Japanese suppliers in China: Expanding the supply of parts and materials for NEVs
Activities for Northeast China, North China, Central China, South China, etc.
2019/06/04
- Summary
- Northeast China: Establishment of new plant (Nidec), introduction of new products (Alps Alpine, Panasonic), technical alliance (NTN)
- North China: Establishment of new company (UACJ), facility enhancement (JTEKT, Toyota Boshoku, Kyowa Leather, G-Max)
- Central China: Establishment of new companies (Denso, Topre, etc.), facility enhancement (G-TEKT, Marujun, etc.), business reinforcement (Toyoda Gosei)
- South China: Establishment of new companies and plants (Aisin AW, UACJ, etc.), facility enhancement (Alpha, Idemitsu Kosan, JSP, Mitsui Chemicals, etc.)
- Southwest China: New plant established (Mitsubishi Chemical), subsidiary sold (Futaba Industrial)
- Taiwan: Facility enhancement (JSP), expanded business alliances (Toyota Tsusho, Mitsui Chemicals), consignment production (Renesas Electronics), market development (Nishimura Seisakusho)
- China in general: Increased production (H-One, Koito Manufacturing, Topre, Hitachi AMS, etc.), strengthening of development and sales systems (Sanden AS, Daido Metal Industry, etc.)
Summary
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China automobile plant map (Click to open site map) |
This report presents the activities of Japanese parts suppliers for China in general, Northeast China, North China, Central China, South China, Southwest China, and Taiwan. (Based on news sources over the approximate 15 month period from February 2018 to April 2019)
* Please refer to the previous report entitled Japanese Suppliers in East China.
In 2018, automobile production volume in China was 27.81 million units (down 4.2% year-on-year, YoY), and sales volume (factory shipments) was 28.08 million units (down 2.8% YoY), indicating a slowdown in market growth. The main factors for the slowdown include the impact of the U.S.-China trade war and the slump following the last-minute increase in demand at the end of 2017 before the tax incentive policy for small passenger cars was discontinued. In terms of sales by vehicle type, the number of SUVs sold decreased to 9.995 million units (down 2.5% YoY), and the number of sedans and hatchbacks sold decreased to 11.528 million units (down 2.7% YoY). In particular, the decline in sales during the second half of 2018 was severe, falling below the previous year's results in all months from July to December.
Conversely, the sale volume of new energy vehicles (NEVs) such as EVs and PHVs increased significantly by 61.7% to 1.256 million units. Since January 2018, the Chinese government has implemented the “Vehicle Purchase Tax Exemption Notice for New Energy Vehicles” that exempts NEVs from the vehicle purchase tax. Meanwhile, the vehicle purchase tax rate for passenger cars with a displacement of 1.6L or less has been returned to 10%. In 2019, the NEV credit system was introduced for automakers with an annual production and sales volume of ICE (internal combustion engine) powered vehicles (gasoline vehicles, diesel vehicles, gas fuel vehicles, hybrid vehicles) of more than 30,000 units, which has accelerated the introduction of new NEV models and associated infrastructure.
Guangdong province is adjacent to the city of Hong Kong and the city of Shenzhen is on the cutting-edge of IT and the origin of the transformation spreading throughout the auto industry in China. Shenzhen is home to the headquarters of BYD, the largest EV manufacturer in China, which is engaged in expanding its EV joint venture operations with Daimler. In addition, the city of Wuhan in Hunan province is located in the Yangtze River basin, so it has long been a transportation hub for the munitions industry and heavy industry. As for the automotive industry, Wuhan is also where the headquarters of the Dongfeng Motor Group is located. In the North China region, there are the headquarters of the Beijing Automobile Group, where EV sales are strong, and the headquarters of Great Wall Motor, which will produce the MINI brand in the future. Many Japanese suppliers have already followed the Japanese OEMs to supply products to their joint venture assembly plants in Tianjin (FAW Toyota), Wuhan (Dongfeng Honda), and Guangzhou (Guangqi Toyota, GAC Honda, and Dongfeng Nissan). However, Japanese suppliers are strengthening their production systems due to the increase in the introduction of NEV models to market and to meet the increasing number of orders from Chinese automakers.
In 2020, Toyota will launch the IZOA (FAW Toyota) and C-HR (GAC Toyota) EVs, which were announced at the Shanghai Motor Show. To meet the increase in demand for NEVs, Toyota will expand its Guangzhou plant, which is targeted to start operations in 2022. Honda will manufacture its second China-exclusive EV at its Wuhan plant, with plans to release the model in the second half of 2019.
NEV-related activities by Japanese suppliers include Panasonic's start of production of prismatic lithium-ion batteries, Nidec's new E-Axle plant, and UACJ's new plant for aluminum materials used in lithium-ion batteries. Activities related to the expansion of customers include Aisin AW establishing a new manufacturing site for automatic transmissions, JTEKT increasing its production capacity of electric power steering (EPS), KYB's new EPS plant, and an increase in the production capacity of pressed parts by suppliers such as H-One, Topre, and G-TEKT. Furthermore, suppliers such as Keihin, Hitachi Automotive Systems, and Mitsubishi Electric are considering new production systems to supply products for electric vehicles.
Japanese supplier activities in China (*Introduction of new products):
| New company (plant): Establishment / Operation / Investment |
Hebei province | UACJ Corporation (Aluminum parts such as bumpers: Establishment of JV) | |
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| Hubei province | Alps Alpine Co., Ltd. (Battery packs: Establishment of manufacturing site) KYB Corporation (*Electric power steering: Joint venture agreement, establishment of manufacturing site) Topre Corporation (Press parts: New company + new plant) Nishikawa Rubber Co., Ltd. (Weatherstrip: New company + new plant) |
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| Guangdong province | Aisin AW Co., Ltd. (6-speed AT: New company + new plant) | ||
| Shichuan province | Mitsubishi Chemical Corporation (Functional plastic products: New plant) |
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| Taiwan | Sharp Corporation (In-vehicle cameras, electronic mirrors: Establishment of new company) | ||
| Production capacity increase | Investment in production lines and equipment, etc. | Nationwide | IHI Corporation (Turbochargers: Improved production efficiency) Ihara Electronic Industries Co., Ltd. (Printed circuit boards: Production capacity increase) H-One Co., Ltd.(Die for press parts: Production capacity increase) Topre Corporation (Press parts: Equipment expansion) Honda Tsushin Kogyo Co., Ltd. (Connectors for in-vehicle cameras: Equipment automation) Ryobi Limited (AT die-cast parts: Production capacity increase) |
| Tianjin city | JTEKT Corporation (Electric power steering: Line expansion) Nippo Co., Ltd. (Plastic molded parts: Equipment increase) |
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| Hebei province | Kyowa Leather Cloth Co., Ltd. (Synthetic leather, vinyl chloride upholstery: Production capacity increase) | ||
| Hubei province | G-TEKT Corporation (Press parts: Equipment enhancement) Marujun Co., Ltd. (Battery case: Line refurbishment) Riken Corporation (Piston rings: Production capacity increase) |
