Aichi Steel Corporation Business Report FY2008
Business Highlights
Financial Overview | (in million JPY) |
FY2008 | FY2007 | Rate of Change(%) |
Factors | |
Overall | ||||
Sales | 222,060 | 253,462 | (12.4) | -Demand from the automotive industry and other sectors for the Company's main products, which are steel and forged products, decreased |
Operating income |
(482) | 10,884 | - | -Even though the Company implemented business initiatives such as improving selling prices and reducing costs, its income still dropped due to increased material prices and decreased sales volume. |
Ordinary income |
(1,804) | 9,332 | - | |
Net income | (14,105) | 5,692 | - | |
By Segment | ||||
Steel | 129,006 | 140,282 | (8.0) | -Income decreased due to decreased sales volume. |
Forged products | 85,895 | 104,323 | (17.7) | |
Electromagnetic products | 3,380 | 4,417 | (23.5) |
Electromagnetic Business
-The Company is aiming to make the electromagnetic business its core business segment.
Business Plan
-The Company announced that it will build a new plant to manufacture magnets and magnet particles for in-vehicle small motors on a land it has purchased in Seki city, Gifu prefecture. Construction work will start in March 2008, beginning operations in May 2009. The company will pay one billion yen for the first phase of the construction work. The new plant will produce two million pieces of "MAGFINE" per month, a neodymium-based anisotropic bond magnet. Production capacity at the existing plant in Aichi prefecture will reach its limit when it is coping with brisk sales including a new order from Robert Bosch of Germany. The new plant will be established on a land of 63,000 square meters that Aichi Steel already acquired in the Seki Techno Highland. Construction area for the first phase will be 4,000 square meters, which will be expanded in phases to deal with an expanding demand. (From an article in the Nikkan Jidosha Shimbun on Feb. 04, 2009)
R&D
R&D Expenditure | (in million JPY) |
FY2008 | FY2007 | FY2006 | |
Overall | 2,828 | 2,001 | 2,446 |
R&D Structure
-The Company has about 190 employees engaged in R&D as of March 31, 2009.
R&D Activities of Each Business (FY2008)
Business | Budjet (in million JPY) |
R&D activities |
Steel | 1,710 | -Development of new special steel for automotive parts and a new manufacturing technique for producing stainless steel FY2008 : The Company's R&D activities in this sector included work on the following items: -Steel materials that can be used to make high-strength connecting rods, which are useful for improving the fuel economy of vehicles -Steel materials for producing smaller, longer life bearings -Flat steel for producing suspension systems used on trucks -Chromium stainless steel that can be put to use in new applications in the energy and environmental sectors |
Forged products | 100 | -Development of forged products for automotive parts FY2008 : The Company's R&D activities in this sector included work on technology to improve the surfaces and lubricity of dies ; and technology to conduct automatic testing of forged and other parts. |
Electro magnetic parts | 1,018 | -Development of Magneto-Impedance (MI) sensors, magnets for motors, dental magnetic attachments, heat releasers for automotive electronic equipment, and other products FY2008 : The Company's R&D activities in this sector included work on gyro sensors, looking into the level of sensitivity and functions of magnetic impedance sensors. |
Investment Activities
Capital Expenditure | (in million JPY) |
FY2008 | FY2007 | FY2006 | |
Overall | 14,467 | 13,165 | 28,359 |
Capital Investment by Business (FY2008)
Busienss | Capital investment (in million JPY) |
Objective |
Steel | 7,004 | Investment was made to rationalize manufacturing facilities, update aging facilities, and improve functions. |
Forged products | 4,017 | Investment was made to enhance production capacity; as well as made for other purposes. |
Electro magnetic parts | 3,129 | Investment was made to enhance production capacity. |
New Equipment Installation
Name (Location) |
Type of business |
Type of facility |
Planned investment (million JPY ) |
Start | Completion | Production capacity upon completion |
Chita Plant (Tokai City, Aichi) |
Steel etc. | Production facilities for steel, rolling equipment, etc. | 29,887 | Dec. 2006 |
Apr. 2011 |
* |
Kariya Plant (Kariya City, Aichi) |
Steel | Rolling equipment, etc. | 246 | Feb. 2007 |
Dec. 2009 |
* |
Forging Plant |
Forged products | Production facilities for forged products | 1,453 | June 2006 |
Mar. 2010 |
* |
Higashiura Plant (Chita Gun, Aichi) |
Electro magnetic parts |
Production facilities for products using magnets, etc. | 294 | Mar. 2006 |
Dec. 2010 |
* |
Gifu Plant (Kakamigahara City, Gifu) |
Electro magnetic parts |
Production facilities for electronic functional materials and components | 127 | Feb. 2008 |
Dec. 2009 |
* |
Seki Plant (Seki City, Gifu) |
Electro magnetic parts |
Production facilities for products using magnets, etc. | 1,491 | Dec. 2007 |
Apr. 2010 |
New facilities |