Japanese suppliers in China (2): Southern and Central Regions

Highlight of activities in Guangdong, Hubei, Hunan, and Henan Provinces

2013/08/12

Summary

華南周辺地図
Southern China

華中周辺地図
Central China

 The following summarizes the business activities by Japanese suppliers in Southern and Central regions in China for the approximate one-year and two-month period from April 2012
to June 2013.
 Major Japanese OEMs including Toyota/Honda/Nissan/Mitsubishi, were affected by anti-Japan demonstrations. However, they announced that they would not change their investment plans and would continue to enhance their plants in China. This prompted Japanese suppliers to resume active investments. Many Japanese suppliers postponed or shelved their Chinese business plans including construction of new plants or expansion of existing plants immediately after anti-Japan demonstrations. These suppliers are currently pressing ahead with the expansion of their existing plants or the construction of new plants in Guangdong, Hubei, and Hunan Province, where Toyota, Nissan and Honda's  plants are collectively located, and in Henan Province, where Mitsubishi, Fiat and VW have their plants (including the ones under construction).

 


Japanese suppliers Related Reports:

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



Japanese suppliers in Guangdong Province of Southern China

In Guangzhou: Akebono Brake and Koito enhance production, while F.Tech, Kasai Kogyo and Jatco prepare development functions

Akebono Brake to resume its plan to increase production line of a subsidiary in Guangzhou; to double annual production capacity in 2015
 Akebono Brake (Akebono Brake Industry Co., Ltd.) announced that it will resume a plan to increase the production line of its subsidiary, Akebono Corporation (Guangzhou) Co., Ltd in July 2013. The plan had been suspended due to the anti-Japan demonstrations in China since 2012. The plant will start full operations in 2014, doubling the annual production of disk brakes in 2015, compared with the planned figure of 2013. JPY 400 million will be invested in total for this plan. The disc brakes will be supplied to the American and European automakers for new orders as well as existing customers; Japanese automakers in China.
Ahresty Corporation expands its Guangzhou plant and starts production of new products
 In April 2013, Ahresty Corporation's subsidiary in Guangzhou - Guangzhou Ahresty Auto Parts Co., Ltd. - completed the first-stage construction of its third plant in the adjacent site of its existing plant. The third plant started production of new die-casting products. The floor area of the new plant is 16,000 square meters (The existing Guangzhou first and second plant covers 26,300 and 10,400 square meters respectively). The site area is 20,000 square meters.
Uchiyama Manufacturing completed adding nine production lines at its subsidiary in Guangzhou
 In April 2012, Uchiyama Manufacturing announced that it had completed adding nine new production lines at its subsidiary, Guangzhou Uchiyama Manufacturing Co., Ltd. in Guangzhou (Yonghe Economic & Technical Area). The subsidiary produces magnetic rubber rotors, which are bearing seal components. The subsidiary increased the number of employees from 180 to 200 and began boosting production at the end of April, 2012.
F-Tech transfers its development subsidiary in Guangzhou, giving it research functions similar to those in Japan and the U.S. in the future
 In January 2013, F-Tech announced that it would transfer F-Tech (Guangzhou) Technical Center, a development subsidiary from the current temporary facility to a new research center in Guangzhou by the autumn of 2013. The site area of the subsidiary is 4,569 square meters, which includes the area for future expansion. The floor area of the 4-story research center is 6,617 square meters.
 With this transfer, F-Tech will invest about CNY 9 million in the center by FY2016 to introduce testing facilities and to provide research functions. The subsidiary will increase the number of engineers to 40-50 in 2014. It will conduct various tests including durability/strength testing. The center will also implement market research for local OEMs in China and develop mainly frame parts as well as suspension parts including suspension module/pedal.
 F-Tech will introduce facilities for trial production in the center, giving it development functions similar to those of the development centers in Japan and the U.S. F-Tech will respond to local needs immediately and will also enhance its ability to make proposals for products and specifications to meet these needs in order to boost sales further.
Ohashi Technica starts production of stamping parts at joint plant in Guangzhou
 In July 2012, Ohashi Technica started production of stamping parts for engines using precision stamping technology and its original press-in projection technology in Gangzhou. Its joint production company, Ohashi Nakahyo Precision Parts (Guangzhou) Co., Ltd. with Nakahyo, produces the stamping parts. The joint venture started supplying the product in October 2012. (Ohashi Nakahyo Precision Parts is capitalized at USD 6 million with its 70% invested by Ohasi Technica and 30% capitalized by Nakahyo.)
 Under its medium-term management plan for FY2012-2014 "Challenge to Change" announced in May 2012, Ohashi Technica announced its plan to establish subsidiaries in China and Mexico. The company will expand its automotive parts business mainly in emerging countries. Among them, it aims to post sales of JPY 3.5 billion in China in fiscal year 2014 (The sales figure was JPY 2 billion in FY2011.).
Kasai Kogyo establishes a development center at its production subsidiary in Guangzhou
 In May 2013, Kasai Kogyo announced that it will establish R&D centers at five regions worldwide, where its main customer, Nissan operates. The company is trying to avoid the current concentration of its design and development functions in Japan. First, it will shift to Japan-US-China trilateral structure. As part of this move, Kasai Kogyo will establish a development center in Guangzhou, China. Responding to the increasing local demand from Nissan/Honda, the firm will conduct designing of trial production/experiment and design data management with CAD in China. By shifting these functions which had been operated only in Japan, the firm enhances technical assistance functions in China.
 Kasai Kogyo will build a development center on the property of its production subsidiary, Guangzhou Kasai Automotive Interior Trim Parts Co., Ltd. The subsidiary is located at Huadu District in Guangzhou. Kasai Kogyo will start operations of the development center based on the existing design division, by April 2014. In addition to the current six engineers, it plans to employ 20 to 30 engineers locally in China.
Koito to start operations of the Guangzhou second plant to September 2013
 Koito (Koito Manufacturing) has resumed the construction of its Guangzhou second plant in September 2013, whose construction was postponed from the initial plan of spring 2013. The plant will be built on the property of its wholly-owned production subsidiary in Guangzhou, Guangzhou Koito Automotive Lamp Co., Ltd.
 There are plans for the Guangzhou second plant to produce automotive lamps including head lamps and warning lamps. It will have a final production capacity of 1 million units a year (a total of 1.5 million units including the existing first plant, which has a production capacity of 500,000 units). Koito plans to expand its customers from the current Japanese OEMs such as Toyota, Nissan, and Honda to include European and the US OEMs.
 Koito announced its plan to enhance its production and its local development in China by 2015.
Jatco established a development center at its production subsidiary and boosts production capacity of CVTs to 900,000 units a year through addition of new CVTs
 In April 2012, Jatco established its first development center in China. JGZ Quality & Technical Center at Jatco (Guangzhou) Automatic Transmission Ltd. - its production subsidiary for CVT in Guangzhou, starting development of parts in China.
 Jatco invested JPY260 million in the development center. Jatco will give the center a quality assurance function, Statistical Quality Control (SQC), and development functions including fine control at the time of vehicle application development and commercial production. The initial number of engineers will be about 40, which will be increased to 70 to press ahead with the localization of development to respond to local road conditions and environmental regulations in China.
 Jatco targets to boost the local content ratio at its overseas facilities in China, and in Mexico and Thailand to more than 90%.
 In April 2013, Jatco completed the fourth-stage construction of its production subsidiary in Guangzhou, and boosted production capacity of CVTs at the production subsidiary from 730,000 units a year in April 2012 to 900,000 units. At the same time, following the CVT7 and CVT2 - CVTs for mini and small vehicles with Front-Wheel Drive (FWD), Jatco started production of the latest CVT8 for midsize and large vehicles with FWD.
 In addition, Jatco will further focus on the expansion of sales in China, targeting to sell more than 200,000 units a year for new customers alone in China in 2015. Jatco supplied ATs to Japanese OEMs and Dongfeng Motor, which is Nissan's joint venture partner, and won a contract in June 2012 to supply CVTs to a major local OEM - Jianghuai Yangtian Automobile (about 20,000 units a year).