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| Guangdong province | Alpha Corporation (Door handle parts: Equipment expansion) Idemitsu Kosan Co., Ltd. (Compound products: Production capacity increase) H-One Co., Ltd.(Welding jigs: In-house production) Onkyo Corporation (Speaker units: Strengthened production system) JSP Corporation (Polypropylene foam: Production capacity increase) Di-Nikko Engineering Co., Ltd. (In-vehicle electronic devices: Line expansion) Tsukada Riken Industry Co., Ltd. (Metal plating: Line expansion) Nagatsu Precision Mold Co., Ltd. (Plastic parts: Equipment expansion) |
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| Taiwan | JSP Corporation (Rear seat core material: Equipment enhancement) | ||
| Plant and building expansion | Liaoning province | Nidec Corporation (E-Axle, brushed DC motors: New plant) Panasonic Corporation (*Automotive prismatic lithium-ion battery: New plant) |
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| Tianjin city | Toyota Boshoku Corporation (Filters: Relocation, new plant) | ||
| Hebei province | Z-MAX Co., Ltd. (Peltier element module: Relocation, new plant) | ||
| Guangdong province | Mitsui Chemicals, Inc. (Long-fiber GFPP: New plant) UACJ Corporation (Aluminum battery foil for lithium-ion batteries: new plant） |
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| Strengthening of development and sales (Plant acquisitions, joint ventures, and Development, Sales, & Test sites) |
Nationwide | Sanden Automotive Climate Systems Corporation(EV heat pumps: Order expansion) JVCKENWOOD Corporation (In-vehicle camera, electronic mirrors, etc.: Order expansion) Shinmei Electric Co., Ltd. (In-vehicle switches, etc.: Expanded sales channels) Daido Metal Co., Ltd. (EV parts, etc .: Technical Center opened) Tachi-S Co., Ltd. (Seating: Strengthened development) Nikki Co., Ltd. (CNG vehicle equipment: Strengthened sales structure) BluE Nexus Corporation (Drive modules for electric vehicles: Established development site) |
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| Liaoning province | Alps Alpine Co., Ltd. (*Dual output brake pedal position sensor: New product development) Alps Alpine Co., Ltd. (Car sharing service: Strengthened product development) |
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| Tianjin city | Sanden Automotive Climate Systems Corporation (Car air conditioners: Established environmental test building) | ||
| Hubei province | Denso Corporation (Digital meters: Development joint venture) | ||
| Guangdong province | F-Tech Inc. (Suspension parts: Strengthened development) Kyocera Corporation (Auto parts, electronic parts: Establishment of open innovation center) Showa Corporation (Shock absorbers, etc .: Increased development personnel) Yachiyo Industry Co., Ltd. (Fuel tanks, sunroofs: Strengthened development) |
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| Taiwan | Nishimura Seisakusho Co., Ltd. (Press processing: Market development) | ||
| Strengthening and reorganization of business structure (Plant acquisitions, joint ventures, and Development, Sales, & Test sites) |
Nationwide | NOK Corporation (Flexible printed circuit boards: Considering alliance and manufacturing site) Clarion Co., Ltd. (Car audio: Reorganized manufacturing footprint) Keihin Corporation (PCU for electric vehicles: Considering manufacturing site) Koito Manufacturing Co., Ltd. (Lamps: Sold subsidiary, strengthened production, considering manufacturing site) Sumitomo Chemical Co., Ltd. (PP compound: Considering manufacturing site) NGK Spark Plug Co., Ltd. (Knock sensors: Transferred production from Japan, opened Innovation Center) Hitachi Automotive Systems, Ltd. ( Electric axle module parts: Considering manufacturing site) Horiba, Ltd. (Evaluation testing equipment: Strengthened measurement operations) Mitsui Chemicals, Inc. (LIB materials and lightweight materials: Capacity expansion study) Mitsubishi Electric Corporation (ISG and other electric parts: Manufacturing site study) |
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| Jilin province | NTN Corporation (In-wheel motor drive system: Technical cooperation) | ||
| Inner Mongolia | JFE Chemical Corporation (Negative electrode material for EV batteries: Joint venture) | ||
| Hubei province | Toyoda Gosei Co., Ltd. (Weatherstrip products: Capital participation and site expansion) | ||
| Chongqing city | Futaba Industrial Co., Ltd. (Exhaust manifold, etc .: Sale of subsidiary) | ||
| Taiwan | Toyota Tsusho Corporation (On-board motors: Capital participation) Mitsui Chemicals, Inc. (Carbon fiber procurement: Business alliance) Renesas Electronics Corporation (In-vehicle microcomputers: Consignment manufacturing) |
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Related reports:
Japanese Suppliers in East China: Responding to NEV market expansion (May 2019)
2019 Sales Forecast in China (CAAM): NEVs to make up 1.6 million of 28.1 million vehicles sold (Apr. 2019)
2018 China market: 28.081M units for new car sales, 23.71M units for passenger cars (Feb. 2019)
＜Japanese Supplier Reports＞
Japanese suppliers in Central and Eastern Europe: Responding to orders from European OEMs (Jun. 2019)
Japanese suppliers in Western Europe: Meeting increasing demands for electrification and others (May 2019)
Japanese suppliers in India: Meeting tighter emissions and fuel economy regulations (Nov. 2018)
Japanese Suppliers in Mexico: Focusing on Changes to NAFTA (Oct. 2018)
Japanese suppliers in the U.S. and Canada: Strengthening of operations (Sep. 2018)
Japanese parts suppliers in ASEAN: Responding to the increase in global market demand (Aug. 2018)
Northeast China: Establishment of new plant (Nidec), introduction of new products (Alps Alpine, Panasonic), technical alliance (NTN)
Liaoning province: New product development (Alps Alpine), establishment of new plant (Nidec), start of production (Panasonic)
| Alps Alpine Co., Ltd. (Formerly Alps Electric) |
Manufacture of dual output brake pedal position sensor Alps Alpine developed the "RD1030211" dual output brake pedal position sensor for the Chinese market. The plant in Dalian plans to produce 100,000 units a month from April 2021. The product can output voltage to both the brake lamp lighting and regenerative brake system, contributing to the compact design of next-generation vehicles. Conventional single output sensors have not been able to provide data simultaneously with output used to switch on the brake lights, placing restraints the design of lighting products by manufacturers. The product can also be used for cruise control cancellation. |
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| Alps Alpine Co., Ltd. (Formerly Alpine) |
JV with Neusoft provides car sharing service in Dalian A joint venture in Shanghai between Alps Alpine and China IT giant Neusoft Reach Automotive Technology will provide car sharing services in Dalian. Alps Alpine direction is to expand its product portfolio for the parts and systems necessary for car sharing operations. The company will develop in-vehicle components, sensors, and BMS (battery management system) for payment settlement and vehicle management. (October 2018 news report) |
| Nidec Corporation | Established a new drive motor plant for EVs in Dalian Nidec will invest USD 500 million (about JPY 55 billion) to build its second manufacturing site in China following its plant in Zhejiang province. The company will manufacture its E-Axle integrated drive motor system and automotive brushed DC motors at a plant in the Dailian Jinpu New Area, where overseas manufacturers are concentrated. The plant is expected to start operations around 2021. (April 2019 news report) |
| Panasonic Corporation | Started manufacturing and shipping automotive lithium-ion batteries at Dalian plant In March 2018, Panasonic Automotive & Industrial Systems began manufacturing and shipping automotive lithium-ion storage batteries at its manufacturing site in Dalian, Liaoning Province. The plant is Panasonic’s first manufacturing site in China to manufacture and ship automotive prismatic lithium-ion batteries for the North American and China markets. The plant is operated by the Panasonic Automotive Energy Dalian Co., Ltd. joint venture, which Panasonic established with Dalian Levear Electric Co., Ltd. in February 2016. The capital amount is CNY 900 million (about JPY 14.3 billion) and the number of employees is approximately 500. Panasonic has set up a global production system for automotive lithium-ion batteries in Japan, the U.S., and China. |
