Japanese suppliers in ASEAN countries (1) - Thailand

More aggressive on new factories and production to respond to increasing production of finished vehi

2011/07/07

Summary

 This Report outlines recent activities by Japanese parts suppliers in Thailand for about one year up to middle of June 2011.

 In Thailand, Nissan and Honda started production under the Eco-Car project promoted by the Thai government in March 2010 and March 2011, respectively. Suzuki and Mitsubishi are building new factories, which will go on stream in 2012. Since Toyota was also approved to participate in the Eco-Car Project, it is considering a production plan in Thailand. Apart from the Eco-Car Project, Ford will build a new passenger car plant, which will start operations in 2012.

 In addition to the trends of these OEMs, Thailand attracts Japanese parts suppliers as a key export center to export parts to neighboring countries, and thus, they have become more active in building new factories, strengthening production capacities and expanding production items there. Many suppliers have resumed the plans, which were on hold due to the financial crunch. As such, Japanese suppliers have been on the move in Thailand.

 Recent activities by Japanese parts suppliers in other ASEAN countries (Indonesia, Vietnam, Malaysia and others) except Thailand are reported in "Japanese suppliers in ASEAN countries (2)" posted on July 13, 2011.



New factories building by Ichiko, Clarion, Shin-Kobe Electric Machinery, Topura and Univance

 There is a flurry of new plant building by parts suppliers thanks to the growing automotive industry as well as tax breaks for investment in Thailand.

 The suppliers to build new factories are Ichiko for small lamps, Clarion for car audio systems and navigation systems, Shin-Kobe Electric for lead batteries, Topura for fastener components and metal parts, and Univance for four-wheel drive units.

Thailand: Japanese suppliers build new production bases

(Activities for about one year until the middle of June 2011)
Akiba Die Casting to produce aluminum parts for Japanese parts suppliers at the local joint venture
 Akiba Die Casting and a local supplier jointly established Thai Akiba, in which Akiba Die Casting takes a 45% stake. Starting in April 2012, the joint venture will supply die-cast aluminum parts to Japanese parts suppliers. Akiba Die Casting aims to acquire demand of parts for low-priced compact cars particularly in emerging countries. The new plant will have an area of 40,000 square meters and a building floor of 3,000 square meters. The plant will start with five to eight die cast machines and produce 400K parts per month at maximum.
Ichiko to produce 50K to 80K small lamps and rear combination lamps per year at new plant
 Ichiko is building a new plant in the premises of the Rayong Plant owned by Valeo, a major French auto parts supplier as well as the largest shareholder. The new plant will go online within 2011. It will produce 50K to 80K small lamps such as fog lamps and combination lamps. Ichiko will sell them in Thailand and other Asian countries including Japan. Ichiko has outsourced the production of these lamps to a Thai supplier. It will switch consignment to in-house production to respond to expanding finished vehicle production in Thailand.
Cashew acquires a Thai partner to produce coatings for interior parts
 Cashew took a 58% stake in its Thai partner and made it as Cashew (Thailand). Cashew will invest about 200 million yen in the company to build a plant to produce coatings for interior parts. The plant will start running in November 2011. Cashew will push forward low cost production, and supply parts to Japanese suppliers in Thailand in the beginning. It eyes on future sales in emerging markets including Southeast Asia and India.
Clarion to produce car audio and navigation systems at the new plant
 Clarion subscribed new stocks of SIAM CM Electronics, a subsidiary of Clarion (Malaysia) and made it its consolidated subsidiary (in which Clarion took an 80% stake). The new company name is Clarion Asia (Thailand). The subsidiary will increase its stake by 600 million baht over two years, of which Clarion owns shares worth 515 million baht. With the increased capital, the subsidiary will build a new plant in Rayong Province, where it will produce car audio and navigation systems from April 2012 to sell them in Thailand and India. Clarion sets the production and sales targets at 900K units in 2012 and two million in 2016. This plan was shelved in 2009, but according to expanding demand, Clarion has decided to resume it.
San-En to produce CVT oil pump parts at the new plant
 San-En fully funded the establishment of San-en Thailand in Chonburi Province. It will build its first plant in Thailand. The plant will start running in autumn 2011 and produce and supply forged parts for CVT oil pumps to Japanese OEMs in Thailand. The plant will start with 10K units per month in the beginning, planning to produce 70K units in 2015 when the plant will go full operation. The plant site is 16,000 square meters and the gross floor area is 3,300 square meters. The investment will be 500 million yen. San-En plans to build a plant to produce other forged parts in the premises.
Shin-Kobe Electric Machinery to produce 80K lead batteries per month at the new plant
 Shin-Kobe Electric Machinery fully funded the establishment of Hitachi Storage Battery (Thailand) in Chachoengsao Province in August 2010. Shin-Kobe will spend about two billion yen to build a new plant. It will produce 80K lead batteries per month for environmental-responsive and low consumption gas vehicles such as vehicles with start-stop systems and vehicles forwarding to emerging countries. These batteries will be supplied to Japanese OEMs in Thailand and neighboring countries in Southeast Asia. The new plant will stand in the site of 50,000 square meters and has a gross floor area of 12,000 square meters.
JSR to produce 50K tons of rubber for low fuel consumption tires at a joint venture plant from 2013
 JSR and Bangkok Synthetics (BST), a major Thai chemical company, finally agreed to jointly establish JSR BST Elastomer, in which JSR will take a 51% stake, and BST a 49%. They also agreed to build a new S-SBR (Solution-polymerized Styrene-Butadiene Rubber plant in Rayong Province in June 2011. The venture company will produce 50K tons of S-SBR for low fuel consumption tires per year from June 2013 and 100K tons from 2015. In Asian regions, production of low fuel consumption tires is growing with the growth of regional demand and export for Europe and the US. It is expected that the main material butadiene will be stably supplied by BST.
Sumitomo Electric to produce steel cord for tire reinforcement at the new joint company with Hyosung
 Sumitomo Electric established Sumiden Hyosung Steel Cord (Thailand) in Rayong Province with Hyosung, a major Korean tire steel cord manufacturer. Sumitomo Electric has taken a 70% stake and Hyosung 30%. Sumitomo Electric will build a plant to produce 3,000 tons of tire reinforcement steel cord per month, planning to operate from January 2012. It expects to have 2014 sales of about five billion yen.
Diamond Electric to produce two million engine ignition coils at new company
 Diamond Electric established Diamond Electric (Thailand) in March 2011, in which the Japanese company takes a 99.99% stake. It will have a sales office in Bangkok and a plant in Ayutthaya Province, planning to supply parts, mostly engine ignition coils from March 2012. The annual production capacity will be two million coils.
Topura establishes a new company to produce fastener components and metal parts
 Topura fully funded the establishment of Topura (Thailand) in Rayong Province in May 2011. It will build a new plant to produce fastener components (screws and bolts) and metal parts from October 2012, and supply them to Japanese OEMs in Thailand. It expects to have sales of 1.8 billion yen in 2013. For Topura, this is the first time to have a plant in Thailand.
Tohoku Steel to produce special steel precision parts at the new plant
 Tohoku Steel unveiled the establishment of a wholly-owned subsidiary in Chonburi Province to produce and sell machined special steel products. It will build a new plant in April 2012 to produce special steel precision parts for Japanese OEMs and parts suppliers in Asia. It will invest about one billion yen. This will be the first plant abroad for the supplier.
Toyo Drilube's machining plant of dry film lubricant has been in operation since the beginning of 2011
 Toyo Drilube established Drilube (Thailand) with Nagano Drilube in Chonburi. Toyo Drilube has an 85% stake and Nagano Drilube a 15% in the new company. Toyo Drilube spent 200 million yen to start a processing plant of dry film lubricant at the rented plant. The plant has been in operation since the beginning of 2011. Toyo Drilube started with lubricant for electric parts, but is planning to start a lubricant business for automotive parts. Toyo Drilube expanded the sales structure to obtain new orders not only from Japanese OEMs but also foreign OEMs.
Nihon Kizai to transfer production of clutch facings from Japan to the new company
 Nihon Kizai established the subsidiary Nikki Fron (Thailand) in Chonburi Province in December 2010. The latest production line was placed in the rented plant and has begun production of clutch parts. Nihon Kizai spent 250 million yen. Nihon Kizai will produce clutch facings (friction materials) for Japanese finished vehicles manufacturers and parts suppliers. The plant will start with a monthly production of 50K units, planning to increase to 150K units in autumn 2011. Nihon Kizai had a monthly production of 300K units at the headquarter plant in Nagano. It transferred some of the production to the Thai plant.

