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5. Ahresty Corporation Business Report FY ended Mar. 2019

Ahresty Corporation Business Report FY ended Mar. 2019

Die Casting Business Overview

Japan:

-Won fewer product orders from some customers.
Profit fell 40.3% year-over-year (y/y) because of higher fuel costs and increased depreciation expenses.

North America:

-In the USA, product-content ratio increased for small-sized trucks and SUVs, thanks to more product orders. Product orders remained basically unchanged from those of the previous year because the production of some products ended the previous year.
-Product orders for new products, which were won by the production plant in Mexico,increased while product orders fell in North America because of lower new-car sales by OEMs. 
-Sales fell 0.3% y/y and profit fell 57.5% y/y.

Asia:

In China, new-car sales by OEMS fell year-over-year.
More product orders were won for new products manufactureｄin India, where new-car sales started to become sluggish, after having been strong.
Sales fell 1.5% y/y and profit fell 22.6% y/y.

Investment in Japan

Expanding Factory at Ahresty Pretech
-Ahresty Corporation (Ahresty) announced that it will expand Toyohashi factory of Ahresty Pretech Corporation, its subsidiary’s factory. Ahresty will strengthen its production capacity corresponding to increased demand of engine parts and new demand of electric parts. (From a press release on April 3, 2019)

Increasing Production Capacity
-Ahresty Corporation (Ahresty) will boost its production capacity of die-cast parts for power control units. A new building for processing of parts will be built within the Toyohashi Plant, Aichi, of the company’s manufacturing subsidiary Ahresty Pretech Corporation. The investment amount excluding equipment will be JPY 600 million. At the new building, cases for inverters and converters will be produced to deal with an increase in orders from Toyota’s major suppliers. The new 4,575-square-meter building will be a fourth of the processing buildings at Ahresty Pretech Toyohashi Plant. Construction work is scheduled to begin in September 2019. The number of equipment to be introduced to the building will be determined in consideration of the order volume. Ahresty will also build a processing building and a welding building at another manufacturing subsidiary in Yamagata, northeastern Japan, investing approximately JPY 2 billion, to strengthen its parts manufacturing capabilities and win more orders. (From an article in the Nikkan Jidosha Shimbun on December 3, 2018)

Increasing Production Capacity at Yamagata Factory
-Ahresty Corporation announced that its automotive die-cast production subsidiary, Ahresty Yamagata Corporation (Ahresty Yamagata), will expand production capacity. Ahresty Yamagata will invest about JPY 2 billion to build new processing and melting process buildings in 2019, as well as to install two 800-ton clamping force die casting machines and 20 processing machines. The company will strengthen its production capacities for inverters, boost converter cases, and other electrified vehicle parts, which are increasingly in demand. Ahresty Yamagata, which mainly produces engine parts, has 18 die casting machines, and 60 processing machines. (From an article in the Nikkan Jidosha Shimbun on June 1, 2018)

Investment outside Japan

<USA>
Enhancing Operations to Produce Die-cast Parts for Electric Vehicles
-Ahresty Corporation (Ahresty) will establish a system to produce die-cast parts for electrified vehicles outside Japan. The company’s subsidiary, Ahresty Wilmington Corporation (Ohio, the U.S.), will introduce electrified vehicle parts processing machines by the end of March 2019 in accordance with the state of orders. It will start mass production by the end of March 2021. Ahresty will strengthen its sales activities to acquire new orders from Japanese automakers, and cultivate the electrified vehicle parts (such as motor housings and inverter cases) business as its second main profit source after the engine and transmission parts business. In the U.S., Zero Emission Vehicle regulations will become more stringent through 2025, and the size of plug-in hybrid and electrified vehicle markets are expected to expand. Ahresty will strengthen its sales activities and respond to the demand. (From an article in the Nikkan Jidosha Shimbun August 28, 2018)

Facilities completed in the FY ended in Mar. 2019 (Die-cast business)

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