Japanese Suppliers in China (3): Northern/ Northeastern/ Southwestern Regions

Highlights of activities in major cities and updates about suppliers in the country



 This is the third and last report outlining the highlights of activities of Japanese suppliers in China between April 2012 and July 2013 (over a period of one year and three months). The reports are separated by regions. Reported are the summaries of activities in Tianjin City/Tangshan City, Hebei Province of Northern China, Shenyang and Dalian, Liaoning Province/Changchun City, Jilin province of Northeastern China, and Chengdu City, Sichuan Province/Chongqing of Southwestern China as well as China in general.

 Moreover, follow-up information for issued reports "Japanese suppliers in China (1): Eastern China Region" and "Japanese suppliers in China (2): Southern and Central Regions" are also provided.

 Many Japanese suppliers responded to increased production of major Japanese automakers in China by enhancing production at their local Chinese plants. The companies are also aggressively working to optimize their operations by strengthening control and management of local operations. The suppliers are also making efforts  to reduce costs by localizing design and development, as well as increasing local procurement of components and raw materials.

Japanese suppliers Related Reports:

   Southern and Central China (Aug. 2013),
   Eastern China Region (Jul. 2013)
   Central & Southwestern China (Aug. 2012),
   Southern China - Guangdong Province (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)

Map of Northeastern and Northern China regions
Map of Northeastern and Northern China regions

Map of Southwestern China region
Map of Southwestern China region

Japanese suppliers in Northern China

Tianjin City
(Companies are in Japanese phonetic order)

Aisin AW enhances production of AT components for new plant at its existing plant in Tianjin

 In May 2013, Aisin AW announced its plans to strengthen the production of AT components at its existing Tianjin plant, Tianjin AW Automatic Transmission Co., Ltd. The enhancement is made to support the assembly of six-speed ATs at a new AT plant of AW (Tianjin) Auto Parts Co., Ltd. The new AT plant is currently under construction in Tianjin.
 Approximately JPY five billion will be spent on production facilities for AT components including oil pumps. This investment will increase the plant's annual capacity by 400,000 sets of AT components for  six-speed ATs  for  front-wheel drive(FWD)  in addition to the current 120,000 sets for rear-wheel drive(RWD) six-speed ATs (The total production capacity will be 520,000 sets). The new plant in Tianjin will continue to increase the number of AT components produced in-house.
 Aisin AW has been receiving more orders for ATs from local brands and Volkswagen (VW) plants in addition to Japanese OEMs in China. In mid-2013, operations will begin at the new plant in Suzhou, Jiangsu Province, which is currently under construction. The plant, AW Suzhou Automotive Parts Co., Ltd., will have an annual production capacity of 240,000 four-speed  ATs for FWD engines.

Kodama Chemical to sell auto-parts subsidiary in Tianjin

 In January 2013, Kodama Chemical announced the sales of its wholly-owned automotive parts subsidiary in Tianjin City, Planer (Tianjin) Advanced Plastic Products Co., Ltd. (established in March 2005). Some of the major reasons for this sale are uncertainty of its business feasibility as a foreign company and optimization of its management resources. If the selling  proceeds as scheduled, it will be completed by May 2013 (current status has not been confirmed as of August 2013).
 Kodama Chemical will transfer 80% of its shareholding to a local trading company, Tianjin Hengruixiang Trading, capitalized at CNY 300,000, and 20% to a private investor in Tianjin (Zhang Junhua). The total value of the shares at the time of the transfer is expected to be CNY 17.70 million. The capital funding of the subsidiary at the time of the sale is CNY 25,718,000. Its total asset value is CNY 36,331,000 (net worth CNY 23,995,000). The company ended FY2011 with a deficit.

Pacific Industrial starts operations at Chinese headquarters in Tianjin

 In September 2012, Pacific Industrial started operations of its Chinese headquarters, Pacific Industries China Corp. The company was established in June 2012 in Tianjin within the premises of its existing production subsidiary, Tianjin Pacific Auto Parts Co., Ltd.. The headquarters will help expand Pacific Industrial's operations within China and strengthen its management.
 The Chinese headquarters (capitalized at USD 30 million) will acquire ownership of  two of Pacific Industrial's two existing subsidiaries in China, Tianjin Pacific Auto Parts Co., Ltd. and Changsha Pacific Hanya Auto Parts Co., Ltd..

Toyoda Gosei to transfer and expand joint sealant plant in Tianjin

 In June 2013, Toyoda Gosei started production of sealing parts including weatherstrips and glass runs, at Tianjin Star Light Rubber and Plastic Co., Ltd. The joint venture, whose 51% share is owned by the Japanese supplier, has been transferred and expanded from the previous location. The company decided to transfer and expand the company in line with the redevelopment in Tianjin City as well as increased production and sales in nearby locations.
The new plant is located in Zhongbei Industrial Park, Xiqing District, Tianjin City. The area of this new plant is 1.9 times the size of the previous plant (78,000 square meters). The total floor area will increase by 1.5 times to 42,000 square meters. The extra space will allow further expansion of production capacity in the future. The majority of the products will be provided to Japanese automakers in China including Toyota, as well as major  automakers with Chinese origin including Great Wall Motor. The company plans to increase the number of employees to approximately 1,000 by the end of 2013. The plant's sales for 2012 were JPY 6.9 billion.

Toyota Boshoku starts operations at new seat assembly plant in Tianjin

 Toyota Boshoku will start to assemble seats within 2013 at its joint venture, Tianjin Intex Auto Parts Co., Ltd. The plant is being constructed currently as of July 2013.
 The sub-subsidiary's 75% share is owned by Toyota Boshoku's Chinese headquarters (Toyota Boshoku (China) Co., Ltd.) and its 25% share is owned by a FAW owned supplier. The company is planning to procure pressed parts for assembling seat  from Tianjin Feng'ai Automotive Seat Parts Co., Ltd., Toyota Boshoku's existing manufacturing subsidiary in Tianjin City.

Fujitsu Ten starts operations at Chinese headquarters in Tianjin

 In June 2012, Fujitsu Ten Limited (Fujitsu Ten) began operations at its wholly-owned Chinese headquarters; Fujitsu Ten (China) Ltd. It was capitalized at JPY 2.25 billion. The company will manage and control four Chinese subsidiaries. Operations at the new headquarter will begin with 21 employees. All of the employees are transferred from Fujitsu Ten's trading company, Fujitsu Ten Trading (Tianjin) Ltd.
 Fujitsu Ten aims to increase its sales of on-board audios and car navigations systems in China to two to three times the current amount within 2016.


Tangshan City, Hebei Province and Inner Mongolia Autonomous Region

Aisin Chemical Adds production of wet friction materials at existing plant in Tangshan for Aisin AW

 In May 2013, Aisin Chemical added production of wet friction materials for ATs to its manufacturing items at its subsidiary, Tangshan Aisin Chemical Co., Ltd., in Tangshan City, Hebei Province. The subsidiary had been specializing in production of disk brake pads. A total of JPY 400 million was additionally invested to add production of the friction materials. As of June 2013, the plant of subsidiary has a monthly production capacity of 400,000 units. The materials are delivered to Aisin AW's plant.

