Japanese Parts Manufacturers in Southeast Asia: Indonesia, Vietnam, Malaysia, The Philippines, Laos

Production capacity expansion continues in Indonesia and Vietnam

2016/08/08

Summary

東南アジア

The following report describes recent trends of Japanese auto parts manufacturers in Southeast Asian countries (excluding Thailand) (content covers the 15 months prior to mid- June 2016).

Car sales in Indonesia in 2015 recorded a 16.1% decrease year-over-year (y/y) to 1.013 million vehicles, showing negative growth for the second consecutive year. Between January and May 2016, 445 thousand vehicles were sold, marking a 0.6% decrease y/y. However, in April, sales grew for the first time in twenty months, and a double digit increase was recorded for May. In terms of production, 2015 saw a y/y decrease of 15.4% at 1.099 million vehicles. Between January and May 2016, production recovered by 1.3% y/y to 488 thousand vehicles, and the number of assembled vehicles exported in 2015 grew by 2.7% to 208 thousand vehicles.

In anticipation of a mid-term expansion of the Indonesian market and export growth, Japanese OEMs are currently expanding production facilities and localizing parts procurement. Indonesia’s overall annual automobile production capacity (including non-Japanese OEMs) is expected to increase from 1.5 million vehicles in 2015 to 2 million by 2017. Under these circumstances, Japanese parts manufacturers are expanding their production capacities for the Indonesian market and exports. New product launches have also been taking place. Few new companies have entered the market, with the start of construction for Nippon Steel Sumitomo Metal’s joint venture plant and Sekisui Plastics launch of a new production facility being some of the only examples.

Vietnam is also seeing an expansion of production capacity rather than companies newly entering the market. Manufacturers are expanding their bases for global export through activities like adding plants and facilities to meet the needs of their clients and introducing new products.

In Malaysia, Ube Industries’ joint venture factory for butadiene rubber, a raw material for environmentally friendly tires, has come on stream, and the company has built a global supply system. Polyplastics has added a compound facility for engineering plastics to meet growing demands in the ASEAN, European, and North American markets. GS Yuasa increased its investment ratio  has acquired the management rights to its joint venture company that produces lead-acid storage batteries by increasing its investment ratio in it, and will strengthen the company’s operations. Bando Chemical Industries shut down their local subsidiary for windshield wiper blade rubber and has consolidated production in Thailand.

In The Philippines, TS Tech has established a subsidiary that it commissioned to create and analyze data for automobile seat designs. Nishiyama Seisakusho has established a new facility for manufacturing cold drawn steel tubes.

In Laos, Toyota Boshoku has transferred its entire fabric seat cover sewing process to a plant there from another in Thailand. Yamato Sangyo’s factory for sub-wiring harnesses has come online, and some of the by hand assembly process has been moved from its Thailand plant.



Trends of Japanese auto parts manufacturers in Indonesia

New Companies <Weight reduction>
Nippon Steel Sumitomo Metals (high-tensile steel), Sekisui Plastics (foamed plastic moldings)
Enhancement of production capacity, addition of new components <Construction of new factories>
Kuroda Electric (pressed parts), GS Yuasa(lead-acid storage batteries), Tenma (exterior parts such as bumpers, etc.), Bridgestone(new company for vibration-proof rubber)
<Enhancement of production capacity, addition of new items>
Asahi Glass(caustic soda, PVC resin, vinyl chloride monomers: also exported to Thailand and Vietnam), GS Yuasa(lead-acid storage batteries), Sumitomo Wiring Systems(wiring harnesses: increased exports to Japan), Nishikawa Rubber(new production of glass run channels), Hamanakodenso (horns: increased exports to America), Metalart(crankshafts: supporting new clients)
Sales subsidiaries, corporate acquisition Aisin Chemical (sales company of chemical products), Nidec Sankyo (acquisition of local Japanese manufacturer: enhancement of in-vehicle camera lens business)
Transfer of production JVC Kenwood (considering transfer to Japan of some car navigation system production for the Japanese market), Suminoe Textile (transfer of some mat production from China)

