Japanese suppliers in China (1): Eastern China Region

Highlights of activities in Shanghai, Jiangsu/Zhejiang/Shandong/Jiangxi/Anhui/Fujian provinces

2013/07/16

Summary

China_West Map

 This report summarizes the activities of Japanese suppliers in Shanghai, Jiangsu, Zhejiang, Shandong, Jiangxi, Anhui, and Fujian province (namely "Eastern China") during one year from May 2012 to June 2013.


 The sales depression in the Chinese market caused by anti-Japanese protests has yet to make a full recovery; however, major Japanese OEMs like Toyota, Nissan, and Honda declared that they will not make any major changes to their business plans in China. Japanese suppliers providing auto-parts mainly to major Japanese OEMs are also making expansions to their existing plants or constructing new plants accordingly. Some of the suppliers with decreased orders from Japanese OEMs due to anti-Japan protests are now making expansion plans for manufacturing systems while also seeking ways to expand their sales through developing new accounts by receiving orders from automakers globally, local Chinese suppliers, European, and U.S. OEMs.


 Aisin AW and Toyota Boshoku  are making expansions to their businesses through the establishment of local headquarters or transferring production site. The companies are also building or expanding their technical support and development centers to promote localization of supplies business. Denso will also transfer and expand its technical center in Shanghai by the fall of 2013 and Tokai Rubber started operations at the technical development center in Zhejiang province.

 Primearth EV Energy, a leading automobile nickel metal hydride battery supplier, will establish a joint venture jointly with Toyota, Toyota Tsusho, and a major local battery supplier, Hunan Corun New Energy Co., Ltd., in Changshu, Jiangxi province.The JV will manufacture nickel metal hydride battery cell modules used on electric-powered vehicles such as hybrid vehicles (HVs).

Japanese suppliers Related Reports:

Central & Southwestern China (Aug. 2012), Southern China - Guangdong Province (Aug. 2012), Eastern China (Jul. 2012), Northern and Northeastern China (Jul. 2012)
Mexico and Brazil (Jun. 2013), Thailand (Apr. 2013), South East Asia (Mar. 2013), Russia and Eastern Europe (Jan. 2013), India (Nov. 2012), Mexico and Brazil (Oct. 2012), the US (Aug. 2012)



Shanghai: Aisin establishes local headquarters; Jatco, Denso to transfer business locations

(Companies are in Japanese phonetics order hereafter)

Aisin AW establishes Chinese headquarters subsidiary in Shanghai

 In September 2012, Aisin AW established a wholly owned headquarters in China, AW China Co., Ltd., in Shanghai (Hongqiao Economic and Technological Development Zone, Changning District). This will be Aisin AW's third overseas base following the bases in the U.S. and Europe.
 The new company is capitalized at US$52.90 million. In 2013, it will increase its employees to 60 people from the initial 20. The company will focus on better customer relations, enhance its management ability, establish local management structure, and cope with business expansions in the Chinese market where growth is expected, to consolidate managerial functions in China.

Aisin Seiki establishes sales office in Shanghai

 In April 2013, Aisin Seiki established Aisin Seiki (China) Investment Co., Ltd. Shanghai Branch, as its Shanghai regional sales base for its Chinese headquarters. It will be the third location in China, following Tianjin and Guangzhou, to promote its products further to automakers in the Shanghai region. The Shanghai branch will start with six employees, and more staffing is to be considered to promote sales for automakers located in Central China and southwestern China.

Exedy to construct AT parts development facility at Shanghai subsidiary

 In January 2013, Exedy started operation of its development building within the premises of Exedy (Shanghai) Drive Co., Ltd., its Shanghai subsidiary. The new development facility has development functions like performance evaluation and designing of AT core module, torque converters and friction materials for MTs as well as an important point of local procurement by checking parts and materials.
 The construction of the development facility costs approximately 240 million yen in investment. It is also equipped with computer aided design (CAD) software. The supplier will increase engineers working at the company from the current 10 people to 15 in two years by 2015. The goal is to enhance its engineering and promotional capability and expand its customers including Chinese local OEMs which the company currently does not have strong business relations with. Moreover, a part of performance evaluation testing function in Japan will be transferred to this facility for cost reduction.