Kobe Steel discontinues joint production in Baotou; will continue to consider establishing supply base

 In December 2012, Kobe Steel announced the discontinuation of the joint production plans of aluminum sheets with a major local aluminum rolling company, Jiangsu ALCHA Aluminum Co., Ltd. The companies withdrew the basic agreement regarding the joint venture. The fallout was caused mainly by the different perceptions of the two companies.
 However, with an expected increase in demand for aluminum sheet materials for automotive and cans in China, the company will continue to seek ways to establish supply bases.
 In the basic agreement, both companies were planning to establish a joint venture in Baotou City, Inner Mongolia Autonomous Region in January 2013. Kobe Steel would have owned 80% of the joint venture. In 2015, the plant of the joint venture was scheduled to begin operations with a production capacity of 200,000 tons of aluminum sheet materials mainly for automobiles.



Japanese Suppliers in Northeastern China

Liaoning Province

Abe Denzai and Sugita Densen to transfer and expand co-owned Yingkou plant

 Both Abe Denzai and Sugita Densen had located their local production subsidiaries Yingkou Abe Harness Co., Ltd.(Abe Denzai’s subsidiary) and Yingkou Sugita Wire Co., Ltd.(Sugita Densen’s subsidiary) in the same building in Yingkou City, Liaoning Province.  In June 2012,the two companies transferred the subsidiaries to an industrial park in the suburb of Yingkou City (located in Yingkou High-tech Development Zone). The new plants recommenced production of wire harnesses for automobiles.
 Wires for construction and agricultural machines will be added to the products manufactured at the plant in addition to automotive wires. The production capacity of the new plant will increase by 1.5 times the previous volume. The plant aims to increase its sales by JPY 300 million in sales to over JPY 1.5 billion in the future.
 As before, the new plant will be co-owned by Abe Denzai and Sugita Densen. The area of the property is 22,000 square meters with a floor area of approximately 17,000 square meters (twice as wide  as the old plant’s floor area). Two two-story buildings will be allocated for production. The old plant was sold to the local government of Yingkou City. The suppliers used the fund to acquire the new site. Abe Denzai imported an auto crimping machine and Sugita Densen relocated its wiring manufacturing unit to the plant from Japan respectively.

Excell begins production of blow molding at Dalian manufacturing subsidiary

 In January 2013, Excell (Excell Corporation) started operations at its wholly-owned manufacturing subsidiary, Excell (Dalian) Co., Ltd., in Dalian City, Liaoning Province and initiated production of automotive blow molding. The subsidiary will initially have around 30 employees with targeted sales of JPY one billion. Capital funding for the subsidiary has not been released.
 Its products will be delivered to automakers in mainly Beijing and Tianjin City in Northern China, as well as Northeastern China including Liaoning, Jilin, and Heilongjiang Provinces. In addition to Japanese OEMs, the subsidiary plans to expand its marketing targets to Chinese, American and European OEMs.

Kasai Kogyo considers starting operations in Dalian

 In January 2013, Kasai Kogyo announced that the construction plans of the new plant have not been changed. It also revealed that the company is under consideration to opening a new business in Dalian, Liaoning Province. Furthermore, the supplier shared their insight that they are recovering from a production and sales plunge resulting from anti-Japanese protests in China.

Keihin opens Shanghai development subsidiary's branch office in Shenyang

 In June 2012, Keihin's wholly-owned development subsidiary in Shanghai, Keihin R&D China Co., Ltd., opened a new branch office as a second development site. The new branch office is called Keihin R&D China Co., Ltd. Shenyang Branch, and is located in Shenyang City International Software Park, Liaoning Province. The scheduled number of employees by the end of 2012 was about 50 (current number is unknown. The Shanghai headquarters had approximately 210 employees as of May 2012).
 About CNY one million will be spent for the new office. It will respond to the expected needs for environmental technologies including fuel efficiency technology, arising from more strict fuel efficiency regulations. The supplier plans to cooperate with its own R&D centers in Japan and Shanghai to research and develop electrically-controlled products used in automobiles, motor cycles, and general-purpose applications.

Note: Keihin's expected FY2013 sales will increase by 44.3% to JPY 51.3 billion year-over-year and its trading profit by 12.4% to JPY 3.4 billion (announced in April 2013). Furthermore, the planned sales volume for motorcycle carburetors increased by 74% to 3,450,000 for the same fiscal year.

Sanoh Industrial plans to construct new plant in Dalian to manufacture products for Nissan

 In February 2013, Sanoh Industrial announced its plans to build a new plant in Dalian city, Liaoning Province. The factory will help the company expand its accounts including Nissan's local plant in Dalian and the other local OEMs. Details such as the starting time of operations or production capacity have not been disclosed.

Tachi-S establishes production subsidiary for seat covers in Dalian

 In June 2013, Tachi-S announced its plans to establish a joint venture to be located in Dalian, Liaoning Province in 2014. The new manufacturing subsidiary will be called Tachi-S (Dalian) Co., Ltd. for the time being. With this new plant and another plant in Wuhan city, Hubei Province in 2014, Tachi-S 's production locations in China will increase from the current four to six sites. Of these six plants, four plants will supply the products to Nissan (currently two plants supply to Nissan).
 The subsidiary in Dalian is a joint venture established with Lear's group company, Dongfeng Lear Automotive Seat. The construction will start in 2013 and expected to complete by 2014 at the earliest. Automotive seat covers will be manufactured. It will have an initial production capacity of 100,000 sets of seat covers annually with plans to increase the volume to 200,000 sets. The covers will be delivered to existing seat plants in China and Japan. Also, Tachi-S plans to increase its seat manufacturing plants in China to nine locations by FY2016.

Toyota Boshoku to construct manufacturing plant for interior parts in Shenyang

 In July 2013, Toyota Boshoku established a manufacturing company, Shenyang Toyota-Boshoku Automotive Parts Co., Ltd., in Shenyang, Liaoning Province. Interior parts such as ceilings and door trims for European and American automakers (including BMW Brilliance Automotive) will be manufactured from mid 2016.
 The new company was capitalized at CNY 140 million (total investment of CNY 330 million). It is wholly owned by Toyota Boshoku's Chinese headquarters, Toyota Boshoku (China) Co., Ltd.. The 13,000-square-meter plant will be built on 60,000 square meters of land. The production will initially begin with approximately 70 employees.