Note: In April 2013, Jatco (Guangzhou) Automatic Transmission Ltd. opened its new Shanghai Office. Besides research functions and functions to find new customers and new suppliers that it had, a showroom for visitors is added.

Suncall boosts production of engine valve springs at Gangzhou plant
 In July 2012, Suncall announced that it would boost production capacity of engine alloy valve springs by 70% from the current capacity to 1.2 million units per month at Suncall (Guangzhou) Co., Ltd. - its production subsidiary in Gangzhou - by 2015. (Combined with the increase in production in Thailand, Suncall will boost the ratio of overseas production from the current about 30% to 40%.)
Tigers Polymer boosts production of cleaner related products at Guangzhou plant
 In May 2013, Tigers Polymer announced that it would enhance production of automotive high-performance air cleaner related products at its production subsidiary in Guangzhou - Guangzhou Tigers Polymer Co., Ltd. Tigers Polymer will invest about JPY170 million to add a plastic molding machine and assembly lines and will also invest about JPY80 million to additionally introduce molds. It will boost production capacity of cleaners and of filter parts by 50% and 70%, respectively, from the current capacity (as of May 2013). Tigers Polymer won contracts from Honda and also expects an increase in demand in China, where air pollution has become more severe.
 Guangzhou Tigers Polymer has already developed a production structure for 500,000 filter parts per year in March 2013. It will build a production structure for 300,000 air cleaners per year by July. It will supply the air cleaner to Guangqi Honda Automobile and Dongfeng Honda Automobile. Tigers Polymer also plans to supply some of the filter parts to its US plant (which has been supplied from Japan so far).
Tachi-S changes its management subsidiary in Gangzhou to an investment subsidiary with no change to its business plans in China
 In May 2013, in order to enhance the management in China, Tachi-S increased capital to its existing management subsidiary in Guangzhou (former Tachi-S (Guangzhou) Management Co., Ltd.), changing its company form to an investment subsidiary. At the same time, the company name was changed to Tachi-S (China) Investment Co., Ltd.
 The new company (an investment subsidiary) is capitalized at about USD 33 million. It mainly conducts investment businesses in China, and supervises and supports its group companies in China. Tachi-S (China) Investment plans to increase the number of employees to 19 by the end of 2013. In China, for a local affiliate (subsidiary) of foreign capital to have investment functions in China including establishment of and capital participation in companies, it is required under regulations to hold capital of more than USD30 million.
 In June 2013, Tachi-S announced that there had been no change to its plan announced in July 2012 to boost production of seats in China and to the related investment plan. Tachi-S plans to increase production of seats in China from being equivalent to 680,000 vehicles per year in 2011 to 1.5 million vehicles in 2015. With this move, in addition to Nissan models that are locally produced in China including Infiniti/Venucia, Tachi-S will focus on sales expansion to Honda and Chinese OEMs such as Geely.
TS Tech establishes a development sub-subsidiary in Guangzhou
 In June 2013, TS Tech announced that it would establish Guangzhou TS Tech Automotive Interior Research & Development Co., Ltd., an R&D sub-subsidiary in Guangzhou, in August 2013. This is the first time TS Tech will build an R&D center in China.
 The new company is capitalized at USD800,000, which is provided 100% by TS Tech (Hong Kong) Co., Ltd. - TS Tech's wholly-owned subsidiary in Hong Kong. By establishing a structure to quickly respond to the needs of Japanese OEMs including Honda, TS Tech enhances its response to existing customers and aims to win new contracts eyeing European, US, and Korean OEMs.
NHK Spring re-considers the construction plan for a new suspension spring plant in Guangzhou, which it postponed
 In January 2013, NHK Spring (NHK) announced that it had revamped its establishment plan of a new plant in China and would postpone the construction plan of its second plant that produces suspension springs in Guangzhou. Although details have not been announced, NHK already acquired a plant site in January 2013. It originally planned to start commercial production for Japanese OEMs in China (Guangzhou) in 2014.
 In the meantime, in July 2013, NHK announced that it had started re-considering a construction plan for a new plant in China with several cities as candidate locations and not limiting the location to Guangzhou. Yet, details have not been worked out.
Hi-Lex adds a production line at its Zengcheng plant in the suburbs of Guangzhou
 In April 2012, Hi-Lex announced that it would make a capital investment of JPY736 million in Guangdong Hi-Lex Cable System Co., Ltd. (former Guangzhou TSK Control Cable Co., Ltd.) in Zengcheng, in the suburbs of Guangzhou in 2013. The subsidiary produces automotive control cables and window lift (W/R). Hi-Lex will add a new production line and expand its existing plant to complete the construction in September 2013. In June 2013, the plant had 500 workers. It mainly supplies products to Toyota, Nissan, Honda, Yamaha and Hino.
 Under the 2013 capital investment plan in China announced by Hi-Lex in April 2012, Hi-Lex will invest about JPY2.27 billion in three facilities including the Gangzhou (Zengcheng) plant, and facilities in Changchun, Jilin Province and in Chongqing City.
Marujun boosts production capacity at its stamping plant in Guangzhou by 30%
 In May 2013, Marujun announced that it would enhance Guangzhou Marujun Co., Ltd. - its production subsidiary for molds and body stamping components. In addition to its top customers such as Honda, Nissan and Toyota, Marujun will respond to an increase in contracts from OEMs including GAC Fiat Automobiles and BAIC. It can also win contracts for new parts that it has not manufactured so far.
 Marujun makes a capital investment of JPY1.8 billion in the plant to introduce two transfer press machines rated 3,000 tons and 1,200 tons. Marujun will boost production capacity by 30% from the current capacity (in May 2013) by April 2014.