Jatco relocates Guangzhou manufacturing subsidiary's Shanghai office to downtown

 Jatco Guangzhou manufacturing subsidiary's Shanghai office, Shanghai Branch, Jatco (Guangzhou) Automatic Transmission Ltd., announced that it has transferred the office to Shanghai business Zone (Hongqiao, Changning district) in April 2013.
 In addition to functions that have been undertaken by JGZ Shanghai to date, including research, developing new customer bases and new supplier sources, and ensuring supplier quality, the new office is also equipped with a showroom that welcomes visitors displaying the latest models of CVTs. The new office has an area of approximately 500 square meters, expanding to 1.5 times the size of the previous office. There are currently sixteen employees at the branch, and the firm plans to increase the workers to 30 later on.
 In addition to the opening of the Shanghai office, Jatco announced the commencement of production of the new CVT--"CVT8"--at its Guangzhou production subsidiary, Jatco (Guangzhou) Automatic Transmission Ltd., as of 2013 June.

Denso to relocate and expand Shanghai headquarters and technical center

 Denso Corporation will relocate and expand its local (Shanghai) technical center by fall of 2013 (construction completed as of June 2013). A total of approximately seven billion yen will be spent for the construction of the new office which will have about 5.7 times the total floor space of the current office. The center will also have capabilities to design and perform product evaluations. At the same time, the supplier will increase its engineers by threefold over 2012 level to about 500 by 2015.
 Denso will also expand its designing and product evaluation business by 2015 over a period of two years. Product evaluations and testing will also be conducted locally to establish a business structure with an end-to-end local production capability up to manufacturing in order to reduce time and cost spent on development.

Tokai Rubber starts operation of hose joint venture in Shanghai

 In December 2012, Tokai Rubber established and started operation of hose (e.g. for A/Cs) production joint venture, Tokai TIP Auto Parts (Shanghai) Co., Ltd., within the premises of its JV partner, Shanghai Tianpu Auto Parts Co., Ltd. (a.k.a "Shanghai TIP").
 The new company was capitalized at 30 million RMB (total investment of 33 million RMB) with 60% capital contribution by Tokai Rubber and 40% by Shanghai TIP. It will not only pursue sales channels further to reach Chinese local automakers, which currently the company lacks, but also export its products from China to Japan and other countries aiming for a revenue of 300 million RMB by FY2016. The joint venture will employ about 330 employees.

Toyota Boshoku relocates Chinese headquarters in Shanghai; to expand development center

 In February 2013, Toyota Boshoku announced the relocation and expansion of its Chinese headquarters, Toyota Boshoku (China) Co., Ltd., located in Shanghai. In May 2013, Toyota Boshoku China will start construction on its new headquarters to also transfer its operations including R&D center. The new headquarter is to start in July 2014. A total of 22 million U.S. dollars will be spent on the property and building. The new three level building will have a total of approximately 1.2 million square meters of floor space.
 It will expand the development center to three times of the current size. Additionally, testing facilities for ride comfort, safety, endurance and materials will be upgraded to create a regional R&D structure that will integrate all stages from design to evaluation. Toyota Boshoku China plans to increase its current workforce and add 50 new Chinese national employees by 2015 to strengthen its workforce to about 340 employees. Toyota Boshoku will focus on receiving new orders from a variety of new customers including European OEMs in addition to Toyota in order to expand its business.

Mitsubishi Heavy Industries to enhance turbocharger plant in Shanghai

 The production capability of turbochargers were enhanced by adding assembly lines at Shanghai MHI Turbocharger Co., Ltd. The Shanghai MHI is a production joint venture owned 40% by Mitsubishi Heavy Industries (MHI) and Shanghai's major diesel engine supplier, Shanghai Diesel Engine Co., Ltd. (SDEC), respectively, and 20% by Sumitomo Corporation. Its annual production volume will be increased by approximately 3.3 times to one million units from 300,000 units in April 2012 and further increasing to 1.3 million units in 2015 and to two million units in 2016. The joint venture will mainly cope with increased demands from GM and Volkswagen in China.

Mitsui Chemicals establishes a parts material production subsidiary in Shanghai

 In November 2012, Mitsui Chemicals established a new company for functional materials, Mitsui Chemicals Functional Composites (Shanghai) Co., Ltd., in the Jinshan District Shanghai.
 The plant will commence operations in October 2014. The new company will manufacture and distribute "Milastomer," a thermoplastic olefinic elastomer widely used in glass run channels for automobile windows and in sheathing applications, and "Admer," a polyolefin widely used as an adhesive for automobile fuel tanks. The plant will have an annual production capacity of 1.1 million tons. Compound production of polypropylenes will also be added in the future.

Mikuni initiates production of electric water pumps at Shanghai joint venture plant

 Mikuni and the German company Pierburg Pump Technology GmbH established a joint venture manufacturing subsidiary in Shanghai. It has been reported that the joint venture will start production of electric water cooling pumps from January 2013. While details have not been disclosed, products will be delivered to European OEMs and Japanese automakers such as Nissan, Mitsubishi Motors, and Mazda.

