Aisan Industry Business Report FY2008

Business Highlights

Financial Overview (in millions of JPY)
  FY2008 FY2007 Rate of
Change (%)
Main factors
Sales 158,583 189,589 (16.4) -Sales decreased for its three staple products, fuel pump modules, throttle bodies and canisters.
1,382 9,211 (85.0) -Operating income decreased as a result of decline in sales and foreign exchange fluctuation.
Ordinary income (1,888) 8,243 - -Ordinary income decreased as a result of foreign exchange loss through borrowing in foreign currency.
Net income (5,723) (5,310) - -The Company posted product warranty expenses for itself and overseas subsidiaries as extraordinary charges. 
Automotive Components Division
Sales 152,145 167,627 (16.4) -

Sales by Region (in millions of JPY)
  FY2008 FY2007 Rate of
Change (%)
Main factors
Japan 105,087 132,889 (20.9) -Decrease in sales of throttle bodies and canisters.
Asia 28,762 26,740 7.6 -Increase in sales of fuel pump modules and throttle bodies.
North America 21,917 27,916 (21.5) -Decrease in sales of fuel pump modules and throttle bodies.
Europe 13,196 16,645 (20.7) -Decrease in sales of fuel pump modules and throttle bodies.

-The Company has started supplying clean diesel engine components to Honda. Its exhaust gas recirculation (EGR) cooler bypass valves, which regulate the temperature of EGR gas, have begun to be used in the Honda Accord diesel sold in Europe. The engine parts supplier, which provides its products mainly to the Toyota Group, has never dealt with any other passenger vehicle manufacturer. Having positioned its clean diesel engine components as its new business unit, the company aims to boost their sales, targeting the Toyota Group. Sales of clean diesel parts to Toyota alone are expected to reach 200 million yen in fiscal year 2008; and 700 million yen in fiscal year 2011. Including sales to non-Toyota companies, the division targets sales of 4 billion yen by fiscal year 2010. Production of these environmentally-friendly engine products, which is now handled at the company's home plant in Obu City, Aichi Prefecture, is scheduled to be launched also at the Group's Indonesian subsidiary in order to meet rising demand in ASEAN countries. (From an article in the Nikkan Jidosha Shimbun on Jul. 17, 2008)

-The Company's French production subsidiary, "Aisan Industry France S.A." received orders from Peugeot for the first time. It supplies fuel pump modules.

Cooperation with Denso
-The Company and Denso have started studies on their fuel pump modules of fuel systems so as to share designs and specifications. The both companies currently develop the products separately based on their own designs. In the course of promoting their partnership, they intend to use common designs for more efficient development operations. At the earliest, the next fuel pump module will be developed based on this "common design policy." The two companies are strengthening their ties in the three products: fuel injectors, throttle bodies and fuel pump modules. They have basically agreed that Denso will take the lead in designing fuel injectors, whose development work is mainly on the electronic control unit (ECU), and that the Company will take the lead in developing throttle bodies of air intake systems. As for fuel pump modules, they have commenced studies so that they will first standardize designs and specifications between their respective products and supply the same quality products through their respective sales and plant networks. (From an article in the Nikkan Jidosha Shimbun on Apr. 25, 2008)

Cooperation with Nagano Tancoh
-The Company announced a decision to increase production of engine valves at Nagano Tancoh Co., Ltd., its partner that produces engine valves and turbo parts on consignment in Nagano-shi, Nagano prefecture. This will allow the Company to avoid the risk of excessive concentration of production in Aichi prefecture and also secure enough production space in time for restructuring of its headquarters in Obu-shi, Aichi prefecture. Currently, Nagano Tancoh is producing 60,000 valves a month for the Company. But the volume will be gradually increased to 1 million, or 13% of all production volume of the manufacture in Nagano, by 2010. The Company is also considering expansion of this production arrangement on the basis of consignment to other items than engine valves, with the view of future investment in Nagano Tancoh. (From an article in the Nikkan Jidosha Shimbun on May 14, 2008)