Jilin province: Technical alliance (NTN)
| NTN Corporation |
Signed technology license agreement with FSAT for in-wheel motor drive systems NTN has developed an air-cooled in-wheel motor drive system (IWM drive system) and vehicle motion control technology (i2-Drive System). In April 2018, NTN concluded a license agreement with Changchun Fawsn Auto Tech Co., Ltd. (FSAT), a new energy vehicle (NEV) manufacturer in Jilin Province. FSAT NEVs will be equipped with weight reduction technology adopted such as body made of CFRP and a cast aluminum chassis, as well as an IWM drive system and vehicle motion control technology developed by NTN. Production will begin in 2019, with FSAT planning to manufacture 300,000 units annually in 2023. NTN will contribute by producing the IWM drive system and equipping the NEVs with its i2-Drive System. |
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North China: Establishment of new company (UACJ), facility enhancement (JTEKT, Toyota Boshoku, Kyowa Leather, G-Max)
Tianjin city: Relocation and augmentation (Toyota Boshoku), facility enhancement (JTEKT, Nippo), establishment of environmental test building (Sanden AS)
| Sanden Automotive Climate Systems Corporation | Established environmental test building for car air conditioners Sanden Automotive Climate System (Sanden AS) established a comprehensive environmental test building in Tianjin to investigate the effectiveness of car air conditioners. Built on the site of its local manufacturing subsidiary, Tianjin Sanden Automotive Air-Conditioning Co., Ltd., environmental testing started in April 2018. The test center is equipped for temperature ranges from -20 ℃ to nearly 40 ℃, and can reproduce weather conditions such as rain and snow. This China test center is the company’s third, following those in Japan and Germany. Sanden AS has a significant amount of commercial vehicle business in Europe, and is targeting to increase its sales activities with European and U.S. automakers in China. (February 2018 news report) |
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| JTEKT Corporation | Increasing production of electric power steering JTEKT will invest JPY 3 to 4 billion to add one line to the Tianjin plant to produce rack parallel type electric power steering (RP-EPS). Conventional hydraulic power steering systems adopted in large SUVs and pickup trucks are expected to be replaced with electric power steering, so RP-EPS production in 2021 is expected to double to 2.8 million units. (February 2018 news report) |
| Toyota Boshoku Corporation | Relocated and expanded automotive filter manufacturing plant Toyota Boshoku relocated Tianjin Toyota Boshoku Automotive Parts Co., Ltd. to a new plant location to manufacture air cleaners and cabin air filters, and started production in October 2018. The new plant has about 160 employees and a site area of 32,500 square meters. The company invested about JPY 1.3 billion, expanding the production area by 1.5 times compared to the previous location, and increased production capacity by up to 30%. The plant’s current annual production capacity is 600,000 air cleaners and 2 million cabin air filters. The company strengthened its production system to meet the demand resulting from Toyota's production expansion in China and the increased demand for high-performance filters for PM2.5. The products will be supplied to Toyota and Denso. |
| Nippo | Established production system for plastic molded parts for automobiles By June 2019, Nippo will have built a production system for plastic molded parts in Tianjin to venture into the field of automotive products. Nippo invested more than about JPY 16 million in its subsidiary, Nippo (Tianjin) Plastic Co., Ltd., to install an injection molding machine with a clamping force of 280 tons, and is targeting to win orders from Japanese suppliers within one year. The plant has 18 injection molding machines, 90% of which are used to manufacture stationery products. The additional machine is expected to increase the plant’s processing capacity by 10% over current levels. The company also plans to design products such as washer fluid storage tanks and car air conditioner ventilation outlets. (July 2018 news report) |
Hebei province: Establishment of new company (UACJ), facility enhancement (Kyowa Leather), relocation and augmentation (Z-MAX)
| Kyowa Leather Cloth Co., Ltd. | Expansion of production capacity for interior trim materials at joint venture plant Kyowa Leather will increase the production capacity of the plant at Kyowa-GSK Plastics (Langfang) Co., Ltd., its joint venture company in Hebei Province that manufactures synthetic leather and vinyl chloride. In February 2019, the monthly production capacity was to be increased by 1.5 times to 150,000 meters. The investment amount is approximately JPY 700 million. Synthetic leather is lighter than natural leather, and vinyl chloride is used for automobile doors and instrument panels. At the plant, one calender processing machine that rolls vinyl chloride into sheets will be added to the current system of three machines. (August to December 2018 news reports) |
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| Z-MAX Co., Ltd. | Relocating and strengthening its main plant manufacturing Peltier element modules Z-MAX will relocate and strengthen its main plant for manufacturing Peltier device modules in the city of Qinhuangdao, Hebei Province. The total investment amount is about JPY 850 million. The land has been secured, and will be sequentially developed over the next five years or so, to increase the production capacity by 40% to 3.5 million modules annually. The new plant will be constructed in three stages. The land area is 12,400 square meters. In 2018, the company's Peltier device was used for cooling the on-board control devices of a Chinese EV automaker. For automotive applications, Z-MAX is also targeting to manufacture a product that adjust the temperature of seats. (September 2018 news report) |
| UACJ Corporation | Established a joint venture for aluminum automotive parts with CITIC Group affiliates UACJ established a joint venture in the city of Qinhuangdao, Hebei province with CITIC BOHAI Aluminum Industries Holding Company Limited and CITIC Dicastal Co., Ltd. to manufacture and sell aluminum automotive parts. The capital amount is CNY 100 million (about JPY 1.63 billion). The investment ratio is CITIC BOHAI Aluminum 51%, CITIC Dicastal 9%, and UACJ 40%. The annual production capacity is 450,000 bumpers and 70,000 in-vehicle battery housings. The plant is scheduled to launch in 2020 and volume production is planned to start in 2021. UACJ manufactures the base materials for parts in Tianjin and will supply the base materials to the new JV. |
Inner Mongolia: Considering new business (JFE Chemical)
| JFE Chemical Corporation | Considering a joint venture with a Baoshan Steel subsidiary to produce EV battery negative electrode materials JFE Chemical Corp. has signed a letter of intent to establish a joint venture with Baowu Carbon Materials Technology Co., Ltd. In China, it is expected that there will be significant demand for battery materials (negative electrode materials), which are key material used in EVs. JFE Chemical will participate in a feasibility study that will be conducted for a new plant next to an existing plant of Baowu Carbon in the city of Wuhai in the Inner Mongolia Autonomous Region. The first phase is to construct a facility with an annual production capacity of 10,000 tons for negative electrode materials using needle coke, which Baowu Carbon will start producing in Wuhai. The decision to move forward with the JV was made in August 2019 and the plant is scheduled to start production in 2020. |