 

 



Jiangsu: Toyobo, NPR establish new plants; Toyota constructs HV parts plants

Aisin AW establishes technical support center in Suzhou; to start new production subsidiary

 In October 2012, Aisin AW established an automobile automatic transmission (AT) technical support center, AW Suzhou Technical Center Co., Ltd., in Suzhou Industrial park, Jiangsu province. The support center was capitalized at 13 million U.S. dollars, with 70% owned by Aisin AW and 30% by AW China Co., Ltd.
 The center will mainly be responsible for development operations including designing and evaluation of ATs targeting the Chinese market as well as providing technical supports and researching and collecting technological information. Basic designing and development function, however, will remain in Japan. The company expects to have approximately 60 employees by November 2013.
 Additionally, Aisin AW will start production at its production subsidiary established in April 2011, AW Suzhou Auto Parts, by the end of 2013 (researched by MarkLines).

Advanex establishes precision spring production sub-subsidiary in Wujin, Changzhou

 In January 2013, Advanex established a sub-subsidiary, Advanex (Changzhou) Inc., in Wujin District Changzhou, Jiangsu province, its fourth Chinese production site. The operation will begin in July 2013 to produce precision springs for applications including automotives. The new company was capitalized at USD 2.1 million fully invested by its Singapore subsidiary. The plant has a floor area of 4,274 square meters initially employing 80 employees.
 The supplier plans to gradually increase the percentage of automotive application for precision springs produced in China: from approximately 36% as of September 2012 to approximately 50% by FY2016.

Asahi Kasei Chemicals acquires shareholding of polyacetal manufacturing joint venture in Zhangjiagang from U.S. partner

 In June 2013, Asahi Kasei Chemicals announced the acquisition of an entire shareholding of a polyacetal manufacturing joint venture, Asahi-DuPont POM (Zhangjiagang) Co., Ltd., in Zhangjiagang, Jiangsu province, owned by a major U.S. Chemical company, DuPont. Asahi Kasei Chemicals and Dupont equally owned the stakes of the company. Official timing of the share transfer and a new name for the company will be determined upon receipt of approvals from the Chinese government. The amount of the acquisition has not been disclosed.
 The joint venture started production in 2004 with an annual production capacity of 20,000 tons of polyacetal copolymer. The company was capitalized at USD 32 million. Upon completion of the transfer, Asahi Kasei Chemicals and Asahi Kasei (China) Investment Co., Ltd. will each hold a 50% ownership stake. The company will further enhance the production of polyacetal, engineering plastics used as automotive materials.

Oiles Corporation to make additional investment and expansion at Suzhou plant

 In June 2012, Oiles Corporation increased its capital funding for its bearing unit manufacturing subsidiary, Oiles Suzhou Corp., from approximately 44 million RMB to 75 million RMB as an equipment fund for the subsidiary.

Kobe Steel commences second-phase construction at Suzhou manufacturing subsidiary

 In August 2012, the first-phase construction was completed and started full operation at Kobe Steel's suspension aluminum casted parts manufacturing subsidiary, Kobe Aluminum Automotive Products (China) Co., Ltd(KAAP China). Kobe Steel jointly established  the subsidiary in Suzhou, Jiangsu province with Mitsui & Co., Ltd. and Toyota Tsusho in September 2010. The plant's equipment includes one 6,300-ton class mechanical forging press and one heat treatment device allowing the plant to manufacture 120,000 pieces of aluminum forging monthly.
 Furthermore, the second phase of the construction was completed in April 2013 increasing its monthly production capacity from 120,000 to 250,000 pieces including a 6,300-ton class mechanical forging press, one heat treatment device, a melting furnace, a casting line, and a billet processing line. With the introduction of a melting furnace and casting facility used in upstream processes, KAAP China established an integrated production system which covers process from melting to forging.
 The plant construction cost approximately seven billion yen in investment. The breakdown of the investment is 2.5 billion yen for the first phase and 4.5 billion yen for the second phase. As of April 2013, capital funding for the company is three billion yen (it was one billion as of July 2012) with 60% ownership by Kobe Steel, 25% by Mitsui & Co., Ltd. and 15% by Toyota Tsusho. Employees, which numbered 50 as of August 2012, will be increased to approximately 150 at full operation.

Sanoh Industrial to renew plating procedures at Wuxi plant

 Sanoh Industrial, Japan's leading automotive piping company, will renew its plating procedure for metal brake tubes by switching from conventional electro galvanizing to hot-dip galvanizing at its manufacturing subsidiary, Sanoh Industrial (Wuxi) Co., Ltd., located in Wuxi, Jiangsu province.
 In May 2012, a low-volume line for hot-dip galvanizing was installed in the corner of Wuxi plant. There was a plan to enhance the facility to go into mass production within 2012, but the current status of this plan is unknown.

