Japanese suppliers in ASEAN countries (2) - Indonesia, Vietnam, Malaysia and others

Suppliers build new plants and expand production capacities in growing Indonesian market

2011/07/13

Summary

 This Report features recent activities by Japanese parts suppliers in every ASEAN country except Thailand for one year up to June 2011.

 In Indonesia, finished vehicle manufacturers pushed the plans to increase production as demand grows. In line with their movements, Japanese suppliers are building new factories and expanding production capacities in the midst of the growing Indonesian market to lay the foundations for a production center as well as an export hub to ASEAN countries, India and other countries.

 They were also active in Vietnam in building new plants and expanding their production capacities to gain a foothold for production targeting the Vietnamese market as well as an export to Japan, US, Europe and ASEAN countries.

 In contrast, Japanese suppliers' activities in other countries such as Malaysia, Singapore and the Philippines were limited to expanding tire production capacity and factory construction by tire and synthetic rubber suppliers.

 Recent activities by Japanese parts suppliers in Thailand are reported in "Japanese suppliers in ASEAN countries (1) - Thailand" posted on July 7, 2011.



In Indonesia, Koito, JTEKT, TAKATA, Tokai Rika and UNIPRES to build new factories

 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

(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

 



Vietnam: Keihin and Fukoku to build new plants, while Akiba Die Casting and Sumitomo Electric to expand production capacities

 In Vietnam, many Japanese suppliers are becoming active in building plants and expanding production capacities not only for domestic business in Vietnam but for export to Japan, US, Europe and ASEAN countries.

 Keihin and Fukoku will build their new plants. At their respective new plants, Keihin will manufacture mechanical parts such as carburetors, and Fukoku will fabricate brake parts and sealing parts. On the other hand, Akiba Die Casting and Nidec Tosok will increase production of die-cast parts, and Sumitomo Electric production of wire harnesses.

In Vietnam, Japanese suppliers to build new plants and strengthen existing plants