(Source) Created from plans of each company

Trends of Japanese auto parts manufacturers in Vietnam

New companies Microtechno (Hydraulic parts: supplying Mazda AT plant in Thailand)
Enhancement of production capacity, addition of new components <Construction of new factories>
Tokotsusho (Second plant: new production of metal-powder injection-molded products), Mitsuba(new plant in new location: expansion of export facilities for automotive relays)
<New plants, expansion of facilities, addition of new components>
FCC(New plant: increased exports of automobile clutch parts to America), Fujikura Rubber (plant expansion: exports of diaphragms and sealants for automobiles to neighboring countries), Furukawa Automotive Systems (moved to new building: wiring harnesses), UACJ (expansion of new facilities: new production of machined compressor wheels), Yokowo (expansion of facilities: increased exports of shark-fin antennas to America), Yokohama Rubber(expansion of facilities: increased production of emergency tires for Japan and China)
Design and analysis support Asahi Kasei (Design and analysis support company for resin parts: support of Japanese development teams, etc.)

(Source) Created from plans of each company

Trends of Japanese parts manufacturers in Thailand are to be detailed in a separate report.


Japanese Supplier Reports:
* India (Jun. 2015)
* U.S. and Canada (Apr. 2016)
* China: East/North/Northeast regions (Nov. 2015), China: South/Central/Southwest regions (Nov. 2015)
* Thailand (Sep. 2015)
* Europe (Aug. 2015)
* Mexico (Jun. 2015), Mexico and Brazil (Jul. 2015)
* Southeast Asia (May 2015), the U.S. (Mar. 2015)



Construction of new production facilities in Indonesia: Nippon Steel Sumitomo Metals, Sekisui Plastics

Company name Activities
Nippon Steel Sumitomo Metals Construction of a joint venture plant for automobile steel sheets began in 2015; completion scheduled for mid-2017
In 2015, Nippon Steel Sumitomo Metals began construction of a new plant for PT KRAKATAU NIPPON STEEL SUMIKIN (Banten), a joint venture it established in 2012. The plant is scheduled for completion in mid-2017. It will feature a state-of-the-art production line for automobile steel sheets that integrates a continuous annealing line (for cold-rolled steel sheet production) and hot-dip galvanizing line (for galvanized steel sheet production), and will produce premium, high-quality steel sheets for uses such as automobile exteriors and high-tensile steel sheets. The annual production capacity of the plant will be 480 thousand tons. Approximately USD 300 million has been invested in the project.
Sekisui Plastics New plant for foamed plastic moldings comes on stream in May 2015
The new plant for the subsidiary of Sekisui Plastics, PT. Sekisui Plastics Indonesia (near Jakarta) came on stream in May 2015, and began production of high-performance and general-purpose foamed plastic molded products that are used as lightweight parts for automobiles, and packing materials for home appliances and IT products. The plant has an annual production capacity of 800 tons. Previously Sekisui Plastics sold its products by consigning production to local companies, but due to the demand for high quality and performance from its clients, the manufacturer decided to produce its products in-house.


Increased production capacity and addition of new items in Indonesia: Asahi Glass, GS Yuasa, Sumitomo Wiring Systems, Nishikawa Rubber, Nidec Sankyo, Bridgestone

