F.C.C. CO., LTD. Business Report FY 2008
|Financial Overview||(In million yen)|
|FY2008||FY2007||Rate of Change (%)||Factors|
|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.|
|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.|
Recent Development by Region (Fiscal year ended March 2009: Automotive Clutch Division)
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.
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.
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.
-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)
The Company has a Technology Laboratory and Production Technology Center in Hamamatsu, Shizuoka Prefecture.
|R&D Expenditure||(In million yen)|
-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.
-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.
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.
|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 >
|Business segment||Type of facility||Planned total investment
|F.C.C Co., Ltd|
|Production facility for clutches||187||2009.04||2010.03|
|Production facility for clutches||184||2009.04||2010.03|
|Automobile clutches||Production facility for clutches||136||2009.04||2010.03|
|Building, production facility for clutches||120||2009.04||2010.03|
|China FCC Foshan Co., Ltd.
|Automobile clutches||Production facility for clutches||1,003||2009.01||2010.12|
|FCC (Thailand) Co., Ltd.
|Production facility for clutches||661||2009.01||2010.12|
|FCC (Indiana) Mfg., L.L.C.
|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|