 

In Foshan Aisan Industry, Ichikoh Industries and FCC enhance production while Toyota Boshoku takes over some functions of production in Japan

Aisan Industry starts operations at its second production facility of its production subsidiary in Foshan
 In April 2013, Aisan (Foshan) Auto Parts Co., Ltd.,Aisan Industry's production subsidiary, started production of engine functional parts at the second (new) production facility added on the property of its existing plant. It is  located in Foshan, which is in the vicinity of Guangzhou. Currently, Aisan (Foshan) Auto Parts responds to the enhancement of local engine plants of Toyota/Nissan.
Ichikoh Industries starts operations of a new vehicle lamp plant in Foshan
 In April 2013, Foshan Ichikoh Valeo Auto Lighting Systems Co., Ltd., Ichikoh Industries' joint venture production company in Foshan, started production of vehicle head lamps and rear combination lamps at a new plant on the same property of its existing plant. With this move, the company doubled its production capacity. The facility is 23,000 square meters, of which a parts assembly plant has closed glass walls and also boasts more than a 60% automation rate. To improve production efficiency, Foshan Ichikoh Valeo Auto Lighting Systems introduced a European injection molding and coating processes.
 Additionally, in 2012, Ichikoh Industries and Valeo integrated and reorganized their lamp production company (plant) in China through Valeo Ichikoh Holding Ltd. at the Chinese headquarters in Dublin, Ireland. Previously, in July 2012, the two companies concluded a contract for a comprehensive business partnership in China. In September 2012, they signed a basic agreement for the reorganization of their lamp-related subsidiaries and affiliates in China including Foshan Ichikoh Valeo Auto Lighting Systems Co., Ltd.
FCC adds one production line for clutches for CVTs at its Foshan plant
 In January 2013, FCC announced that it would invest about JPY1.5 billion in its production subsidiary in Foshan- Foshan FCC Clutch Co., Ltd. - to add one new production line for clutches for CVTs by 2014. In addition, before this move, FCC will upgrade one production line for clutches for ATs at the subsidiary in order to use the line for production of clutches for CVTs in 2013. With this, FCC will respond to Honda's increase in local production of vehicles with CVT, also with a plant to boost sales to other OEMs.
Kobe Steel starts production of steel wire for high-grade springs at its joint venture plant in Foshan
 In February 2013, Kobe Steel started production of steel wire for high-grade springs including valve spring for engine valves at its joint venture production company in Foshan (Nanhai District) - Kobelco Spring Wire (Foshan) Co., Ltd. The monthly production capacity is 600 tons.
 This new company is capitalized at JPY1.3 billion, which is owned 50% by Kobe Steel (China) Investment Co., Ltd., 25% by Kobe Steel Wire, and 25% by Suncall. Its plant procures wire and other materials from Kobe Steel's subsidiary in Foshan -Kobe Steel Wire Material Manufacturing - which produces CHQ (Cold Heading Quality) wire and cold finished steel bars.
Topre produces body frame parts made of high-tensile steel at its Foshan plant
 In June 2012, Topre Corporation started operations and commercial production at its production subsidiary in Foshan - Topre (Foshan) Auto Parts Corp. With this move, Topre began production of frame parts for the Nissan Sylphy (1 model). In January 2013. It added production of frame parts for another model. The Foshan plant employs about 150 workers in February 2013.
 In 2013, Topre will begin production of body frame parts made of high-tensile steel for a Nissan large sedan. It will procure high-tensile steel from a major local steel manufacturer - Baosteel Group. Topre also plans to promote the use of frame parts made of 980MPa ultra-high tensile steel in China. It will transfer production of the frame parts to the Xiangfan plant in Hubei Province - Topre (Xiangfan) Auto Parts Corp. (scheduled to start operations in January 2014) - Which is a better location for transportation in the future.
Toyota Boshoku transfers production of filters for midsize engines from its plant in Japan to its Foshan plant
 In January 2013, Toyota Boshoku, as part of its plan to transfer the entire production of oil filters for engines from Japan to overseas plants (China and Thailand) by 2014, transferred production of 75mm filters for midsize engines from Japan (Kariya plant in Aichi Prefecture) to Foshan Toyota Boshoku Automotive Parts Co., Ltd.- A production subsidiary in Foshan.
 In addition, in May 2013, Toyota Boshoku Corporation announced a plan to transfer production of 65mm filters for small engines to its production subsidiary in Rayong Province, Thailand by September 2013 and another plan to transfer production of large-diameter filters for large engines from Japan to a plant in China or Thailand in 2014 or later.
Hiruta Kogyo starts production of suspension parts and steering column parts at its Foshan plant
 In 2012. Hiruta Kogyo started operations of its production subsidiary in Foshan (Nanhai District) - Hiruta Kogyo (Foshan) Auto Parts Co., Ltd. The company started to produce automotive suspension parts, powertrain components and steering columns.
 In June 2013, Hiruta Kogyo has won contracts from Japanese OEMs such as Mitsubishi, Nissan, Mazda and Isuzu and also from OEMs with Chinese capital only and is scheduled to begin delivering the product in March 2014. Hiruta Kogyo will also focus on an increase in sales to European and US OEMs, targeting the boost of sales by 50% to JPY3 billion in China in 2016.
FALTEC starts production of automotive exterior parts at its Foshan plant
 In September 2012, FALTEC's wholly-owned production subsidiary in Foshan - Foshan Faltec Automotive Parts Co., Ltd. - completed production of its plant. The plant started production of automotive exterior parts. (The new company is capitalized at USD 25 million.)
 FALTEC will expand production at its plants in China including its Foshan production subsidiary. When the Foshan plant is combined with a Hubei plant that is scheduled to start operations in 2014, FALTEC says that it will boost sales in China from JPY 2.8 billion in 2012 to JPY 8.6 billion in 2015.

