Japanese suppliers in Thailand (2): establishment of new production plant

JATCO, Tachi-S, Koito, Sanoh, GS Yuasa, Denso, Bridgestone, NSK

2014/01/10

Summary

Thailand Map The following report summarizes the establishment of new production facilities, and strengthening of R&D centers in Thailand by Japanese suppliers (during about ten months through the beginning of December 2013).




Japanese suppliers Related Reports:
Thailand(1) (Jan. 2014), 
ASEAN
(Nov. 2013), Russia and Eastern Europe (Oct. 2013), India (Sep. 2013),
Northern/Northeastern/Southwestern China (Aug. 2013),
Southern and Central China (Aug. 2013), Eastern China (Jul. 2013),
the U.S. (Jul. 2013), Mexico and Brazil (Jun. 2013), Thailand (Apr. 2013)




Development of new production facilities

Kakihara Industries establishes production subsidiary for resin plating parts, starting operations of its first overseas plant in summer of 2014

 In May 2013, Kakihara Industries established its first overseas production plant, Siam Kakihara Co., Ltd. at the Gateway City Industrial Park in Chachoengsao. The facility was capitalized at JPY 1.12 billion, whose total amount was invested by Kakihara Industries. The company supplies interior and exterior parts including plated door handles and grills to Japanese suppliers in Thailand. Kakihara Industries has so far exported parts from Japan, but its plant in Japan continues to be in full-scale production. The company determined on-site production in view of future expansion of demand and fluctuation of currency exchange rate. The new plant will start production in the summer of 2014, expecting sales of JPY 1.2 billion in 2016.

Kokusan Denki establishes JV, starting production of electrical parts and motors in first quarter of 2015

 Kokusan Denki is scheduled to establish its first overseas production plant, Kokusan MAHLE Siam Co., Ltd. (tentative name) in Samut Prakan in April 2014 as a joint venture with German supplier, MAHLE. The plant is capitalized at THB 100 million, which is owned 51% by Kokusan Denki and 49% by MAHLE. Operations are scheduled to begin in the first quarter of 2016. Kokusan MAHLE Siam will produce electrical components for generators used in diesel engines for motorcycles, agricultural machinery, and vehicles, and compact DC motors. The company will sell the products to Japanese OEMs and other customers. This move is to follow up the expansion of client companies into overseas markets and to absorb local demand.

Samtech starts full-scale production at its bearing plant in January 2013 with plans to further boost production capacity

 Samtech established a forging plant, SAMTECH (Thailand) Inc. in Chonburi in June 2011, which started production in January 2013. The plant monthly produces 600,000 automotive valve unit bearing parts, and supplies the products to a bearing manufacturer. Since the current facility will reach full production capacity in the spring of 2015, Samtech will begin construction of a new plant. Through the expansion, the company hopes to win more contracts, targeting sales of JPY 20 billion for the entire company in November 2018, up JPY 5 billion from FY2012 sales.

JATCO starts operations of new subsidiary's CVT plant in July 2013

 JATCO started full-scale production of CVTs at its new plant, JATCO(Thailand) Inc. in Chonburi in July 2013. The new plant is JATCO's third overseas plant following those in Mexico and China. The plant produces CVTs with auxiliary gearboxes for small cars. The products will be supplied for the March and Sylphy which are manufactured at Nissan Thailand. The total investment is worth about JPY 20 billion. JATCO has production capacity of 500,000 units per year. It also plans to strengthen the supply of CVTs to Indonesia and other ASEAN countries.

Shinsei Koki builds plant for shift levers on AT vehicles

 In September 2013, Shinsei Koki signed a contract to purchase a plant site in an industrial park in Chonburi. It will establish its wholly-owned subsidiary, SHINSEI KOKI (THAILAND) CORP. LTD. with plans to produce and market shift levers and related parts to be mounted on AT vehicles.

Shibasakiseisakusyo and Tokyo Byokane establish JV to produce automotive parts

 In May 2013, Shibasakiseisakusyo and Tokyo Byokane established an equally-owned joint venture, SHIBASAKI TB (THAILAND) Co,. Ltd. in Saraburi. They will invest a total of JPY 50 million in 2013 to construct a plant with a plan to start operations in May 2014. The plant will be used for the cutting work of automotive engine parts and brake parts and secondary processing (finishing) of forged parts.