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Central China: Establishment of new companies (Denso, Topre, etc.), facility enhancement (G-TEKT, Marujun, etc.), business reinforcement (Toyoda Gosei)
Hubei province: Establishment of new companies (KYB, DENSO, Topre, Nishikawa Rubber), facility enhancement (G-TEKT, Marujun, Riken), business reinforcement (Toyoda Gosei)
| Alps Alpine Co., Ltd (Formerly Alpine) |
Established battery pack manufacturing site in Wuhan The joint venture in Shanghai between Alps Alpine and Chinese IT giant Neusoft, Neusoft Reach Automotive Technology, will establish a battery pack manufacturing site in Wuhan. The JV will likely procure battery cells from battery manufacturers, building the cells into battery packs, and integrating the packs with a BMS (battery management system) to make sales proposals to finished vehicle automakers. (January 2019 news report) |
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| KYB Corporation | Established EPS joint venture with Hubei Henglong KYB and Hubei Henglong Automotive System Group Co., Ltd. agreed to partner on manufacturing electric power steering (EPS), and concluded a joint venture agreement on April 27, 2018. The JV is Hubei Henglong KYB Automotive Electric Power Steering System Co., Ltd., with a capital amount of CNY 320 million (approximately JPY 5.53 billion), and owned 33.4% by Yuan (China) Investment Co., Ltd., and 66.6% by Hubei Henglong. Previously, EPS production lines were limited to plants located in Japan, so the two companies have combined their resources to collaborate on the manufacturing and sale of EPS in the China market, products that they will develop for the anticipated eco-car (EV, PHV, and FCV) market and autonomous driving technologies. |
| G-TEKT Corporation | Increasing large presses at the Wuhan plant and diversifying customer base Honda-associated parts manufacturer G-TEKT will add large press molding equipment at its manufacturing site in Wuhan, Hubei Province. Although the specific production capacity has not been disclosed, the company plans to increase the supply of product to the GM-SAIC Wuhan plant. The company plans to increase its production capacity to automakers other than Honda by 30% by March 2022 compared to the third quarter of FY 2018. (July 2018 news report) |
| Denso Corporation | Accelerating the development of next-generation digital meters by establishing a joint venture for software development To strengthen the competitiveness of its meter business in China, in December 2018 Denso established a joint venture, Denso Kwantang Electronics Co., Ltd. (Denso Kwantang) Automotive Electronics Co., Ltd.), with Wuhan Guangting Information Technology Co., Ltd., which is engaged in the design and development of software for automotive meters. Denso invested 51% and Kwantang 49%. The company was established with 90 employees initially, and is located in the city of Wuhan, Hubei province to design and develop automotive cockpit display products for the China market. Utilizing the development resources of Kwantang, Denso intends to accelerate the commercialization of digital meters that meet the local needs of the China market. |
| Topre Corporation | Establishing a press parts assembly plant in Wuhan, scheduled to start operation in 2020 Topre has established a manufacturing and sales subsidiary for automotive stamped parts in Wuhan, Topre (Wuhan) Autoparts Corporation (planned name). Construction will begin in 2019, with operations slated to start in the second half of 2020. Approximately JPY 1 billion is being invested to build a plant to assemble stamped parts manufactured at Topre’s manufacturing subsidiary located in Hubei province. In the medium term, the plant will also manufacture pressed parts. The demand for automotive parts is expected to grow in Wuhan, where Nissan Motor Co., Ltd. and Honda Motor Co., Ltd. are building new assembly plants. Topre will strengthen production activities in Wuhan to expand its business in China. |
| Toyoda Gosei Co., Ltd. | Invested in Hubei Rock, a weatherstrip supplier, strengthening its business in China To strengthen its automotive parts business in China, Toyoda Gosei’s China headquarters, Toyoda Gosei (Shanghai) Co., Ltd., purchased a 60% majority stake in Hubei Rock and Seal Technology Co., Ltd. from Hubei Zhengao Automotive Accessories Co., Ltd. for about JPY 800 million. Hubei Rock is an independent Chinese supplier of weatherstrip products primarily to Dongfeng Motor Group companies such as Dongfeng Honda (Honda) and Dongfeng Peugeot-Citroën Automobile Limited (PSA). As a result, Toyoda Gosei's manufacturing footprint for weatherstrip products in China now includes TG Star Light in Northern China (Tianjin), Fuzhou TGR and Fu-Yue in Southern China, and Hubei Rock. |
| Nishikawa Rubber Co., Ltd. | Established a subsidiary for automotive rubber and plastic products in Xiaogan City, and established a new plant in Wuhan City In February 2019, Nishikawa Rubber Co., Ltd. established a subsidiary, Hubei Nishikawa Sealing Systems Co., Ltd., in the city of Xiaogan, Hubei province, for the manufacturing and sale of rubber and plastic automotive products. The new company, capitalized at USD 9 million (approximately JPY 1 billion) is 100% owned by Nishikawa Rubber. The subsidiary is building a new plant for producing weatherstrips in Wuhan, which will employ about 240 workers and is scheduled to launch in the fall of 2019. This will be the company’s third manufacturing site in China following the existing plants in Shanghai and Guangzhou. The plant is being built to replace the company’s plant located in Japan (Hiroshima) which is old and outdated. The new plant is expected to generate annual sales of CNY 170 million (approx. JPY 3 billion) from FY 2020. |
| Marujun Co., Ltd. | Promoting aluminum battery cases, and refurbishing Wuhan plant Marujun has started to use aluminum to manufacture the cases of the batteries used to power electrified vehicles. The company is readying its production system in Japan and China and promoting the early commercialization of aluminum for battery-related components, because it anticipates that both demand and competition will increase with the proliferation of vehicle electrification. In addition to the research and development of aluminum battery cases that are lighter than conventional cases made of steel, Marujun is refurbishing the Wuhan plant of Wuhan Marujun Co., Ltd., a consolidated subsidiary, so that its production lines have the dual capability to also make aluminum press parts, and the refurbished plant is scheduled to launch in 2019. (October 2018 news report) |
| Riken Corporation | Strengthening the production capacity of piston rings at its Wuhan plant and expanding business with non-Japanese manufacturers By 2020, Riken will increase its production capacity of piston rings to 24 million pieces per month, approximately 1.2 times the current capacity. In addition to increasing its production capacity in Japan, Riken will increase the monthly production capacity of Riken Automobile Parts (Wuhan) Co., Ltd. from 4 million to 6 million pieces. The total investment amount for the company’s capacity expansion plans in Japan and overseas is expected to be JPY 7 billion. Riken also plans to expand its sales to non-Japanese manufacturers of products related to piston rings, while continuing to serve and maintain sales to its Japanese customer base. Riken is targeting to increase its percentage of sales to non-Japanese companies from the current 8% to about 20% by 2020. (February 2018 news report) |
South China: Establishment of new companies and plants (Aisin AW, UACJ, etc.), facility enhancement (Alpha, Idemitsu Kosan, JSP, Mitsui Chemicals, etc.)
Guangdong province: Establishment of new companies and plants (Aisin AW, UACJ, etc.), facility enhancement (Alpha, Idemitsu Kosan, JSP, Mitsui Chemicals, etc.)
