Japanese suppliers invest in European operations to expand sales

Target sales to European, US, and Korean OEMs while expanding capacity in Russia and Eastern Europe

2013/10/11

Summary

 New passenger-car registrations in 29 European countries from January to August 2013 fell by 5.2% year-over-year (y/y) to 8.14 million units. The sales volume in Russia also fell by 6.8% y/y to 1.8 million units for the period of January through August 2013. Under such circumstances, Japanese auto parts suppliers in Europe mostly aim to expand sales channels to non-Japanese automakers and automotive parts suppliers in Europe, the United States and Korea. New plants are constructed particularly in Russia and East European countries including Turkey. The production capacity expansion is mostly intended to meet the increase in demand for energy saving parts and to increase the number of local business partners. Corporate acquisition and joint venture set ups are also active in these countries.

 Japanese suppliers Related Reports:
  India (Sep. 2013)
  Northern/Northeastern/Southwestern China (Aug. 2013)
  Southern and Central China (Aug. 2013)
  Eastern China (Jul. 2013)
  the US (Jul. 2013)
  Mexico and Brazil (Jun. 2013)
  Thailand (Apr. 2013)
  South East Asia (Mar. 2013)
  Russia and Eastern Europe (Jan. 2013)



Germany: Sanoh Industrial and Tokai Rubber acquire local suppliers

IHI converts turbocharger joint venture with Daimler to wholly owned subsidiary

 n 2013, IHI converted its joint venture, IHI Charging Systems International GmbH (Heidelberg), into a wholly owned subsidiary by buying out Daimler’s 49% stake. IHI Charging Systems International GmbH manufactures turbochargers for European vehicles. IHI plans to expand globally by strengthening partnerships with turbocharger suppliers in other regions to cope with demand. The company hopes to reach a 50% increase compared to its 2012 annual production capacity by 2015 to approximately 3 million turbochargers. IHI plans to achieve these goals by strengthening its development and production network.

KYB allocates development personnel to Germany to expand business in Europe

 KYB will allocate its development personnel to its headquarters in Europe, KYB Europe Headquarters GmbH (Krefeld), in FY 2013 to expand its development structures in Europe. The personnel will be in charge of product evaluation with local automakers and product development for Europe and Russia. KYB aims to increase its market share by understanding the characteristics of its production models as well as attempting to win new orders from leading automakers and parts suppliers in Europe and the U.S.

Sanoh Industrial acquires all shares of German Geiger and implements quality control measures at European headquarters

 In August 2013, Sanoh Industrial announced that it concluded a buy-sell agreement for the acquisition of all shares of Geiger Automotive GmbH (Bayern). Sanoh Industrial aims to expand its sales using Geiger’s sales channels.  The company also wishes to use Geiger’s resin injection molding technology to improve its own ability to produce lightweight automotive components.
Sanoh will also establish a quality control division in its European head office, Sanoh Europe GmbH (Munich), by FY 2016 . Several employees from Japan will be stationed there to manage interactions with local suppliers. A series of authorities in development, procurement, production, and management will be transferred from the Japanese head office in stages.

GS Yuasa, Bosch & Mitsubishi Corp. agree on establishing joint venture to develop lithium-ion batteries

 In June 2013, GS Yuasa, Robert Bosch, and Mitsubishi Corporation announced that they reached an agreement for joint development of next-generation high-performance lithium-ion batteries. A joint venture will be established in Stuttgart with Bosch having a 50% share, and GS Yuasa and Mitsubishi having a 25% share each. The JV aims to increase the travel distance of electric vehicles (EVs) by significantly increasing the energy storage capacity of batteries and thereby reducing the weight and space of electrical cells. This will be achieved by combining expertise of the three companies. The joint venture will also support its parent companies on the aspect of sales and marketing.