NOTE: Nihon Kizai will change its name to Nikki Fron on July 1, 2011.

Univance establishes a local corporation and starts production of 4-wheel drives
 Univance established Univance (Thailand) in Chonburi Province in April 2011. It will spend about 700 million yen to start the plant in September 2012 to produce 4WD systems for pickup trucks etc. The plant will start with an annual production capacity of 100K units. Univance intends to lay its operating base in the ASEAN region through teamwork with its subsidiary in Indonesia.

Source: Parts suppliers' press releases and various media reports

 



Aisin AI, IMASEN, H-One, NTN and Koito increase their production capacity

 Many parts suppliers are increasing their production capacity in Thailand, including building new plant buildings. Aishin AI will increase production of 4WD parts, IMASEN seat adjusters, H-One frame parts, NTN hub bearings, Koito headlumps, Nishikawa Rubber rubber seals, NHK Spring seats, Fukoku casted parts, Press Kogyo auto body frames and U-Shin electric components by building a new plant.

Thailand: Japanese suppliers increase their production capacity

(Activities for about one year until the middle of June 2011)
Aishin AI gives the 2nd plant a cue to produce 4WD parts from the middle of 2011
 Aishin AI gave a cue to the second plant of Aishin AI (Thailand) in Chachoengsao Province to produce 4WD parts in June 2011. It was ready to go in summer 2009, but it has been waiting since then because of the financial crunch. The plant has premises of 37,000 square meters and a gross floor area of 15,000 square meters. Aishin AI produces transfers of 4WD parts for Toyota pick-up truck Hilux Vigo. It has an annual production capacity of 130K units, which is a half of the initial plan.
Ikeda obtains a new plant and realizes 40% up in brake and steering parts production
 Ikeda obtained the land and the building next to the second plant via Thai Ikeda in Chonburi. The existing second plant was added with an extension. Both the refurbished plant and newly obtained plant have been in operation as one second plant. Ikeda produces metal machined parts for brakes and steering wheels there. The production capacity was up by about 40%. Customers increased from 22 to around 30 Japanese parts suppliers.
 Metal parts machining lines in the first and second plants are placed in the second plant together. The first plant produces dies to fabricate parts. Ikeda used to produce the dies in Japan, but it has transferred it to Thailand to improve the quality of machining parts and reduce costs.
IMASEN to build the 2nd plant and double seat adjuster assembling capacity
 IMASEN will invest about 140 million yen in Imasen Manufacturing (Thailand) in Ayutthaya Province to build the second plant next to the existing plant. The new plant will have premises of 18,884 square meters and a building area of 2,550 square meters. It will begin operations in November 2011, and produce seat adjusters for seat suppliers in Thailand. IMASEN will strengthen facilities of the second plant for pressing and the existing one for welding and assembling. It plans to increase the production capacities of the press process double and welding and assembling processes by 1.3 times compared to the previous level.
Uyemura to build a new plant, to go online in autumn 2011
 To build a new plant, Uyemura will invest about one billion yen in Sam Hitechs, its subsidiary engaged in a plating process on plastic in Pathum Thani Province. The plant will go online in autumn 2011. Uyemura will render plating plastic emblems, door knobs and front grills with copper, nickel and chromate for Toyota, Isuzu, Honda and others. Uyemura will attempt to respond to the demand from emerging countries in the 2012 sales of its plastic plating business in the amount of 2.5 billion yen (about two billion yen in 2010).
H-One to weld frame parts at new plant, while increasing automated welding rate to 80% at existing plant
 H-One will spend about one billion yen to establish H-ONE Parts Sriracha in Chonburi Province, planning to produce frame parts at the new plant from December 2011. The existing plant in Ayutthaya Province will specialize in Honda, while the new plant will supply parts to Nissan, Isuzu and other Japanese OEMs. The new plant, however, will receive press parts from the old plant and will be engaged in the welding process temporarily. H-One had 2009 sales from the Thai business of some seven billion yen. It expects that the sales will expand 1.3-fold by 2012.
 H-One will increase the robots for the welding line from the current 16 to around 90 by 2013 in the existing plant H-ONE Parts (Thailand). These robots will boost the automation rate in the welding line from 8% to 80%, which will enable the company to cut 263 out of 449 jobs. The new plant will be automated as well. H-One intends to compress payroll costs by automation to improve its competitiveness.
NTN to build a new plant to double production of hub bearings, CVJ and tensioners
 In the 2011-2013 medium-term business plan, NTN will set capital investment over three years at 144 billion yen. As part of the plan, NTN will spend a several billion yen in Thailand to build a new plant near the existing plant in Rayong Province. The construction will start in 2011. With the new plant, the production capabilities will be doubled for hub bearings, CVJs and tensioners in Thailand. NTN will use the new plant as a parts supply center to the new plant in India, which will be complete in 2012.
Omron Automotive Electronics to build a new plant building for onboard switches
 Omron Automotive Electronics, a wholly owned subsidiary by Omron, will invest about one billion yen to build a new plant building at the premises of the existing plant in Ayutthaya. The new plant will have a total floor area of 11,000 square meters, about the same size as the existing building. In December 2011, Omron Automotive Electronics will start production of onboard switches to increase 2013 sales to more than six billion yen, twice higher than the 2010 result. Mitsubishi and Ford will set up new factories in 2012. Omron will respond to the plans to increase production by Japanese and US OEMs in Thailand.
