Japanese suppliers in China (Part 2): Northern, Northeastern & Southern regions

Facilities expand and install new manufacturing lines

2014/03/11

Summary

 This report summarizes activities of Japanese parts suppliers in southern, northern, northeastern, and other regions in China during eight months from July 2013 to late February 2014. To cope with production increase at Japanese automakers, many Japanese parts suppliers have been expanding their local production capacities and installing new equipment. They also aim to increase their sales by expanding their sales channels to local Chinese, as well as European, and American automakers in China.

Related Japanese Suppliers Reports:
China (part 1): Eastern and Central China (Mar 2014)
Latin America (Part 2): Trends in Brazil and Mexico (Mar 2014)

Latin America (part 1): New plants in Mexico (Mar 2014)
Thailand (1) (Jan. 2014)

Thailand (2) (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 US (Jul. 2013)

Southern China
Southern China
Northeastern and Northern China
Northeastern and Northern China

 



Activities in Southern China

Guangdong province

Company Activities
Ahresty

Constructing new production line at its third plant in Guangzhou

Ahresty's subsidiary in Guangzhou, Guangzhou Ahresty Auto Parts Co., Ltd., started the second phase construction of its third plant in October 2013. The construction is scheduled to be completed on a 21,000-square-meter site in September 2014.14 machining lines will be relocated from the first plant to the third plant, and five new lines will also be added. The first and second plants manufacture die-cast parts for automotive engines. Monthly production volume will increase to 2,600 tons after the third plant starts operations.
Akebono Brake

To expand production line at its Guangzhou plant

Akebono Brake will invest JPY 400 million to add a new production line at its Guangzhou plant, Akebono Corporation (Guangzhou). This plant manufactures disk and drum brakes. The supplier plans to start operations of the new line in 2014 and to double the production capacity from its 2013 plan by 2015. The products will be supplied to Japanese, European, and American automakers in China (Source: Press release in July 2013).
Asahi Tec

To expand its new plant in Guangzhou and consolidate its first plant

Asahi Tec's subsidiary in Guangzhou, Wheelhorse Asahi Aluminium Co., Ltd., will complete the expansion work of its new plant within FY 2015. The company will close the first plant and consolidate it into the new plant. The new plant is located on a 173,000-square-meter plot. The first and new plants are currently producing 3 million aluminum-casted wheels annually (Source: Press release in October 2013).
Advics

Starts producing brake components in Yunfu, Guangdong province

In October 2013, Advics started manufacturing brake components such as brake boosters and disk brake calipers at its plant in Yunfu, Guangdong province, Advics Yunfu Automobile Parts Co., Ltd. This 18,000-square-meter plant is located on a 67,000-square-meter plot. The supplier aims to achieve revenues of CNY 400 million by 2016.
H-One

To expand production capacity at its Qingyuan plant in Guangdong province

H-One will invest JPY 2.7 billion in its production base in Qingyuan, Guangdong province, QH Auto Parts Industries Inc., to introduce press machine and welding robot line. An area of 4,000 square meters will be added to the plant, and the robot line will be introduced in November 2014. Regarding the press machine, operations are scheduled to start in July 2015, with an additional area of 5,700 square meters. With this expansion, the supplier will produce body panels and frame components for large and midsize cars and hopes to follow Honda's plan to increase sales in China (Source: Press release in December 2013).
Kanemitsu

Integrated system for producing engine bosses at Guangdong subsidiary

Kanemitsu will establish a new preprocess line for integrally molding bosses used on engine components at Foshan Kanemitsu Automoive Parts Co., Ltd. in Foshan, Guangdong province for cost reduction. (Half finished parts with molded bosses are currently imported from Japanese and Thai plants. By June 2014, a 630-ton press machine and a roll machine will be added to the plant. In addition to its current Japanese customers like Toyota and Honda, the supplier aims to expand its customer base for Chinese automakers. It plans to increase its revenues in China by 20% in 2014 compared with the 2013 outlook (Source: Press release in February 2014).
Calsonic Kansei

Establishes development base in Guangzhou

In November 2013, Calsonic Kansei announced that it has established an engineering center for developing automotive parts within the premise of Calsonic Kansei (Guangzhou) Corporation Headquarters / Huadu Plant. This is the supplier's second development base in China. The supplier aims to enhance its capability to develop parts for Nissan, its main customer.
Kurabo

Acquires seat component manufacturer to expand production capacity

In August 2013, Kurabo announced that it has acquired a 51% stake in a local frame lamination/urethane foam manufacturer in Guangzhou from Chiao Fu Group and acquired its management rights. This local manufacturer has an annual production capacity of 2 million meters. It is capitalized at USD 1.83 million
Koito Manufacturing