Denso expands R&D center and strengthens vehicle safety and communications technologies

 In September 2013, Denso announced that it will expand its two engineering centers (Aachen engineering center and Munchen engineering center) at DENSO AUTOMOTIVE Deutschland GmbH (in Eching). This expansion will strengthen its development capability in Europe. Denso will invest EUR 21 million in the construction of new office buildings for the two engineering centers, and will introduce new evaluation systems. The company also plans to increase local employees from approximately 400 persons in 2013 to 490 persons by 2015 and expects to recruit from all over Europe. Denso will incorporate technologies in such fields as vehicle safety and communications technologies, where Europe takes a lead in development. The company will also strengthen its design system for local automakers to enable closer cooperation.

Tokai Rubber acquires Anvis, a German supplier of automotive vibration insulating rubber

 In May 2013, Tokai Rubber Industries acquired a supplier of automotive vibration insulating rubber, Anvis Group GmbH (in Steinau an der Strase, Hessen; abbreviated as Anvis), as its wholly-owned subsidiary. Tokai Rubber paid approximately EUR 135 million for the acquisition. Tokai Rubber plans to strengthen its global supply chain for Japanese automakers and to further access to non-Japanese automakers by using the Anvis' advantages and sales network in Europe. One of Anvis'advantages lies in technologies to develop and produce products for mid-size to small cars. By this acquisition, Tokai Rubber obtained additional 13 production sites in nine countries, including Germany, France, Russia, Eastern Europe, and Africa, where its production capacity was formerly sparse. The company currently has 29 production sites in 16 countries in total. Tokai Rubber will conduct group purchasing with Anvis to reduce procurement costs.

Toyota Industries increases production of compressors for automotive air conditioners in Germany

 In September 2013, Toyota Industries completed extension work for TD Deutsche Klimakompressor GmbH (in Bernsdorf, Sachsen). This expansion was made to increase its annual production capacity of A/C compressors with variable capacity by 700,000 units to 4 million units. This is in response to the increase in demand for energy saving A/Cs associated with the increased popularity of fuel efficient vehicles in Europe. The company will also reinforce its production facility of aluminum parts in order to increase local parts procurement rate and to reduce the impact of exchange rate fluctuations. The investment amount is approximately JPY 10 billion.

NIFCO acquires German plastic parts supplier, KTS, as a wholly-owned subsidiary

 In April 2013, NIFCO announced that it reached an agreement for acquisition of all shareholdings of a German automotive plastic parts supplier, KTS GmbH & Co. KG (in Solingen), and its group firms (hereinafter referred to collectively as KTS). KTS excels in supplying interior plastic parts chiefly to European automakers. Therefore, NIFCO aims to supply its products to the global bases of European automakers as well as to expand its sales of new products to European automakers through NIFCO's overseas channels.

Hi-Lex builds new development base in Germany, upgrades its regional office to local subsidiary

 Hi-Lex Corporation hopes to establish a development and sales base in Bayern in order to increase orders from European automakers. This is the company's first development base established in Europe. It plans to dispatch engineers from its bases in North America as well. Hi-Lex will also upgrade its regional office established in Hessen in early 2012 to a local subsidiary responsible for development and sales.

Honda Elesys establishes new European development base in Germany

 Honda Elesys is in the process of selecting a site for a new development base in Europe. The base is expected to be established in Germany within the fiscal year ending in March 2014(FY2013). The development base will function as a research center to win orders from European automakers, with which the company has not dealt yet. The base will also serve as a hub to proceed development activities with Japanese automakers and Tier-1 parts suppliers. (Source: press release in April 2013)

Mitsuboshi Belting strengthens sales structure in Europe, consolidating sales offices into Germany

 Mitsuboshi Belting will reorganize its European sales operations for automotive belts in 2013. The reorganization aims to accelerate marketing activities to local automakers. The company integrated its sales office in the Netherlands into its German office at the end of 2012 and increased the number of local staff. The company will also expand its distributor follow-up structure to increase the sales of belts for repairing. Mitsuboshi Belting plans to strengthen its marketing activities for German automakers and Renault-Nissan Alliance with the aim of increasing the orders for vehicles produced in Europe.

