplier is planning to expand the delivery to other American and European OEMs.

Koito considers production in Brazil in forms other than sole investment

 With Japanese OEMs having only 10% of the share in Brazil, it will be difficult for Koito to construct a plant on its own. Therefore, the company is considering constructing a new plant in several different forms (from a report released in January 2013). The supplier is currently in partnership with Arteb, a Brazilian company with a 40% share in the lighting equipment market.

Jatco includes Brazil as its potential candidate for local production

 Jatco estimates the FY2019 overseas production rate to be 72% and is considering Brazil, India, Indonesia, and Russia as its potential location for constructing its next production site. The location will be decided during 2013 and the production is reported to begin by March FY2019.

Nippon Steel & Sumitomo Metal started construction of the second hot rolling line in October 2012; to manufacture high-strength steel sheets

 In November 2012, Nippon Steel & Sumitomo Metal (NS&SM) announced that the construction of the second hot rolling line started at the Cubatao plant of its equity method foreign affiliates, Usiminas . About 100 billion yen was invested and the line will have an annual production capacity of 2.3 million tons. Capacity enhancement will expand NS&SM's production system to cope with increased demands for hot rolling steel sheets in different industries such as automotive, construction, and line pipes in Brazil. With the introduction of state-of-art technology, production capability of high quality steel, such as high-strength steel sheets, will be enhanced on the second hot rolling line.

Sumitomo Rubber to start production at radial tire plant in October 2013

 Sumitomo Rubber Industries plans to start production of radial tires for passenger cars at Sumitomo Rubber do Brazil LTDA. plant (in Parana) in October 2013. This is the first tire plant in Central and South America for the supplier. It will spend about JPY 28 billion for this project. The plant will have a monthly production capacity of 2,200 tons (15,000 tires/day) by the end of 2016 after the completion of the first phase of the construction. The company will reach out to non-Japanese OEMs such as VW, PSA, Fiat, and BMW to expand its transaction. The company has already received proposals from some of the OEMs. Local procurement of natural rubber is also under consideration in Brazil.

Daido Metal considering construction of first plant in Brazil

 Daido Metal is considering a new plant in Brazil in or after 2015 based on the construction of a new engine plant planned at Toyota for FY2015. The supplier will decide on an optimal supplying structure by carefully observing import restrictions from Mexico put into effect in 2012 by the Brazilian government, and strategies regarding engines laid out by respective Japanese OEMs. (Source: Press release in December 2012)

TACHI-S establishes car seat manufacturing joint venture; production to start in 2014

 TACHI-S will establish a car seat manufacturing company within Nissan's suppliers park located next to Nissan's new plant(in the suburb of Rio de Janeiro), and start production from 2014 for Nissan. The company will be jointly operated with its U.S. partner, Lear Corporation Group, by investing and managing through a local subsidiary, TACHI-S DO BRASIL PARTICIPACOES LTDA. (in Sao Paulo, established in September 2012). Seats will be half assembled at Lear's existing site in Sao Paulo, and then delivered to the new plant to be completed.

Tokai Rubber acquires local anti-vibration rubber supplier to organize production site

 In March 2013, Tokai Rubber announced the acquisition of Produflex Minas Industria de Borrachas LTDA. (in Minas Gerais), a local anti-vibration rubber supplier providing supplies to European OEMs such as Fiat. Tokai Rubber will establish a Brazilian subsidiary, Tokai Rubber do Brasil LTDA.(in Minas Gerais), in April 2013, and acquire Produflex as its sub-subsidiary with approximately 1.5 billion yen. After the acquisition, the supplier will further make an investment into the plant and start delivery of its supplies to Japanese OEMs such as Toyota by 2015. In February 2013, Tokai Rubber also acquired Dytech-Dynamic Fluid Technologies S.p.A., an Italian hose supplier with a local production site in Brazil. With this acquisition, a manufacturing system for both anti-vibration rubber and fuel hoses has been established.

Toyoda Gosei establishes resin parts production and sales company; production to start in November 2014

 In March 2013, Toyoda Gosei established GDBR Industria e Comercio de Componentes Quimicos e de Borracha LTDA. in Sao Paulo. It was capitalized at about four billion yen. This will be its first production site in South America. The supplier will organize a production structure by purchasing second-hand buildings to renovate and expand. The plant will start operations in November 2014 producing interior and exterior parts such as automotive sealing products, air bags, and instrument panel parts. The products will initially be supplied to Toyota and Honda and later will be gradually expanded to other clients. The company plans to increase its annual revenue to 2.7 billion yen by 2017.

Nitto Denko constructs first plant to produce materials to absorb noise and vibration

 In December 2012, Nitto Denko established NITTO DENKO AMERICA LATINA LTDA. in Sao Paulo. The new company will start construction of a new plant with an end-to-end manufacturing capability of advanced materials in December 2013. This is the first production site in Brazil for Nitto Denko which will manufacture products to avoid noise, vibration, harshness to one's ear (tapes embedded into roofs and door panels) which will contribute to increased fuel economy and quietness within the car compartment. The estimated revenue for FY2014 is JPY one billion. The supplier will expand its client to the electric appliance and aerospace industries placing the new plant as its main production base in South America.

Mitsubishi Chemical establishes production site for performer polymers; production to begin in Q2 2014

 In August 2012, Mitsubishi Chemical established Mitsubishi Chemical Polimeros de Desempenho LTDA. in Sao Paulo. It was capitalized at about 900 million yen. Production of resin materials such as olefinbase thermoplastic elastomer "Thermorun," and polyolefinbase adhesive resin "Modic" used for the exterior and interior of automobiles will start by April 2014. The annual production capacity is 4,600 tons. Additionally, it will sell thermoplastic elastomers for Brazil and Argentina and adhesive resin materials used for attaching different types of materials.

U-Shin considers local production

 U-Shin is currently considering local production through purchase of a plant in Brazil (based on a press release in January 2013).

Unipres invests into Brazilian subsidiary of Italian company to manufacture body pressing parts

 In September 2012, Unipres announced that it has acquired 40% shareholdings of Magnetto Automotive Brazil, a Brazilian subsidiary of an Italian supplier, Magnetto Automotive. This will allow Unipres to utilize the existing production sites of the Brazilian subsidiary and start production and sales of body pressing parts by early 2014. Additional investment is around five billion yen, but the Japanese supplier will reduce its investment by organizing a joint production structure with Magnetto Automotive. The estimated revenue in Brazil for FY2015 is JPY 6 billion.

Yorozu establishes production subsidiary for suspension parts; production to start from June 2014

 In September 2012, Yorozu announced the establishment of YOROZU AUTOMOTIVA DO BRASIL LTDA. (in Rio de Janeiro) scheduled in October 2012. It was capitalized at about 4.3 billion yen. A new plant will be constructed in Nissan's supplier park and  production of suspension parts will begin from June 2014 at the earliest. The initial annual production volume is around 100,000 units per year, but to reach a profitable basis of 300,000 units, it plans to receive orders from Renault and VW.

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

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