Company name Activities
Aisin Chemical Local sales subsidiary begins market research for business expansion
Aisin Chemical announced that in March 2016, its local sales subsidiary, PT. AISIN CHEMICAL INDONESIA (Jakarta, established in 2014), started market research for business expansion. The subsidiary supplies chemicals such as adhesives and paint by means of imports from Japan, and through consigning production to local companies. The company plans to develop the market through steps including advancing product proposals by ascertaining local needs.
Asahi Glass Increased production of caustic soda and PVC resin, commercial production begins in the first quarter of 2016
Asahi Glass expanded the facilities at a plant in Banten operated by PT ASAHIMAS CHEMICAL (Jakarta), and began commercial production from Q1 2016. In order to meet the expanding demands in the Southeast Asia region, the factory’s annual production capacity of caustic soda has been increased from 500 thousand tons to 700 thousand; PVC resin (PVC) expanded from 300 thousand tons to 550 thousand; and production of vinyl chloride monomer (VCM), the raw material for PVC, doubled from 400 thousand tons to 800 thousand. The products are distributed not only within Indonesia, but caustic soda is exported to subsidiaries in Thailand and Vietnam, and VCM is exported to a subsidiary in Vietnam. Furthermore, in May 2016, the manufacturer announced that it would increase its annual production of VCM by 100 thousand tons at the beginning of 2018.
Kuroda Electric Constructed a new plant, increased annual production capacity of pressed parts from 2017
Kuroda Electric produces pressed parts through their joint venture, PT. TRIMITRA CHITRAHASTA (Bekasi, West Java), and in order to meet expanding demands of Japanese manufacturers, it will construct a new plant in Cirebon, West Java, located in the east part of Jakarta. JPY 745 million will be invested in construction of the new plant, which is scheduled to come online in April 2017. Projected sales for the new plant are JPY 400 million in 2017 and JPY 800 million in 2018. The existing factory is projected to generate JPY 4 billion from 2016 to 2018.
GS Yuasa Increased production capacity of automobile lead-acid storage batteries with a new plant and facility expansion at existing plants
GS Yuasa has increased its annual production capacity for automobile lead-acid storage batteries in Indonesia from 8.9 million units at the end of 2014 to 9.6 million units by the end of 2015. Amidst this production increase, PT.GS Battery (Jakarta) expanded its production capacity from 5.1 million at the end of 2014 to 5.6 million by the end of 2015. Because of soaring labor costs at the existing factory in Jakarta, increasing annual production capacity has been difficult, and this lead to the construction of a new facility in Semarang, Central Java where labor costs are cheaper. IDR 150 billion (approximately JPY 1.4 billion) has been invested in construction of the new plant. Additionally, IDR 2.2 billion (approximately JPY 20 million) has been invested in PT. Trimitra Baterai Prakasa (Jakarta) to enhance its facilities, which increased annual production capacity from 3.8 million units at the end of 2014 to 4 million units by the end of 2015.
JVC Kenwood Considering the transfer to Japan of some car navigation system production for the Japanese market
Until recently JVC Kenwood has produced most of its car navigation systems for the Japanese market at its plants in Indonesia (P.T. JVC Electronics Indonesia) and China (Shanghai). However, given that from around Q2 2015 yen has stayed weak relative to the dollar (USD 1 = JPY 120), the manufacturer is considering the transfer of commercial car navigation system and equipment production from Indonesia to Japan (Nagano plant). In Indonesia, the manufacturer will construct a flexible production structure to deal with demand in the Asian market, where demand for car navigation systems is expected to grow. (Announcement and news reports from October to November 2015)
Suminoe Textile Transfer of some mat production for the Japanese market from the Suzhou plant in China to Indonesia
Suminoe Textile produces mats at PT. Suminoe Surya Techno (Bandung). Since summer 2014, labor costs and exchange rates have made the Suzhou plant in China less favorable. The increased production for Japan was assigned to the Indonesia plant, and has contributed to improved profitability throughout the company. Additionally, the company has considered having the Indonesia plant supply the market in Thailand, and has begun working to receive orders. The plant will maintain a flexible system to meet the demands of various regions.
Sumitomo Wiring Systems Increased annual production capacity of wiring harnesses, increased exports to Japan