(Activities for about one year until the middle of June 2011)
Akiba Die Casting produces die-cast parts for Nissan March with Nidec Tosok
 Akiba Die Casting began operation of NIDEC Tosok Akiba (Vietnam) in Ho Chi Minh City, the joint venture plant with Nidec Tosok, in July 2010. Akiba Die Casting takes a 15% stake and Nidec Tosok 85%. The joint venture plant supplies aluminum die-cast products to the Vietnam Plant Nidec Tosok, and also produces zinc die-cast products for other companies.
 Akiba Die Casting increased four-fold the monthly production capacity of NIDEC Tosok Akiba (Vietnam) to 80K transmission parts by spring 2011. It responded to the launch of the Nissan March in Thailand, India, China, Mexico and Indonesia. These parts are mainly mounted on this model. The capital investment is expected to be several hundred million yen.
Kuroda Electric to buy out a Vietnamese parts supplier to expand Southeast Asian and Indian businesses
 To obtain a controlling interest of Vietnamese parts supplier Boramtek (Dong Nai Province), Kuroda Electric agreed with its parent company HiVAT Global headquartered in Korea to acquire a 51% stake in the local supplier (according to the announcement in May 2011). It spent six million dollars for the equity stake. Boramtek will produce onboard parts including keysets, switches etc. and industrial motors, and will have business with companies in Vietnam, Europe, Japan and Korea. After the acquisition of Boramtek, Kuroda Electric will make it a production center for Vietnam, Southeast Asia and India to expand its business.
Keihin to produce two-wheeler and four-wheeler parts at the new plant from 2012
 Keihin established Keihin Vietnam near Hanoi in June 2011 (fully funded by its Asian management company Keihin Asia Bangkok). Keihin will build a new plant to produce mechanical parts such as carburetors for two- and four-wheelers. It plans to start operation of the new plant within 2012. This will ensure Keihin can respond to increasing demand from its customers, mostly from Honda. For the Japanese supplier, it is the first time to have a plant in Vietnam. Keihin will locally produce the parts which have been supplied to Vietnam from Thailand.
Sumitomo Electric to build a new plant building to increase production of wire harnesses
 Sumitomo Electric will build the fourth plant in its subsidiary Sumidenso Vietnam in Hai Duong Province of the northern part of Vietnam. It will invest around 2.0 billion yen. Sumitomo Electric will start operation of the plant by July 2011 to produce wire harnesses. In addition to transferring the production from Japan, the new plant will receive orders from the growing market such as Southeast Asia and North America.
Sumitomo Electric and Sumitomo Wiring Systems establish a subsidiary to produce 50 million connectors per month
 Sumitomo Electric and Sumitomo Wiring Systems established a subsidiary SEWS-Components Vietnam in Hung Yen Province in October 2010, which produces connectors, components for wire harnesses. Sumitomo Wiring Systems (a consolidated subsidiary of Sumitomo Electric) fully funded the establishment. This is the first plant for both companies to produce connectors in Vietnam. Both companies will build a new plant, which will go live in October 2011. The plant will have a monthly production capacity of 50 million units in FY2013. The FY2012 sales target is set at 14 million dollars. Both companies will promote local production of connectors from multiple perspectives: stable supply to group companies which produce wire harnesses, production cost reduction, avoidance of foreign currency risk, etc.
Dainichi Seika adds a production line of function resin to increase an annual production capacity by 13% to 27K 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 Vietnam, it will add one production line at Dainichi Color Vietnam in Bac Ninh Prefecture. The annual production will be up 13% to 27K tons.
Toyota Giken commences start-to-finish production of lighting accessories to increase five-fold monthly production capacity to 100K units
 Toyota Giken has commenced start-to-finish production of lighting accessories at the plant of Toyoda Giken Vietnam in Hanoi since September 2010. Before then, Japan was engaged in the pre-process and Vietnam in the post-process. Toyota Giken introduced three press machines of 45 to 180 tons and peripheral equipment in the Vietnamese plant, and added the progressive die press process line of the pre-process. Because Toyota Giken bought used machines, the investment hovered at around six million yen. In 2011, Toyota Giken will increase five-fold the monthly production capacity as of September 2010 to 100K units in 2011.
Nidec Tosok to triple R&D personnel to one hundred
 Nidec Tosok will triple the current number of regular R&D personnel to one hundred in NIDEC TOSOK (Vietnam) in Ho Chi Minh City within 2011 to strengthen the abilities to respond to demand in emerging countries according to the news report in May 2011. Nidec Tosok will develop new products such as EV motors and inverters in Japan, and make developments, including cost reduction efforts, for current products such as CVT control valves, pneumatic and hydraulic control valves in overseas R&D centers in order to slash costs for design and development operations.
Fukoku establishes a new company to produce brake and sealing parts
 Fukoku fully funded the establishment of Fukoku Vietnam in Hanoi City in March 2011. It will build a new plant and start production of brake and sealing parts within 2011. Fukoku intends to cover the shortage of the production capacity of the Chinese plant which fabricates the products for the Japanese and US markets, and to respond to requests for local production by customers which have expanded their production into Vietnam. The plant site area is 10,578 square meters and the total floor area is 6,075 square meters. It expects to have FY2011 sales of about 129 million yen and FY2015 sales of about 647 million yen.
 Fukoku Vietnam increased stocks to finance 145 million yen in May 2011. Fukoku Vietnam acquired the land-use rights for the plant site next to the existing plant, and as a result, the plant site was expanded by 80%. It will prepare itself for a future increase of brake parts production.
Furukawa Electric to commercially produce aluminum alloy wire harnesses in Indonesia and Vietnam
 Furukawa Electric will commercially produce aluminum alloy wire harnesses at plants in Asia within FY2011. Furukawa Electric will make intermediate materials from aluminum alloy at the Indonesian plant, and fabricate wire harnesses at Furukawa Automotive Parts in Vietnam (a subsidiary fully funded by Furukawa Electric's subsidiary Furukawa AS). The monthly production capacity will be six tons, most of which will be exported to Japan. Aluminum wire harnesses are 40% lighter than copper wire harnesses. Demand is expected to come from OEMs which accelerate lightening auto bodies.
Yokowo to produce wire harnesses at a new plant starting 2012, which will be the second flagship plant following China
 Yokowo will fully fund the establishment of Yokowo Vietnam in Ha Nam Province near Hanoi in July 2011. It will build a new plant, which will start running in August 2012. The plant site will be 36,000 square meters and the building area will be10,000 square meters. The new plant will be engaged in production of wire harness products, which have been produced at the Chinese plant. In addition, it will expand the production items, planning to supply them not only to ASEAN countries but also to US, Europe and Japan. The investment will amount to 800 million to one billion yen. The Japanese supplier plans to make the Vietnamese plant the second flagship plant comparable to its Chinese plant.

Source: Parts suppliers' press releases and various media reports

 



In Malaysia, Singapore and Philippines, Toyo Tire & Rubber and Yokohama Rubber to strengthen their production capacities

 In other ASEAN countries tire and synthetic rubber suppliers are also active. Toyo Tire & Rubber in Malaysia and Yokohama Rubber in the Philippines will strengthen their tire production capacities. In Singapore, AsahiKASEI and Sumitomo Chemical, which manufacture synthetic rubber for low fuel consumption tires, will build new plants, respectively.