Sanyo Metal establishes production subsidiary for cold finished steel bar drive parts production in Changzhou

 In May 2012, Sanyo Metal established a joint manufacturing venture, Sanyo Metal (Changzhou) Cold Drawn Steel Co., Ltd., in Wujin District, Changzhou city, Jiangsu province. Operations are to start in 2013 with the manufacturing of cold finished steel bar drive parts. The company will start with about 20 employees with a monthly production capacity of 1,000 tons. The new company was capitalized at US$562,500 with 51% owned by Sanyo Metal and 49% by Toyota Tsusho.

JTEKT relocates two bearing subsidiaries in Wuxi

 In May 2013, JTEKT announced that it has relocated two of its bearing manufacturing subsidiaries, Wuxi Koyo Bearing Co., Ltd. (WKB) and Koyo Needle Bearings (Wuxi) Co., Ltd. (KNBW) from redevelopment zone to Hudai industrial park in the suburb of Wuxi, Jiangsu province. With the transfer, both companies made upgrades and reviewed their production lines.
 KNBW completed the construction of the new plant in December 2012 on 35,500 square meters of land with a total floor area of 19,100 square meters. In addition to partial updates made on miniature ball bearing manufacturing facility, the supplier consolidated its lines and stores to enhance distribution efficiencies within the plant. Freewheeling clutches are also manufactured at this plant.
 The construction of KNBW's new plant completed in March 2013 on a 37,800 square meters of land with a floor area of 19,900 square meters. Production lines for rocker arms formally imported were added to the facility switching the procurement of these parts from import to local production. The company will further increase the percentage of locally produced parts by three times the volume in 2012 by 2014. Needle bearings are also manufactured at this plant.

Taiho Kogyo expands Changshu production subsidiary; to start delivery to sites in Europe, U.S., and Asia from FY2016

 In September 2012, Taiho Kogyo announced its plans to expand its manufacturing subsidiary, Hengye Bearing Materials Co., Ltd. (WBM), which was consolidated in July 2012. While details have not been disclosed, the monthly manufacturing capability of engine bearing materials (Bi-metallic strips) as of September 2012 is 650 tons. Manufactured materials used for engine bearings at the plant will be delivered to its bases in Europe, U.S., and Asia by FY2016.

Tamagawa Seiki organizes production system for HV angle sensor in Taicang

 In May 2012, Tamagawa Seiki announced its plans to manufacture HV angle sensor in Taicang, a suburb of Suzhou, Jiangsu province. By May 2012, the company rented two rental plants adjacent to its existing local manufacturing subsidiary, Tamagawa Seiki (Suzhou) Co., Ltd., in order to immediately respond to any demands.
 Details such as production commencement time or production capacity have not been disclosed, but the total floor area of the rental plants is 8,400 square meters. The plants are currently used as a warehouse.

Toyobo starts manufacturing of airbag ground fabric at Changshu manufacturing subsidiary

 In April 2012, Toyobo's manufacturing subsidiary, Toyobo Automotive Textiles (Changshu) Co., Ltd., located in Changshu, Jiangsu province went into full operation and started manufacturing airbag ground fabric. It has a monthly production capacity of 55,000 meters which is equivalent to 400,000 airbags.
 The plant is built on 5,000 square meters of property. The company employs approximately 30 workers (as of April 2012). As of April 2012, its capital funding is approximately 500 million yen (total investment of approximately 1.1 billion yen), with 70% owned by Toyobo and 30% by Toyota Tsusho. The majority of the products will be delivered to Japanese airbag manufacturers in China. Thread used for the fabric will be procured from a Chinese plant of Polyamide High Performance, a German synthetic fabric manufacturer.

Togo Seisakusyo to start operations of first Chinese manufacturing company, Changshu plant in 2014

 In December 2012, Togo Seisakusyo began construction of its first Chinese manufacturing subsidiary, Togo Seisakusyo (Changshu), in Changshu, Jiangsu province. The completion of the building is scheduled for summer 2013 and local production of AT return springs to start by spring 2014 and hose clamps, its major product, by 2016.
 The plant construction cost approximately two billion yen in investment, and is built on 1.1 million square meters of land (total floor area is approximately 6,000 square meters). With 70 employees working at the plant, revenue for FY2015 ending December is estimated at between 600 million to 700 million yen. Togo Seisakusyo has expressed its strategy to carefully expand its business in China by reviewing the local situation.