| Aisin AW Co., Ltd. | Established joint venture with GAC Motor to manufacture 400,000 units of 6-speed AT annually from 2020 Aisin AW Co., Ltd. (Aisin AW) is establishing joint ventures for the manufacture of automatic transmissions (AT) with GAC Motor and Geely Automobile. Both JVs plan to manufacture front-wheel drive (FF) 6-speed ATs on a scale of around 400,000 units annually. GAC Aisin AW Automatic Transmission, a joint venture with GAC Motor was established in December 2018 in Guangzhou, Guangdong province. Production is scheduled to start in August 2020. |
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| Alpha Corporation | Increased production capacity of door handles at Guangzhou plant by 60% Alpha introduced 18 plastic molding machines at its plant in Guangzhou to increase its production capacity of door handle parts by 60%. The equipment was scheduled to be fully operational by May 2019, and includes the addition of 7 to 8 new assembly lines. The investment amount is approximately JPY 300 million. The investment will improve the plant’s integrated production system, from injection molding to assembly processes, improve production efficiency, and increase the ratio of parts manufactured in-house from the current 60% to 70%. The door handles manufactured by Alpha are used in almost all Nissan models sold in China, such as thes flagship sedan Sylphy and its Kix small SUV. At Honda, it is being adopted for about half of its models such as the CR-V SUV. (March 2018 news report) |
| Idemitsu Kosan Co., Ltd. | Expanded production capacity of Guangzhou subsidiary to meet the demand for automotive engineering plastics In December 2018, Idemitsu Kosan increased the production capacity of engineering plastic compound products at Idemitsu Compounding Plastics (Guangzhou) Co., Ltd. (ICG) from 20,000 tons per year to 25,000 tons. ICG manufactures polycarbonate (PC) and syndiotactic polystyrene (SPS) compound products mainly for China and Asia, which are used in automotive electrical parts and exterior parts, as well of office automation (OA) equipment. At Idemitsu Kosan, the demand for automotive engineering plastics is growing at an annual rate of about 10%. |
| H-One Co., Ltd. | Welding jigs will be produced at the Guangzhou plant and in-house manufacturing is being promoted to reduce costs. H-One will begin the in-house production of welding jigs used in the Group's factories. Until now, almost all welding jigs have been outsourced. In 2017, the company started the full-scale supply of welding jigs using its GH Auto Parts Industries Inc. plant in China for volume production parts made by its Kameyama plant (Mie prefecture) to supply to Honda for its new vehicle models. By producing jigs in-house at its own plant, the company expects to reduce costs by 10 to 20% compared to procurement by outsourcing. (February 2018 news report) |
| Strengthening development capabilities of products for U.S. automakers at its Guangzhou development site In 2019, F-Tech has started to restructure its global development system. F-Tech is developing its four sites located in Japan, the U.S., China and the Philippines, with plans to strengthen its development capabilities of suspension chassis systems/components to be supplied to U.S. automakers, products developed at its development site in Guangzhou, Guangdong province. The background for this initiative is that U.S. automakers are engaged in expanding their operations in both markets, the U.S. and China. Strengthening collaboration with its development site in Ohio, USA, is expected to lead to more efficient product development. (January 2019 news report) |
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| Onkyo Corporation | Made Guangzhou joint venture a wholly-owned subsidiary and optimizes its production system in China Guangzhou Guogang Onkyo Acoustic (GOA), a joint venture of Onkyo and Guoguang Electric Co., Ltd., , became a wholly-owned subsidiary of Onkyo in March 2018, and changed its name to Guangzhou Onkyo Acoustic Corporation. The Guangzhou plant supplies automakers with in-vehicle speaker units for devices such as TVs and PCs for the China market. Onkyo will continue to work with Shanghai Onkyo Electronics Corporation, its manufacturing subsidiary in Shanghai, to optimize its production system in China. |
| Kyocera Corporation | Established its Innovation Center in Shenzhen and a technology exchange space Kyocera's sales company in China, Kyocera Trading, opened the Kyocera China Innovation Center (KCIC) in Shenzhen. Kyocera is developing automotive parts and electronic parts in China. In addition to the product display room, the facility includes space to facilitate and improve the exchange of technology and create dialogue among technical engineers and promote open innovation and technology development. Specifically, it is expected to create new business by providing a place for interaction with local startup companies and contribute to the growth of local companies. |
| Keihin Corporation | Local production of PCUs for electric vehicles and the development of new customers Keihin has completed the acquisition of land in Dongguan, Guangdong province for the localized manufacturing of power control units (PCUs) for electric vehicles. The company plans to manufacture PCU at volume production levels by around 2022. The company is also strengthening its capability to develop products for next-generation electric vehicles. Keihin has been supplying PCUs to Honda, but going forward expects to develop business with new customers other than Honda. |
| Showa Corporation | Doubling its development staff in Guangzhou and strengthening its ability to serve China automakers Showa Corporation is enhancing its development system and planning to double the number of its engineers from the current level at Showa (Guangzhou) Auto Parts R&D Co., Ltd. over the next 3 to 4 years dedicated to the research and development of products for 4-wheel vehicles. The company is forecasting that the demand for shock absorbers and power steering products in the China market will increase, and is planning to double the production capacity at its manufacturing site in China over the next four to five years. In the development area, although the basic design of products will continue to be conducted in Japan, with the aim of strengthening its ability to respond to the needs of local automakers in China, the company plans to accelerate the strengthening of its local engineering capability by hiring more engineers at its development site in Guangzhou, enhancing its training system, and installing various test equipment. (February 2019 news report) |
| JSP Corporation | Increasing production capacity of expanded polypropylene JSP will increase its production capacity of P-Block™ expanded polypropylene (EPP) manufactured at its Dongguan plant in Guangdong province. The company’s plans included increasing its production capacity from 30,000 tons a year to 33,000 tons by the end of 2018. The capital investment amount is approximately JPY 400 million. P-Block™ EPP is excellent in terms of its shock-absorbing properties and is light weight, and is used in bumper core materials, interior trim materials, and rear seat core materials for automobiles. The company plans to capture the growing demand for such material due to the increasing need for more lightweight automobiles, and plans to increase its production capacity of P-Block™ to 160,000 tons globally on an annual basis. |
| Di-Nikko Engineering Co., Ltd. | Increasing production of automotive electronic devices in Shenzhen Di-Nikko Engineering, an electronics manufacturer, will expand its production of automotive devices. The company will install a production line at its Shenzhen plant, which will increase its capability to manufacture products at its three manufacturing sites, in combination with its plants in Jiangsu province and Thailand. While the company's sales of office equipment has been on the decline, automotive devices such as USB plug terminals and side mirror parts are expected to grow significantly. Therefore, the company plans to increase its sales of automotive devices to 30% of its product portfolio from the fiscal year ending December 2018 to the fiscal year ending December 2021, resulting in an almost doubling of its automotive products portfolio. (March 2019 news report) |
| Tsukada Riken Industry Co., Ltd. | Expanding metal plating production line Tsukada Riken Industry will add an electroplating process for plastic substrates at its wholly-owned subsidiary in China, Jiangmen Tsukada Riken Automotive Trim Co., Ltd. The total investment amount is over JPY 500 million yen, and the processing capacity when the line is fully operational from August 2018 is expected to be about 1.5 times that of the existing plant. There is a significant demand for decorative plating for automobile interior and exterior plastic parts in China, so the company is strengthening its supply system. (April 2018 news report) |
| Nagatsu Precision Mold Co., Ltd. | Starting operation of new plant in Dongguan, increasing the production of plastic parts for automobiles Nagatsu Precision Mold will increase the production of plastic parts for automobiles in China and increase sales in this area from about JPY 300 million to about JPY 500 million by the fiscal year ending April 2021. Nagatsu Kan On Precision (Dongguan) Co., Ltd. was established in May 2018. The equipment that it introduced for the manufacturing of molds include four computer-based design and manufacturing systems, four machining centers, and four machines for shaping and electrical discharge machining. As a result, the company expects to increase its percentage of molds manufactured in-house over the next three years to 80% from the current 30%, instead of outsourcing the production of molds. In addition, the company relocated 54 injection molding machines from the Shenzhen plant, which it closed down in December 2018, to its plant in Dongguan. The total investment amount in the Dongguan plant is about JPY 400 million. Its China subsidiary currently employs approximately 300 persons, about 100 of whom worked at the Shenzhen plant, and has hired around 200 new employees that are employed at its facilities in and around the city of Dongguan. (December 2018 news report) |