Sumitomo Wiring Systems has added a floor at the wiring harness plant operated by PT. Sumitomo Wiring Systems Batam Indonesia (Batam, Riau Islands), and installed equipment and machinery. At the beginning of 2016, the annual production capacity increased by 30% over previous levels to 390 thousand sets. In the future, another floor will be added to the plant to double its annual production capacity. All products from the plant are exported to Japan, and in FY 2014, the export value was approximately JPY 7.6 billion. As labor costs are rising in Thailand and China, the manufacturer is considering having the Batam Plant export to countries other than Japan as well if its cost competitiveness increases.
Tenma Construction of a second plant for exterior parts such as bumpers, scheduled to come online in July 2016
Tenma produces components including aero parts and roof rails at a plant that PT.TENMA INDONESIA (Karawang, West Java) took over from another company, and will construct a second plant on newly acquired property. JPY 1.7 billion has been invested in the second plant, which will produce exterior parts like bumpers and supply Japanese OEMs. Tenma aims to have a yield of JPY 2 billion in 2018. Together with that of its existing plant, the manufacturer plans to increase it by 30% over 2015 to JPY 8 billion.
Nishikawa Rubber Production of glass run channels to begin by FY 2017
Nishikawa Rubber has produced glass run channels that attach to door window frames at overseas facilities since FY 2015. The manufacturer plans to make capital investments at its local production facility in Indonesia (PT. NISHIKAWA KARYA INDONESIA, West Java) and begin production by FY 2017.
Nidec Sankyo Acquired all shares of a Japanese lens manufacturer and made it into a subsidiary, aiming for expansion of its vehicle camera lens business.
In September 2015, Nidec Sankyo acquired a 100% stake in PT. NAGATA OPTO INDONESIA (Bogor, West Java), onboard manufacturer of vehicle camera glass lenses, and made it a subsidiary. NAGATA INDONESIA’s sales in 2014 totaled USD 3.93 million (approximately JPY 470 million). Nidec Sankyo specializes in manufacturing plastic lenses, but vehicle camera lenses for use in sensors need to be glass, and precision is required. By making the local company a subsidiary, the company will handle glass lens processing in-house and increase profitability, while at the same time expanding production capacity to cater to rising demand.
Hamanakodenso Increased production capacity of horns, increasing exports to the U.S.
Hamanakodenso will increase PT.HAMADEN INDONESIA MANUFACTURING’s (Jakarta) production capacity for horns. The company has a major business partnership with Toyota and eight production lines. In FY 2014, the manufacturer produced 12 million units for America, Europe, and Asia. In 2018, the company plans to increase annual production by 600 thousand due to new orders from Japanese OEMs other than Toyota Motor North America. The company will add a new production line by 2020 in order to meet increasing orders from the U.S. and expand their global business partners.
Bridgestone Established a joint venture for vibration-proof rubber, new plant begins production in January 2016 
In July 2015, Bridgestone signed an agreement with PT Astra Otoparts Tbk to establish a joint venture company that will produce vibration-proof rubber. A new plant was constructed in Purwakarta, West Java, and it was announced that production began in January 2016. Prior to this agreement, Bridgestone had signed a technical assistance agreement with a subsidiary of Astra Otoparts for the production of vibration-proof rubber, but the company determined that it will require a production facility in Indonesia to achieve global expansion. Approximately IDR 174 billion (approximately JPY 1.6 billion) was invested in the joint venture, PT Bridgestone Astra Indonesia. Bridgestone’s stake is 51%, and Astra Otoparts’ stake is 49%. The annual production capacity has not been announced.
Metalart Added a line for post-forging processing, scheduled to come fully online in the second half of 2017
Metalart will add a second line for post-forging processing at PT METALART ASTRA INDONESIA (Karawang, West Java), which manufactures forged parts such as crankshafts from its current line in order to handle orders from Japanese OEMs other than existing clients Daihatsu and Toyota. The company is excess forging processing capacity, and plans to enhance its production capacity for functions ranging from cooling, to abrasive blasting and testing, in order to fully utilize that. There will be performance tests for the new line from autumn 2016, and it is planned to come fully online in the second half of 2017. Approximately JPY 100 million has been invested in the new line.


