Indonesia had a new car sales volume of 742K units in 2010 which surpassed the highest ever record of 608K units in 2008. To respond to the expanding market, OEMs such as Toyota, Daihatsu, Nissan, Suzuki, Hino, Isuzu and VW planned to increase their respective production capacities. Under the circumstances, Japanese suppliers accelerated their activities of building new factories and expanding production capacities to lay the foundations of a production center for the Indonesian market as well as an export hub to ASEAN and Indian markets.
Among the construction plans of new plants, Koito will build a plant for front lamps, JTEKT for electric power steering, TAKATA for seatbelts, Tokai Rika for switches and keysets and UNIPRES for body frame parts.
In expansion of production capacity, Akebono Brake will augment its disk brakes and friction materials production, TAIHO KOGYO, its engine bearings, Chuo Spring, its coil springs and stabilizers, Bridgestone, its radial tires and Riken, its casting parts, such as brake drums.
In Indonesia, Japanese suppliers to build new plants and strengthen existing plants
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(Activities for about one year until the middle of June 2011) |
Aisan Industry increases production of fuel pump modules for Toyota Etios launched in India
Aisan Industry invested 150 million yen in PT. Aisan Nasmoco Industri in West Java to add machining facilities, and has increased the production capacity of fuel pump modules for four-wheelers. These parts are assembled at Aisan's plant in Kanchipuram City, India, and supplied to the new compact car Etios, which Toyota has launched in India. |
Akebono Brake to build a new plant for plate processing and producing four-wheel parts, and add facilities to the existing plant
Akebono Brake bought a land of 12,000 square meters next to the PT. Akebono Brake Astra in Indonesia in October 2010, which produces disk brakes and friction materials in Jakarta City. It plans to build a new plant to conduct the plating process and produce parts for four-wheelers, which have been contracted out. It plans to start operations at the plant in 2013. Its investment will amount about 300 million yen. |
In addition, Akebono Brake will invest about one billion yen in the existing plant to change the production line layout and add facilities. The brake supplier aims to catch up with expanding production planned by four wheeler OEMs such as Daihatsu, commercial vehicle OEMs such as Isuzu and two-wheeler OEMs such as Yamaha. It is expected that the Akebono Brake will increase sales in Indonesia by 20% to 13 billion yen in FY2012 from 10.8 billion yen in FY2009. |
Marubeni-Itochu Steel to introduce a steel processing system to ensure both lightness and rigidity in bodies
Marubeni-Itochu Steel will introduce a steel processing system Tailor Welded Blanking (TWB) in the plant near Jakarta, which is owned by its local corporation PT. United Steel Center Indonesia. The equipment cuts and shapes welded steel plates of different thicknesses and properties. TWB gives the sheet the required strength by thickening only the necessary parts in the sheet. This ensures lightness as well as high rigidity in auto bodies. The plant will begin operations in January 2012 with a monthly production capacity of 50K sheets. According to Marubeni-Itochu, this will be the first TWB system in Indonesia. |
UMEDAKOGYO builds out the existing plant to increase production capacity of electric components 1.5-fold
UMEDAKOGYO built out PT. Umeda Kogyo Indonesia (in Jakarta City) which produces electric components, and introduced about ten new press machines and machining centers in the plant. In February 2011, the plant started full-scale operations with a total of 60 new and existing machines; thereby, the production capacity increased 1.5-fold . UMEDAKOGYO invested total 500 million yen. It is expected that the Japanese supplier will increase sales of the Indonesian plant to 2.0 billion yen in FY 2011 from 1.5 billion yen in FY2010. |
Koito establishes a new company and produces front lamps for 400K vehicles per year
Koito established PT. Indonesia Koito in West Java State in June 2010, in which Koito takes a 90% stake. The new plant has been in operation since April 2011. It invested about 3.0 billion yen. In 2012, the plant will produce front lamps for 400K four-wheelers per year and front/sign lamps for 1,200K two-wheelers per year to satisfy increasing orders for these lamps in Indonesia. This is the second plant for Koito in the ASEAN region following the Thai plant. |
SANKO GOSEI to increase production of instrument panels and door system components
SANKO GOSEI will build a new plant in West Java State via its subsidiary PT. Sanko Gosei Technologies Indonesia to improve the availability of parts to Japanese OEMs. The new plant with a total floor area of 4,000 square meters is scheduled to begin production in February 2012. It will produce instrument panels and door system components. The total investment will amount to about 2.3 billion yen, including the construction cost for the new plant building in Thailand. |