Bridgestone to relocate Shenyang; daily manufacturing capacity of tires to increase to approximately 5,000

 In February 2013, Bridgestone announced that its radial commercial car tire manufacturing subsidiary in Shenyang, Bridgestone (Shenyang) Tire Co., Ltd., will construct a new plant in Shenyang Chemical Industrial Park. The new plant will be used to relocate its existing plant. The new plant is scheduled to start operations in mid 2014. The company will increase its daily manufacturing capacity from the current 3,700 tires to 5,000 once the transfer is complete.
 Prior to this announcement, the supplier has acquired a land for the new plant in January 2013. The land covers approximately 395,000 square meters. Approximately USD 99.9 million was spent for the acquisition. A total of approximately USD 299.7 million will be spent for the construction (includes new facilities). As of the end of 2012, the number of employees working at the existing plant was approximately 1,200.

Mitsuba to expand FY2016 production of EPS motors at Dalian plant to 3.5 million units

 Mitsuba's manufacturing subsidiary in Shenyang, Liaoning Province, Mitsuba Electric (Dalian) Co., Ltd., is estimated to produce approximately 2.50 million brushless motors for electric power steering (EPS) annually. This will account for 50% of Mitsuba's global production for FY2013. For FY2016, the supplier plans to further increase the volume by 40% from the volume in FY2013 to 3.5 million.
 The subsidiary is currently manufacturing motors for power windows, sun roofs, power seats, door lock actuators, and sensors in addition to EPS motors.
 In March 2013, Mitsuba also disclosed that it will enhance production of brushless motors for EPS mainly in China and Japan. With this increase of production, the company will also focus on ways to saving manufacturing costs. The supplier has not disclosed any details regarding this expansion relating to production enhancements. However, in response to increased sales of environment-conscious vehicles (especially Toyota and VW brads), Mitsuba will increase its annual global production volume for FY2016 by approximately 20% from an FY2013 estimate to six million units.

Unipres begins FS on plant construction in Dalian

 In May 2013, Unipres announced that it has begun a feasibility study to construct a new plant in Dalian, Liaoning Province. The plant is called Unipres Dalian Corporation for the time being. Details have not been disclosed.
 In May 2013, Unipres received orders for parts used for Nissan's vehicles built on D (the new Teana) and C platforms. The company also received orders for filler tubes used on the Mitsubishi Motors RVR and the Pajero Sports.

Ryobi to strengthen production of engine parts at Dalian subsidiary

 In September 2012, construction was completed on Ryobi's second plant for its manufacturing subsidiary in Dalian, Liaoning Province: Ryobi Die Casting (Dalian) Co., Ltd.. Production of die cast products as well as their molds officially began the next month. Products manufactured at the plant will be mainly delivered to Shanghai GM, VW's local transmissions plant in Dalian, and Dongfeng Nissan Passenger Vehicle.
 The new second plant is built in Dalian Economic Development Area, just a few blocks away from the first plant in Dalian. The plant will mainly manufacture transmission cases, clutch housings, engine mounting brackets. The subsidiary owns a total of 32 casting machines (installed at both first and second plants). Breakdown of the total 30 machines as of October 2012 was 17 machines rated to 2,000 tons or more and 13 machines rated to less than 1,000 tons.

Note: In April 2012, Ryobi completed construction of its wholly owned manufacturing subsidiary (established in November 2010), Ryobi Die Casting (Changzhou) Co., Ltd., in Changzhou, Jiangsu Province. The plant went into mass production of die cast parts in November 2012.

 This subsidiary was capitalized at JPY four billion (a total of JPY nine billion will be invested in this project by the end of 2013). The site area of the plant is 80,000 square meters (floor area: 32,000 square meters). As of October 2012, the plant was equipped with a total of 12 casting machines (six machines rated at 2,000 tons or more and six machines rated at less than 1,000 tons). According to the plan at the time of the establishment of the subsidiary, the number of employees working at the plant will increase to 350. The sales plan for 2014 was approximately JPY five billion.


Jilin Province

IHI in consideration of in-house production of turbochargers at Changchun manufacturing subsidiary

 In June 2012, IHI announced that it is considering switching production of turbocharger core components, such as turbine wheels and compressor wheels, to in-house (local production) at its manufacturing subsidiary, Changchun FAWER-IHI Turbo Co., Ltd. in Changchun, Jilin Province. The company has imported components from Japan and Thailand.
 As of June 2012, IHI's turbocharger plants in China are locally procuring turbine housings used to contain wheels. However, the company's  local procurement rate of components in China is a mere 50% in contrast to over 90% in Europe and Thailand. The supplier plans to increase its local procurement rate in China as well as  consider starting local production of Variable Geometry System (VGS) turbochargers.

TBK Commences production of brakes and its components for commercial vehicles at joint venture in Changchun

 In April 2012, TBK established Changchun FAW Sihuan TBK Co., Ltd. in Changchun City Chaoyang Development District, Jilin Province jointly with Changchun FAW Sihuan Brake Company. The company started joint production of brakes and their components such as drums and hubs for commercial vehicles in June 2012. The products have been supplied to local brand automakers (with sales getting off to a good start).
 The company was capitalized at CNY 98 million (TBK invested 40% in cash and Changchun FAW Sihuan Brake 60% with goods). Existing assets (commercial rights for existing commercial vehicle brakes and its components, existing related production equipment plant with an area of 60,000 square meters and buildings in Changchun) from Changchun FAW Sihuan Brake  to the joint venture. TBK invested a total of CNY 64 million to this project (Total investment made in operations in China was approximately JPY 800 million for the fiscal year ending March 2013).

Hi-Lex to strengthen production line at Changchun plant

 In 2012, Hi-Lex invested a total of JPY 25 million to strengthen its production lines. The investment was made to its manufacturing subsidiary, Changchun Hi-Lex Cable System Co., Ltd., in Changchun, Jilin Province. Additional investment of JPY 355 million will be made in 2013.
 The subsidiary produces automotive control cables and window regulators (W/R). The products are supplied to the FAW group including FAW-VW. There are approximately 216 employees working at the subsidiary as of the end of June 2013.
 According to its investment plans released in April 2012, a total of JPY 2.273 billion was schedule to be invested in its three sites in Changchun, Jilin Province, Guangzhou, Guangdong Province (Zengcheng), and Chongqing during 2013.



Japanese Suppliers in  Southwestern China

Chengdu City, Sichuan Province

Japan Vilene starts production of filters in Chengdu

 In March 2013, Japan Vilene started operations at Freudenberg & Vilene Filter (Chengdu) Co., Ltd., a 50-50 joint venture with a Germany-based FFT Beteiligungs Gmbh, and began production of automotive and industrial filters. This will be the third Chinese location for the Japan Vilene group following the establishment of sites in Changchun City and Suzhou City. Automotive filters will be supplied to European OEMs in China.
 The capital funding of the joint venture is CNY 18 million (facility investment is estimated at CNY 36 million). The headquarter plant is built on 12,000 square meters of land. Sales Expected for FY2013 is CNY 30 million and CNY 90 million for FY2015.