Toyo Tire & Rubber begins mass production at Zhangjiagang plant; promotes globalization of plants

 In August 2012, Toyo Tire & Rubber began operations at its new plant run by its manufacturing subsidiary, Toyo Tire (Zhangjiagang), in Zhangjiagang, Jiangsu province, and commenced full production of "PROXES C100", Chinese market-oriented special tires. However, due to anti-Japanese protests which occurred right after the opening, demands in the Chinese market decreased. The supplier switched the extra production capability to manufacture products used on passenger cars and light-duty trucks such as large tires for the North American market and low-cost tires for the Japanese market in order to maintain profitability and to promote globalization of the plant.
 The plant has a monthly production capacity of 160,000 tires with production performance as of late 2012 being 100,000 to 120,000. Of the volume manufactured, half will be exported.

Nisshinbo Brake makes additional investment to enhance manufacturing capability for brake friction materials at Changshu plant

 In January 2013, Nissinbo Brake announced its investment plans focusing on enhancing manufacturing capabilities at its brake parts manufacturing sites in China and Thailand. The company will invest a total of 20 billion yen in a period of three years beginning in FY2013 (MarkLines has confirmed that there has not been any changes made on the investment plan according to the research from June 2013).
 As for brake production in China, its first plant in Beijing and the second plant in Jiangsu province are under construction while the first phase of the construction was completed in the first half of 2013 and began production. No modifications have been made to its plans to enhance Changshu plant in Jiangsu province, Nisshinbo Saeron (Changshu) Automotive Parts Co., Ltd., in several phases. However, due to sluggish sales expansion from lagging sales of Japanese OEMs accounts which began in the latter half of 2012, the company is considering reviewing its plans to increase its disk brake friction materials by four times from the volume in 2013 to 14 million pieces by 2016.
 In its original plan, the second plant was to expand its production capability in four construction phases. With the expansion, disk brake friction material manufactured in the U.S. plant and a portion of items manufactured at plants in Japan were planned to be transferred to this plant for cost reduction and increasing profit. As of June 2013, production of items for Shanghai GM and Japanese OEMs commenced at the Jiangsu province plant, but there has been some delays to the schedule. The first plant in Beijing, however, is in full operation from favorable sales by European, American, and South Korean OEMs combined with transferred volumes from Nisshinbo Brakes U.S. sites.

Nissin Seiko adds lines for engine resin parts at Changshu manufacturing subsidiary

 Nissin Seiko will enhance its subsidiary in Changshu, Jiangsu province, Changshu Engine Plastic Co., Ltd. which started operations in September 2012. The company will invest a total of 500 million yen from September 2013 to June 2014 for this project. A total of eight lines for injection molds, welding, assembly, and inspections will be added to the plant expanding it to a total of 11 lines.
 The plant currently manufactures intake manifolds and cylinder head covers for 3.5-liter/2.5-liter engines, but it plans to additionally manufacture items for engines 2.0-liters or less over time. The enhancement will mainly correspond to increased demands for China FAW Group and Great Wall Motor. However, the company aims to reach an annual production volume of 300,000 sets by 2017 with expanding sales to Japanese OEMs in mind.

Nisshin Steel establishes copper plated steel sheet manufacturing joint venture in Nantong

 In April 2013, Nisshin Steel announced that it has jointly established a manufacturing company, Nissin Steel (Nantong) High-Tech Sheet Co., Ltd., with Shinsho. The company was capitalized at 90 million RBM owning 90% and 10% of share, respectively. Operations will start in spring of 2014 to produce copper-plated steel sheets for automotives with an annual production capacity of 12,000 tons.

Nidec subsidizes motor supplier in Changzhou city

 In September 2012, Nidec made an investment to a local motor supplier, Jiangsu Kaiyu Auto Appliance Co., Ltd., through a third-party allocation of shares and acquired 51% of the shares subsidizing the company (investment made in December 2012). With the acquisition, the name of the company was changed to Nidec Kaiyu Auto Electric (Jiangsu) Co., Ltd. The new company will be responsible for end-to-end development, production, and sales of brush motors for EPS systems and automotive fans.
 As of the end of 2012, the capital funding of the company is 16.330 million RMB and the remaining 49% shareholding was split to 24.99% - owned by a local supplier, Jiangsu Luokai Mechanical and Electrical Manufacturing Group, - and 24.01% by the company's members of management. The company also has sites in Wuhan (Hubei province) and Chongqing employing a total of approximately 330 employees at three sites (as of the end of 2012).