Sunrise to build plants to manufacture air conditioner hose mouths
Sunrise will build plants in Thailand and Indonesia to produce hose mouths for air conditioners to strengthen the abilities to supply to Japanese OEMs. Sunrise will spend a total of 2.5 billion yen for the construction, but these plants will be built by its subsidiary Sunchirin Industries (Malaysia) which was jointly established with Nichirin in 1987. The Indonesian plant will stand in a site area of 50,000 square meters in West Java State. The construction will be complete in summer 2012. The plant building area will be 9,000 square meters. Sunrise will aim for annual sales of 3.0 billion yen. |
GS Yuasa grants its affiliate equity-method status and positions it as a strategic export hub of lead batteries
GS Yuasa increased its stake from 25% to 50% in its affiliate PT. Trimitra Baterai Prakasa (TBP), which produces and sells lead batteries in Indonesia. The Japanese supplier, thereby, made the Indonesian supplier its equity-method affiliate. GS Yuasa subscribed for 430 million yen-worth shares in TBP to increase the ownership. It positions TBP as a strategic export hub to strengthen sales in Europe, Vietnam, Malaysia and Australia in addition to Indonesia. It has set the FY2013 sales volume target at 6.1 million batteries (it was 4.2 million in FY2010). |
JTEKT to produce 350K electric power steering systems at the new plant
JTEKT's subsidiary, PT. JTEKT INDONESIA, will build a new plant in West Java State to produce power steering systems for four wheelers (350K units per year) and starter clutches for two wheelers (4.6 million units per year). The plant site has an area of 100,000 square meters. The production at the plant is set to begin in October 2011. PT. JTEKT INDONESIA, which sells bearings and starter clutches, is going to have its first factory there since it was established. The investment will amount to about 3.0 billion yen. It expects to have sales of about 6.0 billion yen in 2013. JTEKT will consider production of bearings in the future. |
TAIHO KOGYO to increase monthly production capacity of engine bearings 2.5-fold to 2.5 million units by FY2015
TAIHO KOGYO will invest total about 4.0 billion yen in the plants in Japan, US, Europe, China and Indonesia to increase a monthly production capacity of engine bearings by about 40% to 40 million units. In Indonesia, it will increase the monthly production capacity 2.5-fold of its subsidiary PT. Taiho Nusantara in West Java State to 2.5 million units. |
TAKATA to make seatbelts, airbags and steering wheels at the new company from the beginning of 2012
TAKATA established PT. Takata Automotive Safety Systems Indonesia in Jakarta City in October 2010. It will build a new plant to make seatbelts, airbags and steering wheels starting January 2012. The products will be supplied to OEMs including Toyota, which have production in Indonesia. The plant site is 60,000 square meters. This will be TAKATA's first plant in Indonesia. The investment will be about 20 million dollars. |
Tachi-S is planning to produce seats in Indonesia
Tachi-S is planning to gain a foothold of production in Indonesia according to the news report in February 2011. Tachi-S takes it as an advantage that many factories of the OEMs are gathering in this country. Tachi-S will propose OEMs to share seat parts, intending to build seats for more than two OEMs at one plant. Tachi-S aims to establish an efficiency-oriented production system by reducing capital investments and overheads. Details such as how production will unfold there are unknown. |
Chuo Spring to build a new plant to increase production of coil springs and stabilizers
Chuo Spring will build a new plant of its subsidiary PT. Chuhatsu Indonesia in West Java to respond to increasing vehicle production in Indonesia. It plans to produce coil springs and stabilizers from the latter half of 2011. The new plant has a plant site area of 30,000 square meters and a building area of 7,000 square meters. The investment will amount to about 900 million yen. |
Tokai Rika builds a new company to produce switches and keysets
Tokai Rika established Tokai Rika Indonesia in West Java State in May 2011, in which Tokai RIka takes a 90% stake and Toyota Tsusho a 10%. The new company will lease a plant site area of about 1,000 square meters in the current Toyota Tsusho's premises, and start production of security products including switches and keysets starting October 2011. Tokai Rika will respond to according to the expanding production of Toyota and Daihatsu in Indonesia. Tokai Rika expects to have sales of about 900 million yen in 2012. For Tokai Rika, this will be the first plant in Indonesia, and the fifth in the ASEAN region. |
Toyota Industries to produce about 1.6 million compressors for air conditioners at the new company