Expansion of existing plants and establishment of new facilities in Vietnam: Asahi Kasei, FCC, Fujikura Rubber, Microtechno, UACJ, Yokohama Rubber, and more

Company name Activities
Asahi Kasei Established a new company for the design and analysis support of resin parts in March 2016
In March 2016, Asahi Kasei established Asahi Kasei Plastics Vietnam Co., Ltd. (Ho Chi Minh City), a new company that will design and manufacture resin parts, as well as provide pre-examinations of process designs via computer analysis. The new company has been capitalized at JPY 60 million. The subsidiary was established to provide technical assistance to resin supplier clients, and will provide design and analysis support of high-performance resins for automobiles, which are currently being developed as new parts to replace metal components for purposes of weight and cost reduction.
FCC Production of automobile clutch parts begins in 2016, all products to be exported to a plant in the U.S.
FCC has constructed a new plant building within the premises of FCC (VIETNAM) CO., LTD. (Hanoi), a manufacturer of motorcycle clutch parts. Production of automobile clutch parts will begin in July 2016. In FY 2015, JPY 584 million was invested, and in FY 2016, the company is expected to invest a further JPY 1.706 billion. The plant will handle increased demand for automobile clutch parts in North America. All products will be sent to FCC’s plant in the U.S. for assembly before being shipped to North American OEMs.
Tokotsusho Construction of a second plant increases production capacity of metal injection molded products, plant comes online in February 2016 
Tokotsusho completed construction of a second plant ,located within the premises of JAPAN MIMTECH TOKO CO., LTD. (Hanoi) in June 2015, and it went on-stream in February 2016. The monthly production capacity of metal parts produced by MIM (metal injection molding) and robot sensor parts has approximately tripled over the 2015 amount to 1.2 million units. A total of approximately JPY 500 million has been invested in the plant. Orders for MIM have increased due to its high dimensional precision and ability to reduce mass production costs, and Tokotsusho has determined that it must expand its plant. In the future, the manufacturer will incorporate new equipment, and establish an integrated production system, from mold manufacturing and molding though the inspection process. The company will aim for sales of JPY 600 million in May 2018.
Fujikura Rubber Plant expansion, increased production capacity of diaphragms and sealant
Fujikura Rubber completed construction of a second plant for FUJIKURA COMPOSITES HAIPHONG, Inc. (Hai Phong) in 2014, but the company decided to make further expansions in April 2016. The total floor area will be almost the same as the second plant at approximately 4400 square meters. A total of approximately USD 6.4 million (approximately JPY 704 million) will be invested. The production of automobile diaphragms and sealants for neighboring countries will be expanded. Moreover, the company is considering mass production of parts for direct injection systems and fuel control valves. Because the Hai Phong plant will have insufficient capacity in 2018, preparations for constructing a new plant in a new area will begin. The plant will be constructed near Hanoi, which is approximately an hour from the existing plant by car.
Furukawa Automotive Systems Wiring harness plant expansion
Furukawa Automotive Systems will expand the wiring harness plant operated by Furukawa Automotive Parts (Vietnam) Inc. (Ho Chi Minh City). In 2015, the company moved into its first multi-level building as part of Ho Chi Minh City’s Export Processing Zone Building Maintenance Plan, which will continue from 2015 to 2018. The plant has an area of 12,490 square meters.
Microtechno New company for hydraulics parts established, plant online in 2015
In July 2014, Microtechno established Microtechno Vietnam CO., LTD. (Hung Yen), which manufactures hydraulics parts. The company was capitalized at USD 4.4 million (approximately JPY 552 million), with Microtechno holding a stake of 85% and Sakuma Special Steel 15%. The opening ceremony for the new plant was held in June 2015. USD 5.8 million (approximately JPY 722 million) was invested in the plant. It manufactures hydraulics parts for automatic transmissions, and supplies Mazda’s Thailand AT plant (online from January 2015). In the future, the plant will develop other clients.
Mitsuba New plant constructed in Hanoi, production capacity to be increased
Mitsuba plans to increase the production capacity of automotive relays at Mitsuba M-Tech Vietnam Co., Ltd. (Dong Nai) by 10% in 2016 over 2013. Additionally, the company plans to construct a new plant in Hanoi and will further increase its production capacity, making Vietnam a global supply base for motorcycle and automobile parts.
UACJ Production of machined aluminum compressor wheels begins
UACJ will introduce new five-axis machining mills at UACJ Foundry & Forging (Vietnam) Co., Ltd. (UFFV, Ho Chi Minh City), which produces aluminum compressor wheels (CW) used in turbochargers, and begin production of machined compressor wheels. Previously, all CW were produced via forging, but due to increased demand for machined products, the manufacturer will create a system where it can produce both forged and machined products. UFFV handles all of UACJ’s CW production business, and produced 800 thousand units per month in the first half of 2015. The products are exported globally.
Yokowo Increased capacity for automobile shark-fin antenna production
Yokowo manufactures wiring harnesses for vehicle-mounted communication equipment, AM/FM micro antennas, and shark-fin antennas at Yokowo Vietnam Co., Ltd. (Ha Nam). It has invested JPY 200 million to expand facilities and increase its monthly production capacity 70% by 2019 from the approximately 1 million units produced in 2015. As regulations become even stricter, the company has increased production of shark-fin antennas, which are becoming increasingly popular in North America due to their effectiveness in increasing fuel economy, and will increase supply to major OEMs such as Toyota.
Yokohama Rubber Increased production capacity of emergency tires for automobiles, increased exports to Japan 
Yokohama Rubber will increase the production capacity for passenger car emergency tires at Yokohama Tyre Vietnam Inc. (Binh Duong). Although production units and investment totals have been undisclosed, the company will invest several hundred million yen to double its production capacity between 2017 and 2018 to meet strong demands from its major Japanese OEM clients, and increase exports to Japan. Moreover, the company will also supply Japanese OEMs that are expanding their presence in China as well.