Nippon Piston Ring (NPR) establishes new subsidiary to integrate production of valve seats in Yizheng

 In December 2012, Nippon Piston Ring (NPR) established a wholly owned manufacturing subsidiary, NPR Powder Metallurgy Manufacturing (Yizheng) Co., Ltd., in Yizheng city, Jiangsu province. The operation at the plant will start in August 2013 to manufacture valve seats, a core component in an engine. With the commencement of operations at the plant, the production business of valve seats at its existing manufacturing subsidiary, NPR Auto Parts Manufacturing (Yizheng) Co., Ltd., will be transferred and merged to this plant.
 The plant was capitalized at 8.8 million U.S. dollars (total investment of 22 million U.S. dollars) and scheduled to hire 90 employees. The expected monthly production volume for 2016 is around three million units. Introduction of local materials will also be considered in the future. Moreover, there are plans to develop low-cost, anti-friction engine valve seats at the new plant and supply them to Guangzhou Automobile Group.

Nifco makes four million dollar additional investment in manufacturing sub-subsidiary in Yancheng

 In August 2012, Nifco announced that it has made an additional four million dollar investment to its manufacturing sub-subsidiary, Nifco (Yancheng) Precisive Plastic Products Co., Ltd., in Yancheng, Jiangsu province (established in June 2011). The capital funding of the company will increase to 11 million dollars after the investment (executed in March 2012). 75% of the company will be owned by Nifco Korea and 25% by Nifco (HK). There are 178 employees working at the company as of the end of June 2012.
 Furthermore, Nifco also made a total additional investment of 70 million Honh Kong dollars (HKD) to its Hong Kong subsidiary managing production and sales of synthetic resin molded parts, Nifco (HK) Ltd., which owns Dongguan plant in Guangzhou (The subsidiary's capital funding will be increased to HKD 88 million with 45 employees working at the company as of September 2012).

Primearth EV Energy to jointly manufacture nickel metal hydride power battery in Changshu for EVs/HVs

 Primearth EV Energy, a leading automobile nickel metal hydride battery supplier, has revealed that it will jointly establish a manufacturing plant for nickel metal hydride battery cell modules, Corun Peve (China) Automotive Battery Co., Ltd., with Toyota, its group company Toyota Tsusho, and a major local battery supplier, Hunan Corun New Energy Co., Ltd., in Changshu, Jiangsu province. The five companies joining the project signed an agreement. Production at the joint venture will start around 2015.
 It was capitalized at 5.21 billion yen (total investment of 15.63 billion yen) with 41% owned by Primearth EV Energy, 5% by Toyota's Chinese investment subsidiary Toyota Motor (China) Investment, 4% by Toyota Tsusho, 40% by Hunan Corun New Energy Co., Ltd., and 10% by a local investment company Changshu Sinogy Venture Capital Co.
 The joint venture will provide an end-to-end service from development and sales to post-sales services in addition to production of nickel metal hydride battery cell modules. In its past announcement, Toyota has declared its plans to start local production of hybrid components around 2015 and the joint venture is speculated to be a part of that plan.

Mabuchi Motor starts operation at compact motor plant within the premises of Wujiang plant; renames company

 In January 2013, Mabuchi Motor completed the construction of a plant dedicated to manufacturing compact motors used in power windows and power seats in Wujiang, Yangzhou (Economic & Development Area) and began production of these compact motors. The plant has introduced a new system to cutback manpower allowing it to manage costs for human resources and decrease the number of defective products. Mabuchi Motor plans to increase its annual production capacity at the new plant from current level of 12 million units in 2013 further increasing the volume to twice to threefold the current amount by 2018.
 As of January 2013, compact motors for power windows and power seats are only manufactured at two locations (including Wujiang) in China and a plant in Taiwan. With the commencement of Wujiang plant and further expansion made in the future, Mabuchi Motor plans to increase its production global share of compact motors for power windows and power seats to 20% from the current level of  10% over a period of ten years by 2023.
 The Wujiang plant, together with the existing first plant, has a total of 82K square meters of land with a total floor area of 43,000 square meters. As of the end of June 2012, the capital funding of the company is 294 million RMB with 1,300 employees working at the company. The first plant initially manufactured non-automotive compact motors used in acoustics applications, but the plant now specializes in automotive components making it the only compact motor manufacturing plant exclusive for automobiles in China.
 In August 2012, Mabuchi Motor changed the company name in Chinese but not in English. The English name remains as Mabuchi Motor (Jiangsu) Co., Ltd.

 

 



Zhejiang: Ogura Clutch constructs new plants; Tokai Rubber opens development site

Inatec starts operations at manufacturing plant in Pinghu

 Inatec completed the construction of its Pinghu manufacturing subsidiary established in 2011, Inagaki Auto Parts (Pinghu) Co., Ltd., and officially went into production of AT parts in January 2013. The company is currently considering manufacturing AT shafts which is not manufactured in Japan.
 The manufacturing subsidiary has a 6,188 square meters of land with a total building area of 3,400 square meters. The company was capitalized at approximately 400 million yen (a total investment of around 800 million yen) with 86% owned by Inatec and 14% owned by Okaya Group. A total of 40 employees (four are Japanese) will initially be working at the subsidiary. The plant is equipped with a total of approximately 30 production machines including a machining center (MC), Computer Numerical Control (CNC), and grinders.