Yokowo expands its technological capabilities to meet the demand of European automakers in Germany

 Yokowo will send technical experts to its sales sites in Germany in FY2013 to improve its structures to promptly meet technological requirements raised through its marketing activities to European automakers. The company aims to expand its business with European automakers and win orders through products which have not yet been commercialized by local competitors, such as shark-fin antenna for AM/FM radio receivers

 

 



Eastern Europe: TS Tech and Denso build new plants for automakers

Aoki Seiki establishes turbocharger shafts production base in Slovakia to start mass production in 2014

 In March 2013, Aoki Seiki Kogyo established a subsidiary, AOKI Slovakia s.r.o in Dubnica, Slovakia. It started training local employees and operations with a part of the production line introduced in July 2013. The company will expand its production to approximately 4.4 million units per year within 2014. This plan is in response to the R&D sites in Europe established by its partner turbocharger suppliers including IHI and Honeywell.

NTN expands the production site in Romania to restructure its production system in Europe

 NTN will restructure its production system in Europe by making use of its Romanian base, NTN-SNR RULMENTI S.R.L. (in SIBIU), of its European subsidiary, NTN-SNR ROULEMENTS (headquartered in France). The Romanian base has produced various bearings. The base added a new assembly line for constant-velocity joints recently. Given the increased demand in Europe for low-vibration type bearings designed for Japanese vehicles, NTN will expand the production site as a base for Eastern Europe and Russia as well as for Western Europe. (Source: report released in March 2013)

Keihin enhances production capacity of heat exchanger components in the Czech Republic

 Keihin will enhance its production capacity of heat exchanger components for automotive air conditioners in Mexico, the Czech Republic, and China by one million units per year in FY2013 to meet the increased orders from VW associated with its global sales increase. In the Czech Republic, Keihin will expand the production line of its local subsidiary, Keihin Thermal Technology Czech, s.r.o. (in Kladno).

KYB enhances production capacity for shock absorbers (SAs) in the Czech Republic

 KYB will expand the plant of its local subsidiary, KYB Manufacturing Czech, s.r.o. (in Pardubice), in FY2013 to increase the production capacity for SAs by approximately 45% and will construct a new plant to internally produce one of the SA components, springs. The company will invest a total of approximately JPY 3 billion. The company aims to expand sales of SAs for OEMs and non-automakers in Europe.

Sumitomo Chemical considers expansion of DPF production capacity in Poland

 Sumitomo Chemical moved forward its production of diesel particulate filters (DPFs) to be mounted on diesel engine cars to July 2013. The DPFs are produced at Sumika Ceramics Poland Sp. zo.o. (Wroclaw) in Poland. The company will increase its annual production capacity to one million units immediately and plans to further increase it to 3 million units at the earliest. This plan is in response to the expected high volume of orders resulting from the enforcement of the European emissions regulations "Euro6" in 2014 that will oblige diesel passenger vehicles to be equipped with a DPF system.

Daido Metal completes second Czech plant in April 2013

 In April 2013, Daido Metal completed the construction of second plant within the existing plant site of its Czech subsidiary, DAIDO METAL CZECH s.r.o. (in Brno). With the second plant, the company plans to increase its production capacity of sliding bearings for automotive engines by 30%.

TS Tech sets up automotive seat plant for VW in Hungary; to start operations in February 2015

 In April 2013, TS Tech established a wholly-owned subsidiary, TS TECH Hungary Kft. (in Szazhalombatta) to produce and sell seats for automobiles. The plant was established in response to the order won in December 2012 for the assembly of the third row seats for the VW's next-generation SUV. The plant is expected to start operations in February 2015 to ship the assembled seats to the VW's plants in Germany. TS Tech had previously received orders for the development and production of seat frames (for the third row seat) from VW.

Denso sets up new automotive meter company in Poland to start production in August 2013

 Denso announced that it will establish an automotive meter production company, DENSO Poland Sp.zo.o. (in Myslowice), in Poland in April 2013. The subsidiary will start production at a rented plant in August 2013. The company will supply products for a small car "the i30" produced by Hyundai Korea in its Czech plant. DENSO Poland is Denso's third subsidiary in Poland. For Denso, this is the first production of meters in Poland. The company plans to sell approximately JPY 3 billion in the fiscal year ending in March 2016. The company aims to increase its business partners gradually.