Tachi-S begins operations of new plant in February 2014--produce seat frames for ASEAN countries

 Tachi-S is scheduled to start production in February 2014 at TACHI-S THAILAND's new plant which is under construction in Bangkok. The plant will concentrate on production of a new seat frame (TTK frame) and of key components of mechanism parts, supplying the products to Tachi-S's other plants in Thailand and in the ASEAN region including Indonesia.

TECHNO ASSOCIE establishes new metal cutting subsidiary in August 2013

 In August 2013, TECHNO ASSOCIE established TECHNO ASSOCIE AUTOMOTIVE PARTS (THAILAND) CO., LTD in Chonburi as a new metal cutting work subsidiary of its subsidiary, TECHNO ASSOCIE (THAILAND) CO., LTD in Bangkok. The new subsidiary is capitalized at JPY 384 million. The subsidiary produces powertrain-related parts, braking parts, and anti vibration parts in order to meet the growing demand for automotive parts in the ASEAN region.

Topura holds opening ceremony for its production company plant for automotive screws

 In August 2013, Topura held an opening ceremony for a new plant of TOPURA (THAILAND) CO., Ltd. in Rayong. The new plant produces automotive screws and bolts. The plant will meet the increasing demand in Thailand and enhance the company's cost competitiveness. (reported in August 2013)

Toyo Advanced Technologies establishes new plant for oil pumps

 In July 2013, Toyo Advanced Technologies established its first overseas plant, TOYO ADVANCED TECHNOLOGIES AUTOMOBILE COMPONENTS (THAILAND) CO., LTD in Chonburi. The company will produce oil pumps within a new transmission plant that Mazda is currently building and supply the products for SKYACTIV-DRIVE. Operations will begin in the first half of 2015. The plant is planned to produce about 400,000 units a year. The investment in the new plant is worth JPY 1.2 billion.

FALTEC holds opening ceremony of JV plant for exterior parts in September 2013

 In September 2013, FALTEC held an opening ceremony of an exterior parts plant at the Gateway Industrial Park in Chachoengsao.  The plant belongs to FALTEC SRG GOBAL(THAILAND)(located in Bangkok), FALTEC's joint venture with US-based SRG Global. FALTEC aims to shift from subcontracting in Thailand to local production at the plant. The new plant is expected to generate sales of JPY 3.5 billion in FY 2015.

HOSEI BRAKE establishes a production company for brake drums, scheduled to start operations of its plant in June 2014

 In September 2013, HOSEI BRAKE announced the establishment of HOSEI BRAKE (THAILAND) CO.LTD in Rayong, a production company for automotive drum brakes. The new company is capitalized at JPY 1 billion. The company will invest JPY 1.8 billion to construct a new plant. Operations of the plant are scheduled to begin in June 2014. The new plant is capable of producing up to 1 million units a year, and supplies the products to local Toyota and Suzuki plants locally. HOSEI BRAKE plans to generate sales of JPY 4.5 billion in 2017.

Honda elesys begins operations of its plant in Thailand in August 2013, producing electronic control units

 Honda elesys completed the construction of Elesys Asian Co. Ltd. in Chonburi in December 2012. Its plant began operations in August 2013, initially producing electronic control units for ABS used on motorcycles. It will start production of ECUs for electric power steering and for image processing of automobiles at the end of FY2013. Honda elesys considers Thailand to be a global supply base of automotive products comparable to its plant in China. The plant will export most of the products to North America, Japan and Europe.

Mitsubishi Rayon starts feasibility study on joint production of carbon fiber composite material

 In September 2013, Mitsubishi Rayon announced that it would consider the carbon fiber and carbon fiber composite material business in the ASEAN region jointly with Thai state-run PTT Public Company Limited. The company plans to develop a business focusing on molded products of automotive carbon fiber composite material, with a plan to summarize the results of the feasibility study by the end of December 2013.

Ricoh Elemex starts production of engine components at Richo's plant in 2013, considering construction of its own plant in 2014

 Ricoh Elemex rented a space at the Ricoh (Thailand)'s plant in Rayong and started production of automotive engine components in July 2013. The company currently has a production line capable of producing 7,500 units a month. It currently produces one production item. The company is considering building its own plant in FY 2014. It plans to boost production capacity to 150,000 units a month and to increase the number of production items to six. The location of Ricoh Elemex's plant is yet to be determined.

