Sanden Corp. Business report FY2008
|Financial Overview||(In million yen)|
|FY2008||FY2007||Rate of Change (%)||Factors|
|Automotive systems business|
|Sales||145,829||188,994||(22.8)||-Despite the severe business conditions in Japan, China and parts of Asia, sales remained steady due to establishment of new commercial rights, etc.
-Revenues decreased in the automotive device division as a whole, especially in its mainstream compressor business in Europe and America, which was affected by a sudden deterioration of the market environment.
-The Company announced that it has acquired the remaining stake in its joint venture, Sanden Mexicana S.A. de C.V. (SMX), on April 30, 2008. The Company, together with Sanden International U.S.A. Inc. (SIA), held a 49 percent stake in the $16 million revenue company (as of the end of April 2008) prior to acquiring the remaining interest from its joint venture partner Industrial Ross. SMX primarily produces clutch parts for compressors as well as automotive powertrain parts. 75% of those products is shipped to SIA facilities while the remaining 25% directed to major automotive suppliers. (From a press release on Jun 17, 2008)
-The Company and Shanghai Sanden Behr Automotive Air Conditioning Co., Ltd. (SSB), a joint venture among Shanghai Automotive Industry Corporation (Group), Behr GmbH & Co., KG, and the Company, have formed a joint venture called Sanden (Suzhou) Precision Parts Co., Ltd. in Wujiang, Jiangsu Province, to manufacture die-cast components used in compressors for automotive air conditioners.
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|R&D Expenditure||(In million yen)|
|Automotive systems business||3,974||4,502|
Research and Development System
-The Company conducted R&D activities for automotive compressors and air-conditioning systems with its Yattajima Plant as a R&D base.
-The Company aims to develop new world-class technologies and products in coordination with its technical centers in Germany, France and the U.S.A.
Research and Development Activities
-In the automotive compressor division, the Company successfully mass produced a hybrid-compliant all-in-one compressor that integrated a DC brushless motor with an inverter. The Company has also worked to increase product variation by introducing products such as the external control compressor that realizes smooth continuous operation through a clutchless mechanism and the scroll compressor with superior quietness and ultra-high speed durability.
-In the air-conditioning division, the Company developed small HVAC (heating ventilating air-conditioning) systems for mini-vehicles and smaller cars.
|Capital Investment||(In million yen)|
|Automotive systems business|
-The Company and Shanghai Sanden Behr Automotive Air Conditioning Co., Ltd. (SSB), a joint venture among Shanghai Automotive Industry Corporation (Group), Behr GmbH & Co., KG, and the Company, have formed a joint venture called Sanden (Suzhou) Precision Parts Co., Ltd. in Wujiang, Jiangsu Province, to manufacture die-cast components used in compressors for automotive air conditioners. The Company has a 65 percent share in the new company, while SSB holding the remaining stake of 35 percent. The total investment is expected to be around three billion yen. Start of production at the facility in Wujiang is scheduled to be in June 2009. The new joint venture is aiming at achieving the capacity to produce five million units of die-cast parts in 2010. (From a press release on Sep. 29, 2008)
-In the fiscal year ending March 2009, in order to address the global economic slowdown, the Company will further enhance the selection and concentration of capital investment. It plans to make an investment of 4 billion yen in total, focusing on maintenance and update investment. In the automotive device division, the amount of investment will be 800 million yen in Europe, 3 million yen in North America, 7 million yen in Asia and 1.2 billion yen in Japan.