 

In Zhongshan Nihon Plast and Yachiyo Industry boost production, while Honda Elesys considers establishment of an R&D center

F.tech invests in its Zhongshan plant for localization as planned
 In January 2013, F.tech announced that, to localize production for improvement of production efficiency, it intended to invest in its production subsidiary in Zhongshan - F.tech Zhongshan Inc. - as planned. In January 2013, F.tech already introduced a hydro forming facility in its Zhongshan plant, which reduces the number of parts to allow F.tech to cut process costs and to reduce weight, and to accelerate production by about 20%.
 F.tech will improve materials and processing methods, boosting sales to Japanese OEMs other than its current customers, Honda, Nissan, and European and US OEMs including GM and Chinese private OEMs in two to three years.
Nissin Kogyo enhances production capacity for ESCs at its Zhongshan plant
 In June 2013, Nissin Kogyo announced that its wholly-owned subsidiary would gradually increase production capacity of Electronic Stability Control (ESC) to respond to market demand increase  in Zhongshan. The subsidiary, Zhongshan Nissin Industry Co., Ltd. mainly produces automotive brake parts. In June 2013, Zhongshan Nissin Industry had a production capacity of about 150,000 ESCs and 300,000 automotive brakes a year.
Nihon Plast adds an air bag plant to its production subsidiary in Zhongshan, enhancing procurement and cost reduction in China
 Nihon Plast will add an air bag plant to its joint venture production subsidiary in Zhongshan with ITOCHU Corporation - Nihon Plast (Zhongshan) Co., Ltd. The new plant is scheduled to start operations in the autumn of 2013.
 Nihon Plast targets the increase of the local content ratio of a wide variety of materials and components at its overseas plant to 70% in 2013. The materials and components include stamping parts, plating plastic, steering wheel leather and plastic materials.
Honda Elesys expands its production subsidiary in Zhongshan, also considering establishment of its R&D center
 In June 2012, Honda Elesys announced a plan to expand its production subsidiary in Zhongshan - Zhongshan Elesys Electron Co., Ltd. - to boost production of the vehicle ECU (Electronic Control Module).
 Production includes brake-system ECUs including VSA (Vehicle Stability Assist: Honda's product name for ESC) and electronic power steering ECU. Honda Elesys will gradually introduce new production lines to give the plant in Zhongshan a complementary relationship with its new plant in Amata Nakorn, Thailand to prepare for natural disasters and human risk. Including its plants in Japan and the U.S., Honda Elesys will make clearer the division of roles by its four plants.
 In addition, in April 2013, Honda Elesys announced that it would establish a new R&D center in 2013 with Zhongshan a most likely candidate. The new R&D center will have functions for a conformance test of completed vehicles, development of derivative products, and development of some software.
Yachiyo Industry adds a plant that produces plastic fuel tanks to its Zhongshan plant
 Yachiyo Industry will expand its production subsidiary in Zhongshan - Yachiyo Industry (Zhongshan) Co., Ltd.. To respond to an increase in local demand by its major customer, Honda, Yachiyo Industry will build a new plant for plastic fuel tanks to boost production capacity for fuel tanks by 200,000 units to 600,000 units by March 2014. It will also boost production capacity for sunroofs. In addition, it will integrate the sunroof plant and the plastic fuel tank plant to build a production structure for efficient management.
 In January 2013, Yachiyo Industry announced that it would not change its business plan in China. In March 2013, it also announced a plan to expand its Wuhan plant in Hubei Province. Since local sales that dropped due to anti-Japan demonstrations has been recovering, Yachiyo Industry's production subsidiaries in Zhongshan, Guangdong Province, and in Wuhan, Hubei Province have already resumed normal 2-shift operations in January 2013.
U-SHIN is currently building a new plant on the property of its existing plant in Zhongshan
 In June 2012, U-SHIN announced that it would build a new plant on the property of its subsidiary in Zhongshan, U-Shin Manufacturing (Zhongshan) Co., Ltd. The new plant produces products including automotive key sets. The new plant is scheduled to start operations around August 2013. Production at the existing plant will be transferred to the new plant upon its completion.
 The total investment in the construction of the new plant is worth about JPY4 billion. The site area is 89,000 square meters, which is about twice the area of the existing (main) plant (the floor area - 79,000 square meters - is about three times the current area). The local content ratio by the plant is about 30% as of June 2012. Products are also exported to Japan and the U.S.