FCC establishes new Chinese headquarters in Chengdu; start automobile clutch production

 In September 2012, FCC established a subsidiary, FCC (China) Investment Co., Ltd., in Chengdu City, Sichuan Province, as its Chinese headquarters. As of the end of March 2013, the company is wholly owned by FCC, with a capital funding of USD 20 million. It will control overall investment for production in China for FCC.
 Furthermore, FCC added production of automotive clutches to its motorcycle clutch production subsidiary in Chengdu, Sichuan Province. The subsidary is Chengdu Yonghua. FCC Clutches Co., Ltd. (former Chengdu Jianghua. FCC Clutches Co., Ltd.), and added the capability to manufacture automotive clutches. As of May 2013, the company was capitalized at USD 28 million. Together with its U.S. plant, a total investment of approximately JPY 15 billion investment will be made annually by FY2015. In early 2015, the plants (including the U.S. plant) will be expanded to have an annual production capability of 1.5 million clutches.
 Enhancements at Chengdu Yonghua. FCC Clutches includes installment of new clutch manufacturing lines with an annual assembly capacity of 400,000 clutches. The supplier aims to increase its customers and start production of automotive AT clutches to supply for new European and U.S automakers such as ZF and Ford by FY2014. In addition, in response to increased demands for CTV clutches from Honda, its major customer, as well as decreased demands for AT clutches, existing production lines for AT clutches will be modified to enable production of CVT clutches.


Chongqing City

Denso plans construction of new exhaust sensor plant in Chongqing City

 In April 2013, Denso announced its plan to construct a new plant for exhaust sensors in Chongqing City by FY2015. Details such as production capacity or when the construction will begin have not been disclosed. However, the new facility will be the second exhaust sensor plant in China for the supplier. Actions to toughen gas-emission level regulations in China have triggered the establishment of this new plant.
 Ceramic parts used as production material for the sensors will be imported from Ohkuma Seisakusho (Inabe City, Mie Prefecture in Japan). To cope with this order, Ohkuma Seisakusho will add a raw material plant and several combustion furnaces by FY2015.

Hi-Lex adds new building at its subsidiary plant in Chongqing

 In 2013, Hi-Lex will invest a total of JPY 1.182 billion to its manufacturing subsidiary, Chongqing Hi-Lex Cable System Group Co., Ltd, in Chongqing City. Hi-Lex holds 60% of its share. A new plant (building) will be added to its premises. The construction is scheduled to complete in November 2013. This will increase the supplier's annual production capacity of automotive control cables from 57.5 million (as of April 2012) to 64.3 million by 2013.
 The subsidiary produces automotive control cables and window regulators (W/R). Cables produced at this plant will be supplied to Toyota, Nissan, Honda, Mazda, Suzuki, Isuzu, Daihatsu, Yamaha, Ford, and GM. There are 1,307 employees working at the plant as of the end of June 2013.
 According to its investment plans released in April 2012, a total of JPY 2.273 billion was scheduled to be invested during 2013 to its three sites in Chongqing, Guangzhou's Zengcheng (Guangdong Province), and Changchun (Jilin Province).

Futaba Industrial to manufacture suspension parts at subsidiary in Chongqing

 In November 2012, Futaba Industrial established a wholly-owned manufacturing subsidiary, Chongqing Futaba Automotive Parts Co., Ltd., in Chongqing City. The subsidiary is scheduled to start operations in November 2013. It will manufacture exhaust manifolds and suspensions which will be delivered to Chang'an Suzuki Automobile, Suzuki's Chinese plant.
 The subsidiary was capitalized at JPY 1 billion (JPY 1.5 billion was invested in total). The plant has a floor area of approximately 8,200 square meters. The sales target for 2014 is JPY 1.7 billion and the plant also  plans to increase the number of employees to 140.



Follow-up information of Japanese OEMs in Eastern, Southern, and Central China

Eastern China region: Shanghai City, Jiangsu, Zhejiang, Fujian, Anhui, and Shandong Province

Ahresty expands Hefei plant; adds new product to its line-up

 In Hefei City, Anhui Province in December 2012, phase three construction (expansion) of die cast plant started at its production subsidiary, Hefei Ahresty Casting Co., Ltd.The plant will cover 20,500 square meters. The construction is scheduled to be completed by mid-2013. New products will be launched with the completion of the facility. The new building has a floor area of 5,100 square meters (the total floor area of the existing plants measures 14,000 square meters as of August 2012).
 Prior to this construction phase, the supplier completed phase-two construction of a processing plant and began production. It is located next to the land where phase three of the construction will be held. The Hefei subsidiary has a monthly die-cast manufacturing capacity of 500 tons (as of March 2012).
 In June 2012, Ahresty announced its strategies to strengthen development capacities at its overseas plants in China (Hefei City), U.S., and Mexico. To manufacture aluminum casted parts like engine blocks and transfer cases, 3D modeling tools and analyzing machines will be introduced to five overseas plants including the Hefei plant. This will allow the plants to reduce lead time from prototyping to mass production, and improve manufacturing technologies.

Ibara Seiki expands local production functions by starting operations at its own plant in Fuzhou

 In June 2013, Ibara Seiki announced its plans to enforce auto-parts production structure at its manufacturing subsidiary, Fuzhou Ibara Lioho Machinery Co., Ltd., in Fuzhou City, Fujian Province. A total of JPY 750 million will be invested by 2015 under this plan. It aims to expand its customers to local manufacturers and non-Japanese OEMs-its potential clients.
 In April 2013, the supplier started operations at its own plant to manufacture steering columns and the manufacturing material, known as forging material. The new plant replaced its previously rented facility in Fuzhou City. Moreover, the supplier previously imported forging materials from Japan, but shifted to local production. The company will add ball joints for steering wheels to its  items by March 2014. Further enhancements will be gradually made to its production facilities with an investment of JPY 364 million.
 Ibara Seiki will invest JPY 380 million to the new wholly-owned plant to install a five-station 800-ton cold forging former. The plant now has a complete production system from cold forging to machining, thermo treatment, and assembly. Improved production capacity has boosted productivity by 25%. The company is planning to increase the annual production volume of forging material used to manufacture columns by five times the current amount to nine million pieces. It also aims to increase its sales from JPY 1.132 billion in FY2012 to JPY 2.644 billion by FY2015.

F-Tech consolidates two offices in Yantai; to expand market to OEMs other than Honda

 F-Tech restructured its operation in Yantai City, Shandong Province. Two local subsidiaries, Futian Mould Technology (Yantai) Co., Ltd. (established in December 2007) and Yantai Fuyan Trading Co, Ltd. (established in August 2010), were consolidated through this restructuring. The new consolidated manufacturing company, Yantai Fuyan Mould Co., Ltd., was established in June 2012, and made a new start by taking over all of the work of the former two subsidiaries in Laishan District, Yantai City.
 With the exception of complex projects, the new subsidiary has capacity to locally design and manufacture dies for bodies and suspension parts. There are almost 50 employees working at the company as of May 2013. The new subsidiary plans to expand its clients to automakers outside of the Honda group.