| Mitsui Chemicals, Inc. | Increasing production facilities for long glass fiber PP to meet the demand for plastics to reduce weight Mitsui Chemicals will establish a new production facility for glass long fiber reinforced polypropylene (LGFPP) at its China manufacturing subsidiary, Mitsui Advanced Composites (Zhongshan) Co., Ltd., with plans to start commercial operations in September 2020. The production capacity will be 3,500 tons per year. This will be the third manufacturing site for LGFPP following its plants in Japan and the U.S. The new facility will increase Mitsui Chemicals' global production capacity for LGFPP to 10,500 tons per year. With the demand for lighter automobiles, against the backdrop of stricter environmental regulations and the proliferation of EVs, the demand for long glass fiber reinforced resin is expected to increase as a substitute for rear doors made of metal. Mitsui Chemicals will promote the expansion of its mobility business (automotive applications), which is one of the company’s key strategic business expansion areas. |
| Strengthening development capabilities at its Zhongshan subsidiary, aiming to develop products that meet local needs In FY 2018, Yachiyo Industry decided to increase the number of employees, especially those engaged in product development, at its subsidiary in Zhongshan, Guangdong province, by the end of FY 2019. Yachiyo Industry’s two Chinese subsidiaries in Wuhan, Hubei province, and Zhongshan, Guangdong province, mainly produce fuel tanks and sunroofs. Over 90% of the company’s sales are to Honda. It already supplies sunroofs to Geely Automobile, but aims to advance the development of highly profitable globally standard products by developing products that meet the local needs of the China market, which requires low cost products. (April 2019 new report) |
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| UACJ Corporation | Building a new plant to manufacture aluminum materials for lithium-ion batteries UACJ announced that its joint venture in Guangdong will build a new plant to manufacture aluminum materials for lithium-ion batteries. This will be the third plant to be built by its joint venture, Ruyuan Dongyangguang UACJ Fine Aluminum Foil Co., Ltd., which is 49% owned by UACJ and 51% by Guangdong Dongyangguang Aluminum Co., Ltd. The investment amount is approximately JPY 5 billion, and the total floor area of the plant will be 21,000 square meters. The company will establish an integrated manufacturing system, from foil grounds to current collectors as well as foil for battery exterior materials, and is aiming to launch production in 2020. The annual production capacity will be about 10,000 tons. The plant will provide aluminum materials for EV batteries to Chinese and Japanese battery manufacturers. In addition, Ruyuan Dongyangguang UACJ Fine Aluminum Foil will increase the production of condenser foil and automotive heat exchanger materials. The investment amount is approximately JPY 2 billion. The company’s current two manufacturing sites have an annual production capacity of 90,000 tons, but this will increase to 120,000 tons (e.g., up to 70,000 tons per year for heat exchangers, and 40,000 tons per year for capacitors), reflecting a 30% increase to be achieved beyond 2020. |
Southwest China: New plant established (Mitsubishi Chemical), subsidiary sold (Futaba Industrial)
Chongqing city: Sold subsidiary (Futaba Industrial)
| Futaba Industrial Co., Ltd. | Sold Chongqing parts subsidiary and reorganized group business In February 2018, Futaba Sangyo Co., Ltd. announced that it will sell Chongqing Futaba Auto Parts Co., Ltd. (Chongqing Futaba Auto Parts), its Chinese automotive parts subsidiary, manufacturing exhaust manifolds and rear axle beams, to Skyman Auto Chassis (Wuhu) Co., Ltd. Futaba Industrial, in light of its efforts to improve the group's operating efficiency. The sale of Chongqing Futaba Auto Parts will allow the company to concentrate its management resources on areas with the greatest potential for sustainable growth. As a result, the company recorded an extraordinary loss of JPY 1 billion for the third quarter of FY 2018 for the equity transfer. |
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Sichuan province: Established new plant (Mitsubishi Chemical)
| Mitsubishi Chemical Corporation | Established a new manufacturing site for functional resin products in Chengdu Mitsubishi Chemical established a new manufacturing site for functional resin products in Chengdu, Sichuan province, where the manufacturing of automotive parts and other components is advancing. The company’s production of PVC compounds for slush powder, which is suitable for automotive interior panel skins is scheduled to launch in the spring of 2019, and is the company’s third manufacturing site in China following its Suzhou and Changshu plants in Jiangsu Province. The new subsidiary is named Ryoka Performance Polymers (Chengdu) Co., Ltd. and employs 20 persons. |
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Taiwan: Facility enhancement (JSP), expanded business alliances (Toyota Tsusho, Mitsui Chemicals), consignment production (Renesas Electronics), market development (Nishimura Seisakusho)
| JSP Corporation | Additional equipment for molded rear seat core material JSP announced that it has increased its molding equipment at Taiwan Plastics, a Taiwanese group company that produces expanded polypropylene (EPP). In addition to adding molding machines and curing machines for automotive rear seat core materials at the existing plant, the company also built new offices and a warehouse. The total investment amount is JPY 500 million. This action was taken to respond to the increasing demand for rear seat core molding products in the Taiwan market. (September 2018 news report) |
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| Toyota Tsusho Corporation | Invested in automotive motor manufacturer, new entry into automotive motor manufacturing business In March 2019, Toyota Tsusho invested in Fukuta Elec. & Mach. Co., Ltd.), a Taiwanese company engaged in the manufacturing of motors for automotive application, by acquiring a stake in the company through Toyota Tsusho (Taiwan) Co., Ltd. Fukuta Electric was established in 1988 and is capitalized at NT$ 400 million (approximately JPY 1.45 billion) and employs 300 people. It is expected that production will be accelerated because Fukuta Electric makes its own molds in-house and is able to carry out the entire process, from motor component processing to assembly. Taking into consideration the potential for future market growth, Toyota Tsusho decided to make its first entry into the business of manufacturing motors, an essential part of electric vehicles, and the processing of motor cores, a core EV component. Since 2017, Toyota Tsusho has been in charge of sales and marketing activities for Fukuta Electric products. Moving forward, the relationship between the two companies will be strengthened, and they will collaborate to expand their business in the China market. |
| Nishimura Seisakusho Co., Ltd. | Developing business in the Taiwan market with precision machined stamped parts Nishimura Seisakusho is engaged in the press fabrication of parts for autonomous vehicles, and is increasing its overall sales targets for its business in Taiwan from the current 0% to 10% of the company’s overall sales by fiscal year 2020. The company anticipates that its capability in the precision machining of parts will lead to the miniaturization of products such as cameras, increasing the demand from Taiwanese companies in high-tech industries. Its current overseas customer base includes companies in Korea, Hong Kong and China. The company intends to increase the products it sells overseas to 30 to 40% in fiscal year 2020, by leveraging the success of its sales in Taiwan. In the fabrication of automotive parts, the company will focus on cultivating demand for its products with Tier 1 and Tier 2 suppliers. (October 2018 news report) |
| Mitsui Chemicals | Expanding business alliance with Taiwan Plastics, and the stable procurement of carbon fiber Mitsui Chemicals will expand its business alliance with Taiwan Plastics, concluding a number of carbon fiber procurement contracts in 2019, to start the production of carbon fiber PP composite materials for automotive applications. Mitsui Chemicals was not engaged in the in-house production of carbon fiber composites, and has been searching to identify a stable supplier of raw material. The two companies have already set up a partnership in Ningbo, China to manufacture electrolytes for lithium-ion secondary batteries. (March 2019 news report) |
| Renesas Electronics Corporation | Outsourcing of microcomputer manufacturing to EMS suppliers Renesas Electronics will consign the production of its RH850/E2x series microcomputer with built-in 28nm process flash memory to Taiwan Semiconductor Manufacturing Co. (TSMC), a contract semiconductor supplier (EMS). Compared to the existing 40nm product, this 20nm product has three times the processing performance while consuming the same amount of power. Advances in autonomous driving technology will increase the demand for microcomputers with low power consumption and high processing performance. Renesas will outsource all of its automotive microcontroller production to cut costly outlays on chipmaking machinery and concentrate on the design and development of software and semiconductors. Sample products have been shipped from March 2018, the number of new models being developed is increasing, and production at TSMC will begin in 2020. |
China in general: Increased production (H-One, Koito Manufacturing, Topre, Hitachi AMS, etc.), strengthening of development and sales systems (Sanden AS, Daido Metal Industry, etc.)
