H-ONE CO., LTD Business Report FY2010

Business Highlights

Financial Overview

(in millions of JPY)
   FY2010 FY2009 Rate of change(%) Factors
Sales 126,362 117,538 7.5 North America: Sales and profit increased year-on-year because of a rise in vehicle production, especially that of heavy-duty vehicles, and the result of the Company’s continued cost reduction efforts.
China: Sales and profit increased year-on-year, as production was buoyed by growing demand. 
Other: Sales and profit increased year-on-year due to increased production volumes in Thailand
Operating income 5,837 902 547.1
Ordinary income 6,635 1,513 338.5
Current net income 4,572 262 1645.0

Recent Developments in Japan

-  Although there were negative effects of the termination of the eco-car incentive programs and the impact of the massive earthquake, sales and profit increased year-on-year, thanks to strong sales to the overseas markets and the results of the Company's continued cost reduction efforts.

Recent Developments outside Japan

- The Company a Japanese supplier of vehicle framework parts, is set to expand a complementation program of parts production among Asian countries, including Japan. The supplier will inaugurate by this fall projects to mutually supply parts between Thailand and India, and to export parts from Thailand to Japan. This will be the first case of using parts produced at overseas production sites in vehicles assembled in Japan. In accordance with global production plans of Honda, its major customer, H-one will seek the best allocation of production items among overseas production sites, such as consolidating production of parts that are larger in production volume in Thailand than in Japan to the Thai manufacturing facility. It aims to enjoy economies of scale by taking these steps, and also to improve a competitive edge in cost by saving expenses for making duplicated dies. (From an article in the Nikkan Jidosha Shimbun on June. 3, 2010)


R&D Expenditure

(in millions of JPY)
  FY2010 FY2009 FY2008
Overall 764 692 740

-Most of the Company's R&D expenditure was directed to automotive parts related businesses.

R&D Structure

-Centering on its development technology headquarters, the Company carried out R&D activities in cooperation with many research and development institutions including those of Honda Group.

R&D Facility

Research and development center Tochigi pref. Japan

Recent R&D Achievements (Automotive Component Division)

-Developed a welding/mating process
-Developed stamping process technology for high tensile materials and light weight materials
-Developed a class sheet metal components stamping process
-Developed functional parts by incorporating thick plate precision stamping technology and assembly technology
-Developed material hardening technology
-Developed an in-house information system based on CAD, CAM, and CAE technology; and trained engineers to use it
-Developed stamping process technology for precision metal parts

Technological Cooperation

(As of Mar. 31, 2011)

Partner Country Contract Contract term
UYT Ltd. UK Automotive parts From July 17,2001 to July 16, 2006 (Automatically renewed yearly)
Yachiyo of Ontario Manufacturing Inc. Canada Automotive parts From July 1, 2006 to Jun.30, 2010 (Automatically renewed yearly)

Investment Activities

Capital Expenditure

(in millions of JPY)
  FY2010 FY2009 FY2008
Overall 6,836 8,049 13,899

-The Company's capital investment was mainly directed towards the automotive business.
-Also, 3,496 million yen was spent on installing special manufacturing equipment to support mass production of components for new vehicle models; the remaining 3,340 million yen was spent in installing general production equipment and expanding production facilities.

- The Company announced details of its new automobile parts plant in Thailand, H-ONE Parts Sriracha Co., Ltd. This local subsidiary in Pinthong Industrial Estate, Chonburi Province, capitalized at 300 million baht, is scheduled to start operations in December 2011. The building of approx. 10,000 m2 will be constructed at the site of approx. 64,000 m2. About 150 employees will be hired by 2013. The total investment will be approx. one billion yen. the Company expects to achieve approx. 2.5 billion yen sales in 2013. (From an article in the Nikkan Jidosha Shimbun on November. 1, 2010)

- The Company an autobody structural parts supplier based in Saitama, Japan, plans to promote automated production in China. In order to raise the automation rate, mainly of the welding processes, it will add a total of 138 robots at its three plants in China by FY 2012. The total number of robots operated at the Company's plants in China will therefore be increased by 3.7 times to 188 units, which will almost complete automation of major processes. By introducing a large number of robots, the company plans to expand production, improve quality and raise its competitiveness without increasing the labor cost. (From an article in the Nikkan Jidosha Shimbun on May. 20, 2010)

New Equipment Installations

(As of Mar. 31, 2011)

Company Name Location Estimated total amount of investment
(in millions of JPY)
Project duration
From To
Head Office Saitama Pref., Japan 2,456 Sep. 2011 Sep. 2011
Kameyama Factory Mie Pref. Japan 1,474 Jan. 2011 Feb. 2013
Maebashi Factory Gunma Pref. Japan 2,360 May 2010 Jan. 2013
Koriyama Factory Fukushima Pref. Japan 3,263 Sep. 2010 Mar. 2013
Consolidated Subsidiaries
KTH Parts Industries Inc. Ohio, USA 2,170 Apr. 2010 Mar. 2013
Kalida Manufacturing, Inc. Ohio, USA 1,246 Mar. 2011 Mar. 2013
KTH Leesburg Products, LLC. Alabama, USA 1,026 Apr. 2011 Mar. 2013
KTH Shelburne Manufacturing, Inc. Ontario, Canada 603 Mar. 2011 Apr. 2012
GH Auto Parts Industries Inc. Guangdong, China 1,459 Feb. 2011 Oct. 2012
QH Auto Parts Industries Inc. Guangdong, China 1,308 May 2010 Nov. 2012
WH Auto Parts Industries Inc. Hubei, China 3,161 Mar. 2010 Jun. 2013
H-one Parts (Thailand) Co., Ltd. Ayutthaya ,Thailand 5,001 Aug. 2010 Jun. 2012
H-one India PVT., Ltd. Uttar Pradesh, India 338 Mar. 2010 Oct. 2012