Toyoda Gosei produces parts for BMW in full swing at plants in Czech and the U.K.

 Toyoda Gosei won the first order for mass production parts from BMW, and will start production of weatherstrips for BMW and MINI brand models by FY2014. Production will start at Toyoda Gosei Czech, s.r.o. (in Klasterec Nad Ohri) in the Czech Republic and at Toyoda Gosei UK Ltd. (Rotherham) in the U.K. Toyoda Gosei aims to increase the share of non-Toyota sales from 30% in FY2012 to 50% in the future. The company hopes to become "The True Global Supplier Competitive in the International Arena" raised as a slogan in its long-term vision toward FY2020.

Toyota Boshoku upgrades joint venture in Poland to subsidiary to reinforce business infrastructure

 In December 2012, Toyota Boshoku increased its investment ratio in its joint venture in Poland, TBMECA POLAND Sp.z o.o. (located in Legnica; hereinafter referred to as TBMECA), making it a subsidiary. The investment ratio is 54.9% (invested by Toyota Boshoku Europe). By this increase in the investment ratio, Toyota Boshoku will take control of TBMECA and strengthen the business foundation by introducing its proprietary production technologies into it. Toyota Boshoku will expand its sales of powertrain components such as cylinder head covers and intake manifolds widely in Europe.

Neturen sets up joint venture to produce and sell high strength spring steel wires in the Czech Republic

 In December 2012, Neturen established a joint venture, Neturen Czech s.r.o. (inPraha), with Metal One in the Czech Republic to manufacture and sell automotive high strength spring steel wires (ITWs) for cold forming. The company was capitalized at approximately JPY 1.6 billion with Neturen having a 90% share and Metal One 10%. The joint venture was set up in response to the increased demand for the supply of ITWs in Europe from automotive parts suppliers etc. The joint venture plans to start production in April 2014 with a plant constructed in the Triangle Strategic Industrial Zone (in Zatec, Usti) which is located close to the national border with Germany. The company aims to sell 20,000 tons per year by FY2016, three years after the start of operations. The company will invest a total of approximately JPY 1.6 billion.

Hi-Lex builds second plant at its Hungarian subsidiary

 Hi-Lex will decide construction of the second plant at its subsidiary, HI-LEX HUNGARY Kft (in Retsag), by the end of 2013. Hi-Lex will increase the production of control cables by approximately 30% to meet the new order received from Renault-Nissan Alliance, and will also produce window regulators for the initial orders received from Ford of Europe. The company originally planned to establish a new production line for window regulators within the first plant. However, the original plan was expanded into the construction of a new plant partly due to the change in the supply starting date and to additional orders received from Renault-Nissan Alliance.

 

 



Suppliers' highlights in the U.K., Belgium, France, Netherlands & Switzerland

Kasai Kogyo sets up new R&D Center in the U.K. within FY2013

 Kasai Kogyo will set up a new R&D Center in the U.K. within FY2013 to start operations with a small organization consisting of four to five employees. The company produces door trims, leather fabrics at its subsidiary in the U.K. and will set up the R&D Center as a development base in response to the start of the production of the Infinity by Nissan at its UK plant (in Sunderland).

G-TEKT: UK produced stamped parts to start delivery in November 2013 for order received from BMW

 G-TEKT will produce medium to small-sized stamped parts to be mounted on "MINI" chiefly at the second plant of G-TEKT Europe Manufacturing Ltd. (in Gwent). This is the first order it received from BMW. The company will start delivering the parts for the first model in November 2013 and the parts for the second model in the summer of 2014. Items produced include parts serving to strengthen the body and parts with screw holes to fix wires and handles. G-TEKT will cooperate with BMW from the mold design stage.