Kayaba Industry expands production line and establishes development capability in Zhenjiang

 In May 2013, Kayaba Industry (KYB) announced its plans to strengthen its production and marketing capabilities for general-purpose shock absorbers in China. In June 2013, the company reconfirmed its strategy to continue operations of its auto-parts production business in China as scheduled.
 It will add one production line dedicated for shock absorbers to increase production capacity at its manufacturing subsidiary, KYB Industrial Machinery (Zhenjiang) Ltd., in Zhenjiang City, Jiangsu Province. The new line is scheduled to start operations by May 2014.
 Additionally, KYB will establish a designing department at its Chinese headquarters, KYB (China) Investment Co., Ltd., in Zhenjiang City to add developing capability to design shock absorbers. These additions will increase efficiencies for production developments and allow the company to rapidly acknowledge market needs accurately to expand its sales.
 KYB has postponed its additional investment to a new shovel manufacturing plant in China. A plan to construct a new plant in Indonesia was revealed instead.

Shin-Etsu Chemical starts production of alloys for rare earth element magnets in Longyan

 In March 2013, Shin-Etsu Chemical started operations at its manufacturing subsidiary, Shin-Etsu (Changding) Science & Technology Co., Ltd.), in Longyan City, Fujian Province (established in March 2012). The plant produces iron boron alloys for rare earth element magnets used in motors for hybrid vehicles (HVs) and electric vehicles (EVs). It has an annual production capacity of 3,000 tons.

Aichi Steel Corporation to add casted parts production line at joint venture plant in Shanghai

 In June 2012, Aichi Steel announced its plans to increase production lines at its production joint venture, Shanghai Aichi Forging Co., Ltd. to add production volume of automobile casted parts. The aim is to increase the number of produced items at the plant in response to increased demands from Toyota's Chinese factory. Targeted manufacturing volume for FY2015 is 1.5 times the manufactured amount for FY2012 (approximately 40,000-45,000 tons).

Sumitomo Rubber Industries increases and consolidates mold production at subsidiary in Changshu

 In August 2012, Sumitomo Rubber Industries announced its plans to enhance production of tire molds at its manufacturing subsidiary, Sumitomo Rubber (Changshu), in Changshu, Jiangsu Province. It will increase production by 30% of the current volume within 2012. The company additionally revealed that it will consolidate production of molds in China to this subsidiary.
 The Changshu subsidiary also supplies to Sumitomo Rubber's another plant, Sumitomo Rubber (Hunan) Co., Ltd., which started operations in July 2012 in Changsha, Hunan Province.

Seiren initiates production of new synthetic leather for interiors and airbags at subsidiary in Suzhou

 In late 2012, Seiren began production of new synthetic leather material used for interiors called Quole at its manufacturing subsidiary ,Seiren Suzhou Co., Ltd., in Suzhou City New District, Jiangsu Province. The material has eliminated negative characteristics found in real leathers and urethane skins. Details such as production capacity have not been disclosed.

Daido Metal may be planning construction of second plant within existing plant in Suzhou

 In November 2012, Daido Metal announced its strategy to expand its production capacity in China by FY2014. The strategy included construction of a second plant for its Chinese manufacturing subsidiary. Details including its capacity have not been released. However, the second plant is expected to be constructed within the premises of bearing metal manufacturing subsidiary, Daido Precision Metal (Suzhou) Co., Ltd., in Suzhou, Jiangsu Province.

Diamond Electric strengthens production of engine ignition coils at existing plant in Suzhou

 Diamond Electric constructed a new factory building within the premises of an existing plant at its engine ignition coil manufacturing subsidiary, Diamond Electric (Suzhou) Co., Ltd., in Suzhou City, Jiangsu Province. The supplier aims to expand the subsidiary's annual production capacity to approximately twice the volume in July 2012 to six million pieces.
 The company, however, used a different expansion method for this modification. This method will allow the supplier to increase production volume by 500,000-600,000 per production line depending on market demands, whereas conventional methods have only allowed increases by two million.
 Furthermore, Diamond Electric will promote standardization of designing and production to establish a mutually-complementing system. It will also accelerate local procurement of materials. By partnering with suppliers in the same field whose plants are in China, Diamond Electric will be able to gain price competitiveness and disperse risks related to manufacturing. This will improve the supplier's risk management capabilities.
 In May 2013, Diamond Electric announced a highest investment amount of JPY 2.64 billion for FY2013. The fund will be used to increase production for ignition coils whose demand is growing in China and the U.S. This is a 40% increase from the previous year. The investment includes committed syndicated loan of approximately JPY 1.8 billion. The investment will be used to add production lines to its facilities.
 With respect to this investment Diamond Electric announced, in July 2012, that it will expand its overseas annual production capacity of engine ignition coils to over 12 million by 2015.

Nikke initiates operations at trading company in Shanghai; to sell sawing thread and motor binding strings made in Thailand

 In August 2012, Nikke's wholly-owned subsidiary, Ambic (headquartered in Himeji, Hyogo, Japan), announced that it has established and started operations at its marketing subsidiary, AMBIC (Shanghai) Trade Co., Ltd., in Shanghai. The new company will initially provide technological support for industrial bag filters. Manufacturing will be done at a partnering Japanese plant in China. The company has revealed its strategy to add and sell sawing threads for airbags and motor binding strings used for production in Thailand later on.

Hikari Seiko to manufacture precision and thermo treated parts for autos at subsidiary in Danyang

 Hikari Seiko will start operations at its manufacturing subsidiary, Danyang Hikari Seiko Co., Ltd., in Danyang, Jiangsu Province by the summer of 2013, if there is no trouble. Automotive universal joints will be manufactured at the plant. This will be the second Chinese plant for Hikari Seiko after establishing its existing plant in Tianjin (Tianjin Hikariseiko Precision Co., Ltd., in operation since 2002).

Murakami Corp. to consolidate parts business in Jiaxing; terminates lamp joint venture with OLSA

 In August 2012, Murakami Corporation announced the merger and consolidation of its two wholly-owned production subsidiaries in Ningbo City, Zhejiang Province: Jiaxing Murakami Ishizaki Corporation (established in 2002) and Jiaxing Murakami Kaimeido Corporation (established in 2008). The surviving company, Jiaxing Murakami Ishizaki Corporation, will merge Jiaxing Murakami Kaimeido Corporation. The name of the company was changed to Jiaxing Murakami Corporation after the merger.
 In June 2013, Murakami Corporation announced that it will terminate lamp manufacturing joint project with OLSA S. p. A. of Italy. The supplier transferred its entire share (45%) in the joint venture, Jiaxing OLSA Murakami Automotive Accessory Co., Ltd., (established in February 2011) to OLSA. The share transferred was priced at USD 1.665 million: same price as at the time of acquisition. The joint venture manufactures rear lights for local plants of GM and VW in China.