| IHI Corporation | Improving turbocharger production efficiency IHI produces turbochargers at two locations in China, Changchun, Jilin province and Suzhou, Jiangsu province. To improve its future production efficiency, the company will actively increase its capital investment annually. In response to the strengthening of environmental regulations globally, IHI is investing more capital funding in the expectation that demand will increase because turbochargers are drawing increasing attention as eco-friendly devices. (January 2019 new report) |
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| Ihara Electronic Industries Co., Ltd. | Entering the EV field by 2020, with the production of printed circuit boards in cooperation with a plant in China In anticipation of the expansion of the domestic EV market in China, Ihara Electronic will subcontract the production of printed circuit boards to a plant in China. Until now, only a small number of printed circuit boards for automotive applications was produced for engine-powered vehicles. Going forward, the company plans to focus on printed circuit boards for EVs, which are being equipped with an increasing number of electronic components, and plans to increase sales by a factor of five over the next five years. The company plans to strengthen its cost competitiveness by manufacturing circuit boards locally in China. (February 2019 news report) |
| H-One Co., Ltd. | Increasing die production capacity, making China its global manufacturing hub H-One will increase its production capacity of molds in India and Indonesia, and will position China as its global supply base by expanding the number of manufacturing sites in China. The company requires more than 3,000 dies per year, but the company’s current in-house production capacity is around 700 to 800 dies per year. Therefore, H-One will establish a system to produce more than 1,000 dies by 2020. Demand for dies is on the increase not only inside the H-ONE group but also from automakers in Japan and press makers that have operations in countries like India, Indonesia, and China. (January 2019 news report) |
| NOK Corporation | Considering the establishment of an FPC manufacturing site for automobiles and establishing an integrated production system NOK has decided to collaborate with Nippon Mektron Ltd. to strengthen its capability in the manufacturing of flexible printed circuit board (FPC) for automotive applications. The company aims to expand its business in the area of modules such as lights, switches and batteries. In China, the company plans to establish a site for consistently performing pre-processes for FPC base materials and post-processes for products that meet customer specifications. The demand for FPC is expected to increase with that of autonomous driving and electrification. (June 2018 news report) |
| Clarion Co., Ltd. | Specializing in reviewing functions at manufacturing sites in China and the local supply of products such as car audio Clarion will review the functions of its manufacturing sites in China. Considering the trade risks such as those associated with the trade dispute between the U.S. and China and to expand its business in China, the company will focus on ensuring the stable supply of products manufactured locally for the China market. The company has exported products such as car audio manufactured in China to markets such as the U.S., Japan, and Europe. However, with this change in the company’s production strategy to leverage its local manufacturing sites, its products for the U.S. will be exported from the company’s plants in Japan and Mexico and products for Japan, Europe, and Southeast Asia will be manufactured locally. (December 2018 news report) |
| Keihin Corporation | Announced local production of PCU for electric vehicles in China In preparation for the localized production of power control units (PCUs) for electric vehicles, Keihin has completed the acquisition of land in the city of Dongguan, Guangdong province, with plans to start the production of PCUs from around 2022. Also, Keihin is further strengthening its capability to develop products for next-generation electric vehicles. To date, Keihin has supplied PCUs to Honda, but going forward is expected to develop new customers to expand its business. |
| Koito Manufacturing Co., Ltd. | Enhancing subsidiary plant in Fujian province and sold joint venture in Shanghai Koito Manufacturing will invest approximately JPY 600 million in its subsidiary, Fuzhou Koito Tayih Automotive Lamp Co., Ltd., (Fuzhou Koito) in the city of Fuzhou, Fujian province, to double its production capacity of headlights to 1 million units per year. The production capacity of rear lamps will also be increased from 500,000 to 700,000 units. Koito Manufacturing sold its joint venture in Shanghai. Koito plans to secure profitability and expand market share by increasing its production capacity in China by 20% to 3.5 million units by using a manufacturing footprint consisting of three plants: Fuzhou Koito (Fujian province), Guangzhou Koito (Guangdong province) and Hubei Koito (Hubei province). (February 2018 news report) |
| Establishment of distribution system for automotive lighting equipment in northern China Koito Manufacturing will establish a new logistics system in northern China, and will consider establishing a new manufacturing site in the medium to long term. In March 2018, Shanghai Koito, its joint venture company that supplied product to finished vehicle assembly plants in northern China, was sold to its joint venture partner HUAYU Automotive Systems Company Limited. The company is now considering opening a new distribution center near Tianjin, near the location used by Shanghai Koito, a move that is targeted at winning orders from automakers in northern China. (December 2018 news report) |
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| Sanden Automotive Climate Systems Corporation | Receiving orders for EV heat pumps and responding to the growing demand for NEVs Sanden Automotive Climate Systems (Sanden AS), a manufacturer of automotive air conditioning systems, has received orders and started supplying heat pumps for EV applications in China. The first order for heat pumps for EVs in China was received from Huayu Sanden Automotive Air Conditioning Co., Ltd., its joint venture with Huayu Automotive Systems (HUAYU), a subsidiary of SAIC, which assembles the final product. Development of the element technology was shared between Japan and China. In response to the anticipated increase in demand for EVs and PHVs due to the introduction of the new energy vehicle (NEV) regulations, the company will seek to expand its operations by developing business with suppliers of heat pump systems. |
| JVCKENWOOD Corporation | Strengthening cooperation with China subsidiary and expanding orders for automotive products JVCKENWOOD will strengthen its China business by closer cooperation with its China subsidiary, Shinwa International Holdings*. The company aims to manufacture products such as in-vehicle cameras and electronic mirrors at the JV’s plants to win new orders from automakers. (February 2018 news report) *In April 2018, the company name was changed to JVCKENWOOD Hong Kong Holdings Ltd. |
| Shinmei Electric Co., Ltd. | Expansion of sales channels for automotive switches and development functions in China Shinmei Electric will strengthen its business for China automakers. The company manufactures and sells automotive switches and connectors, and uses external sources such as trading companies to cultivate receiving new orders from local Chinese automakers. Currently, most of the company’s product development is conducted in Japan, but the company's Shanghai plant will also have a development function to shorten the lead time from local development to production and to improve customer satisfaction with regards to quality. (June 2018 news report) |
| Sumitomo Chemical Co., Ltd. | Considering construction of a new plant in eastern China, expanding manufacturing sites for polypropylene resin molding Sumitomo Chemical is considering building a new plant in China in 2019 to expand its manufacturing footprint for the production of polypropylene (PP) resin molding compounds. The company’s fifth plant in China would be established in eastern China where it has no existing manufacturing sites. In addition to PP compounds, the company plans to produce functional products such as short glass fiber composites (GFPP) that have increased rigidity and heat resistance properties, as well as thermoplastic elastomers (TPE) that have high elasticity. The company supplies a significant amount of GFPP to European suppliers, which is used for engine peripheral parts. TPE is used in airbag covering and body seal materials. (September 2018 news report) |
| Daido Metal Co., Ltd. | Establishing a technical center in China, aiming to expand orders from local automakers Daido Metal is targeting to open a new technical center in China in 2019. This is the sixth base following Japan, the UK, Germany, the Czech Republic, and the U.S. Until now, tasks such as quality evaluations have been handled by shipping prototypes to Japan, but the company will establish a system to respond instantly to the requests of its customers. In addition, the company plans to increase its orders from not only Japanese, U.S., and European automakers but also local Chinese manufacturers. To comply with the NEV regulations, orders for EV parts such as electrode sheets and aluminum die-cast parts are expected to increase. (July 2018 news report) |