Denso restructures business integrating UK automotive air conditioner production company

 In January 2013, Denso's UK subsidiary to produce automotive air conditioners, DENSO MANUFACTURING UK LTD. (in Telford), acquired all shares of SHIMIZU INDUSTRY UK LTD. (in Welshpool), making it a wholly-owned subsidiary. SHIMIZU INDUSTRY UK LTD., a local subsidiary of Shimizu Industry of the Denso Group, produces plastic parts for automotive air conditioners. This restructuring is aimed at strengthening the operating base under the present unstable European economy. Denso aims to further strengthen its competitive edge through this integration.

Toyoda Gosei produces parts for BMW in full swing at plants in the Czech Republican and the U.K.

 Toyoda Gosei won the first order for mass production parts from BMW. The company will start production of weatherstrips for BMW and MINI brands at Toyoda Gosei Czech, s.r.o. (in Klasterec Nad Ohri) in Czech and at Toyoda Gosei UK Ltd. (in Rotherham) in the U.K. by FY2014.

Mitsubishi Chemical acquires resin compound department from Belgian company

 In June 2013, Mitsubishi Chemical acquired the resin compound department from Tessenderlo Group (in Brussels) in Belgium. Mitsubishi Chemical positions the functional resin department as growing business in its medium-term management plan toward FY2015 and has already established production/sales bases in the U.S., Europe, China, India, Thailand, and Singapore. This acquisition will allow Mitsubishi Chemical to accelerate sales to European automakers and parts suppliers, to reinforce its functional resin business in Europe, and to expand product lineup of thermoplastic elastomer and PVC compounds.

Mitsubishi Heavy Industries upgrades subsidiary in the Netherlands for next-generation turbochargers

 In June 2013, Mitsubishi Heavy Industries (MHI) announced that it would enhance its annual global production capacity of turbochargers for passenger cars to 10 million units. MHI will also explore new markets by developing new-generation turbochargers such as "new concept turbochargers" and an "electric two-stage supercharging system" with the best fuel efficiency in the world. To this end, MHI plans to use Mitsubishi Turbocharger and Engine Europe B.V. (in Almere) in the Netherlands as the "second development base" after Japan and to reinforce its development support for customers by expanding the facilities and personnel.

U-SHIN completes acquisition of access mechanism division from French supplier, Valeo, in May 2013

 In November 2012, U-SHIN announced that it would acquire the access mechanism division, including the key set and door handle departments, from a leading French parts supplier, Valeo, on March 29, 2013. The acquisition cost was approximately JPY 17.1 billion. Valeo established the headquarters of those departments, CAM Holdings Europe B.V., in the Netherlands. U-SHIN acquired all shares of these headquarters in May 2013, making the two-access-mechanism departments wholly-owned subsidiaries. By this acquisition, U-SHIN will expand its formerly sparse sales channels to non-Japanese automakers such as GM and Fiat.

Riken reaches agreement with Swiss supplier on the use of lightweight alloyed cast iron materials

 In August 2013, Riken announced it reached an agreement with Georg Fischer Automotive AG (head office: Schaffhausen; hereinafter referred to as Georg Fischer) in Switzerland on the license and mutual cooperation for production and sales of an alloyed cast iron material, "SiboDur." Riken will manufacture "SiboDur" at production sites for formed and fabricated materials located in Indonesia and Japan to produce the company's knuckle and shock absorbers. Riken and Georg Fischer will also mutually use their production bases in such a manner as producing Riken's parts at a Georg Fischer's plant in Europe. Riken aims to use this agreement to expand its sales channels to European automakers.

 

 



Spain & Italy: TACHI-S concludes business alliance with Spanish supplier

Marubeni-Itochu Steel buys Italian stamped parts supplier's stake to establish business in emerging markets

 In August 2013, Marubeni-Itochu Steel announced that it took a 10.45% stake in the largest auto parts supplier in Italy, C.L.N. - COILS LAMIERE NASTRI S.p.A. (headquarters:in Torino; hereinafter referred to as CLN). CLN has 50 bases in 18 countries including emerging nations. It produces and sells stamped parts for bodies and chassis, and steel wheels primarily for Japanese, US, and European automakers. CLN aims to establish new business in emerging auto markets.