 

 



Establishment of regional headquarters, development and sales centers

Koito Manufacturing opens technical center in Thailand, boosting number of engineers by 20%

 Koito Manufacturing opened a technical center, Thai Koito Co., Ltd in Samutprakarn and started operations in April 2012. The company's medium-term management plant (FY 2013-2015) states that it aims to enhance development through five global development bases. In Thailand, Koito plans to conduct all of the development operations for Thailand and for Asian countries including Indonesia and India. It will boost the number of engineers in Thailand by 20% from the beginning of 2013 to 120 by 2015 to expand development operations, to shorten development lead time, and to cut cost.

Sanoh Industrial sets up quality assurance division for Asia in Thailand

 Sanoh Industrial will set up a quality assurance division at its local subsidiary in Thailand between FY 2013 and 2015. It will place a full-time Japanese representative there, control local suppliers completely, and build a system to maintain high quality regardless of rapid changes in production volume. It also plans to boost local procurement ratio significantly during the next two years.

GS Yuasa makes JV  for batteries into its subsidiary

 GS Yuasa increased its investment ratio in its joint venture, Siam GS Battery Co., Ltd. in Samut Prakan from 39% to 60% by May 2013 and acquired management rights to make the company into its consolidated subsidiary. The company bought the share at JPY 3 billion. It will transfer the latest technology for storage batteries for vehicles with a start/stop system. The company will also build a production system for 5 million automotive batteries a year by introducing an automated manufacturing system in 2014 (Production volume was 3 million units in 2012). GS Yuasa will also invest in Myanmar, Laos, and Cambodia to globalize and expand its business. The company is also scheduled to establish an Asia development center in Thailand in January 2014.

Seiren opens new office in Bangkok for interior material design and development

 Seiren newly opened a Bangkok office of Saha Seiren Co., Ltd., its Thai subsidiary that produces interior materials and airbags in 2013. This move is to enhance its tie with the planning and development divisions of its major customers, Japanese OEMs, and to propose products that can meet their needs in order to win more contracts. (reported in October 2013)

Denso builds new wind-tunnel test facilities in Thailand

 Denso will newly set up wind-tunnel test facilities for engine components and car air conditioners at its design and development base, DENSO INTERNATIONAL ASIA CO., LTD. in Samutprakarn. With a blower and a device that can reproduce the running conditions of a vehicle, Denso will test car air conditioners and engines. The investment is worth JPY 600 million. The Thai subsidiary will conduct experiments which have been conducted in Japan, to curtail development time and cost. Denso will utilize the facilities for the development not only for Thailand, but for Asia and Australia. (reported in May 2013)

Tokai Rubber Industries makes its affiliated company in Thailand into its consolidated subsidiary, strengthening business base for automotive hoses

 In April 2013, Tokai Rubber Industries acquired additional shares of its affiliated company, Inoac Tokai (Thailand) Co., Ltd. in Ayutthaya. The company now owns 50.6% shares of Inoac, and made the company its consolidated subsidiary. With this move, Tokai Rubber Industries has expanded its sales network and boosted its production capacity for high-value-added products including products that meet environmental regulations.

Nikki establishes sales subsidiary for gas-fuel injectors

 In August 2013, Nikki established Nikki Thailand, a gas-fuel injector and component sales subsidiary in Nakhon Pathom. The subsidiary is capitalized at JPY 156.5 million. The company aims to expand its business and services in ASEAN countries where the demand for natural-gas powered vehicles is expected to grow. Nikki markets fuel injectors that it produces in Japan to Japanese OEMs.

Bridgestone opens technical center in July 2013, transferring some functions from Japan

 Bridgestone established Bridgestone Asia Pacific Technical Center Co., Ltd. in Bangkok to start operations at the end of July 2013. The Technical Center is capitalized at about JPY 3 billion. The company will transfer functions of the company's technical center in Japan including development of tires, tire production technology, quality control, and provision of customer services in Asia and Oceania. The total investment is worth JPY 4.1 billion.