 

In Dongguan, Yunfu and Heyuan Aisin Takaoka, Ogura Clutch, Sanoh Industrial and Toyota Boshoku enhance production, while Mabuchi Motor concentrates on products with high added value

Aisin Takaoka starts production of a plant that produces automotive casting and plastic forming parts in Yunfu
 In January 2013, Aisin Takaoka started operations of its production subsidiary in Yunfu :Takaoka Lioho (Yunfu) Industries Co., Ltd. The subsidiary began production of automotive casting and plastic forming parts including disc rotors. Takaoka Lioho (Yunfu) Industries plans to produce engine components and conduct machine work in the future.
 The subsidiary is expected to post sales of about JPY2 billion in 2013. It is currently supplying disc rotors, which are brake components, mainly to GAC Toyota Motor. It has a production capacity of 30,000 tons per year.
ADVICS establishes a new company in Yunfu, Guangdong Province, starting operations in December 2013
 In April 2012, ADVICS established its production subsidiary in Yunfu - ADVICS Yunfu Automobile Parts Co., Ltd. The subsidiary is scheduled to start operations by December 2013, producing brake boosters and disc brake calipers. The plant will be launched as scheduled, but due to anti-Japan demonstrations, the time for the new plant to start full-scale production and to boost capacity will be delayed from the original plan.
 The new company is capitalized at CNY 100 million with 80% by ADVICS and 20% by Lioho Machine Investment (China) Co., Ltd. The site area of the plant is 66,700 square meters (floor area: 18,400 square meters). It will boost the number of employees to about 350 in 2016, expecting to post sales of CNY 400 million (about JPY 4.8 billion).
Ogura Clutch boosts production capacity of cast parts at its Dongguan plant
 In June 2013, due to increased contracts from US-based Ford to supply diff-locks related parts for pickups, Ogura Clutch announced a plan to boost a combined production capacity of its plant in Dongguan (Ogura Clutch (Dongguan) Co., Ltd.) and of its Michigan plant in the U.S. to about four times the current capacity in October 2013.
 The Dongguan plant, which is wholly-owned by Ogura Clutch, started the expansion work in September 2011. The construction was already completed in June 2013, thus boosting production capacity from 150,000 units to 550,000 units a year. The Dongguan plant exports products to which it provides casting and winding processing, and then finishes it as a final product through assembly in its US plant.
Sanoh Industrial starts production of engine parts at its Dongguan plant
 In February 2013, Sanoh Industrial announced that it would complete the construction of a plant of its production subsidiary in Dongguan - Sanoh Industrial (Dongguan) Co., Ltd. (established in 2012) - in the summer of 2013 to start operations. The plant conducts integrated production from plating to assembly of engine pipes including fuel delivery pipe/water pipe.
Toyota Boshoku starts production of interior parts at its Heyuan plant
 In June 2013, Toyota Boshoku announced that it would establish its joint venture, Heyuan Toyota Boshoku Automotive Parts Co., Ltd. in Heyuan.  The joint venture is established jointly with GAC Components - Guangzhou Automobile Group's affiliated auto-parts supervising company. The new company will start operations in September 2013, beginning production of interior parts including automotive seat covers. It has a production capacity equivalent to 230,000 vehicles per year.
 The site area of the new plant is about 17,000 square meters (floor area: about 8700 square meters). It is capitalized at USD2.1 million (The total investment is worth about USD4.14 million) with 75% by Toyota Boshoku (China) Co., Ltd., which is Toyota Boshoku's Chinese headquarters and 25% by GAC Components. The new plant employs about 230 workers. It plans to supply the products mainly for Guangzhou Intex Auto Parts, which produces vehicle seats for GAC Toyota Motor.
Mabuchi Motor increases production of products with high added value at its Dongguan plant and transfers production of inexpensive products to a second plant in Jiangxi Province
 In 2012, Mabuchi Motor added production of compact motors with high added value for vehicles and multi-function printers (MFPs) at its production subsidiary in Dongguan - Dongguan Daojiao Mabuchi Motor Co., Ltd.). Mabuchi Motor enhanced production of high-quality products at the plant.
 In the meantime, Mabuchi Motor transferred production of non-high-quality/relatively inexpensive products that the Dongguan plant had produced. The production has been transferred to  two plants in inland Jiangxi Province ; Mabuchi Motor (Jiangxi) Co., Ltd., in Ganzhou, and Mabuchi Motor (Yingtan) Co., Ltd., in Yingtan with enhanced production.