TACHI-S concludes business alliance with Spanish supplier to establish seat frame production network

 TACHI-S received all orders for the new seat frames for new-generation pickup trucks to be produced by Nissan in Spain. As the company has no production site in Europe, it will conclude a consignment production contract with either of two seat frame suppliers in Spain by autumn 2013. TACHI-S will start production in 2014 with annual production of 100,000 units and will deliver the products to the supplier that received orders for the seat, itself, from Nissan. One of the two candidates is VIZA Automocion, S.A.U (in Vigo, Galicia).

Tokai Rubber acquires Italian hose supplier with the aim of entering the global top rank in the fuel supply field

 In February 2013, Tokai Rubber Industries acquired an Italian automotive fuel hose supplier, Dytech-Dynamic Fluid Technologies S.p.A. (in Torino; abbreviated as DYTECH) with EUR 62.5 million. Tokai Rubber now has hose production sites in 15 countries with seven countries added in Europe, Russia, and South America through the acquisition. Tokai Rubber aims to establish an organization that allows it to make system proposal in the fuel supply field by utilizing the module designing/engineering capability of DYTECH. Tokai Rubber plans to increase its global market share of fuel hoses to top-ranking 14% by FY 2015 by winning new orders from European and US automakers. Tokai Rubber will conduct group purchasing with DYTECH to reduce procurement costs.

Bridgestone closes radial tire plant of Italian subsidiary

 In March 2013, Bridgestone announced it decided to close the Bari Plant owned by its group company in Italy, Bridgestone ITALIA S.p.A (in Puglia). The Bari Plant is expected to be closed down during the first half of 2014. The operation rate of the Bari plant was reduced due to the influence of the sluggish European economy. The plant will be closed down for the difficulty in sustaining profitability because the production item, multi-purpose radial passenger car tires, is becoming less competitive against suppliers in emerging countries. The suppliers in emerging markets are winning market shares with their strength in cost competitiveness. In addition, the old production facilities make it further difficult to convert production to high-performance tires.

 

 



Russia: New plants built by various suppliers to expand operations

Atsumitec and Toyota Tsusho set up Russian subsidiary to produce and sell transmission parts

 In February 2013, Atsumitec and Toyota Tsusho announced that they jointly established a new company to produce and sell transmission mechanisms, Atsumitec Toyota Tsusho Rus LLC (in Samara). The company will construct a plant with annual production capacity of 600,000 units. It will produce AT and MT shifters and cables in full swing by July 2014 to deliver to AvtoVAZ. It plans to sell products to other automakers such as GM and Nissan in the future as well.

EXEDY sets up automotive MT clutch production company jointly with local supplier

 In November 2012, EXEDY established a joint venture, EXEDY VIS RUS LLC (in Togliatti City, Samara), with the clutch department separated from a Russian parts supplier, Vaz Inter Service. EXEDY invested approximately JPY 260 million in the JV acquiring a 33% share. The joint venture aims to supply clutches for new vehicles of AvtoVAZ. (Source: press release in January 2013)

Kinugawa Rubber builds body seal plant to start operations within FY2014

 Kinugawa Rubber will construct a plant to produce body seals in Togliatti, Samara in 2013. The plant will serve as a production site chiefly engaged in the molding process at first, and will be built up into a comprehensive production system in stages. The investment amount is approximately JPY 1 billion. Annual production capacity is expected to be 200,000 units. The plant aims to start operations within FY2014 to expand sales to Nissan.

Koito Manufacturing starts providing technical support to AvtoVAZ-affiliated lamp supplier in Russia

 Koito Manufacturing started providing technical support to an automotive lamp supplier, Avtosvet, in 2013. Guidance will be provided for a series of resin molding, vapor deposition, and assembly processes of older types for single halogen lamps for AvtoVAZ vehicles. This initiative was taken with the acquisition of AvtoVAZ by Renault-Nissan Alliance as a turning point. This is the first one step toward plant establishment, although no plant has been established yet because of the limited production scale of Japanese automakers, with which Koito mainly deals. Koito Manufacturing expects to make conclusion on plant establishment within one or two years.