Recent activities by Japanese OEMs in Malaysia, Singapore and Philippines

(Activities for about one year until the middle of June 2011)

Malaysia

Osaka Vacuum Chemical establishes a new company and builds a new plant of auto parts plating plant
 Osaka Vacuum Chemical fully funded the establishment of Osaka Vacuum Chemical (Malaysia) in Shan Alam City in the suburb of Kuala Lumpur in April 2010. The Japanese supplier built a new auto parts plating plant. The plant has been running since October 2010. It has a total floor area of about 3,000 square meters. Osaka Vacuum Chemical will respond to movements to expand production in Southeast Asia by its customer Japanese parts suppliers. It invested 300 million to 400 million yen. Osaka Vacuum aims for 2013 sales of 1.5 billion to 2.0 billion yen in Malaysia. This is the first time for the supplier to have overseas production.
Calsonic Kansei to expand production of air conditioner compressors for compact cars
 Calsonic Kansei will expand production of air conditioner compressors (fixed displacement type) for compact cars. The annual production capacity as of May 2011 is 2.5 million units in total consisting of 1.0 million units in Japan and 1.5 million units of the Malaysian and Thailand plants combined. Calsonic Kansei plans to increase 1.6-fold the capacity to 4.0 million units by FY2013. The Japanese supplier will also strengthen the production facilities of Calsonic Kansei (Malaysia) in Johor State, its Malaysian plant, to expand the annual production capacity.
Toyo Tire & Rubber to strengthen annual production capabilities by 50% to 4.5 million tires at the acquired local supplier
 Toyo Tire & Rubber acquired all shares of the second largest tire supplier in Malaysia, Silverstone Berhad for about 12.5 billion yen and made it as its subsidiary in December 2010. Toyo Tire & Rubber will transfer the facilities from both Sendai and Kuwana plants in Japan to the subsidiary's plant (in Taiping City) to start production of Toyo Rubber's TOYO and NITTO brand products. The plant will continue to produce Silverstone brand tires as well.
 According to the five-year medium term business plan unveiled in May 2011, Toyo Tire & Rubber will increase the annual production capacity of the Taiping Plant by about 50% from the current level within the initial one or two years to 4.5 million tires. It plans to build a new plant, or merge or take over a plant to ensure the annual production capabilities of eight million tires in the future.
NSK to enhance processing capacity for bearing members for onboard motors
 NSK will invest at most 60 billion yen in emerging markets such as China and Southeast Asian countries for three years from FY2011 to FY2013 (up by 70% over the FY2008-FY2010 level) to prepare local production and sales structures. In Malaysia, it will enhance the capacity of processing members before assembling bearings in NSK Micro Precision (Malaysia) to respond to growing demand for onboard motors and other products.

Singapore

AsahiKASEI to build a new plant with an annual production capacity of 50,000 tons of synthetic rubber for low fuel consumption tires
 AsahiKASEI will build a new plant to produce synthetic rubber for low fuel consumption tires in Jurong Island of Singapore according to the announcement in October 2010. It plans to start operation of the new plant in June 2013. The plant will produce 50,000 tons of S-SBR (Solution-polymerized styrene-butadiene rubber) per year. In addition, AsahiKASEI will start building another plant for the second stage of construction, which will produce 50,000 tons of S-SBR in the first half of 2015. With these measures, AsahiKASEI will respond to increasing production of the automobiles and tires in Asian countries. This is the first time for the Japanese supplier to have overseas production of synthetic rubber for tires.
Sumitomo Chemical to build a new plant with an annual production capacity of 40,000 tons of synthetic rubber for low fuel consumption tires
 Sumitomo Chemical will build a new S-SBR (Solution-polymerized styrene-butadiene rubber) production plant for low fuel consumption tires in the Jurong Island of Singapore according to the announcement in November 2010. It plans to start commercial operations starting in the fourth quarter of 2013. The annual production capacity will be 40,000 tons. Under the circumstances that fuel consumption regulations are tightened worldwide, demand for S-SBR is rapidly growing as material for low fuel consumption tires. Particularly in Asia, where the tire suppliers are advancing the plan to build out their plants, Sumitomo Chemical will respond to request for expanding the abilities to supply S-SBR.

Philippines

FALTEC closes the seat cover plant for Nissan
 FALTEC closed Fas Cebu Corporation in March 2011, which produced seat covers in the Cebu Island of the Philippines. The plant manufactures lace seat covers mainly for Nissan vehicles, and exports nearly 100% of them to Japan, and the odd batch to North American plants. Following the changes of specifications of seats, demand for seat covers themselves declined. After closing the plant, FALTEC will liquidate Fas Cebu.
Yokohama Rubber to build a new plant building to increase annual production capacity 2.4-fold to 17 million tires in 2017
 Yokohama Rubber will lease the land of 300,000 square meters next to Yokohama Tire Philippines to build a new plant. It had a ground-breaking ceremony in May 2011. Yokohama Rubber has an annual production capacity of seven million tires. It will increase the capacity to 10 million tires in 2013, 13 million in 2014 and 17 million in 2017. The investment will amount to 50 billion yen. The plant site area will be 460,000 square meters, up 2.8-fold from the current area. The existing plant produces tires for passenger cars and SUVs, and export most of them to Europe, North America and ASEAN countries. Tires to be newly built will be exported mainly to North American markets.

Source: Parts suppliers' press releases and various media reports

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