Ogura Clutch establishes wholly owned manufacturing subsidiary in Changxing; to start operations in 2014

 In May 2013, Ogura Clutch established a wholly owned manufacturing subsidiary, Ogura Clutch (Changxing) Co., Ltd., as its third site in China with a capital funding of six million U.S. dollars. Operations will start in April 2014. In addition to general industrial clutches and brakes used in elevators and multifunction machines, the company also manufactures automotive parts.

Sanyo Special Steel Co., Ltd. to expand manufacturing of forging parts by installing additional press machines

 In April 2012, Sanyo Special Steel installed one vertical machine press, a hot forging vertical forging facility with a maximum pressure of 2,000 tons in its manufacturing subsidiary, Ningbo Sanyang Special Steel Products Co., Ltd., in Ningbo, Zhejiang province. The company has invested approximately 700 million yen in total. When combined with two existing vertical press machines (Type of 2,000-ton/2,300-ton), the company will increase its monthly production capacity to approximately one million units, increasing 370,000 units from the current level of forged parts including wheel bearings (Hubs).

JFE Steel to jointly establish steel pipe plant for automotive in Jiaxing city

 In May 2013, JFE Steel announced that it will jointly establish a steel pipe manufacturing factory, Jiaxing JFE Precision Steel Pipe Co., Ltd., in Jiaxing city, Zhejiang province in October 2013. The plant will start operations by January 2015 manufacturing small-diameter electric resistance welding pipes and cold drawn steel pipes for automotive parts and construction applications.
 The company is capitalized at 96 million RMB with a total of 51% owned by JFE Steel and its wholly owned subsidiary Kawasaki Kokan (of which 36% is owned by JFE Steel), 10% by Marubeni-Itochu Steel Inc (MISI) Tokyo, 20% by MISI Hong Kong, and 19% by Taiwan's largest cold drawn pipe manufacturer Shuan Hwa Industrial. The company will start with about 100 employees having a monthly production capacity of approximately 2,000 tons.

Tachi-S to relocate seat frame plant in Shanghai to Zhejiang province

 Tachi-S has been reported to transfer its seat frame plant, Shanghai Tachi-S Automotive Parts Co., Ltd., form Shanghai to Zhejiang province (source: Nikkan Jidosha Newspaper, February 28, 2013). While details have not been revealed, production of newly developed frames will begin with an annual production capacity of 1 million units at a plant in Zhejiang province from fall 2013, providing the products to customers in Japan and China.
 Tachi-S now has a total of two manufacturing subsidiaries within Zhejiang province (Zhejiang Fu Chong Tai Automotive Parts Co., Ltd. and Zhejiang Jee Ju Tai Automotive Seat Co., Ltd.). Tachi-S plans to construct new plants and enhance its manufacturing capacity in accordance with demands from Nissan and Honda, its major accounts which have not made changes to their business plans in China.

Tokai Rubber starts operations at developing subsidiary in Jiaxing city

 In January 2013, Tokai Rubber opened its wholly-owned subsidiary established in July 2011, Tokai Rubber Technical Center (China). The development subsidiary will be responsible for the development and sales expansion of rubber and resin products. The new company was capitalized at 50 million RMB (total investment of 72 million RMB) and built on 5,860 square meters of land (total building area is 2,250 square meters). The estimated number of employees for FY2015 is 35.

NSK forms capital alliance with private bearing supplier in Ningbo city

 In February 2013, NSK announced the establishment of capital alliance with a private bearing supplier in Ningbo, Zhejiang province, Ningbo MOS Co., Ltd., investing 25% (approximately one billion yen) of shareholding in bearing business. The company intends to increase competitiveness by partnering in compact bearings.
 NSK also made a 10% investment to a bearing supplier, Gongzhuling Bearing Co., Ltd., owned by the Mos Group in September 2012.

 

 



Shandong: Taiho Kogyo expands plant; Nissin Kogyo to start production

Kiriu Establishes high-precision machines for piston manufacturing subsidiary in Yantai

 In April 2012, Kiriu established a manufacturing subsidiary, Kiriu-Yilin Auto Parts Equipment (Yantai) Co., Ltd., in Yantai , Shandong province through its subsidiary, Kiriu Techno. Its operations began in mid-2012, manufacturing CNC uprights to manufacture automotive parts and high-precision machines.
 It was capitalized at approximately 180 million yen with 70% owned by Kiriu Techno and 30% by Yilin Nanotech. In addition to China, the company will expand its sales to countries in Southeast Asia and India with an annual revenue for 2015 estimated to reach one billion yen.