Kasai Kogyo to acquire outsourcee's plant to increase production capacity of molding parts by 20%
 Kasai Tech See in Ayutthaya Province is a subsidiary of Kasai Kogyo in Thailand for production. The subsidiary acquired the land and the building of the plant which has produced door interior materials and sun visors in commission in July 2010. The plant is next to the existing plant of Kasai Kogyo. Kasai Tech set up new production equipment to increase the current monthly production capacity by 20% by the end of 2010. Kasai plans to increase sales in Thailand double to the two billion-yen scale two years later. It will strengthen the parts supply structure for the March built by Nissan in Thailand.
Calsonic Kansei to expand production of air conditioner compressors for compact cars
 Calsonic Kansei will expand production of air conditioner compressors (fixed capacity type) for compact cars in Asia, according to the plan unveiled in May 2011. It plans to increase the current annual production in Asia including Japan by 1.6 times to four million units in 2013. Calsonic Kansei will upgrade the production facilities of Calsonic Kansei (Thailand) which has production in Chonburi Province of Thailand. It intends to make Thailand as a hub not only for domestic sales but also for export to Asian neighbor countries, such as Indonesia and India.
Koito to build the 4th plant with an annual capacity of 300K headlamps.
 Koito's Thai Koito in Samut Prakan Province will build the fourth plant to produce 300K headlamps from spring 2012. It will invest total two to three billion yen. Koito will upgrade the production facilities step-by-step to an annual production capacity of 1.2 million units in full operation. The total annual production of both new and old plants will be about 2.7 million units. Koito will respond to increase in demand for these lamps by Toyota, Isuzu, Mitsubishi and others. The new plant was initially planned to be complete by 2010, but the plan has been suspended due to the financial crunch.
Kodama Chemical to build a new plant to expand plastic parts production
 Kodama Chemical's local company, Echo Autoparts (Thailand) in Chachoengsao Province will expand the plastic parts business not only through the existing plant but also by building a new plant. The new plant will have a site area of about 40,000 square meters, and have a building area of about 9,000 square meters. The investment will be about 810 million yen. Kodama will respond to expanding orders from Japanese OEMs and produce interior parts around door, exterior parts such as bumpers and engine peripheral parts. The new plant will start operation in September 2011.
Thermosetter raises a monthly production by 50% to 900K plastic parts in spring 2011
 Thermosetter raised the monthly production of plastic parts from 600K to 900K at the Thermosetter Thailand Plant in Ayutthaya Province. It has been ready for increasing orders from Japanese suppliers. Thermosetter will introduce four more injection machines to a total of ten to increase production of thermo-setting resin motors and engine peripheral parts. The investment will be about 50 million yen. It expects to have 2012 sales of 150 million yen in Thailand, up 1.5-fold from the 2010 level.
Sanko Gosei to step up production capacity of its two plants by 50% for interior parts and bumpers
 Sanko Gosei will step up the production capacity of its two plants by 50% by 2012, which produces plastic interior parts and bumpers for Japanese OEMs. Sanko Gosei will introduce press forming and coating machines in Sanko Gosei Technology (Thailand) in Rayong Province and Sanko Gosei (Thailand) in Ayutthaya Province. It will invest a total of 2 billion yen in both Thailand and Indonesian plants.
Sunrise Industry to build the second plant for air conditioner hose mouth rings
 Sunrise Industry will build new plants to produce air conditioner hose mouth rings in Thailand and Indonesia to strengthen the supply capacities to Japanese OEMs. It will invest total 2.5 billion yen and its subsidiary Sunchirin Industries (Malaysia) will build the new plants. The subsidiary is a joint venture established with Nichirin in 1987. In Thailand, the new plant will be completed in November 2011 as the second plant of Sunchirin Industry (Thailand). The building area will be 9,740 square meters. Sunrise attempts to have total annual sales of 4.0 billion yen including those of the first plant.
GS YUASA's production capacity up 22% from the 2009 level to 330K lead batteries in 2012
 To strengthen the production capacity of lead batteries, GS YUASA will invest 8 billion yen in five countries: Thailand, Indonesia, Vietnam, India and China. It will increase the 2012 total production volume in Asia to 20 million, up by 30% from the 2009 level. In Thailand, GS YUASA will build a new plant of Siam GS Battery in Samut Prakan to increase the production capacity by 22% to 330K lead batteries.
GMB to increase production of cooling water pumps by 80% by building the 2nd plant
 GMB will build the second plant in Thai GMB Industry in Prachinburi Province, which will go live in June 2011. GMB will increase its monthly production capacity of cooling water pumps for engines by 70% from the current level to 450K units. The new plant with a floor area of 8,300 square meters will be built in the premises of the existing plant. It intends to respond to increasing demand for spare pumps for the US, and strengthen the price competitiveness by relocating a part of the pump production from Japan and Korea. The total investment will be about 900 million yen.
JFE SHOJI to build a new plant to process iron for automobiles with the Summit Group in Thailand
 JFE Shoji established Steel Alliance Service Center with Summit Group in Thailand in February 2009. JFE took a 70% stake and Summit a 30% stake. JFE spent about 2 billion yen to build the new plant in Rayong Province to process iron materials for automobiles. It has been in operation since April 2011. The processing capacity of iron is 6K tons per month. The new plant has a site area of 78,080 square meters and a building area of 9,980 square meters. This is the second plant in Thailand for JFE following the coil center.