 

 



Japanese Suppliers in Hubei Province of Central China

In Hubei suppliers concentrate on an increase in production in Wuhan and Xiangyang to respond to construction/expansion of plants by local customers in China including Nissan/Honda

Imasen Electric Industrial starts production of seat adjusters at its Xiangyang plant
 In February 2013, Imasen Electric Industrial's production subsidiary in Wuhan - Wuhan Imasen Electric Industrial Co., Ltd. - started operations of its Xiangyang branch plant following its Wuhan main plant that had started operations in May 2012. The branch plant produces seat adjusters. Although details including production volume are not made public, Wuhan Imasen Electric Industrial employs 183 workers with the two (Wuhan and Xiangyang) plants combined as of the end of 2012 (711 at its Guangzhou subsidiary).
Calsonic Kansei starts production of plastic molding parts at its Xiangyang branch plant
 In the spring of 2013, Calsonic Kansei's production subsidiary in Guangzhou - Calsonic Kansei (Guangzhou) Co., Ltd. - started production and supply of plastic molding parts for the New Teana, which is produced by Xiangyang plant of Dongfeng Nissan Passenger Vehicle Co., at its Xiangyang branch plant in Hubei Province - Calsonic Kansei (Guangzhou) Corporation Branch, Xiangyang Plant.
 With this, Calsonic Kansei's Xiangyang branch plant, which had conducted only final assembly with instrumental panels supplied from Calsonic Kansei's Guangzhou (main) plant, introduced a new injection-molding machine that can manufacture base material and surface in an integrated manner. Calsonic Kansei has built a production structure of plastic molding parts, which only its Guangzhou (main) plant had, at its Xiangyang branch plant. It plans to respond to new models including the Infiniti which are produced at Dongfeng Nissan Passenger Vehicle Co. Xiangyang plant.
Kiriu to prepare production of brake parts in Xiantao for customers in inland China
 In April 2012, Kiriu Corporation announced that it had acquired an 18% share of Fujiwa Machinery Industry (Hubei) Co., Ltd. in Xiantao Economic & Technical Area, Hubei Province. It is  a production subsidiary of Fujiwa Machinery, which is a joint venture between Sumitomo Corporation and Taiwan-based Lioho Machine. At the same time, Fujiwa Machinery Industry (Hubei) made a capital investment to build its new second plant.
 The second plant stared operations in the second half of 2012 and boosted production capacity for cast parts for brakes by 80% from that in April 2012 to 4,500 tons a month. The second plant's operations through the capital participation of Kiriu, are said to begin in the fourth quarter of 2013 (confirmed by the survey that MarkLines conducted in July 2013).
 Kiriu has so far produced brake parts including disc/drum at Kiriu-Liohe Co., Ltd., which is its existing joint venture production company in Guangzhou, Guangdong Province with Lioho Machine for Nissan's Guangzhou plant and Zhengzhou plant in Henan Province. To prepare for future increases in vehicle production by OEMs including Nissan in China, Kiriu produces brake parts at Fujiwa Machinery Industry (Hubei) for customers in inland China including Nissan's plant in Henan Province (Zhengzhou Nissan Automobile).
G-TEKT produces dies for stamping parts in-house at its Wuhan plant
 In July 2012, G-TEKT announced that it would shift from the importing of die for stamping parts from Japan and Thailand to in-house production at Wuhan Auto Parts Alliance (China) Ltd. in 2013. This is a move to respond to Honda's increase in local production in China.
 G-TEKT invests about JPY600 million to introduce machine tools and designing software, which are necessary for die production, in the facility of its Wuhan subsidiary. To train local engineers, G-TEKT already sent Japanese engineers in July 2012. In Mary 2013, G-TEKT is currently winning increased contracts from Mitsubishi in China and has won new contracts from BAIC Motor/ GAC Toyota Motor (Camry including HV version)/Dongfeng Honda (CR-V and Elysion)/ GAC Mitsubishi Motors (ASX RVR).
Showa establishes a production subsidiary for propeller shafts in Wuhan
 In January 2013, Showa announced that it would establish its production subsidiary for automotive propeller shafts in Wuhan - Showa (Wuhan) Auto Parts Manufacturing Co., Ltd. (tentative name). In July 2013, Showa applied for approval by the Chinese government (The capital is paid, and Showa is waiting for approval).
 The new plant of the new company will be built on the existing property (gross floor area: 24,000 square meters) of the Wuhan branch plant (Guangzhou Showa Auto Parts Co., Ltd., Wuhan branch) of its subsidiary in Guangzhou. The construction of the plant is slightly delayed from the original plan and the start of operations of the plant is expected to be postponed slightly from May 2014. GAC Group affiliated parts supervising company cancelled its capital participation plan and the new plant are wholly-owned by the Showa Group. (Although details of the current capital participation are not made public, the new plant is capitalized at CNY 40 million with a total investment of CNY 42 million in the initial announcement.)
Topre starts construction of its body frame plant in Xiangyang
 In December 2012, Topre Corporation started the construction of a plant of its production subsidiary in Xiangyang - Topre (Xiangfan) Auto Parts Co., Ltd.. The plant is scheduled to start operations in January 2014. The total investment in the plant is worth about JPY5 billion (it is capitalized at JPY2 billion). The site area is 95,000 square meters. The plant targets sales of JPY3 to 3.5 billion in the fiscal year ending in March 2015.
Tachi-S establishes a production subsidiary for seat covers in Wuhan
 In June 2013, Tachi-S announced that it would establish its new production subsidiary - (tentative name) Tachi-S (Wuhan) Co., Ltd. - in Wuhan in 2014. The subsidiary will start operations as early as in 2014 to produce seat trim covers with production capacity of 400,000 units a year. It will supply the product mainly to existing seat plants in China and Japan.
 Tachi-S plans to increase the number of its production facilities (plants) in China from the current two to four in 2014 or later including a new plant in Wuhan that it will build in 2014.
Chuo Spring establishes a suspension spring production subsidiary in Xiaogan
 In February 2013, Chuo Spring announced that it would establish a fifty-fifty joint venture production company for suspension springs, Xiaogan Zhongxing Auto Parts Co., Ltd. in Xiaogan, Hubei Province around April 2014. The joint venture is established jointly with China Spring Corporation Ltd. This new plant is Chuo Spring's sixth spring plant in China and is the third suspension spring plant following the ones in Tianjin and Kunshan Jiangsu Province.
 The new company is capitalized at CNY 60 million. The total investment in the first stage construction is worth VNY 30 million. The company produces automotive suspension, springs from molding to heat treatment/painting, for OEMs mainly in South China/Central China. It will build production capacity of 30,000 units a month in 2016.
Piolax starts production of fasteners/mechanical parts at its Wuhan plant
 In April 2013, Piolax, Inc. started production of automotive plastic module components (plastic fastener/various opening-closing devices) at Wuhan Piolax Co., Ltd. - its production subsidiary in Wuhan, Hubei Province. The subsidiary plans to start full-scale operations by the end of 2013. It supplies the product mainly to the local plants in China of Nissan/Honda/GM/Ford.
 This new plant is Piolax's second production facility in China following the Dongguan plant, Guangdong Province, which produces automotive metal parts. The site area is about 7,000 square meters. The plant is capitalized at USD10 million (80% by Piolax, 19% by Dongguan Piolax Co., Ltd., and 1% by Sanlong Industry). It will introduce 17 molding machines including 5 machines transferred from the existing Dongguan plant in Guangdong Province.
 In March 2013, the new plant won contracts for fasteners/mechanical parts to be used in glove boxes from Beijing Hyundai Motors (It will start supplying the products in mid-2014). Piolax will focus on the expansion of sales including winning new contracts, targeting sales of about JPY2.5 billion in 2014.
FALTEC establishes a production subsidiary for exterior parts in Xiangyang
 In November 2012, FALTEC Co., Ltd. established Hubei Faltec Automotive Parts Co., Ltd. in Xiangyang (Hi-tech Development Zone) - a joint venture company that produces exterior parts - jointly with a major Chinese accessory manufacturer, Guangdong ShiLiHe Auto Accessory Co., Ltd. The new company will start operations by March 2014, beginning to produce exterior parts for passenger cars such at the Infiniti. The initial production capacity will be equivalent to 300,000 passenger cars a year. (The new company is capitalized at CNY 88 million. Annual sales of CNY 400 million.)
Yachiyo Kogyo builds an extension to production facility at its Wuhan plant in Hubei Province
 In March 2013, Yachiyo Kogyo announced that it would expand its consolidated subsidiary, Yachiyo Kogyo (Wuhan) Co., Ltd., to respond to Honda's production increase in China. It will build an extension to the production facility, boosting production capacity of sunroofs for passenger cars and plastic fuel tanks.

