Aisan Industry Co., Ltd. Business Report FY2010

Business Highlights

Financial Overview

(in millions of JPY)
  FY2010 FY2009 Rate of
Change (%)
Sales 150,849 137,464 9.7 -Sales rose because of the favorable growth seen in auto-production worldwide as a result of the recovery in the North American market and the expansion taking place in developing nations.
6,025 4,353 38.4 -
Ordinary income 5,269 4,427 19.0 -
Net income 325 1,580 (79.4) --Net profits were down due to the extraordinary loss the Company posted as a reserve fund to cover product warrantees.
Automotive Components Division
Sales 145,689 132,925 9.6 -

The Company carried out the following three initiatives to improve its profit structure and increase the competitive advantages of its products.
 (1) Enhancing corporate structure:
- Installed a production line to manufacture a new type of engine valve.
- Consolidated the operations of its two production subsidiaries in the Czech Republic.
(2) Strengthening its product supply-chains in emerging nations.
- Constructed the second plant at P.T. Aisan Nasmoco Industri.
- Started supplying fuel-pump modules in India.

(3) Developing products
- For compact cars, developed a new-type fuel-pump module and an electronic throttle body made of resin, making them lighter and with fewer component parts.


R&D Expenditure (in millions of JPY)
  FY2010 FY2009 FY2008
Overall 7,308 6,863 7,491
*The above figures are all associated with automotive parts.

R&D Activities

Main R&D Achievements in FY2010
- Commercialized an electronic throttle body made of resin and a fuel-pump module that has an integrated filter unit with a suction filter, which offers the added function of a fuel filter.
 -Developed an electronic throttle body made of resin, which is designed for compact cars.
- Improved its competitive edge in terms of cost savings by standardizing and using common parts for products it developed such as charcoal canisters, fuel-pump modules, EGR valves, and others. These products consume less electricity, are lighter in weight, offer greater control, and meet environmental needs by working with bio-fuels.
- Improving features of products made for emerging-market countries. 

Investment Activities

Capital Expenditure

(in millions of JPY)
  FY2010 FY2009 FY2008
Overall 7,158 6,502 10,920

  Investment Targets Main products and investment amounts for FY2011
Japan  Expanding and upgrading facilities producing the following products: new-type fuel-pump modules and electronic throttle bodies made of resin, which improve fuel consumption; new products such as EGR valves; mainstream products (fuel-pump modules, throttle bodies, injectors, engine valves, etc.) that comply with fuel and gas emissions regulations; and
-enhancing and upgrading testing facilities, so they are suitable for testing eco-friendly vehicles.
3 mainstream products (fuel-pump modules, throttle bodies, and canisters): 1,956 million yen; Engine values: 374 million yen
Injectors: 292 million yen
Asia -Expanding facilities and equipment to handle increased sales of fuel-pump modules.
-Constructing new plants
3 mainstream products: 1,978 million yen
3 mainstream products: 217 million yen

North America -Expanding and upgrading facilities producing canisters 3 mainstream products: 218 million yen

- The Company will increase production of engine products in both China and Indonesia. In China, the company will introduce new equipment in order to start manufacturing fuel pumps locally for Toyota Motor Corporation and other customers. In Indonesia, on the other hand, Aisan is going to increase its production volume by 30 percent by adding a new plant to produce pumps for motorcycles. During this fiscal term, the company is planning to invest 6.8 billion yen in plants and equipment, which is an increase of 4.6 percent from the amount it spent in the previous year. Focus of its investment activities will be placed on the strong Asian market. (From an article in the Nikkan Jidosha Shimbun on May. 7, 2010)

Plans for New Facilities

Plant name
Type of facility or project Planned amount of investment
(in million JPY)
Project period
From To
Headquarters Plant
(Aichi, Japan)
Facility manufacturing EGR valves 294 Jun.
Anjo Plant
(Aichi, Japan)
Facility manufacturing engine valves 1,024 Aug.
Toyota Plant
(Aichi, Japan)

Facility manufacturing injectors

521 Feb.
P.T. Aisan Nasmoco Industrial

Facility manufacturing fuel pump modules

1,309 Dec.
Franklin Precision Industry, Inc.
(Kentucky, U.S.A.)
Facility manufacturing throttle bodies 510 Jun.
Hyundam Industrial Co., Ltd.
(Asan, Korea)
Facility manufacturing fuel pump modules 423 Mar.