Sumitomo Rubber to double production capacity by expanding 1st and 2nd plants
 With a total investment of 50 billion yen during the period from 2010 to 2012, Sumitomo Rubber will expand the first and the second plants of Sumitomo Rubber Thailand in Rayong. Sumitomo Rubber will double the current daily production capacity of 34,700. Sumitomo Rubber intends to increase the share of replacement tires in Thailand from 8% to 12%. It also plans to increase dealers from 350 at the end of 2009 to 410 in 2012.
Daicel Chemical to double production of airbag inflators by 2013
 Daicel Chemical will increase the global annual production to 70 million airbag inflators (gas generators) by 2013 according to the media report in April 2011(The 2010 record was 43 million units). While its production capacity in Japan will be diminished, the total capacity of four factories in the world (US, Poland, Thailand and China) will be raised by every 10 million inflators per year to respond to expanding production of airbags. In Thailand, Daicel will double the production capacity over the current level.
Daido Metal adds one more line and increases annual production capacity of engine bearings for another 600K vehicles
 Daido Metal invested about 1 billion yen by spring 2011 and increased the global production capacity of engine bearings by 20%. It added total five lines at the plants in Japan and other Asian countries and expanded the annual production capacity of bearings for 15 million to 18 million vehicles. In Thailand, Daido invested about 200 million yen in Dyna Metal in Chachoengsao Province to add one more line to expand the annual production capacity for another 600K vehicles.
Dainichi Seika adds one sequential production line of function resin to increase annual production by 5% to 63K tons
 Dainichi Seika will invest 300 million to 400 million yen in four existing plants in China, Thailand and Vietnam to increase production capacity of function resin for interior parts by summer 2011. In Pathum Thani Province of Thailand, it will add one sequential production line at Dainichi Color (Thailand). It is expected to go on stream in summer 2011. The annual production will be up 5% to 63K tons.
PEC to increase fuse production capacity by 20% in March 2012
 PEC will increase fuse production capacity by 15 to 20% from March 2011 at a total of four factories in Japan, Mexico and Thailand in March 2012. PEC will invest total 1.1 billion yen. In Rayong Province, PEC plans to expand the production capacity of PEC Manufacturing (Thailand) by 20% centering around low price products, which are assembled mostly by hand.
Central Motor Wheel to increase annual production by 25% to 5 million steel wheels
 Central Motor Wheel (CMW) obtained a 47,000 square meter-land next to the existing plant of Central Motor Wheel (Thailand) in Chachoengsao Province in the beginning of 2011 for another plant. It aims to have the new coating plant running within 2012. As a result, the annual production will be up by 25% to five million steel wheels to catch up with expanding production by Japanese OEMs including Toyota. It invested 1.1 billion yen.
Tsubakimoto Chain to have 20% more annual production of timing chain drive systems to 1.45 million sets
 Tsubakimoto Chain will add one line to Tsubakimoto Automotive (Thailand) in Chonburi Province within 2011 to increase the annual production of timing chain drive system from the current 1.2 million sets to 1.45 million sets. Tsubakimoto will respond to expanding automotive production in Thailand and new projects for India. It also plans to increase the production capacity of its Chinese subsidiary by some 20%. The total investment in Thailand and China is estimated at about 700 million yen.
TS TECH obtains plant site for the future new seat plant
 TS Tech obtained an about 26,000 square meter-plant site next to the existing plant of TS Tech (Thailand) in Ayutthaya Province, according to the news in November 2010. TS Tech supplies seats mainly to Honda. TS Tech forecasts that its production capacity will be insufficient in the medium- to long-term, and plans to build a new plant in the obtained site. Yet, the schedule will be decided according to future demand trends.
Tohken Thermo Tech builds a new plant to build up thermal treatment capacity
 Tohken Thermo Tech built the third heat treatment building in Thai Tohken Thermo in Chonburi Province. The plant has run since September 2010. It has a floor area of about 2,600 square meters. Tohken invested about 500 million yen including the building and the land. It built a new gas sulfurizing line and added a gas carburizing line. The new plant will provide special treatment services on surfaces of engine peripherals and drive system parts to Japanese parts suppliers which are expanding production in Thailand and neighboring countries.
Nabtesco to transfer production of brake chambers for commercial vehicles from Japan to Thailand
 Nabtesco will transfer the production of brake chambers for commercial vehicles to Nabtesco Automotive Products (Thailand) in Samut Prakan from the Yamagata Plant in Japan, according to the media report in May 2010. Nabtesco has had production in two places of Japan and Thailand. Nabtesco intends to improve the profitability by maximizing the overseas plant through this transfer of production of these less profitable parts.
Nishikawa Rubber to build the 4th plant to increase rubber seal production capacity
 To build the fourth plant, Nishikawa Rubber will spend 1 billion yen in Nishikawa Tachaplalert Cooper in Nakhon Ratchasima Province from 2011 to 2013. Nishikawa Rubber plans to increase the production capacity of rubber seals for door and window frames by 50% compared to the current level. In addition to Japanese companies, it will market the products to European, US and Chinese manufacturers. It plans to increase the total sales in China and Thailand to the 15 billion-yen scale by 2013 through increasing production capacity of two plants in China by 50%. The 2010 sales were ten billion yen.