 

 



Japanese suppliers in Hunan Province of Central China

In Hunan production concentrated in Changsha, responding to building and expansion of plants by local customers - VW, Mitsubishi and Fiat

Asteer builds its plant in Changsha, accelerating activities to win contracts
 Asteer will enhance production at Changsha Asteer WuuShiang Auto Parts Co., Ltd. - its joint venture production company with Taiwan Wuushiang Industry. The joint venture is scheduled to start operations of a new (its) plant in June 2014.
 Changsha Asteer WuuShiang Auto Parts was established in 2012. It built a temporary production structure by renting a plant and started production of body frame parts for Mitsubishi's Changsha joint venture plant (GAC Mitsubishi Motors) and others. In May 2013, Changsha Asteer WuuShiang Auto Parts won a new contract from Shanghai GM's Wuhan new plant to supply stamping parts that prevent water and mud from entering the brakes (Supply will begin in November 2014). Changsha Asteer WuuShiang Auto Parts aims to start supplying the product in 2014 and is also negotiating to win a contract to supply to GAC Fiat's Changsha plant.
Sumitomo Rubber Industries starts production of radial tires for passenger cars in Changsha
 In July 2012, Sumitomo Rubber Industries started production of automotive radial tires at its wholly-owned production subsidiary in Changsha - Sumitomo Rubber (Hunan) Co., Ltd. Sumitomo Rubber Industries will build production capacity at the Changsha plant to 15,000 tires per day at the end of 2013, with a plan to boost the capacity to 30,000 at the end of 2015 and to a further 60,000, gradually, in the future. It will increase the number of employees from 234 in August 2012 to 1,200 at the end of 2013.
 At the same times as the production capacity is boosted, the Changsha plant, in addition to existing production of commercial tires, will produce tires that will be used on new vehicles to increase production. The Changsha plant already began the development of these tires. It aims to boost sales by selling products mainly to VW, which will expand into Foshan, Guangdong Province and Changsha, Hunan Province in 2014, and to Toyota, Nissan and Honda. (The site area of the Changsha plant is 550,000 square meters. The plant is capitalized at USD 219 million. The total investment in the first-stage construction is worth USD 297 million.)
Pacific Industrial starts construction of its Changsha new plant, which had been previously postponed
 Around May 2013, Pacific Industrial started the construction of a plant of its production subsidiary, Changsha Pacific Hanya Auto Parts Co., Ltd., in Changsha. The new plant is scheduled to start operations in 2014 or later. It will produce stamping parts for new models (including Pajero Sports) that Mitsubishi produces at its Changsha joint venture plant (GAC Mitsubishi Motors). In October 2012, Pacific Industrial had announced that it would postpone the construction of this plant indefinitely due to anti-Japan demonstrations.
 Changsha Pacific Hanya Auto Parts Co., Ltd. was established in November 2011. In order to supply stamping parts (about fifty items) for GAC Mitsubishi Motors's first model, the ASX RVR, it prepared a temporary production structure for welding of body parts at a rented plant in Changsha starting in July 2012. The company was supplied with stamping parts from an existing plant in Tianjin (Tianjin Pacific Auto Parts Co., Ltd.) of its group, thus conducting welding and assembly of stamping parts for the ASX RVR. When the new Changsha plant is completed, Pacific Industrial plans to transfer the production of stamping parts for the ASX to the new plant.
Futaba Industrial starts production of mufflers, fuel tanks and suspension parts in Changsha
 In December 2012 (about four months later than the original plan of August 2012), Futaba Industrial began operations of Changsha Futaba Auto Parts Co., Ltd. - its wholly-owned subsidiary in Changsha (Economic & Technical Area). The plant started production of mufflers, fuel tanks, and suspension parts for GAC Mitsubishi Motors' Changsha plant.
 Changsha Futaba Auto Parts is capitalized at JPY1 billion. The floor area of the plant is about 5,400 square meters. The initial number of employees was 87, which it planned to increase to 110 by the end of 2012.