New factories coming online, and expansion of production capacity in Malaysia: Ube Industries, GS YUASA, Polyplastics

Company name Activities
Ube Industries Butadiene rubber plant comes online in June 2016
The butadiene rubber production plant operated by Ube Industries’ joint venture Lotte Ube Synthetic Rubber Sdn. Bhd. (LUSR, Johor) went on-stream in June 2015. The plant is capitalized at USD 60 million (approximately JPY 7.2 billion). Lotte Chemical has a stake of 40%, Lotte Chemical Group’s Titan Chemical 10%, Ube Industries 40%, and Mitsubishi Corporation 10%. Butadiene rubber, which is a material used in environmentally friendly tires, can be produced thanks to Ube Industries’ production technology license. The annual production capacity is 50 thousand tons. With the addition of the new plant, Ube Industries Group’s global production capacity including Japan, Thailand, and China, is 320 thousand tons. Taking future demand trends into account, LUSR’s annual production capacity is to be further increased by 22 thousand tons.
GS Yuasa Increased investment ratio of lead-acid storage battery joint venture, acquired management rights
GS Yuasa announced in June 2015 that its consolidated subsidiary in Thailand, Siam GS Battery Co., Ltd. (SGS) purchased 40% shares of its joint venture in Malaysia, Yuasa Battery (Malaysia) Sdn. Bhd. (Kedah YBML), which produces lead-acid storage batteries. Combined with GS Yuasa’s 30%, the company now has a stake of 70%, and has acquired management rights. In Malaysia, GS Yuasa has a market share of 10% for automobile lead-acid storage batteries, but the manufacturer plans to double its sales volume by 2018.
Bando Chemical Industries Closing a wholly-owned subsidiary that produces window wiper blade rubber, consolidating production in Thailand
As of June 2016, Bando Chemical Industries has shut down its wholly-owned subsidiary, Pengeluaran Getah Bando (Malaysia) Sdn. Bhd. (Johor), and is now moving ahead with liquidation proceedings. The final gains and losses for the subsidiary in FY 2014 were a loss of MYR 864 thousand, and a gain of MYR 604 thousand in FY 2015. Equipment for production of window wiper blade rubber will be transferred to Bando Manufacturing (Thailand) Ltd. The company is planning to stabilize supply by consolidating production in Thailand.
Polyplastics Increasing compound capability for engineering plastics
Polyplastics will expand its compound equipment for engineering plastics at the factory (Pahang) operated by Polyplastics Asia Pacific Sdn. Bhd. (head office: Kuala Lumpur). Construction will be completed by the end of 2016, and annual production capacity will be increased by 9 thousand tons to a total of 35 thousand tons. The plant is scheduled to come fully online in June 2017, and will strive to enhance its supply system to meet increasing demand in the ASEAN region, as well as western markets.


