- R&D expenses for 2005 : 465million yen
- Number of researchers : 54(1.6% of the total number of employees)

Recent Developments of automotive products
窶｢Mechanical seals division
The Company worked on developing lower cost seals for engine coolant circulation pumps. It also developed highly functional materials for seals used in air compressor shafts, based on a study to further reduce leakage of current refrigerant. Currently, the Company is developing seals for the next-generation refrigerant.

窶｢Special valves division
The Company is working on developing special valves for the next generation of in-vehicle compressors, transmissions, and suspensions; as well as engines that comply with emission regulations.


Technological tie-up agreements (as of March 2007)
Licensing In

Company		Outline	Signed date
Goodrich Corp.	USA	Technology on diaphragm coupling	10years
		Technology on stainless steel coupling	20years

Licensing Out

Company		Outline	Period	Signed date
Baroque Engineering Pvt., Ltd.	India	Technology on lead valves that comply with emission control regulations	Oct.2002-Sep.2007	5years

Distributing Agent Contract (as of March 2007)

Company		Outline	Period	Signed date
NOK	Japan	Distributing agent for the company's products (mechanical seals for automobiles, electrical equipment and construction equipment, etc.)	Three years (Thereafter to be automatically renewed every year)	30.Sep. 1982

Consolidated amount of capital investment for FY2006 was 5,261 million yen.

Capital Investment projects
Mechanical Seal Division
Capital investments were spent to increase the production capacity of automotive mechanical seals (581 million JPY);
-791 million JPY in Eagle Industry (Wuxi) Co., Ltd.
-245 million JPY in Eagle Burgmann Japan
-243 million JPY in Shimane Eagle Co., Ltd.
-138 million JPY in NEK Co., Ltd.

Special Valves Division
- To strengthen production capacity of control valves for automotive compressors: 1,091 million JPY
-To strengthen production capacity of mechatronic valves: 226 million JPY
(Affiliated companies)
-486 million JPY in Eagle Industry (Wuxi) Co., Ltd.
-172 million JPY in Eagle Industry (Thailand) Co., Ltd.

Equipment to be introduced (in million yen)

Facility (Location)	Equipment to be introduced	Estimated amount of investment	Period of the project
			from	to
Okayama Plant (Takahashi, City, Okayama, Japan)	Production equipment for mechanical seals	1,256	Apr. 2007	Mar. 2008
	Production equipment for control valves etc.	616	Apr. 2007	Mar. 2008
	Buildings and other	267	Apr. 2007	Mar. 2008
Saitama Plant (Sakado City, Saitama, Japan)	Production equipment for mechanical seals	309	Apr. 2007	Mar. 2008
	Buildings and other	220	Apr. 2007	Mar. 2008
Eagle Burgmann Co., Ltd	Production equipment for mechanical seals	196	Apr. 2007	Mar. 2008
	Production equipment for bellows etc.	382	Apr. 2007	Mar. 2008
Shimane Eagle Co., Ltd. (Kakeya machi, Shimane, Japan)	Production equipment for mechanical seals	264	Apr. 2007	Mar. 2008
Okayama Eagle Co., Ltd. (Ukan-cho, Okayama, Japan)	Production equipment for mechanical seals	319	Apr. 2007	Mar. 2008
	Production equipment for control valves	142
NEK Co., Ltd. (Korea)	Production equipment for mechanical seals	472	Apr. 2007	Mar. 2008
Eagle Industry (Taiwan) Co., Ltd. (Taiwan)	Production equipment for reed valves	35	Apr. 2007	Mar. 2008
	Production equipment for other products	65