 

 



Japanese suppliers in Henan Province of Central China

In Henan Japanese suppliers concentrate production in Zhengzhou in order to respond to construction and expansion of plants by local customer including Nissan

Calsonic Kansei builds an in-house production structure of plastic molding parts at its Zhengzhou branch plant
 In October 2012, Calsonic Kansei's subsidiary in Guangzhou - Calsonic Kansei (Guangzhou) Corporation) announced that it would make a capital investment in Calsonic Kansei (Guangzhou) Corporation Branch, Zhengzhou Plant. This is a move to respond to production of a new model at Nissan's local plant.
 Calsonic Kansei has so far outsourced production of instrumental panels, but introduces an injection skin technology that enables an injection machine to produce soft skin and a plastic molding machine in the Zhengzhou branch plant. Calsonic Kansei will start production of plastic molding parts including instrumental panels in-house by mid-2013, and begin to supply plastic molding parts to a new model of Zhengzhou Nissan in the second half of 2013.
Kinugawa Rubber Industrial establishes a plant for body seal parts and antivibration parts in Zhengzhou
 In November 2012, Kinugawa Rubber Industrial established its production subsidiary - Kinugawa Rubber (Zhengzhou) Co., Ltd. - in Zhengzhou. This is Kinugawa Rubber Industrial's fifth production facility in China. The production subsidiary produces and supplies body seal parts and antivibration parts mainly to Zhengzhou Nissan Automobile and Dongfeng Nissan Passenger Vehicle. It will start operations by the end of 2013. Kinugawa Rubber Industrial targets sales of more than JPY 3 billion in the fiscal year ending in December 2015 (announced in May 2013).
Shiroki Corporation establishes a branch plant of its production subsidiary in Guangzhou with the property of Zhengzhou Nissan
 In May 2013, Shiroki Corporation announced that it would establish Guangzhou Shiroki Auto Parts Co., Ltd., Zhengzhou Branch as a branch plant (satellite production facility) within the property of Zhengzhou Nissan in Zhengzhou. The branch plant will start assembly of door sashes in December 2013. It will procure semi-finished door sashes from Guangzhou main plant (Guangzhou Shiroki Auto Parts Co., Ltd.). The floor area of the new plant is 1,800 square meters. The total investment is worth about CNY 15 million. The plant is expected to employ about 35 workers in 2014.
Fuji Kiko establishes a shifter parts plant in Zhengzhou
 In November 2012, with Taiwan Jofu Fuji Kiko,Fuji Kiko established Zhengzhou Jofu Auto Parts Co., Ltd. in Zhengzhou. Fuji Kiko is scheduled to start production of products including shifter parts at a plant of the new company by the end of 2013. The new company is capitalized at USD 2.5 million with 67% by Fuji Kiko and 33% by Jofu Fuji Kiko.
Unipres introduces a 3,000-ton large TRF in its plant in Zhengzhou, which starts operations in August 2013
 In May 2012, Unipres announced that it would expand its global production and supply structure of ultra-high tensile strength steel sheet, which contributes to weight reduction of vehicles. It plans to increase the number of a large transfer press (TRF) machine from the current 14 to 19 by 2014 in order to respond worldwide to its production of the steel sheet. Among them, Unipres is scheduled to start commercial production in China in August 2013. It will introduce a large 3,000-ton-class TRF stamping machine that responds to high tensile strength steel in its production subsidiary in Zhengzhou - Unipres Zhengzhou Corporation.
 Unipres has already introduced three large over-2,000-ton TRF stamping machines in its plant in China. With the introduction of a 3,000-ton-class large TRF press in the Zhengzhou plant, Unipres focuses on weight reduction of a vehicle body by press molding technology and simulation analysis technology. The company also promotes proposals of measures for using high tensile steel sheet, which contributes to cost reduction, targeting to cut costs by 15% in the future.

<Automotive Industry Portal MarkLines>