Establishment of New Subsidiary
-The Company announced a plan to establish its new wholly-owned subsidiary to produce fuel system components in Tamana-shi, Kumamoto prefecture. The new canister and fuel pump modules production company "Aisan Kumamoto" will be established in July 2008 and start its operation in January 2010, receiving investment of 1 billion yen from the parent company by 2012. Aisan Industry intends to respond to new needs from automakers, which are now expanding production in the Kyushu area. By doing so, it expects to generate sales of 5 billion yen in fiscal 2012. At the operational launch of the new facility, the supplier will restructure and optimize its domestic production system, for example, by shifting some of its operations from its existing plant to the new plant. (From an article in the Nikkan Jidosha Shimbun on May 15, 2008)


R&D Expenditure (in millions of JPY)
  FY2008 FY2007 FY2006
Amount 7,491 7,208 6,592
*The above figures are all associated with automotive parts.

R&D Activities (FY2008)

-The Company will develop a sensor to identify alcohol mixing ratio and other attributes in fuel in response to growing demand for alcohol fuel in the future. If the composition between gasoline and alcohol in the mixture fuel is different even slightly from specified, the engine may not function properly. Monitoring by the sensor is designed to provide the optimal engine performance in accordance with the fuel composition. (From an article in the Nikkan Jidosha Shimbun on Feb. 24, 2009)

-The Company developed a "super-flat tank compliant pump module", which contributes to reducing overall vehicle length while ensuring sufficient cabin space, for Toyota's extra small car "iQ" 

-The Company commercialized DC motor diesel throttles and other products that could be applied to new clean diesel engines.

-To respond to diversity of energy sources, the Company applied a LPG fuel injection system, which had been developed in the fiscal year ended March 2008, to taxis. It also commercialized a standardized lower-cost canister.

-The Company conducted environmentally-conscious development activities for its staple products, electronic throttle bodies and fuel pump modules, for example, reducing power consumption and weight, improving controllability, corresponding to biofuels, etc. 

-The Company conducted R&D activities for environment-responsive technologies, focusing on three themes; (1) downsizing of all components; (2) responding to diversity of fuels including alcohol fuel and gas fuel, and; (3) responding to diversity of power sources including hybrid, electric and fuel cell vehicles.

-To respond to demands in the emerging markets, the Company works to develop products with narrowed down functions based on mini-vehicles, targeting small and economical environment-friendly vehicles and entry level cars.

Investment Activities

Capital Expenditure (in millions of JPY)
  FY2008 FY2007 FY2006
Overall 10,920 10,890 13,674

By Product and Subsidiary (FY2008) (in millions of JPY)
Products Company Country Capital investment
(in million JPY)
Major three products
-Fuel pump modules
-Throttle bodies
The Company Japan 1,932
Hyundam Industrial Co., Ltd. Korea 301
Franklin Precision Industry, Inc. USA 465
Aisan (Tianjin) Auto Parts Co., Ltd. China 411
Others 859
Total 3,968
Engine valves The Company Japan 253
Aisan (Foshan) Auto parts Co., Ltd. China 230
Total 483

Investment by region (FY2008)
Japan -To respond to fuel economy and exhaust emission regulations, the Company made investments to produce new EGR valves and canisters for hybrid vehicles.

-The Company made investments to enhance production facilities for its staple products, fuel pump modules, throttle bodies and engine valves.

-The Company invested in updating its facilities to improve energy efficiency.
Europe -The Company made investments to expand its facilities to enhance its die-casting business.
China -The Company made investments to expand its facilities in order to market fuel pump modules, throttle bodies and engine valves.
Korea -The Company made investments to expand its facilities for fuel pump modules.

Plans for New Facilities
Plant name
Type of facility or plans Expected amount
 ( in million JPY)
Start date Planned completion
The Company
Headquarters Plant
(Aichi, Japan)
Compliance commissioned facilities (Enhancement of building and facilities) 1,436 May
Manufacturing EGR valves 279 Oct.
The Company
Anjo Plant
(Aichi, Japan)
Manufacturing canisters 340 Mar.
Manufacturing throttle bodies 209 Sep.
The Company
Toyota Plant
(Aichi, Japan)
Manufacturing fuel pump modules 173 Aug.
P.T. Aisan Nasmoco Industri
Manufacturing throttle bodies 274 Jun.