Aichi Steel Corporation Business Report FY2010
Business Highlights
Financial Overview |
(in millions of JPY) |
- | FY2010 (ended Mar. 2011) |
FY2009 | Rate of change (%) |
Remarks |
Overall | ||||
Sales | 215,453 | 174,278 | 23.6 |
- |
Operating income |
14,072 | 4,313 | 226.3 |
- |
Ordinary income |
12,873 | 3,906 | 229.6 |
- |
Net income | 15,205 | 6,625 | 129.5 |
- |
By Segment | ||||
Steel | 148,857 | 115,798 | 28.5 |
Sales increased as a result of the Company’s selling greater product volume and optimizing its product pricing. |
Forged products | 85,856 | 75,754 | 13.3 |
Sales increased as a result of the Company’s selling greater product volume. |
Electromagnetic products | 6,793 | 5,622 | 20.8 |
Sales increased as a result of the Company’s selling greater volumes of MI sensors and Magfines. |
>>> Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
R&D
R&D Expenditure |
(in millions of JPY) |
FY2010 | FY2009 | FY2008 | |
Overall | 2,776 | 2,531 | 2,828 |
R&D Structure
-The Company has about 180 employees engaged in R&D as of March 31, 2011.R&D Activities of Each Business
Business | Budjet (in million JPY) |
R&D activities |
Steel | 1,914 | -Development of new special steel for automotive parts and a new manufacturing technique for producing stainless steel FY2010 : 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 -Developing steel for low pressure carburizing that helps reduce CO2 emissions -Developing low-alloy case hardening steel -Developing stainless steel reinforcing bars and duplex shaped stainless steel for the energy, environment, and infrastructure sectors |
Forged products | 174 | -Under theslogan of “manufacturing innovations", developmentofa processto manufacture forgedautomotive parts FY2010: 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. -Initiatives to make practical approaches in searching for new processes andequipmentto manufacture automotiveparts |
Electro magnetic parts | 687 | -Development of Magneto-Impedance (MI) sensors, magnets for motors, dental magnetic attachments, heat releasers for automotive electronic equipment, and other products FY2010: -Development of ultra-compact, electronic compasses -Improvement of the neodymium-containing anisotropic bond magnets,Magfine, so that theybetter resist oxidizationand heat |
The Company announced that it has developed Magfine MF18P, a dysprosium (Dy: rare earth metal)-free, Nd-Fe-B anisotropic bonded magnet which offers the world's highest level of heat resistance performance of up to 150 degrees Celsius. Conventional Dy-free anisotropic bonded magnet can withstand up to 120 degrees Celsius. The significant breakthrough allows the new bonded magnet to be used in all types of in-vehicle small motors including those for anti-lock brake system (ABS) and electric power steering system (EPS) applications. Sample shipment has already begun, with mass production scheduled to begin at the company's new plant in Seki City, Gifu Prefecture in the spring of 2011. Aichi Steel intends to produce 50 tons of the new magnet particles for 3 million motors each month by March 2012. The company is set to further advance its development activities, aiming to engineer a product with a heat resistance level of approximately 180 degrees Celsius, which is high enough to withstand the environment in the electric motors of hybrid and electric vehicles. (From an article in the Nikkan Jidosha Shimbun on Jun. 17, 2010)
Investment Activities
Capital Expenditure |
(in millions of JPY) |
FY2010 | FY2009 | FY2008 | |
Overall | 20,528 | 8,163 | 14,467 |
Capital Investment by Business
Busienss | Capital investment (in million JPY) |
Objective |
Steel | 17,179 | Rationalizing and renewing manufacturing facilities, etc., making them environmentally compliant. |
Forged products | 2,058 | Rationalizing, maintaining, and renewing manufacturing facilities, etc. |
Electro magnetic parts | 1,274 | Enhancement of production capacity, etc. |
The Company started commercial production on May 27 at its new plant to produce the Magfine magnetic particles in Seki City, Gifu Prefecture. The Magfine designed to produce high-performance magnets is expected to contribute to making automotive motors smaller and lighter. According to the Company, use of Magfine magnets will allow automakers to reduce the dimension of motors by some 50 percent. The Seki facility has the capacity to produce 25 tons of magnetic particles for 25 million motors per month. By 2012, the level is scheduled to go up to 150 tons for 150 million motors. Investment in the first phase of the construction project totaled approximately 1.5 billion yen. By spending some 300 million yen more by the end of this fiscal year, the Company is going to set up an additional production line to ensure the monthly production level of 50 tons. Further expansion up to 500 tons is possible at the Seki facility, and the company is planning to build a magnet plant in the vicinity as well. It aims to achieve an additional 50 percent reduction in motor size by refining its technology, while eying the possibility of its applications in drive motors of hybrid and electric vehicles. (From an article in the Nikkan Jidosha Shimbun on May. 28, 2010)
New Equipment Installation
Name (Location) |
Type of business |
Type of facility |
Planned investment (in millions of JPY ) |
Start | Completion | Production capacity upon completion |
Chita Plant (Tokai City, Aichi) |
Steel etc. | Facilities for producingsteel;rolling equipment, etc. | 27,545 | Sep. 2007 |
Aug. 2013 |
* |
Kariya Plant (Kariya City, Aichi) |
Steel | Rolling equipment, etc. | 1,355 |
Nov. 2009 |
Sep. 2012 |
* |
Forging Plant |
Forged products | Facilities for producing forged products | 3,285 |
Jan. 2008 |
Jan. 2013 |
* |
Higashiura Plant (Chita Gun, Aichi) |
Electro magnetic parts | Facilities for producing products using magnets, etc. | 97 |
Mar. 2006 |
Mar. 2015 |
* |
Gifu Plant (Kakamigahara City, Gifu) |
Electro magnetic parts |
Facilities for producing electronic functional materials and components | 200 |
Sep. 2010 |
Jun. 2012 |
* |
Seki Plant (Seki City, Gifu) |
Electro magnetic parts |
Facilities for producing products using magnets, etc. | 400 | Jul. 2010 |
Jun. 2011 |
* |