| Tachi-S Co., Ltd. | Establishing a development system for automotive seating with the introduction of a collision tester Tachi-S introduced crash testers in Japan in May 2008, in Mexico in October 2017, and in China in July 2018 to establish a global development system for automotive seating. Conventionally, collision testing for products developed overseas have been outsourced to companies or other external organizations in Japan. By introducing crash testing equipment, the company plans to reduce development lead time due to shipping logistics as well as transportation costs. By establishing the same development system as that used in Japan, the company aims to leverage its success with supplying product to Japanese automakers for overseas production models to win business with the major China automakers. |
| Topre Corporation | Strengthening plants for stamped parts in Foshan and Shenyang Topre is strengthening its manufacturing sites for automotive metal stamped parts at Topre (Foshan) Autoparts Corporation in Guangdong province and Topre (Shenyang) Autoparts Corporation Hubei province. The Foshan plant is targeted to launch in 2020, investing approximately JPY 1.6 billion to enhance the facilities for hot stamping. In addition, the company will invest approximately JPY 1 billion to establish a new subsidiary, Topre (Wuhan) Autoparts Corporation, in Wuhan, Hubei Province. The company also plans to build an assembly plant for automotive stamped parts. The company is targeting to expand its business by establishing a manufacturing site in Wuhan where automakers and suppliers are concentrated. |
| Nikki Co., Ltd. | Strengthening sales structure to approach local China automakers Nikki announced its new three-year mid-term management plan that ends in FY 2020, including the strengthening of its sales structure in China and India. Nikki is targeting to increase its market share of products for its mainstay devices for natural gas vehicles (CNG vehicles). The sales department will consider expanding its offices in China with the aim of developing business with local China automakers. |
| NGK Spark Plug Co., Ltd. | Transfer of knock sensor production from Japan to China NGK Spark Plug will discontinue the production of knock sensors in Japan in March 2021 and transfer production to a subcontract plant in China. The Mexican plant is also gearing up to serve as a new manufacturing site for knock sensors, which is scheduled to start operations in April 2020; as a result, the company will have a two sites for the manufacturing of knock sensors. The aim is to increase the price competitiveness of this sensor, which is also easier to manufacture than its other products such as engine spark plugs. (January 2019 news report) |
| Find new business partners and open investment bases NGK Spark Plug is establishing an Innovation Center in Europe and in China within 2019 to identify new business partners and companies in which to invest. Each of the innovation centers will be funded with an investment amount of JPY 3 billion annually, and foster new businesses through capital and business alliances with venture companies. The company is considering Shenzhen as a base in China, selecting a local company to support venture companies. Levering its expertise in ceramic technology, the company plans to develop new businesses related to areas such as next-generation automobiles. (January 2019 news report) |
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| Hitachi Automotive Systems, Ltd. | Strengthening production system in China for electric axle modular components In 2021, Hitachi Automotive Systems (Hitachi AMS) in China will manufacture modular parts for electric axles that combine inverters and motors. This activity is related to the growing demand for electric vehicles such as EVs and HVs in China. The company will start production at a manufacturing subsidiary of Hitachi Automotive Systems (China) Ltd. and, depending on how well the products sell, will consider expanding its production system in China. (April 2019 news report) |
| BluE Nexus Corporation | Sales of EV vehicle drive modules and the establishment of an R&D site BluE Nexus, a 50:50 joint venture between Denso and Aisin Seiki, has announced its intentions to establish a sales company and an R&D site in China. Its drive module for electric vehicles will be released in the second half of 2021. In addition to serving existing customers, Denso and Aisin, the company plans to develop business with new local customers. By establishing an R&D site, the company will be better positioned to meet local demand. BluE Nexus, established in April 2019, is engaged in the development and sale of versatile drive modules for electric vehicles that can be used for applications such as EVs, FCVs, and PHVs. (April 2019 news report) |
| Horiba, Ltd. | Introducing test facilities for electric vehicle batteries and fuel cell applications In 2018, Horiba launched its Global ATS (Automotive Test System) Board to strengthen its automotive measurement operations in response to advances being made in electrification and autonomous driving. In China, Horiba will establish a new organization to provide test and validation solutions for electric vehicles by FY 2020, similar to its existing test facilities for internal combustion engines. Horiba expects to globally expand the sale of test and validation solutions used in the development of batteries as well as the drive and vehicle systems of electric vehicles. (December 2018 news report) |
| Honda Tsushin Kogyo Co., Ltd. | Strengthening production of in-vehicle camera connectors in China Honda Tsushin Kogyo aims to increase production capacity to meet the demand for in-vehicle camera connectors by automating its plant in China. The automated line that was scheduled to be introduced in the April to June 2018 timeframe will increase productivity by utilizing approximately 20% of the staff compared to a non-automated production line. The parts for the products are currently manufactured in Japan and assembled in China. (June 2018 news report) |
| Mitsui Chemicals, Inc. | Enhancing production system for LIB components and lightweight materials, and expanding profitability of mobility operations Mitsui Chemicals will strengthen its production system for lithium-ion battery (LIB) components and lightweight materials. In FY 2018, the company increased its production capacity of LIB separator materials by 15% to 8,500 tons. At the end of 2017, the total amount of electrolyte produced in Japan and China was fixed at 10,000 tons, but the company is considering increasing production capacity in China, where EV production is expected to expand rapidly. In addition, by 2020, the company will start production in the U.S. and China for reinforced plastics that can reduce the weight of backdoors by about 30%. The company is targeting to increase the operating profit of its mobility division (for automotive applications) to JPY 70 billion by FY 2025, which is about 1.7 times that of FY 2017. (May 2018 news report) |
| Mitsubishi Electric Corporation | Considering local China production of EV parts such as ISG Mitsubishi Electric has started to consider manufacturing parts for electric vehicles in China and Europe. Currently, the products that the company exports are manufactured at its plants in Japan, but the demand for HVs and EVs is expanding overseas and the company can increase its competitiveness by converting to local production. Specifically, the company is considering the production of ISG (Integrated Starter-Generator) that combines a motor and an inverter. (June 2018 news report) |
| Musashi Seimitsu Industry Co., Ltd. | Established R&D site in China to accelerate product development to meet local needs The R&D site established by Musashi Seimitsu Industry in China was scheduled to be fully operational from 2018, with plans to gradually expand its China footprint including testing facilities. The site will be used to accelerate the development of products suitable to meet the needs of the expanding China market, both with Japanese automakers growing in China as well as domestic Chinese automakers whose technological level is improving. Conventional technology such as transmission gears have been traditionally manufactured in-house by automakers. However, the company anticipates that OEMs will continue to increasingly outsource the production of such equipment and components, so it is in the process of constructing a system that can meet customer expectations, which is anticipated to lead to business expansion. (March 2018 news report) |
| Ryobi Limited | Increasing production of die-cast parts at two plants in China Ryobi will expand its production capacity of automatic transmissions (AT) die-cast parts manufactured at its two plants in Dalian, Liaoning province and Changzhou, Jiangsu province. In 2019, the company will invest approximately JPY 8 billion yen to strengthen its production system for AT housings, for which the demand in China is expanding. The investment amount is about JPY 4 billion for each plant. In addition to AT housings, the company will also increase the production capacity of body parts and housings for power control units (PCU). The company plans to have the Changzhou plant focus primarily on manufacturing product for Japanese customers, while the Dalian plant will be dedicated to serving both Japanese and European customers. (February 2019 news report) |
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Keywords
China, Japanese suppliers, parts makers, NEV, EV, Electric, Lightweighting, Plastic Injection molding, Battery, Motor
<Automobile Industry Portal MarkLines>