New companies in The Philippines: TS Tech, Nishiyama Seisakusho

Company name Activities
TS Tech New company established to handle partial development duties such as the data creation and analysis
In September 2015, TS Tech established TS TECH BUSINESS SERVICES PHILIPPINES, INC. (Makati), which will be contracted to handle development duties such as the creation and analysis of 3D data for the design of automobile seats. As a result of this, the main global design department in Japan will be able to focus on developing new products, and accelerate development. The company will begin operating in April 2016, and start with twenty local employees, eventually aiming to have one hundred staff members. The company will also handle drawing management for global production facilities such as in North America.
Nishiyama Seisakusho Established a production facility for cold-drawn steel tubes that is scheduled to come online in August 2016
In August 2015, Philippine Nishiyama Pipe Manufacturing Inc. (Batangas) was established as Nishiyama Seisakusho’s first overseas production facility. The company is capitalized at PHP 100 million (approximately JPY 260 million). The new plant is scheduled to come online in August 2016, and will produce cold-drawn steel tubes under 10 mm in diameter. By switching to supplying Japanese parts manufacturers with local production rather than importing from Japan, the manufacturer aims to reduce costs and lead-time. It will also act as an export base to Southeast Asia.


New plants online, supplanting production from the Thailand plant in Laos: Yamato Sangyo, Toyota Boshoku

Company name Activities
Yamato Sangyo

Launching a new plant for sub-wiring harnesses at the beginning of 2016

In June 2015, Yamato Sangyo established DAIWA HARNESS LAO CO., LTD (Champasak). The plant was completed in December 2015, and began producing sub-wiring harnesses in the beginning of 2016. As Thailand’s DAIWA HARNESS (THAILAND) (Thailand, Chonburi) plant becomes even more cramped, the Laos plant has been positioned as a sub-plant, and some by hand assembly processes will be moved from the Thailand plant. Initially, the monthly shipment value was THB 2.3 million (approximately JPY 8 million), and the company will aim to have sales figures of THB 45 million (approximately JPY 180 million) in FY 2018. The Thailand plant will focus on producing high-value-added products. Additionally, in the near future the plant will also function as a supply facility to the Mekong region for brake and clutches handle repair parts handled by the Thai sales company DAIWA ASIA (Chonburi).
Toyota Boshoku Sewing process for fabric seat covers fully transferred to Thailand in 2015
In 2015, Toyota Boshoku transferred all of its sewing processes for its fabric seat covers produced at the Thailand plant for two vehicle types to TOYOTA BOSHOKU LAO CO., LTD (Savannakhet), which came online in April 2014. As Thailand’s labor costs have increased, the labor-intensive processes have been transferred. The annual production capacity is 200 thousand units.

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