Sanoh Industrial operates first Russian plant in February 2013 and to operate three more plants by 2014

 Sanoh Industrial established Sanoh Volga Limited Liability Company (in Togliatti, Samara) as its wholly-owned subsidiary in July 2012. Sanoh started producing vehicle pipe products (for brakes and fuel lines) for AvtoVAZ at a new plant in February 2013. Sanoh will also build two plants within 2013. Sanoh St.Petersburg Limited Liability Company (in Saint Petersburg), which was established in April 2013, will also establish a production line within an automaker's plant to start producing fuel lines and brake tubes by 2014.

Jatco opens Moscow local office

 JATCO opened a local office in Moscow in June 2013. The company opened a local office in Togliatti, Samara in 2012, and started selling 4-speed ATs for small front-wheel drive cars for AvtoVAZ. The local office in Moscow will be responsible for quality assurance of ATs shipped to AvtoVAZ as well as research of ATs and CVTs suitable for the Russian market. Whether to establish a production site in Russia is under consideration as one of candidate countries and will be concluded within 2013.

Sumitomo Electric Industries/Sumitomo Wiring Systems sets up a joint venture for wiring harness

 Sumitomo Electric Industries and Sumitomo Wiring Systems announced that it will establish a holding company, Ural Wiring Systems B.V. (in Amsterdam), in the Netherlands jointly with a Russian communication device and cable supplier, OAO Zavod Radioapparatury (in ZRA; Sverdlovsk), in July 2013. The two companies will further establish the local holding company's wholly-owned subsidiary OOO Ural Wiring Systems, within a plant of ZRA in Russia in August 2013. The subsidiary will manufacture and sell automotive wiring harness. The two companies had formerly shipped products from Poland and Romania. The subsidiary will allow the companies to locally supply products to Japanese and European automakers in western Russia.

Daido Metal increases production capacity of sliding bearings for engines to 3 million units per year

 Daido Metal will increase the annual production capacity of sliding bearings for engines produced at a plant of its subsidiary, DAIDO METAL RUSSIA LLC (in Nizhny Novgorod). It will be increased from 2.5 million units in mid 2013 to 3 million units in FY2014. The company plans to increase production capacity by 500,000 to 600,000 units in accordance with the production increase by Japanese, US, and European automakers. The plant will also start supplying a bearing material, bimetal, to its own bearing plants in the Czech Republic, Montenegro, and the U.K. by the autumn of 2013. This replaces the supply from Japan and is expected to reduce the cost by approximately 20%. The company expects to supply bearing materials for repairing first and will propose to automakers to adopt the bearings for mass production.

TACHI-S products for Nissan commissioned to partner, products for AvtoVAZ under consideration

 TACHI-S commissioned the production of seat frames for Nissan's Sankt Petersburg Plant to the Russian plant of its U.S. partner, Lear. For seat frames for AvtoVAZ, TACHI-S is considering whether to conclude a technical assistance agreement or to establish a joint venture with Lear as possible options. The company also plans to open a new branch of the development division in Russia as a part of establishing global development structure toward 2016.

Toyo Tire & Rubber considers establishing a new tire plant in Russia etc.

 In April 2013, Toyo Tire & Rubber announced its business plans and the reinforcement plans of business infrastructure under the new management system. The company explained that it will strengthen the production network for tires focusing on overseas plants. Agenda to be decided in FY2013 or later includes an increase of production capacity of its US plants and the establishment of new plants in Russia, Mexico, and Central Asia.

Hi-Lex establishes subsidiary to produce control cables etc. to start production in 2015

 In December 2012, Hi-Lex established its first subsidiary in Russia, HI-LEX RUS LLC (in Togliatti, Samara). The subsidiary was capitalized at approximately JPY 400 million with Hi-Lex having a 90% share and Toyota Tsusho 10%. There are plans to start production at the plant in May 2015 to ship control cables and window regulators to AvtoVAZ. The company also hopes to supply its products to Japanese and American automakers. Hi-Lex has produced the products for AvtoVAZ in China since the business started in the summer of 2012.

