F.C.C. CO., LTD. Business Report FY 2008
Business Highlights
Financial Overview | (In million yen) |
FY2008 | FY2007 | Rate of Change (%) | Factors | |
Overall | ||||
Sales | 121,279 | 133,747 | (9.3) | Sales and income decreased due to the sharp economic slowdown caused by the global financial crisis and a strong yen, as well as soaring oil and materials prices. |
Operating income | 8,077 | 14,594 | (44.7) | |
Ordinary income | 7,867 | 15,289 | (48.5) | |
Net income | 3,882 | 4,876 | (20.4) | |
Vehicle Clutch Division | ||||
Sales | 46,273 | 53,632 | (13.7) | While the Chinese subsidiary started mass production and made some contribution to sales, the number of orders received in Japan and North America decreased due to production changes by major customers. This combined with foreign exchange loss resulted in decline in sales and income. |
Operating income | (143) | 3,219 | - |
Recent Development by Region (Fiscal year ended March 2009: Automotive
Clutch Division)
<Japan>
Sales volume decreased as the Company's Chinese subsidiary launched mass
production of automatic car clutches and changed in production by major
customers lead to a sharp decrease in orders.
<North America>
As a result, the Company's sales and income decreased. Due to the economic slowdown induced in automotive sales and a shift toward demand for smaller vehicles, sales and income decreased.
<Asia>
While sales increased as a result of the mass production launch of automatic
car clutches at the Company's Chinese subsidiary, income decreased due
to an increase in depreciation costs and foreign exchange losses.
Contracts received
-FCC Co., Ltd. has recently won a contract with MAGNA Powertrain AG&Co
AG, a subsidiary of Magna International, to supply main clutch friction
discs and clutch plates for 4WD vehicle hydraulic center differentials
with 2WD-4WD change-over control function. Newly-developed friction materials
have been incorporated in the ordered clutch friction discs. Under the
contract, around 2 million of clutch friction discs and clutch plates
will be shipped out annually. (From a press release on Jul 24, 2008)
-FCC(North Carolina), LLC., a part of FCC Co., Ltd., has been awarded
a contract from BorgWarner TorqTransfer Systems, a subsidiary of BorgWarner
Inc., to supply clutch friction discs and clutch plates for 4WD vehicle
electromagnetic center differentials with 2WD-4WD change-over control
function. Newly-developed friction materials have been incorporated in
the ordered clutch friction discs. Under the contract, around 2 million
of clutch friction discs and clutch plates will be delivered annually.
(From a press release on Aug 5, 2008)
R&D
The Company has a Technology Laboratory and Production Technology Center in Hamamatsu, Shizuoka Prefecture.
R&D Expenditure | (In million yen) |
FY2008 | FY2007 | FY2006 | |
Overall | 3,253 | 3,316 | 3,102 |
Automobile clutches |
1,779 | 1,816 | 1,772 |
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.
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 (Fiscal year ended March 2009)
- A new friction material and heat treatment concept for the CVT starting
clutch were applied to a new model.
- A lockup clutch with a low spring constant and wide-angle damper for
diesel vehicles with medium-sized engine displacement was applied to a
new model. Low-friction friction-board, developed to improve fuel efficiency,
was applied to a wider range of models.
-Locally sourced components for manual car clutches produced overseas
were used in a wider range of models.
Investment Activities
Capital investment in FY2008 was 10,870 million yen.
Major Capital Investment Activities
Region | Name of Company | (in billion JPY) | Details/Activities |
Japan | FCC Co., Ltd. | 772 | New product production, dies, start of in-house production |
North America | FCC (Indiana) Mfg., Llc. | 194 | New product production, streamlining |
FCC (Adams), LLC. | 359 | New product production, expansion of production capacity, dies | |
Asia | China FCC Foshan Co., Ltd. |
1,003 | Production facilities |
FCC (Thailand) Co., Ltd. |
661 | Development and production facilities, start of in-house production | |
FCC (Vietnam) Co., Ltd. | 201 | dies, quality improvement | |
PT. FCC Indonesia | 423 | Expansion of production capacity, streamlining | |
Others | FCC Do Brasil Ltda. | 148 | Dies, new product production, expansion of production capacity |
Domestic Investment Activities
The company has now completed transfer of production bases within Suzuka City and consolidation of production lines at the new Suzuka Plant. Volume production at the new facility is slated to begin in the middle of May, 2008. The Company has newly installed the lines for the production of motorcycle clutches, automotive MT clutches, and paper-based friction materials at the new site and integrated the group's domestic motorcycle clutch production capabilities, which had been carried out by different locations in Japan, into the new site. (From a press release on May 9, 2008)
< New facilities >
Name (Location) |
Business segment | Type of facility | Planned total investment (million yen) |
Start | Planned completion |
F.C.C Co., Ltd | |||||
Ryuyo Plant (Shizuoka, Japan) |
Motorcycle clutches Automobile clutches Others |
Production facility for clutches | 187 | 2009.04 | 2010.03 |
Tenryu Plant (Shizuoka, Japan) |
Motorcycle clutches Automobile clutches Others |
Production facility for clutches | 184 | 2009.04 | 2010.03 |
Hamakita Plant (Shizuoka, Japan) |
Automobile clutches | Production facility for clutches | 136 | 2009.04 | 2010.03 |
Suzuka Plant (Mie, Japan) |
Motorcycle clutches Automobile clutches Others |
Building, production facility for clutches | 120 | 2009.04 | 2010.03 |
Subsidiaries | |||||
China FCC Foshan Co., Ltd. (Guangdong, China) |
Automobile clutches | Production facility for clutches | 1,003 | 2009.01 | 2010.12 |
FCC (Thailand) Co., Ltd. (Bangkok, Thailand) |
Motorcycle clutches Automobile clutches |
Production facility for clutches | 661 | 2009.01 | 2010.12 |
FCC (Indiana) Mfg., L.L.C. (Indiana, USA) |
Motorcycle clutches Automobile clutches |
Production facility for clutches | 423 | 2009.01 | 2010.12 |
FCC Adams , LLC.(Indiana, USA) | Automobile clutches | Production facility for clutches | 359 | 2009.04 | 2010.03 |