Nissen Chemitech to build a new plant building to increase door lining production capacity by 20%
 Nissen Chemitech will invest 900 million yen to build a new plant building in the premises of Nissen Chemitech (Thailand) in Prachinburi Province. The new plant building will have a total floor area of 2,993 square meters, scheduled to operate in autumn 2011. Nissen Chemitech will install four injection machines to produce door linings; thereby the production capacity will increase by 20% from the current level. Nissen Chemitech will get prepared for a stable parts supply system in response to Honda's production expansion in Thailand.
Nittan Valve to increase an annual production capacity by 20 to 30% or 30 million to 32.5 million engine valves
 Nittan Valve will increase the engine valve production capacity of Nittan Thailand in Chonburi Province. Nittan Valve has focused on two-wheelers. Since four-wheeler engine valve business is picking up, Nittan Valve will increase the production capacity of 25 million valves as of November 2010 to 30 to 32.5 million. It will invest some 500 million yen to introduce necessary facilities, but the schedule is not known.
NHK Spring to supply seats to Mitsubishi from its new seat plant starting in October 2011
 NHK Spring (Thailand), NHK's local subsidiary, will invest about 1.1 billion yen to build a seat assembly plant in Rayong Province to respond to expanding demand for seats. The plant will go live in October 2011 to supply seats to Mitsubishi. It expects to have 2012 sales of some 6.2 billion yen. The new plant will have a site area of 142,034 square meters and a building area of 10,700 square meters.
CMK Corporation to raise monthly production of printed board by 20% to 65K square meters
 CMK Corporation will invest about 500 million yen in CMK Corporation (Thailand) which makes multi-layer printed board to increase its monthly production capacity by 20% to 65,000 square meters. Forecasting increase in demand for onboard printed boards, CMK bought a plant site in 2010 and broadened the plant site area by about 40% to 125K square meters.
NSK to strengthen capacity for processing bearing members for onboard motors
 NSK will invest at most 60 billion yen in emerging markets such as China and Southeast Asian countries over three years from 2011 to 2013 (up by 70% from the 2008 - 2010 investment) to prepare the local production and sales structures. In Thailand, NSK will increase the processing capacity of the members for assembling bearings at NSK Bearings Manufacturing (Thailand) in Chonburi Province in response to the demand expansion for onboard motors.
Japan Brake increases production capacity of brake disk pads by 50%
 Japan Brake invested about 400 million yen in Japan Brake (Thailand) in Ayutthaya Province (in which Japan Brake takes a 54% stake and Nissin Kogyo a 40%) and built a new plant building. The plant started running by the end of 2010; thereby, the monthly production capacity of brake disk pads for four-wheelers increased from 200K to 300K. The new plant building has a building area of about 1,800 square meters. Japan Brake will respond to increasing orders from Japanese and foreign OEMs, which have production in Thailand. It also plans to increase production of two-wheeler brake disk pads for the future.
Piolax acquires other company's plant next to its plant to expand fastener production capacity
 Piolax acquired the other company's plant next to Piolax (Thailand) in Rayong Province for 300 million yen in May 2011; thereby doubling the building area to 8,246 square meters compared to the area before the acquisition. In FY 2011, Piolax will spend about 500 million yen to transfer the production facilities from the existing plant to expand the production capacity of fasteners mainly to fasten interior parts. Piolax will catch up with expanding production by Japanese and foreign OEMs in Thailand. It also prepared production capabilities as an export center to neighboring countries.
Hatano Seimitsu strengthen production of engines/transmission parts at the new plant
 Hatano Seimitsu acquired a plant site near its subsidiary JFB (Thailand) in Saraburi Province, and built a new plant with a floor area of about 800 square meters. Hatano relocated from the old renting plant to the new plant, expanded the scale, and then start operation in September 2010. The total investment was about 150 million yen. Hatano will respond to expanding demand of Japanese OEMs by strengthening the production of engines and transmission parts through a fine blanking process. It increased employees from 50 to 80. Hatano expects that JFB (Thailand) will post sales of 1 billion yen in FY 2014 (it was 350 million yen in FY 2009).
Hiruta Kogyo starts commercial production of upper/under body parts at the new plant, which has been in operation since 2009
 Hiruta Kogyo started commercial production of upper and under body parts, in May 2010, at the plant of Hiruta Asteer Summit (HAS) in Chonburi Province, which has been in operation since January 2009. Before then, Hiruta had produced the parts at Bangkok Eagle Wings (EBW), a joint venture of Hiruta, Asteer and local company Summit, while Hiruta was preparing the commercial production to respond to increasing production by Japanese OEMs. HAS is a subsidiary of BEW. Its plant has a building area of 14,000 square meters, where a large press line is in place as well as a coating line which BEW does not have.
Fukoku builds a joint venture plant for foundry
 Fukoku's subsidiary Thai Fukoku in Bangkok City established Thai Fukoku Pana Foundry in Samut Prakan Province with Pana Plus in November 2010, a Thai local company which produces and sells foundry. The joint venture has a capital of about 40 million yen, in which Thai Fukoku takes a 33.4%. Fukoku built a new plant in the premises of Pana Plus, where it started producing foundry part of dampers (which are parts to mitigate engine vibration) in May 2011. Fukoku plans to set up a production capacity of 400 tons per year at the new plant by the end of 2013.