Southern China region: Dongguan City, Guangdong Province

Ohizumi MFG. increases production of sensors for air conditioners at subsidiary in Dongguan

 In June 2012, Ohizumi MFG announced its plans to invest a total of JPY 200 million to its production subsidiary, Dongguan Ohizumi Sensor Co., Ltd., during FY2012 ending in March 2013. The subsidiary will enhance production of thermo sensors for air conditioners (including automotive applications) at this subsidiary located in Dongguan City, Guangzhou Province. The supplier will make a total of JPY 600 million investments, including investments for the Towada plant in Aomori Prefecture in Japan, with the fund acquired from initial public offering (IPO) executed in June 2012. )
 Dongguan sensor plant added thermo sensors for onboard air conditioners to its production in 2007. As of July 2013, thermo sensors for on-board air conditioners manufactured at Dongguan plant accounts for approximately 10%-15% of the entire sensors manufactured at the plant. The volume of sensors manufactured at plants in Japan and Dongguan each account for 50% of the manufactured volume.

Hitachi Chemical production of sintered bearing begins at new subsidiary plant in Dongguan

 In May 2012, Hitachi Chemical announced its plans to enhance production capability of powder metal products at its joint venture, Hitachi Powered Metals (Dongguan) Co., Ltd.. This joint company was established with other Hitachi subsidiaries located in Dongguan City, Guangdong Province. A new plant constructed within the premises of an existing plant in Dongguan City completed in fall 2012. In addition to powder metallurgy products for automotive and construction machinery applications, the company started production of sintered bearings (Employees working at the Dongguan plant was 235 as of May 2012).


Central China regions: Wuhan City in Hubei Province, and Zhengzhou City in Henan Province

TACHI-S to strengthen manufacturing joint venture with U.S.-based Johnson Controls in Wuhan

 In January 2013, Tachi-S announced its expansion plans for its seat manufacturing joint venture, Wuhan Tachi-S Johnson Controls Automotive Seat Co., Ltd., in Wuhan City, Hubei Province. The new company was jointly established with U.S.-based Johnson Controls. A new building will be added to the premises of the joint venture's existing plant. The new facility will have a production line with an annual manufacturing capacity of 100,000 vehicles. The Wuhan joint venture will double its capacity to produce 200,000 units by summer 2013 at the earliest.

Hitachi Chemical will start production of resin molding parts at new subsidiary in Zhengzhou

 Hitachi Chemical will start operations at its wholly-owned manufacturing subsidiary, Hitachi Chemical (Zhengzhou) Auto Parts Co., Ltd., in Zhengzhou City, Henan Province by January 2014. The Chinese subsidiary was capitalized at USD 23 million in May 2011. The subsidiary mainly manufactures automotive interior/exterior plastic molded products. It will increase its employees to approximately 220 once the business goes on track.
 According to an article in Nikkan Jidosha Shimbun (Japanese newspaper) dated May 23, 2013, Hitachi Chemical is planning to establish another production subsidiary for plastic molded parts in China in January 2014 This move is in addition to the company's enhancements on powder metallurgy product production in China. Details including location are unknown. Hitachi Chemical plans to strengthen its operation infrastructure in countries outside of Japan, including China, by expanding its marketing targets to local and other non-Japanese automakers including European and American manufacturers as well as Japanese companies. Under this plan, Hitachi Chemical aims to increase overseas production ratio (sales-basis) of autoparts from 37% in FY2012 to 51% by FY2015.



Highlight on general activities of Japanese Suppliers in China

Aisin AW accelerates Chinese business; promotes local development and supply procurement

 In August 2012, Aisin AW announced its approach to maintain production capacity in Japan and also drastically increase production of ATs in China. With the announcement, it established a Chinese headquarters, AW China Co., Ltd., in Shanghai in September 2012. In October 2012, the supplier established a technological support center, AW Suzhou Technical Center Co., Ltd., in Suzhou City, Jiangsu Province. This will drive localization of development and local procurement of components in China.
 AW Suzhou AT plant, currently under construction in Suzhou and the new AW (Tianjin) Auto Parts AT plant will start operations as initially scheduled in fall 2013 and 2014, respectively. This will expand annual production capacity of ATs in China from the current 100,000 to 700,000 units combined with the volume of existing AT plant in Tianjin, Tianjin AW Automatic Transmission.

Aisin Seiki continues to execute existing business plans for China as is

 In January 2013, Aisin Seiki announced that it will not make any major modifications to its investment plans for China. However, any new investment proposals for China as well as other emerging countries will be thoroughly studied before any decisions are made.

Aisin Takaoka to expand casting capabilities in China with introduction of die-quench method

 In December 2012, Aisin Takaoka announced that it will add casting lines to overseas plants in China, Indonesia, Thailand, and the U.S. A total of JPY 15 billion will be invested by 2015 to increase its casting capabilities in Japan and other countries by 50% from the current volume to approximately 600,000 tons annually. The investment will meet local procurement needs iat Toyota group plants in line with their increased production. Promotion of hot stamped parts to overseas will also be enhanced.
 This will include the company's first introduction and installment of hot-stamping equipment to plants outside of Japan (including China). The plant will operate sample production within 2013 to start proposing manufacturing technology which will lighten the weight of body frame components. The facility will officially go into mass production of the hot stamped parts by 2015 at the earliest.

Akebono Brake focuses on increasing global orders (including exports) and optimizing investment in China

 Akebono Brake acknowledged that its Chinese operation is capable of fulfilling the current volume of orders. However, it is in need to strengthen its ability to accept global orders (including products for export) from 2013. The company declared that it will decide on further investments to China based on improved investment efficiencies such as cost, and also by how much lead time it will save and whether if it allows small investments. As a result, decisions regarding additional investments for production expansions are delayed.
 In order to expand its global orders at the Chinese plants, Akebono Brake announced that it will export parts manufactured at Chinese plants to two factories outside of China from June 2013 or October 2014. Additional details have not been disclosed.