Toyota Industries established PT. TD Automotive Compressor Indonesia (West Java State) with Denso, Toyota Tsusho and others in January 2011, in which Toyota Industries took a 50.1% stake. Denso will spin off the compressor business, its local corporation, and then, the new company will take over the facilities and employees from it. The new company will succeed to its production from June 2011. In the first year, the new company will start with an annual production capacity of 1.0 million units. Toyota Industries will invest about 2.0 billion yen in the joint venture by FY2015 to increase the capacity to 1.6 million units to respond to expanding ASEAN markets. It also plans to produce and supply compressors for the Toyota Etios to India. |
TOYODA IRON WORKS to introduce a press machine to increase an annual production capacity of pressed parts by 50 to 60% to the volume worth 400K vehicles
TOYODA IRON WORKS will invest about 800 million yen in PT. Nusa Toyotetsu in West Java State to install one more press machine with a capacity of 1600 tons (it will have a total of two-machine capabilities with the existing press machine with a capacity of 1200 tons). In autumn 2011, it will increase the annual production capacity of pressed parts (center pillars, lower arms, brake pedals, etc.) by 50 to 60% to a volume equivalent to 400K vehicles to respond to the expanding production by Toyota and Daihatsu. Toyota Iron expects to have FY2013 sales of 13 billion yen in Indonesia (up by about 30% from the FY2010 level). |
Nanbu Plastics to add an injection molding machine by 2013 to increase plastic parts
Nanbu Plastics will increase production of plastic parts at its subsidiary PT. Nanbu Plastics Indonesia in West Java State from March 2011 to 2013 to respond to increasing orders from Japanese OEMs. It will introduce an injection molding machine with a clamping pressure of 850 tons and two with a clamping pressure of 650 tons per each in the first plant in 2011. Nanbu Plastics will also introduce 40 to 60 of medium and small size injection molding machines in the second plant by 2013. It expects to have 2013 sales of 4.7 billion yen in Indonesia (up 4.7-fold over the 2010 level). It plans to invest a total of 500 to 1,000 million yen per year for the next three years, including the investment in China to increase production volume. |
Nichirin to start production of hoses with a local supplier from June 2012
Nichirin signed the joint venture agreement with PT. Mitrametal Perkasa, a local corporation (Mitra), in June 2011. Mitra will subscribe for additional shares in Nichirin's subsidiary PT. Nichirin Indonesia (West Java State). PT. Nichirin Indonesia will operate as the joint venture company of Nichirin (which takes a 51% stake) and Mitra. The subsidiary plans to produce plumbing parts such as hoses starting June 2012. |
NOTE: Nichirin has provided Mitra with technical assistance in Indonesia. To respond to customer needs properly and quickly, Nichirin will start joint production.
NSK to strengthen a machining capacity of bearing members for onboard motors
NSK will invest a total of 60 billion yen at maximum in emerging markets including China and Southeast Asian countries for the next three years from 2011 to 2013 (up by 70% over the investment for three years from 2008 to 2010) to prepare local production and sales structures. In Indonesia, NSK will strengthen the machining capacity of its members before assembling bearings to respond to expanding demand for onboard motors and other products. |
Nippon Piston Ring to transfer facilities from Japan to increase monthly production from 900K to 1,200K cast iron piston rings
Nippon Piston Ring will increase monthly production from 900K to 1,200K cast iron piston rings at its subsidiary PT. NPR Manufacturing Indonesia according to the news report in June 2010. Nippon Piston Ring will transfer the existing facilities of Ichinoseki Plant of Nippon Piston Iwate to Indonesia. Total expense for the transfer will be several dozen millions yen. Nippon Piston Ring will prepare additional production capabilities by minimizing investment. |
HI-LEX to increase a monthly production capacity by 30% to 3.8 million control cables
To build the second plant in West Java State, HI-LEX invested about 240 million yen in its subsidiary PT. HI-LEX Indonesia, which produces control cables. The plant started running in June 2011. HI-LEX transferred the post-process for two-wheeler cables from the first plant to the second plant. The first plant will be engaged in the pre-process for two-wheeler cables and the whole process for four-wheeler cables. The monthly production capacities as of August 2010 were 1.95 million cables for two-wheelers and 0.95 million cables for four-wheelers. HI-LEX plans to increase the capacities to 2.55 million cables for two wheelers and 1.25 million cables for four-wheelers in total of both plants in 2013. It will supply the products to Japanese OEMs, of which production is expanding in Indonesia and ASEAN countries. |
Hitachi Powdered Metals to produce powder metallurgy products at the new company starting 2012
Hitachi Powdered Metals fully funded the establishment of PT. Hitachi Powdered Metals Indonesia in West Java State in November 2010. The supplier will build a new plant to produce powder metallurgy products of engine parts such as valve guides and sprockets, bearings and auxiliaries from April 2012. Hitachi Powdered Metals has supplied these products to the Indonesian market from the plants in Thailand and Singapore. It will aim for a 40% share or greater in the Indonesian market of powder metallurgy products for four- and two-wheelers by FY2015. |