Prime Polymer to increase annual production of polypropylene compound by 24.2% to 164K tons
 Prime Polymer will increase the production capacity of the plant in Rayong Province, owned by its local company Grand Siam Composites (Bangkok City). More precisely, Prime Polymer will increase the annual production capacity of polypropylene compound used for bumpers and other parts by 24.2% compared to the 2010 level to 164K tons by 2013. Prime Polymer will strengthen production facilities in India and China beside Thailand to raise a total annual production capacity of the product from 740K to 840K tons. The total capital investment will be amounted to about 5 billion yen in association with strengthening production facilities.
Bridgestone to increase daily production capacity of truck and bus tires by 30% to 10.5K tires
 Bridgestone will increase the production capacity of Bridgestone Tire Manufacturing (Thailand) which produces truck and bus tires in Chonburi Province. Investing about 16.6 billion yen, it will raise the daily production by 30% to 10.5K tires within the first half of 2014 compared to the level at the end of 2010. The increase of the production capacity is intended to make Thailand as an export center to the US, Europe and Asian neighboring countries to respond to expanding global demand for tires.
Press Kogyo building body frames and underbody parts for pickup trucks at the new plant
 Press Kogyo built the new plant of Thai Summit PK, a joint venture with Summit, a major Thai auto parts supplier. It stands in a site of 80,000 square meters in Rayong Province. It has been in operation since September 2010. This is the fourth plant for Press Kogyo in Thailand. It has annual production capacities of body frames for 250K one-ton pickup trucks and 500K rear axle housings. These are supplied to Isuzu, GM and Ford. Press Kogyo turned the Thai business profitable with an operating profit of about 1.4 billion yen in FY 2010 from the operating loss of some 200 million yen in FY 2009.
Mitsui Kinzoku Act expands an annual production capacity by 40% to 17 million side door locks
 Mitsui Kinzoku Act was established in July 2010 after the automotive equipment business was spun off from Mitsui Kinzoku, and integrated with the subsidiary Ohi Seisakusho. Mitsui Kinzoku Act strengthened the production capacity of the plant of Mitsui Siam Components in Rayong Province. In November 2010, the construction work for increasing the capacity was complete, and as a result, the annual production capacity of side door locks increased from 12 million in 2009 to 17 million in 2011. These are exported mainly to Europe.
Mitsuboshi Belting increased production by 30% from the beginning of 2011
 Mitsuboshi Belting increased the total production capacities at three plants in Thailand and Indonesia by some 30% from the beginning of 2011 to respond to increase in production of four and two-wheelers in the ASEAN region. It spent about 800 million yen in total. In Thailand, Mitsuboshi Belting increased production of timing belts and V-belts for auxiliary devices by setting up new equipment in Stars Technologies Industrial in Rayong.
Meiki expands mold production capacity for bumpers by adding one more machining center
 Meiki introduced a machining center (MC) in Meiki Engineering (Thailand) in Ayutthaya Province, and set up four MCs according to the news report in July 2010. Responding to the recovery of demand for bumpers, Meiki raised the production capacity of plastic molds. At the end of 2009, it employed ten persons locally for the Design Department. Now Meiki plans to employ another ten to expand the scale of business.
Yamashita Rubber planning to build the 2nd plant to produce rubber parts
 Yamashita Rubber is planning to build the second plant in Y-TEC which produces rubber parts including anti-vibration rubber and fuel tubes in Prachinburi Province. As part of a cost reduction strategy unfurled according to the medium term business plan by 2013, the company is considering augmenting the production capacity in emerging markets. Yamashita Rubber has already kicked off the feasibility study of the second plant in Thailand. It will decide when to build by closely watching demand trends.
U-Shin to resume the plan to build the second plant following Suzuki's inroads into Thailand
 U-Shin will build the second plant next to the first plant in U-SHIN (Thailand) which produces electric components such as key sets and door locks. It attempts to have it go live in the latter half of 2011. It will invest 2.2 billion yen (the plant site was already acquired). To get prepared for Suzuki's production in Thailand in 2008, U-Shin was advancing the plan to build the second plant, but it shelved the plan after the financial crunch. In line with the start of production by Suzuki in Thailand in 2012, U-Shin resumed building the second plant.
Yokohama Rubber will expand the annual production capacity of tires for passenger cars and light trucks from 2.6 million to 4.0 million
 Yokohama Rubber will spend about 9.7 billion yen in Yokohama Tire Manufacturing (Thailand) for the tertiary expansion work to raise its annual production capacity to 4 million tires by July 2012. The Thai company produces tires for passenger cars and light trucks in Rayong Province. Yokohama Rubber will respond to expanding demand mostly for passenger car tires in Europe, the US and emerging countries. The secondary work to increase its annual production capacity to 2.6 million tires by FY 2009, which had been once postponed, was completed in April 2011.
Riken to increase production capacity of piston rings by 40% in the beginning of 2012
 Riken plans to invest about 800 million yen in Siam Riken Industrial in Chonburi Province to expand the existing plant to increase the production capacity of piston rings by 40% compared to the level as of February 2011. The construction work will be complete in the beginning of 2012 to catch up with expanding production of Japanese OEMs.