Guangzhou plant starts / New base considered in central or northern China

In September 2013, Koito started production of automotive lamps at the second plant at its subsidiary in Guangzhou, Guangzhou Koito Automotive Lamp Co., Ltd. JPY 2 billion was invested in this plant. Including the second plant, the total annual headlamp production capacity has increased to 1.5 million units. In January 2014, it was also reported that Koito is investigating possibility to establish a new base in northern or central China to cope with increasing production at European and American automakers.
Suncall

To expand its engine valve spring and ring gear bases

Within FY 2013, Suncall plans to invest a total of JPY 1 billion in its plants in Japan, the U.S., China, and Thailand. This is to increase the monthly production of engine valve springs by 30% year-over-year (y/y) to 13 million units and that of engine starter ring gears by 20% to 850,000 units.The supplier plans to invest JPY 170 million in Suncall (Guangzhou) Co., Ltd., to renew part of the facilities.
Tachi-S

Establishes development center in China

In August 2013, it was reported that Tachi-S will establish a new development center in Guangzhou. The center is expected to start operations within 2014. To support expanded development functions at Nissan and Honda in Guangzhou, the supplier plans to enhance its local development capability by establish the new development base with 100 engineers.
TDK

Introduces integrated production system for automotive magnets

TDK started integrated production of automotive magnets at its new plant in Dongguan, TDK DongGuan Technology CO.,LTD. The plant started operations in April 2013. New processes such as selecting and blending the materials were introduced for wet ferrite magnets used on motors and other components. With this enhancement, the supplier aims to triple production volume per employee, which will lead to reduced labor cost and improved cost competitiveness (Source: Press release in October 2013).
Denso

Starts operations at its new automotive air conditioner plant in Foshan

In August 2013, Denso started operations at its automotive air conditioner plant in Foshan, Guangdong province. This is the company's 11th plant in China. Main components like heater cores and evaporators are supplied from other plants. The new plant is in charge of the final assembly process of in-vehicle units called "HVAC units" and supplies them to automakers in neighboring areas. CNY 50 million was invested in this 8,000-meter-square plant on a 20,000-meter-square plot.
Toyota Boshoku

Starts operations at its new seat cover plant in Heyuan, Guangdong province

In October 2013, Toyota Boshoku started production at its new plant in Heyuan, Guangdong province, Heyuan Toyota Boshoku Automotive Parts Co., Ltd. The new plant has an annual production capacity of 230,000 units and has received an investment of JPY 400 million. The plant produces and supplies seat covers for the Camry assembled at GAC Toyota Motor Co., Ltd.
Nissin Kogyo

Expands its Zhongshan plant in Guangdong province

Nissin Kogyo expanded the floor space of its brake production base by 60 % to 49,000 square meters at Zhongshan Nissin Industry Co., Ltd. in Zhongshan, Guangdong province. This is to enhance its production capacity in response to production increase by Honda(Source: Press release in January 2014).
Nippon Steel & Sumikin Bussan

Starts production and sales at its new plant in Guangzhou, Guangdong province

In October 2013, Nippon Steel & Sumikin Bussan's subsidiary, Arai Industrial, established a joint venture in Guangzhou with Chinese Guangzhou Wire Auto Parts Co., Ltd. The JV, named Guangzhou Arai Auto Parts Co., Ltd., started manufacturing and sales of headrest and seat components in December 2013. It was capitalized at JPY 150 million, with 70% owned by Arai Industrial and 30% by Guangzhou Wire Auto Parts. The new company has an annual production capacity for 300,000 vehicles.
Mitsubishi Rayon

Takes stake in carbon-fiber reinforced plastic (CFRP) parts manufacturer

Mitsubishi Rayon announced its capital participation in a Chinese automotive CFRP parts manufacturer, Action Composite International (AC), to reinforce its automotive carbon fiber and composite material business. The supplier is enhancing its capacity to supply CFRP parts to cope with growing demand for lightweight automotive materials in China. AC produces CFRP parts at a plant located in Dongguan, Guangdong province. Mitsubishi Rayon has acquired a 35% stake in AC.
Yachiyo Industry

Starts production for Geely at its Guangdong plant

In September 2013, Yachiyo Industry started production of sunroofs for Geely. The company has received orders for 20,000 to 30,000 sunroofs. These products are produced at Yachiyo Zhongshan Manufacturing Co., Ltd. in Zhongshan, Guangdong province. The plant has an annual production capacity of 750,000 units. In addition to Honda, its major customer, the company plans to supply products also to Chinese automakers to expand sales.
Yorozu

To enhance suspension parts production capacities within China

By summer 2015, Yorozu aims to enhance suspension parts production capacities at its Wuhan plant of Wuhan Yorozu Bao Mit Automotive Co., Ltd. by 50%.Yorozu plans to invest JPY 3.5 billion in total to expand buildings and facilities. The investment amount ncludes expansion costs at the Guangzhou plant. This enhancement is to deal with Nissan's and Honda's plans to increase production.  (Source: Press release in December 2013).





