F.C.C. CO., LTD. Business Report FY 2007
Business Highlights
In million JPY | FY2007 | FY2006 | Rate of Change (%) | Factors |
Overall | ||||
Sales | 133,747 | 127,905 | 4.6 | - |
Operating income | 14,594 | 14,443 | 1.0 | - |
Ordinary income | 15,289 | 15,430 | (0.9) | Ordinary income decreased, as the Company suffered a non-operating loss from negative currency translation. |
Net income | 4,876 | 8,454 | (42.3) | Net income decreased due to increased costs incurred for corporate taxes accountable in previous years. |
Vehicle Clutch Division | ||||
Sales | 53,632 | 52,171 | 2.8 | Even though domestic sales to the Company's main customer, Honda, were sluggish, its overall sales increased, thanks to strong sales of AT clutches in the U.S. and Indonesia. |
Operating income | 3,219 | 4,108 | (21.6) | Income declined due to costs incurred for launching a new subsidiary in China. |
Recent Developments in Japan
In May 2007, the Company announced an acquisition
of a site for a new factory in Suzuka city, Mie prefecture. The Company
will construct a new plant to manufacture clutch parts for motorcycles
and automobiles, and move its existing motorcycle parts manufacturing
plant in Suzuka city to consolidate with the new facility.
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details
Challenges for FY2008
- The Company will provide
production support to
China FCC Foshan Co.,
Ltd., which was established in January 2006 and started
mass-producing automatic transmission (AT) clutches
in January 2008.
-The Company will
migrate the current production
operations at its plant in Suzuka to its
new
plant in
Suzuka.
R&D
The Company has a Technology Laboratory and Production Technology Center in Hamamatsu, Shizuoka Prefecture.
R&D Expenditure
(in billion JPY) | FY2007 | FY2006 | FY2005 |
Overall | 3,316 | 3,102 | 3,023 |
Automobile clutches |
1,816 | 1,772 | 1,754 |
R&D Activities
-The company plans to carry out R&D activities on clutches, developing
them as component parts. Included are activities, starting from basic
research through to manufacturing technology on friction materials for
two- and four-wheel vehicles and for general purpose machines.
-The Company will develop new products by leveraging the technology it
has accumulated over the years through manufacturing clutches and friction
materials, and through improving existing products.
-The Company, working on consignment under the Japan Science and Technology
Agency, is conducting joint research activities with Kyushu University
in the field of paper catalysts, developing "porous fiber catalytic
sheets". It is also developing "emission purification paper
catalysts" in which paper catalyst technology is being applied. The
Company aims to offer a new motorcycle emission processing device, which
is cost-effective and highly efficient, by applying its paper catalyst
technology.
Automobile clutches
-R&D activities were conducted on clutches for automatic transmissions
including CVTs, lock-up clutches, and friction material for clutches used
in manual transmissions.
-R&D activities were conducted on clutches to heighten their product
appeal, making them low-friction, light-weight, and compact.
-R&D activities were conducted on elemental technology involved with
the configuration of grooves in friction plates. The Company was doing
this by adopting production technology, i.e., the segment method of production,
used in producing friction plates . The company also is working on developing
technology for making multistage clutches for automatic-transmission vehicles,
and technology that enables clutches to be made lighter in weight and
more compact; as well as conducting system research for improving the
level of efficiency of its development activities.
Major achievements in FY2007:
-The Company developed lock-up clutches that create higher fuel efficiency
in compact CVT units..
-The Company used new friction materials to meet the needs for improved
durability.
-The Company expanded the application of AT friction plates based on the
new-generation segment method to meet the needs for low-friction products.
-The Company began mass-production of center differential friction panels
for new customers.
-The Company used more components produced locally in countries where
it operates for new products, which are manufactured at the most
appropriate production sites to meet the needs of the growing market outside
Japan.
Investment Activities
Capital investment in FY2007 was 15,956 million yen.
Major Capital Investment Activities
Region | Name of Company | (in billion JPY) | Details/Activities |
Japan | FCC Co., Ltd. | 6,099 | Land acquisition, plant construction, production facilities, expansion of production capacity |
North America | FCC (Indiana) Mfg., Llc. | 1,547 | Start of in-house production, new product production, dies |
FCC (Adams), LLC. | 837 | Plant construction, production facilities | |
Asia | China FCC Foshan Co., Ltd. |
2,724 | Plant construction, production facilities |
FCC (Thailand) Co., Ltd. |
1,671 | Plant construction, R&D facilities, dies | |
FCC (Vietnam) Co., Ltd. | 697 | Expansion of production capacity, start of in-house production | |
PT. FCC Indonesia | 459 | Start of in-house production | |
Others | FCC Do Brasil Ltda. | 903 | Expansion of production capacity, new product production, dies |
Domestic Investment Activities
In May 2007, the Company announced an acquisition of a site for a new factory in Suzuka city, Mie prefecture. The Company will construct a new plant to manufacture clutch parts for motorcycles and automobiles, and move its existing motorcycle parts manufacturing plant in Suzuka city to consolidate with the new facility. The supplier will acquire a 50,477-square-meter site in May, begin the plant construction in August and launch the operation in February 2008. The new plant will have a floor space of 22,535 square meters, and the company invests 5.2 billion yen in the land, facility and equipment. With a workforce of 380, the new plant will produce paper linings for motorcycles and automobiles as well as multi disc crutches for motorcycles. (From a story in the Nikkan Jidosha Shimbun on May. 16, 2007)
< New facilities >
Name (Location) |
Business segment | Type of facility | Planned
total investment (million yen) |
Start | Planned completion |
F.C.C Co., Ltd | |||||
Suzuka Plant (Mie, Japan) |
Motorcycle clutches Automobile clutches Others |
Building, production facility for clutches | 1,788 | 2008.04 | 2009.03 |
Ryuyo Plant (Shizuoka, Japan) |
Motorcycle clutches Automobile clutches Others |
Production facility for clutches | 848 | 2008.04 | 2009.03 |
Hamakita Plant (Shizuoka, Japan) |
Motorcycle clutches Automobile clutches |
Production facility for clutches | 387 | 2008.04 | 2009.03 |
Hosoe Plant (Shizuoka, Japan) |
Automobile clutches Others |
Production facility for clutches | 234 | 2008.04 | 2009.03 |
Subsidiaries | |||||
FCC (Thailand) Co., Ltd. (Bangkok, Thailand) |
Motorcycle clutches Automobile clutches |
Building, production facility for clutches | 1,603 | 2008.01 | 2008.12 |
FCC Adams , LLC.(Indiana, USA) | Motorcycle clutches Automobile clutches |
Building, production facility for clutches | 1,408 | 2008.04 | 2009.03 |
FCC (Indiana) Mfg., L.L.C. (Indiana, USA) |
Automobile clutches | Production facility for clutches | 1,139 | 2008.04 | 2009.03 |
FCC Rico Ltd. (Haryana, India) |
Motorcycle clutches Automobile clutches |
Building, production facility for clutches | 933 | 2008.04 | 2009.03 |
China FCC Foshan Co., Ltd. (Guangdong, China) |
Automobile clutches | Building, production facility for clutches | 852 | 2008.01 | 2008.12 |