Bridgestone to increase a daily production capacity by 10% to 29.4K radial tires
Bridgestone will invest about 4.3 billion yen in its subsidiary PT. Bridgestone Tyre Indonesia to increase the production capacity of the West Java Plant by 10% by June 2012. The Japanese tire supplier already increased the daily production capacity by about 8,400 radial tires for passenger cars and light trucks to 26,400 by the end of 2010. It will add 3,000 more tires to the production capacity to 29,400 radial tires. The plant supplies the products to North America and Europe in addition to Indonesia to respond to worldwide growing demand for tires. |
Press Kogyo produces construction equipment cabins at its first plant in Indonesia starting 2012
In October 2011, Press Kogyo and Marubeni-Itochu Steel will jointly establish PT. PK Manufacturing Indonesia in West Java State, in which Press Kogyo takes a 65% stake. At the joint venture, Press Kogyo will begin with producing 30K cabins for construction equipment per year from September 2012 to respond to growing demand in Indonesia and neighboring regions. It also plans to produce parts for commercial vehicles in the future. Total investment will be about 1.6 billion yen. Press Kogyo is going to have the first plant in Indonesia. |
Furukawa Electric to commercially produce aluminum alloy wire harnesses in Indonesia and Vietnam
Furukawa Electric will commercially produce aluminum alloy wire harnesses within FY2011 in Asian countries. Furukawa Electric will produce intermediary materials at Tembaga Mulia Semanan, a joint venture in Indonesia established by Furukawa Electric, Toyoda Tsusho and a local corporation. The materials will be fabricated into wire harnesses at the plant in Vietnam. The joint venture has a monthly production capacity of six tons. The products will be sold mainly in Japan. Aluminum wire harnesses are about 40% lighter than copper harnesses. Demand is expected to come from Japanese OEMs, which accelerate lightening vehicle bodies. |
Mitsuboshi Belting to increase production of transmission belts by 30% from the beginning of 2011
Mitsuboshi Belting increased the total production capacities of three plants in Indonesia and Thailand by around 30% from the beginning of 2011 to respond to expanding production of four- and two-wheelers in the ASEAN region. It invested about a total of 800 million yen. In Indonesia, Mitsuboshi Belting introduced new facilities in PT. Seiwa Indonesia in West Java State and PT. Mitsuboshi Belting Indonesia in Tangerang City near Jakarta to increase production of timing belts and V-belts for auxiliaries. |
Yasunaga builds out the plant to increase a monthly production capacity by 60K to 560K connecting rods
Yasunaga built out the plant of its subsidiary PT. Yasunaga Indonesia in West Java State and added one more production line of connecting rods for engine parts (total 90 K rods). It spent about 200 million yen for this purpose. It has run the added line since April 2011; thereby, Yasunaga's monthly production capacity was expanded to 560K from 500K connecting rods. Through the increase of the production capacity, its sales are expected to be up by 400 million yen per month. Also the increased capacity allows Yasunaga to keep up with expanding production by its customers including Toyota, Mitsubishi, Daihatsu, UD Trucks etc. |
Univance builds two more plant buildings in the manual transmission parts plant
Univance expanded the plant of PT. Univance Indonesia, which manufactures various parts including manual transmission parts in West Java State, by the end of 2010. It built two more plant buildings, so that the building area has doubled to 8,400 square meters. Univance attempts to expand sales in the ASEAN region where demand is expected to grow, and to improve cost competitiveness by shifting production to emerging countries. |
UNIPRES to produce body frame parts for 50K Nissan vehicles per year at the new company
UNIPRES will fully fund the establishment of PT. Unipres Indonesia in West Java in July 2011. It will spend 2.8 billion yen to build a new plant to produce body frame parts for 50,000 vehicles per year starting June 2012. It plans to supply the parts to Nissan and other Japanese OEMs, which are expanding their production in Indonesia. It aims for FY2014 sales of 2.5 billion yen in Indonesia. This is the first time for UNIPRES to establish a plant in Indonesia. |
Riken to increase monthly production capacity of cast parts such as brake drums by 70% to 5K tons
Riken will invest about 3.7 billion yen in its joint venture PT. Pakarti Riken Indonesia in East Java State to increase the production capacity. A monthly production capacity of cast parts such as brake drums will be increased by about 70% to the 5,000-ton scale by 2013. Riken will respond to growing production by Japanese OEMs in Indonesia and neighboring countries. It aims to expand trade of parts, especially those for low-price vehicles. |
Source: Parts suppliers' press releases and various media reports