Activities in Northern China

Tianjin, Hebei province

Company Activities
Aisin AW

Annual production target of 700,000 automatic transmissions (ATs)

Aisin AW will invest JPY 34 billion in total to enhance AT production capacities in China to promote localization. The company also aims to expand its market share by winning more orders, mainly from European automakers. Currently, its JV plant in Tianjin, Tianjin AW Automatic Transmission Co., Ltd., has an annual production capacity of 100,000 units. At the end of 2014, AW Tianjin Automotive Parts Co., Ltd., the company's wholly funded plant, will start operations with an annual capacity of 400,000 units. Its Suzhou plant, AW Suzhou Automotive Parts Co., Ltd., also started operations in September 2013. The Suzhou plant produces 240,000 ATs per year. In total, Aisin AW's production will be expanded to 740,000 units.
Tsubakimoto Chain

To construct second plant in Tianjin

Tsubakimoto Chain will construct its second plant at its timing chain system production base in Tianjin, Tsubakimoto Chain (Tianjin) Co., Ltd. (Source: Press release in February 2013). JPY 3 billion will be invested in this plant, which is scheduled to start production in January 2016. The company will increase its production in line with increasing production at automakers in China. It expects revenues of JPY 12 billion in China in FY 2016, to be doubled from FY 2013 level.
Toyoda Iron Works

Revises its plan to enhance production capacity in China

Since early 2012, Toyoda Iron Works had made preparations to introduce a large stamping machine to its Tianjin plant, Tianjin Toyotetsu Automobile Parts. Co., Ltd. The company, however, has changed its plan due to risks such as a boycott of Japanese cars in China. Instead, it has put higher priority on production enhancement in North America, which is showing clearer signs of sales recovery (Source: Press release in August 2013).
Tachi-S

Establishes seat production base in Xiangyang, Hebei province

In August 2013, Tachi-S announced that it has established a new joint venture in Xiangyang, Hebei province with Lear Dongfeng Automotive Seating Co., Ltd. The JV is named TACHI-S LEAR DFM AUTOMOTIVE SEATING (Xiangyang) CO., LTD. It is scheduled to start production of automotive seats in October 2014. The company aims at an annual production of 110,000 units in FY 2016. The JV was capitalized at CNY 30 million.



Activities in Northeastern and Southwestern China

Jilin and Liaoning provinces

Company Activities
Tachi-S

Establishes new joint venture in Dalian Free Trade Zone in Liaoning province

In August 2013, Tachi-S established a new joint venture in the Dalian Free Trade Zone in Liaoning province with Lear Dongfeng Automotive Seating Co., Ltd. The JV, called Lear DFM Tachi-S Automotive Seating (Dalian) Co., Ltd. is scheduled to start production of automotive seats in September 2014 and produce 80,000 units per year. It was capitalized at CNY 50 million.
Mitsubishi Materials

To transfer stocks of its aluminum die-casting subsidiary

In September 2013, Mitsubishi Materials announced its plan to sell all of its shares in Tamadai, its wholly owned subsidiary, to a metal processing company in Dalian, Liaoning province, Dalian Jinwen Metal Products. Tamadai was capitalized at JPY 360 million and had revenues of JPY 2.4 billion in the fiscal year ended in March 2013. Tamadai had supplied aluminum castings to automakers in Japan. Mitsubishi Materials has decided to sell its shares because of Tamadai's small business scale and lack of prospect for synergy with other businesses.
UNIPRES

Establishes joint stamping parts manufacturer in Dalian, Liaoning province

In November 2013, Unipres announced the establishment of a joint venture for manufacturing automotive stamping parts in Dalian, Liaoning province, Unipres Sunrise Corporation. The JV was capitalized at CNY 50 million, with 40% owned by Unipres (China), 40% by Xiangyang Sunrise Machinery, and 20% by Xiangyang Jisheng Machinery. A 19,000-square-meter plant was built on an 80,000-square-meter plot. The supplier aims at revenues of JPY 7 billion in FY 2016.

Chongqing

Company Activities
HI-LEX

To expand sales to Chinese automakers by enhancing Chongqing plant

HI-LEX will construct a new building at its Chongqing subsidiary, Chongqing HI-LEX Cable System Group Co., Ltd. (CHG). With an investment of JPY 1.2 billion by 2015, the company aims to increase sales of cables for operating doors and parking brakes by 80% from CNY 930 million in 2012 to CNY 1.7 billion by 2015. CHG has supplied products mainly to Japanese automakers, but HI-LEX aims to receive more orders by expanding its customer base to Chinese automakers through this capacity enhancement (Source: Press release in August 2013).

 

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