H-One makes additional investment to expand three plants in Wuhan and Guangdong

 In May 2013, H-One announced that it will make a total of JPY 4.42 billion investment in China during FY2013 ending in March 2014. Breakdown of the investment is JPY 3.26 billion for specialized investment and JPY 1.16 billion for general investment. Investment results in China for FY2012 ending in March 2013 were JPY 3.95 billion in total (specialized investment: JPY 2.15 billion, general investment: JPY 1.8 billion).
 The supplier will add a 1,500-ton TRF press machine to its manufacturing subsidiary, QH Auto Parts Industries Inc., in Qingyuan City, Guangdong Province. The plant is scheduled to go into mass production in July 2013. Its production subsidiary in Guangzhou City, GH Auto Parts Industries Inc., automated its tandem line. In August 2013, 35% of the line workers were laid off to optimize the plant's working structure. Moreover, a Chin Fong (a Taiwanese owner company) mold trial press machine will be introduced by the end of 2013 to increase mold production volume in China from 100 to 150 units.
 Additionally, plant expansion of its production subsidiary, WH Auto Parts Industries Inc., in Wuhan City, Hubei Province was completed in April 2013. The plant is already in production. This facility was introduced with a high-efficiency automatic welding line and established flexibility to work with existing manual lines. Furthermore, H-One now has a system mutually complementing components with the above-mentioned companies to reduce cost.
 In its FY2012(ending in March 2013) report for China, H-One sold a total of JPY 31.2 billion (mold facility: JPY 1.7 billion, parts supplied for Dongfeng Honda Automobile: JPY 11.4 billion, and parts supplied for Guangqi Honda Automobile: JPY 18.1 billion). Its current profit was a total of JPY 2.19 billion (a 7% increase from the previous year) with a net profit of 1.72 billion (a 5.5% increase from the previous year). Total manufactured volume for Honda was 595,000 units (Dongfeng Honda Automobile: 287,000, Guangqi Honda Automobile: 308,000).

EXEDY Corporation to enhance production in China

 In July 2012, EXEDY Corporation announced its plans to enhance production at its Chinese production sites such as Shanghai and Chongqing City after receiving orders from European and American OEMs in China. Details have not been disclosed. However, the company revealed that it will invest a total of JPY 65 billion globally in the next three years up to FY2014.

Kasai Kogyo to introduce automated manufacturing lines to Chinese factories by 2014

 In May 2013, Kasai Kogyo announced its plans to introduce new facilities such as manufacturing lines to automate the door-trim assembly at ten of its plants in China, Japan, U.S., and U.K. by 2014.
 No specific plants in China have been named. This will allow the company to improve quality in continuous production without changing the parts-supply method, inspection processes, and the number of workers. It will also enable the supplier to reduce the number of workers on assembly, welding, and fastening processes from eight to six, cutting human resource costs by approximately 30%.
 Kasai Kogyo currently operates production subsidiaries in Guangzhou City in Guangdong Province, Changzhou City in Jiangsu Province, Ningbo City in Zhejiang Province, Liuzhou City in Guangxi Zhuang Autonomous Region, Wuhu City in Anhui Province, and Kaifeng City in Henan Province.

Calsonic Kansei Corp. to strengthen development capability in China to spread new molding technology with high material yield rate

 In July 2012, Calsonic Kansei Corporation announced its strategies to strengthen the development capability outside of Japan, including China, Mexico, and India. The aim is to promote product development fulfilling local needs as well as cost reduction and localization of materials and parts procurement. Engineers at Chinese sites will be increased from 320 at the end of FY2011 to 409 by the end of FY2012 (current status has not been confirmed as of August 2013).
 In May 2012, Calsonic Kansei Corporation developed a new technology which increases material yield rate from previous 20-40% to over 60%. In addition to having high yield rate, this technology uses resin which can be processed with ease (resin was co-developed with Asahi Kasei Group). Therefore, improvement in precision level can also be expected. Since May 2012, the company has been introducing and spreading this molding technology to Chinese production plants and other plants around the world starting with an instrument panel production subsidiary in Guangzhou.

Furukawa Electric begins production of on-board lead-acid battery sensors in China

 Furukawa Electric plans to start production of sensors in China in 2013. The sensor monitors the status of a lead-acid battery (even when the engine is stopped) to prevent flat batteries. Target annual production capacity is 500,000 units (details including the investment amount have not been disclosed). As of October 2012, its Mexican plant has an annual production capacity of 500,000 units.

Sanoh to invest in six emerging countries including construction plants in Guangdong and Liaoning

 In February 2013, Sanoh Industrial announced its plans to invest a total of JPY 10 billion in six emerging countries including China, India, Russia, and Mexico by FY2015 ending in March 2016. New automobile pipe manufacturing plants will be constructed at ten locations in and outside of Japan. In China, new plants will be built in Guangdong (Dongguan City) and Liaoning (Dalian City) Provinces.
 Additionally, the company will dispatch its Japanese employees to local subsidiaries outside of Japan (such as Asia including China, Europe and the U.S.) for quality assurance. It will also increase local procurement of supplies from the current 30% to 80% over a period of two years starting from 2013.
 In September 2012, Sanoh Industrial made an additional investment and restructured its Chinese operation management subsidiary in Shanghai City. The company consolidated its subsidiary,  Sanoh (Shanghai) Management Co., Ltd. (established in 2010) into Sanoh (China) Investment Co., Ltd., which functions as regional headquarters. As of August 2013, the new company has capital funding of USD 10.7 million with 130 employees.

Showa Corporation establishes purchasing center in China to increase local procurement rate

 In September 2012, Showa announced that it will establish a purchasing center in China within the next few years. Candidates for its location are Shanghai City and Guangzhou City in Guangdong Province. Location for the new center will be decided considering the logistic cost as its priority (including global procurement cost such as exports to Japan). The new center will become the company's second overseas purchasing site after Thailand. The center will be operated in collaboration with the head office in Japan and local marketing staff. In mid-2012, prior to this plan, Showa's representatives from development, material and purchase departments visited suppliers to select its business partners in China.
 Once the center is established, it will explore new suppliers for procurement and multiple purchases to establish a supply chain with lower cost and higher competitiveness. Materials for shock absorbers, its major product, with an over 90% local-procurement rate, will be developed flexibly based on locally procured items requested by automakers
 As of September 2012, the average local procurement rates (by converted currency) for shock absorbers in China are 90% for automobiles and 95% for motorcycles. The rate is 55% for steering wheels, but Japanese suppliers of ECUs and motors, which are  components of steering wheels, will soon start local production. Therefore, a further increase of the rate is expected.

TACHI-S to consolidate production of seat frames; frames for Japan will also be completely transferred to China

 In June 2012, Tachi-s announced that it will consolidate its production function of automobile seat frames to China, Thailand, and Mexico. The company aims to reduce costs by consolidating production of  seat frames and its components centrally. The amount of seat frames used in Japan will be increased in phases starting from late FY2012, ultimately to cover 100% of the seat frames for Japan.
 As of June 2012, Tachi-S began production of standardized automobile seat frames for multiple models at its Chinese subsidiary. The product is being proposed to automakers.The development of popular edition frames with extremely light weight and a reduced number of parts targeting high-end models and emerging markets has been completed. Delivery to Zhejiang Geely Group has already begun.

Taiho Kogyo to introduce highly efficient machining line to Chinese production subsidiary

 In March 2013, Taiho Kogyo announced that it is considering the introduction of an RR line with highly efficient machining capability to its Chinese subsidiaries. The line will cut the number of processes by 40% from traditional processing. Despite its smaller size, it has the same level of production capacity as the traditional lines, but with 30% less investment amount.