Taiho Kogyo extends Yantai plant

 Taiho Kogyo will expand its manufacturing company, Taiho Kougyo (Yantai) Co., Ltd. (TCY), in Yantai, Shandong province. The company plans to double its monthly production capacity of sliding bearings to 5.5 million units by FY2015.

Nissin Kogyo to start manufacturing of aluminum parts at Weihai city

 Nissin Kogyo will start manufacturing aluminum parts for automotives at Rushan plant, Shandong Nissin Industry Co., Ltd. in Weihai city, Shandong province which have been manufacturing motorcycle parts, from late-2013. Details regarding items manufactured have not been disclosed, but the company has an annual production capacity of 50,000 sets. It will spend almost 300 million yen for modifying its existing plants as well as for the introduction of related facilities.

 

 



Jiangxi, Anhui, Fujian: Kinugawa, NSK, Mabuchi open new plants; TPR adds new lines

Kinugawa Rubber to double production capacity at Fuzhou plant in Fujian province

 In January 2013, Kinugawa Rubber will double its hose products (e.g. air ducts, air inlet hoses and filler hoses) manufacturing capacity, at its Fuzhou plant in Fujian province, Fuzhou Fukwang Rubber & Plastic Co., Ltd., (source: Nikkan Jidosha Newspaper, January 2013): the manufacturing area of the plant for such items will be doubled from the current space.
 Having transactions with Volkswagen (VW) plant in China, Kinugawa Rubber expects a giant increase in demands in the Chinese market for new model projects (expected FY2015 revenue from VW in China is ten billion yen).

Kinugawa Rubber Starts production of Wuhu plant in Anhui; starts delivery to Chery Automobile and Zhengzhou Nissan

 In August 2012, Kinugawa Rubber opened its wholly-owned subsidiary, Kinugawa Rubber (Wuhu) Co., Ltd., and started manufacturing body sealing parts and vibration insulating parts. The majority of supplies will be delivered to Chery Automobile and Zhengzhou Nissan. The company's revenue target for FY2015 ending December is over 2.5 billion yen (according to announcements made in May 2013).

Note: Kinugawa Rubber eyes 300,000 sets y/y increase in sales volume in China for FY2013 ending December (announcement made in May 2013).

TPR to increase production lines for engine liners at Anqing plant in Anhui province

 In January 2013, TPR announced its plans to strengthen the production capacity of liners for gasoline and diesel engines at its existing plant in Anhui province, Anqing TP Goetze Liner Co.,Ltd. (ATGL), expecting an increase in these items in the Chinese market.
 While details have not been revealed, new production lines will be added to the plant increasing monthly production capacity of engine liners by approximately 50% to 1.8 million pieces in 2015 from 1.2 million pieces as of 2013.

NSK starts full operations at Hefei manufacturing subsidiary in Anhui province

 In April 2013, NSK's wholly-owned subsidiary, Hefei NSK Co., Ltd., completed the first construction phase of its plant in Hefei, Anhui province and went into full operations (production started in October 2012). Bearings for a range of products from high performing products to general products in automotive and industrial machinery applications will be manufactured at this plant.
 With the first-phase plant construction, the company invested a total of 150 million U.S. dollars (capital funding was 62 million U.S. dollars). the new plant has a total of 100,000 square meters of land with a total building area of 50,000 square meters, and is initially employing 500 workers.

Mabuchi Motor starts operation at Ganzhou plant; completes expansion at Yingtan plant in Jiangxi province

 In November 2012, a manufacturing subsidiary of Maubuchi Motor's Hong Kong subsidiary established in May 2011, Mabuchi Motor (Jiangsu), started operations at this manufacturing subsidiary in Ganzhou, Jiangxi province manufacturing compact motor for automotives. The company started operations with approximately 100 employees. It will start full production by 2014 targeting an annual production volume of 130 million units and an annual production revenue of over 700 million RMB (capital funding is 209 million RMB as of June 2013 with the plant built on 100,000 square meters of land; total floor area is 29,000 square meters).
 Moreover, the second-phase plant construction was completed in mid-2012 for Mabuchi Motor (Yingtan) located in Yingtan, Jiangxi province, doubling the manufacturing capability. The plant employs 400 workers as of January 2013. The production volume was 40 million pieces ub FY 2012 ending December
 In 2012, after restructuring the production system at the Jiangxi province second plant, Mabuchi Motor relocated the production business of less costly products of Dongguan daojiao Mabuchi Motor Co.Ltd. to two plants in Jiangxi province.

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