Murakami Corporation establishes regional support company, starting operations in December 2013

 Murakami Corporation enhances its comprehensive strength in ASEAN region and India, which is the core to its global development. It established Murakami Corporation (Thailand) Ltd. in Bangkok, a regional support company, in September 2013. The new company is capitalized at about JPY 60 million. Operations are scheduled to begin in December 2013. Murakami Corporation (Thailand) is undertaking the design and preparation of the production of automotive rear view mirrors.

Yokowo enhances technical development services

 Yokowo will send an engineer to Yokowo (Thailand) Co., Ltd in Samut Prakan in FY 2013 to conduct development locally and jointly with OEMs and to shorten development lead time. The demand for its main high-value-added products including micro antennas and shark fin antennas is growing. The company will build a local development system at its Thai base in line with the expansion of production by Japanese OEMs in the ASEAN region.

 

 



Increase in production items

Aica starts production of adhesives for parts in April 2014

 Aica will start production of industrial adhesives for automotive parts in April 2014. Its HM (hot-melt) adhesive is mainly used to connect parts inside the head light or the tail light of a vehicle. It acquired the Asia Pacific division (DYnea AP division) of Finland-based adhesive manufacturer, Dynea Chemicals Oy, for EUR 150 million in December 2012. Aica will invest JPY 200 million in the Dynea's plant in Thailand to set up a new production line.

Aisin Takaoka introduces trail hot-press production facility

 Aisin Takaoka will introduce the latest trail hot-press production facility in three countries, the USA, China, and Thailand. It will start operations in FY 2013 to begin shipment of samples of hot-pressed parts. The company will propose production technology which can save weight on auto body frame parts to the OEMs and suppliers which have local plants in these countries. Production will begin as early as in 2015.

Asahi Kasei Intertextiles starts production of polyester twisted yarn for seats

 Asahi Kasei Intertextiles will start production of polyester twisted yarn for automotive seats at ASAHI KASEI INTERTEXTILES (THAILAND) CO., LTD. in Samutprakarn in March 2014. The company will utilize some of the existing plant and will invest JPY 100 million to gradually introduce special facilities. It will initially produce 500 tons a year, which will be increased to 1,500 tons a year in 2016. It will first supply the product to Chori, which markets automotive seat materials in ASEAN countries.

KYB starts production of CVT pumps in July 2013

 In July 2013, KYB newly started production of CVT pumps at KYB (Thailand) Co., Ltd. at the Amata Nakorn Industrial Park in Chonburi. It will supply the product to JATCO. The company has a production capacity of 600,000 units a year. This move is part of its strategy to establish global four supply bases to meet the needs of its customers. In addition to its existing plants in Japan and China, it established new plants in Thailand and Mexico. With this move, KYB boosts its global production capacity from 3.36 million units a year in 2012 to 5.16 million units in 2014.

JFE Steel starts operations of production facility for automotive hot-dip galvanizing steel plates in April 2013

 JFE Steel set up a production facility for automotive hot-dip galvanizing steel plates at JFE Steel Galvanizing (Thailand) Ltd. in Rayong for the first time in Thailand. The facility will start operations in April 2013. The company has a production capacity of 400,000 tons a year. The investment is worth JPY 1.5 billion. Since the demand for automotive high-grade steel plates is expected to increase further in Thailand, the company will shift production from Japan to the plant. It will meet the demand for local procurement by OEMs.

JFE SHOJI TRADE CORPORATION introduces machining facilities for automotive high-tensile steel to start operations in November 2013

 JFE SHOJI TRADE CORPORATION will invest about JPY 1.5 billion in STEEL ALLIANCE SERVICE CENTER CO., LTD. in RAYONG, a joint venture with Summit Corporation, to introduce a new large slitter and large leveler. The company will start operations of new facilities in November 2013 to start machining of super-wide automotive high-tensile steel. It is poised to respond to the needs of its customers.

JVC Kenwood builds new plant for optical pickups for car audios

 JVC Kenwood will build a new plant for optical pickups for in-vehicle devices that are used for car audio and other products on an adjacent site of an existing plant of JVC Optical Components (Thailand) Co., Ltd. in Nakhon Ratchasima. The company considers that the demand for car audios will increase in emerging countries, and aims to start operations in the spring of 2014. The investment is estimated to be several hundred millions Japanese yen. With the start of operations of the new plant, the company will be able to supply more than 35 million units in FY 2015, up 40% from FY 2012. The company also aims to expand sales of optional pickups by 40% to about JPY 8.5 billion in FY 2015.