Source: Parts suppliers' press releases and various media reports

 



Expanding production items by NOK, Tokai Rubber, Fukoku, Aisin and Aichi Steel

 In Thailand, many suppliers are expanding production items to increase local procurement of parts and to reduce costs. NOK will add oil seals for transmission to its production items, Tokai Rubber kneaded rubber, and Fukoku wiper parts to their respective productions. Besides, Aisin will start foundry cutting work for disk brakes, and Aichi Steel will begin start-to-finish production of forged parts.

Thailand: Japanese suppliers expand their production items

(Activities for about one year until the middle of June 2011)
IHI to fabricate turbine shafts and begin start-to-finish production of turbo chargers in Thai Plant
 IHI will begin start-to-finish production of turbo charges at IHI Turbo (Thailand) in Chonburi Province. It used to produce turbine shafts, which are core parts of the chargers, in Japan. IHI spent several hundred million yen to build a new line for turbine shafts in its Thai plant. Total six lines have enabled IHI to obtain total volume of turbochargers locally in April 2011. IHI will appeal to Japanese OEMs by reducing procurement costs for turbine shafts.
Aisin Seiki to localize part of foundry cutting work for disk brakes
 Aisin Seiki will invest about 500 million yen in Siam Aisin in Prachinburi Province to introduce five to six large cutting work machines in its plant and build a new foundry cutting line. In summer 2011, Aisin Seiki will localize part of the foundry cutting work for disk brakes. The plant has a monthly production capacity of 140K disk brakes. The total volume of foundry cutting work was formerly done in Japan, but from this point on, the Thai plant will undertake the cutting work for 50K disk brakes to improve cost competitiveness.
Aichi Steel to begin start-to-finish production of forged parts, and integrate the existing plant operation to new plant
 Aichi International (Thailand), a subsidiary of Aichi Steel in Thailand, will build a new plant in Chonburi Province. The investment will be about 2.0 billion yen for the first-phase of construction work. The plant will start running in June 2012. It will produce forged parts of engines and propeller shafts for Toyota's IMVs, its strategic vehicles for emerging countries. The monthly production capacity will stay one million units equal to the current shipped volume, while planning to strengthen the production capacity in the future. The existing plant is engaged in the processing and inspection of forged parts only, which will be transferred to the new part when it begins operations.
NOK to transfer part of production of oil seals for transmissions from Fukushima Plant to Thailand
 NOK will transfer part of the production of transmission oil seals to Thai N.O.K. in Bangkok in FY2012. NOK estimates investment as 500 million yen. NOK has produced the total volume of the products at Nihonmatsu Plant in Fukushima. After the Great East Japan Earthquake, NOK plans to decentralize the production in both Chinese and Thai plants to avert the natural disaster risk.
Kyowa Kogyo to transfer the lower stream process for universal joints for the US from Japan to Thailand
 Kyowa Kogyo will transfer almost all volume of the lower stream manufacturing process of universal joints for the US (electric power steering parts) from Japan to Thailand in 2013. The cold forging process, its core technology, will remain in Japan, while machining and assembling will be assigned to Thai Kyowa GMB in Prachinburi Province, a joint venture with GMB, from which the products will be exported to the US. Kyowa Kogyo will transfer production from Japan to Thailand in order following remodeling by Honda and others, and raise the monthly production capacity in Thailand to 100K units in early 2012, i.e., twofold of the level as of June 2011.
Goto-Plastic builds a new molding plant to establish start-to-finish production structure for resin parts
 Goto-Plastic built a new molding plant in Chonburi Province in March 2011. It rented the land and the building, where it set up five blow molding machines to mold resin parts for bumpers, spoiler and engines. It invested around 300 million yen. With the existing molding plant of T.A.G. Molding (Thailand) established in 2007 in Samut Prakan Province, Goto-Plastic has established the start-to-finish production structure for resin parts in Thailand. It will respond to plans of an increase in production by Japanese OEMs.
Tokai Rubber to establish a new kneaded rubber production company for anti-vibration rubber
 Tokai Rubber will establish Tokai Rubber Compounding (Thailand) in Rayong Province in June 2011. Tokai Rubber takes a 75% stake and its Thai corporation 25%. The new company will produce and supply kneaded rubber to its anti-vibration rubber plants in China, India and Indonesia from January 2013. It is expected to produce 1.7K tons per month in FY 2015. The plant site area is 50,144 square meters and the building area is 17,167 square meters. Tokai Rubber has outsourced the production of kneaded rubber, but it will switch to self-manufacturing.
Fukoku to build a new wiper parts plant
 Siam Fukoku in Samut Prakan Province, a subsidiary of Fukoku, will invest 2 billion yen to build a new wiper parts plant in Khon Kaen Province. It is expected that the plant will go live in 2012. Fukoku will overtake the allocation of new shares of 638 million yen issued by Siam Fukoku to third parties and appropriate it to part of construction funds. Siam Fukoku is producing seal functioning parts at its two plants. Fukoku fabricates wiper parts only in Japan, but it will also produce them in Thailand to disperse risks and improve price competition.
Marui Industrial to add a plastic plating line to start production of trivalent chrome plated parts
 Marui Industrial will add a plastic plating line to the plant of Marui Industry (Thailand) in Prachinburi Province to begin production of trivalent chrome plated parts. It will invest about 540 million yen including the building and forming machines. The plant will go online in April 2012 and produce mainly emblems and exterior parts. It has produced hexavalent chrome plating parts; however, it will start trivalent chrome plating as OEMs are employing it more than ever as a more environmentally-friendly material.