T.Rad begins production of EGR coolers in China for FY2017

 In June 2013, T.Rad announced that it will start production of Exhaust Gas Recirculation (EGR) coolers in China. It will  also double production of oil coolers in FY2017 from the level in FY2013. As for EGR coolers, the supplier will strengthen production capacity at sites across the world (including Japan). It plans to increase the global production capacity of FY2017 by 1.8 times the volume in FY2013.
 As of June 2013, the supplier owns three Chinese production companies: T.RAD (Zhongshan) Co., Ltd. (Zhongshan City, Guangdong Province), T.RAD (Changshu) Co., Ltd. (Changshu City, Jiangsu Province), and Qingdao Toyo Heat Exchanger Co., Ltd. (Qindao City, Shandong Province).

Chuo Spring commences production of coil springs made with local materials in Tianjin and Jiangsu

 In July 2012, Chuo Spring announced that it has initiated production of coil springs using Chinese material at its Chinese production subsidiaries in locations such as Kunshan City in Jiangsu Province and Tianjin City. The springs are used for automobile suspensions.

Denso considers establishing parts production corresponding to Toyota's HV operation in China

 In July 2012, Denso announced that it is in consideration of establishing HV component production corresponding to Toyota's ongoing HV operations in China (according to an interview with Nobuaki Kato, president of Denso). Details have not been disclosed. Furthermore, in July 2013, the company revealed its plans to begin supplying engine starters to BMW's engine plant (joint venture) currently constructed in Shenyang City, Liaoning Province from 2015.

Tokyo Radiator to exclusively produce EGR coolers for passenger cars at Chinese plants

 In June 2012, Tokyo Radiator MFG. Co., Ltd. announced its plans to manufacture EGR coolers for gasoline engine powered passenger cars solely in China. This is the first time for Tokyo Radiator to enter into the market. Production and marketing will begin within 2013. Nodetails of the production plant have been released. The newly developed product is smaller and lighter than its competitors with a much improved heat exchanging performance.
 The company owns two production subsidiaries: Wuxi TRS Heat Exchanger Co., Ltd. (Wuxi City in Jiangsu Province) and Chongqing Tokyo Radiator Co., Ltd. (Chongqing City).

Toyo Rubber enhances production at Guangzhou subsidiary; establishes system to produce under contract at Japanese and European plants near Shanghai

 In July 2012, Toyo Rubber announced its Chinese operation expansion plan to increase supply capacity of vibration insulating rubber in China by 50% from the current amount. In addition to increasing production of vibration insulating rubber at its Guangzhou subsidiary, it will establish a production site under contract with Japanese and European partners using their production sites near Shanghai.

Nishikawa Rubber begins supplying body seals to FAW

 In April 2013, Nishikawa Rubber announced that it will start supplying body seals to FAW, a major Chinese public OEM. Details have not been disclosed. However, since this will be its first business with FAW, the supplier is showing prudence and aims to increase the orders for a wider variety of models.

NIDEC TOSOK to strengthen aluminum die-cast production operation by switching to in-house production of molds

 In August 2012, NIDEC TOSOK revealed that it will strengthen its aluminum die cast manufacturing operations in China. It will switch production of die-cast molds to in-house and also start production of valve bodies. Furthermore, the company will promote local development in a global level and cost reduction activities to increase global competitiveness to widen its marketing targets.

Nippon Piston Ring to increase manufactured number of valve seats supporting ethanol

 In July 2012, Nippon Piston Ring announced that it will invest a total of JPY 3 billion by FY2014 to increase the production volume of valve seats for ethanol compatible engines by 1.5 - 2 times the current capacity. Ethanol-compatible engines especially require durability. Plants in China will fulfill increased order from Japanese as well as local OEMs by adding production lines to its existing plants.

Piolax to increase production in China; sales target for FY2014 is JPY 6 billion

 In June 2012, Piolax announced its mid-term management plan for FY2012-2014. The plan included expansion of production and sales targeting Asian emerging countries, such as China.
 Targets for FY2014 are JPY 55 billion in consolidated sales (The amount was JPY 49 billion for FY2012); JPY 6 billion in operating profit (the amount was JPY 5.3 billion for FY2012). It aims to double its sales in Asia from JPY 5.7 billion in FY2010 to JPY 12.5 billion (accounting for over 56.8% of Piolax's overseas sales). Of the amount, a targeted sale for China is JPY 6 billion.

Bridgestone to enhance automotive tire plant in China

 In July 2012, Bridgestone announced that it will strengthen capacity at its automobile tire plants in Tianjin City and Wuxi city in Jiangsu Province. At its Tianjin plant, Bridgestone (Tianjin) Tire Co., Ltd., the company aims to increase production capability of passenger car tires by 54% from 2011 level to daily rate of 25,300 units by early 2014. Daily tire production will be increased by 12% to 16,300 units at the Wuxi plant, Bridgestone (Wuxi) Tire Co., Ltd.

Yutaka Giken working shift at torque converter plant to return to regular two working shifts

 Yutaka Giken Co., Ltd. has announced that it will manufacture lowest-end parts in China to be supplied globally. It will strengthen its production of torque converters at Chinese and U.S. sites. With the market trend shifting to hybrid vehicles (HV), the company will switch to production of flywheels for HVs and to CVT transmissions. On the other hand, the company is working on a new strategy to decrease products from produced exclusively in China by dispersing its operations to southeast Asian countries.
 In December 2012, Yutaka Giken returned its working shifts at three of its Chinese plants manufacturing drive systems and exhaust parts (two plants in Foshan City in Guangdong Province, and one plant in Wuhan City, Hubei Province) from one shift (day) to two shifts (day/night). The plants have restored its normal operations to a state before the anti-Japan protests.
 Of the two plants in Foshan City, Foshan Fengfan Auto Parts Co. Ltd. is the largest production site in southern China. Items manufactures at this plant include torque converters, pipe A/B, and silencers. Foshan Yutaka Auto Parts Co. Ltd. is equipped with pressing, waxing, precision machining, and various welding facilities to manufacture torque converters. The plant in Wuhan City, Wuhan Jin Feng Auto Parts Co., Ltd., produces exhausts for compact cars, catalytic converters, exhaust pipes, and mufflers.

Yokohama Rubber considers construction of third plant in China

 In July 2012, Yokohama Rubber announced that it is considering the construction of a third plant in China (current status unknown). As of August 2013, the company operates one plant in Hangzhou City, Zhejiang Province (Hangzhou Yokohama Tire Co. Ltd.) and Suzhou City, Jiangsu Province (Suzhou Yokohama Tire Co. Ltd.).

Yorozu Corporation Freezes new business plans in China

 In January 2013, Akihiko Shido, Chairman of Yorozu, revealed that it will freeze investments to China for the time being to observe the situation(source: interview in Nikkan Jidosha Shimbun (Japanese newspaper). The construction of its third production site in China, which had been in consideration, has also been put on hold.

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