Nippon Steel & Sumitomo Metal Corporation starts commercial operation of its plant for hot-dip galvanizing steel plates

 Nippon Steel & Sumitomo Metal Corporation started to produce hot-dip galvanizing steel plates at a plant of NIPPON STEEL & SUMIKIN GALVANIZING (THAILAND) CO., LTD. in Rayong in October 2013. The investment is worth USD300 million. The company has a production capacity of 360,000 tons a year. The plant has facilities that are equivalent to Nippon Steel & Sumitomo Metal Corporation's latest facilities in Japan and produces high-quality (alloy) hot-dip galvanizing steel plates including automotive outer panels and high-tensile steel plates. By constructing the plant on an adjacent site of The Siam United Steel Co., Ltd., its consolidated subsidiary that produces and markets cold-rolled steel, the company has developed an integrated production system including cold rolling.

Daido Steel shifts to production of magnets for automobiles and motorcycles at Thai subsidiary

 Daido Steel plans to shift production of magnets to Daido Electronics (Thailand) Co., Ltd. in Ayutthaya. Daido Electronics (Thailand) is currently producing mainly HDD miniature drive motor magnets for HDD. The company considers that due to the shift to tablet computers, storage devices have shifted from HDD to flash memory and this will lead to a future decline in demand. It will upgrade the facility to be capable of producing magnets for automotive parts, including the speedometer. (reported in September 2013)

Denso produces new common rail system in Thailand

 In June 2013, Denso announced that it had developed a new diesel "common rail system" with the world's highest injection pressure of 2,500 bar. The company produces the product in Japan in 2013 to start supplying it. It aims to supply 1.5 to 2 million units a year worldwide by FY 2018. It will also begin supplying the product from its overseas plant in Thailand and Hungary between 2015 and 2016.

NSK starts production of hydro-formed parts for electric power steering

 NSK will start producing hydro-formed parts for electric power steering (EPS) at Siam NSK Steering System Co., Ltd. in Chachoengsao in 2013. The company is currently producing the product at its Toriba plant, but will transfer technology to Thailand,where production of ESPs is increasing. The company aims to win new contracts with this expansion. It will overhaul two machining devices at the Toriba plant and will transfer them to the Thai plant. (reported in April 2013)

NGK Spark Plug establishes its third production company for spark plugs in Thailand in 2013

 NGK Spark Plug is currently building a global production system in which it will boost the production volume of spark plugs by 30% from 2013 to 1 billion units a year in 2020. in view of the global expansion of new vehicle sales and of the after-market, the company newly established SparkTec (THAILAND) CO., LTD in Chonburi in July 2013 as a production facility for metal shells of a spark plug. The investment is worth JPY 3 billion. Construction is scheduled to begin in February 2014. Operations are scheduled to start in April 2015. The company will have a production capacity of 18 million units a year in 2016. Then, it will gradually boost the capacity with a plan to produce 140 million units of metal shell a year in 2020.

Japan Vilene establishes new production company for floor mats

 Japan Vilene established VIAM Manufacturing (Thailand) CO., Ltd. in Prachinburi, which produces automotive floor mats, in Thailand in May 2013. The new company is capitalized at JPY 330 million. The plant is scheduled to start operations in April 2014. It will supply the product to Japanese OEM plants in Thailand, and is eying exports to OEMs in the ASEAN region. Japan Vilene will establish a global five bases including Japan, China, the USA, and Mexico, where it has already started operations.

Yamato Chemical increases number of production items including injectors

 Yamato Chemical will increase the number of automotive production items at Yamato Polymer Co., Ltd. in Chonburi. The company enhances its functions as a trading company and started purchasing of coil springs and other products in July 2013. Combining these parts with automotive rubber products, its main products, it produces automotive injectors and regulators. Yamato Chemical also plans to increase the number of production items at another subsidiary, Yamato Chemical (Thailand) in Chonburi.


Source: Press releases and newspapers.

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