Bridgestone: to build new plant for radial passenger car tires; production starts in the first half of 2016

 In April 2013, Bridgestone decided to build a new plant for radial passenger car tires in Russia. This will become Bridgestone's first production site for tires in Russia. The plant will be operated by a new subsidiary expected to be established in the first half of 2013, Bridgestone Tire Manufacturing C.I.S. LLC (in Ulyanovsk). Bridgestone will have a 90% share and Mitsubishi corporation 10%. The plant expects to start operations in the first half of 2016. The plant will produce strategic products focusing on winter tires for markets in Russia and CIS. The products will be sold to local wholesale firms and retail chains. The production capacity is expected to be approximately 12,000 units per day in the second half of 2018. Associated with the establishment of the new company, Mitsubishi Corporation also agrees to hold a 20% share in a Bridgestone's existing tire sales company, Bridgestone C.I.S. LLC (in Moscow).

U-SHIN opens a plant in Vladivostok

 U-SHIN will open a plant in Vladivostok in response to the joint production there, by one of its major customers, Mazda. The production scale and the investment amount will be determined upon the concretization of the contract. (Source: press release in December 2012). The plant, together with the western Russia production site of its partner Valeo, will cover both the eastern and western parts of Russia.

Yokohama Rubber increases production capacity of passenger car tire plant in Russia by autumn 2014

 The plant of Yokohama Rubber's Russian subsidiary to manufacture and sell tires for passenger cars, Yokohama R.P.Z. in Lipetsk special economic zone, Lipetsk, will go into full operation at 1.4 million units in the summer of 2013. With an eye on future demand expansion in the aftermarket, the company will further increase its production capacity to 1.6 million units by the autumn 2014. The company also received orders for passenger cars tires from Nissan in Russia, and will start supply in 2013. Yokohama Rubber has exported tires for automakers in Russia from its Philippine Plant so far. In the future, it will shift to shipment from the local plant.

Yorozu conducts feasibility study in Sankt Petersburg

 Yorozu is considering local production of products for Nissan's Sankt Petersburg Plant. The company is considering whether to produce products comprehensively from stamping parts, to supply products from other areas, or to purchase from outside vendors.

 

 



Turkey: Toyota Boshoku operates new plant

Sumitomo Rubber establishes joint venture in Turkey to expand business with various automakers

 In February 2013, Sumitomo Rubber Industries established a joint venture, Sumitomo Rubber AKO (in Cankiri), with a local firm in Turkey. It will be a production site for tires for passenger cars and trucks. The company plans to start production in July 2015. The company will increase business partners not only among Japanese automakers but also among European and American automakers. It reportedly has already received inquiries from some non-Japanese automakers, with its tires highly evaluated for the quality and fuel economy.

Toyota Boshoku starts production of seat covers in June 2013 at its subsidiary in Turkey

 In June 2012, Toyota Boshoku established a new seat cover sewing company, TB SEWTECH TURKEY LTD. (in Duzce). The company started producing seat covers for Toyota's new Corolla in June 2013 with facilities introduced into a rented plant. Toyota Boshoku has produced seat covers in-house so far at its wholly-owned local company to manufacture seats and door trims, Toyota Boshoku Turkey Inc. (Sakarya). Toyota Boshoku plans to intensively produce seat covers at the new company which has advantages in saving labor costs and securing good labor to increase its competitive edge. The new company aims to supply products to various areas of Europe and to increase production items.

Bridgestone announces construction of second plant in Turkey

 In September 2013, Bridgestone announced that its subsidiary, Brisa Bridgestone Sabanci Lastik Sanayi ve Ticaret A.S. (in Istanbul; hereinafter referred to as Brisa) has agreed on the land acquisition of a new plant (second plant) for radial passenger car tires with Aksaray Industrial Park. The new plant is expected to start operations in January 2018. Bridgestone aims to increase its daily production capacity to 13,000 tires by the second half of 2022. The total investment amount will be approximately JPY 2.8 billion. Currently, Brisa has a plant in Izmit to produce radial passenger car tires and radial truck/bus tires. The establishment of the second plant will increase the production capacity of Brisa by more than 50%.

Source: press releases and media reports

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