Asahi Tec Corporation Business Report FY2010
|(in millions of JPY)|
|FY2009||Rate of change(%)||Factors|
|Sales||44,022||28,259||55.8||A year-on-year increase resulted because of the recovery in demand for trucks and construction equipment in developing nations; and the Company’s winning business from new customers.|
|Sales||24,437||18,666||30.9||In addition to sales of auto parts increasing because of the last minute demand that arose when eco-car sales incentives were coming to an end, demand in Thailand also grew.|
Business RestructuringThe Company announced that it will establish a wholly owned subsidiary based on its plan to spin off its Electric Power Equipment Division effective April 1, 2011. By separating the electric power equipment business, which handles products different from those in the Company's core business like casting and forging parts for automobiles, trucks and construction machineries, the Company will focus on its main business field. Asahi Tec will also study the possibility of making the new subsidiary completely independent from it through mergers and acquisitions. Formation of the new company was decided at the board meeting held on December 6. Asahi Tec says the plan is subject to approval of lenders pursuant to the loan agreement it made with banks. Split-up of the non-core business will enable Asahi Tec to concentrate its management resources on casting and forging components for automobiles so as to serve growing vehicle business in emerging markets. It will also help the electric power equipment business flexibly seek its own growth scenario independently from Asahi Tec. The new, wholly owned subsidiary will be established by the end of this month, and the Electric Power Equipment Division will be spun off and absorbed into the new company on April 1, 2011. (From an article in the Nikkan Jidosha Shimbun on December. 8, 2010)
The Company announced on April 22 reorganization of its aluminum casting business. By the end of fiscal year 2010, the company is going to transfer the aluminum gravity die-casting operations now being handled at its Kikugawa-Minami Plant in Kikugawa City, Shizuoka Prefecture, Japan to Asahi Tec Aluminum (Thailand) Co., Ltd. (ATA), its Thai subsidiary. It will also move its sand mold casting operations currently carried out at the Kikugawa-Minami Plant to its Yokoji Plant in the same city by the end of the next fiscal year, while outsourcing machining and assembly works to other companies. After the transfer of these functions, the Kikugawa-Minami Plant will be closed down. Asahi Tec plans to transfer 84 employees currently working at this facility to other plants. The company, however, has not decided what to do with the shut down facility after the discontinuance. The Kikugawa-Minami Plant, which has a monthly production capacity of 350 tons, generated 5,596 million yen in sales in the year ended in March 2009. (From an article in the Nikkan Jidosha Shimbun on Apr. 23，2010)
|(in millions of JPY)|
The Company was engaged in designing lighter weight products and conducting sales activities with the aim of winning more customers and creating more products using hyper ductile metals, which are high-strength materials. In addition to clarifying and providing specific explanations on the merits of replacing its existing products with hyper-ductile metals, the Company also developed R&D activities on materials offering strength and good balance in meeting customer needs.
|Aluminum business||The Company is mass producing products by putting to practical use its technology that improves engine performance. Specifically, it is applying its Asahi Tech Surface Treatment (AS Treatment), technology that smoothes the inner surfaces of products. And since the Company could see the progress it has been making in significantly improving products’ fatigue strength by adding residual stress to the materials interiors, it is continuing its development activities by gathering detailed data on specific applications.
By combining its proprietary 2-gate, low-pressure die-cast forming method with flow-forming technology, the Company is continuing to develop wheels that are even lighter in weight. In conducting joint-development activities with auto makers in terms of product forms/shapes, it is working to develop productions methods (for making lighter wheels) that focus on improving productivity and raising yields.
|(in millions of JPY)|
The Company invested mainly to renew and maintain its facilities and equipment for the purpose of rationalizing its production operations; and to install new machining equipment in order to produce products required by newly acquired customers.
The Company invested mainly in its consolidated subsidiary in Thailand, Asahi Tec Aluminium (Thailand) Co., Ltd., to enhance and increase machinery and equipment so they can be used to produce products required by newly won customers; and to improve and increase production facilities producing dies and other products.
Planned Capital Investments
(As of Mar. 31, 2011)
Equipment to be installed
|Estimated amount of investment (in million JPY)||From||To|
|Techno-Metal Co., Ltd.
Facilities and equipment for machining
|Asahi Tec Aluminium (Thailand)Co., Ltd.
Bang Pakong plant
Facilities and equipent for forging aluminum-alloy die-cast products