Source: Parts suppliers' press releases and various media reports

 



Others: Koito and Denso to strengthen development functions and Sekisui Jushi to buy out manufacturing business

 As finished car manufacturers are shifting to local development and designing, Koito will build a new R&D center and Denso will double development personnel. Besides, Sekisui Jushi will buy out injection forming and mold-building business, while Tanaka Seimitsu Kogyo, Topre and Ryobi will establish new business centers, respectively.

Thailand: Japanese suppliers acquire the other business, build business or development center, and outsource production

(Activities for about one year until the middle of June 2011)
Koito to establish a new R&D center
 Koito will establish a new R&D center in the site next to the existing plant of Thai Koito in Samut Prakan Province, according to the news report in January 2011. To catch up with Japanese OEMs which accelerate localizing designing and R&D, Koito will get ready for local needs through the new R&D center which will be engaged in designing and development of some products, evaluation and testing of materials and research and development of effective production engineering.
Sekisui Jushi to buy out the joint injection forming business of Daicel and Tokuyama
 Sekisui Jushi, in May 2011, unveiled the plan to buy out Daipla Systec (Thailand) which is engaged in injection forming and mold building business in Thailand. Daicel takes a 60% stake and Tokuyama 40% in the Thai company. Daipla owns a plant in Chonburi Province, and posted sales of 335 million baht in FY 2010. At the end of June 2011, Sekisui Jushi acquired all issued Daipla shares from Daicel and Tokuyama and made Daipla as a consolidated subsidiary. The company name will be changed to Sekisui Jushi (Thailand). Sekisui Jushi aims to establish a production base and expand its business in Southeast Asia.
Tanaka Seimitsu Kogyo builds a business center in Bangkok to strengthen business with Honda
 Tanaka Seimitsu Kogyo established a business center in Bangkok in December 2010. Tanaka Precision (Thailand), its production subsidiary in Lamphun Province, northern part of Thailand, has been engaged in sales as well. The new business center will strengthen business with Honda which has a plant near Bangkok, and aim to obtain orders from other two-wheeler and four-wheeler OEMs which plan to produce in Thailand.
Denso to double R&D personnel of Technical Center in Bangkok in 2015
 Denso plans to increase the proportion of the sales in emerging countries to total sales of 20% by FY 2015 from below the 10% level as of the beginning of 2011. It also plans to establish an R&D center in addition to a plant. In Thailand, it will double personnel for the Technical Center (Bangkok) in Denso International Asia responsible for Australia and Asia region in 2015.
Topre establishes a distributor to sell press parts and molds with local parts suppliers
 Topre invested 30 million yen and established TOPRE (Thailand), a distributor of press parts and molds in Bangkok in December 2010. It has been in operation since June 2011. TOPRE (Thailand) collaborates with Thai parts suppliers to supply parts to Japanese OEMs. It sets the FY 2012 sales target at 350 million yen. It will cooperate with the Chinese plant which will start running in June 2011. This is the second overseas business centers for Topre following the US.
Fisa to expand mold maintenance business by increasing local employees from ten to 30
 Fisa has production of nozzles used for parts injection molding at Fisa Thai Techno in Chonburi Province. Fisa will expand the mold maintenance business in the same plant. As of July 2010, there are ten local employees. Fisa increased the number to 15 in January 2011, and continues to increase that number to 30 by 2012. It also quadrupled the capital to 100 million baht by 2015.
FALTEC to outsource production of exterior parts for Nissan to a Thai company
 FALTEC has outsourced production of plastic exterior parts exported from Japan for vehicles made in Thailand to a Thai parts supplier TKT in Bangkok from January 2011. FALTEC will start local supply of these parts. It started with small products such as bumper finishers and rear spoiler finishers, and then it will contract out production of other larger parts including front grilles by FY 2012. These parts are supplied to Nissan and others through Faltec (Thailand) established in September 2010. It expects to have sales of 300 million yen in FY 2011 and more than 500 million yen in FY 2012.
Ryobi establishes a business center to supply die-cast parts for Mitsubishi's global strategic models
 Ryobi established a die-cast business center, Ryobi Die Casting (Thailand) (RDT) in Bangkok in May 2011. It will supply engine aluminum cylinder blocks for the global strategic models which Mitsubishi will produce in Thailand from 2012. The production will be undertaken by local manufacturers after the technical training by Ryobi. It expects to have a production volume of 50K units in the first year, and 150K to 200K units per year in the future. Ryobi expects that RDT will have FY 2013 sales of about one billion yen. It is also eyeing the construction of its own plant in the future.

Source: Parts suppliers' press releases and various media reports

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