Kikuchi Business report in FY2006
|In million yen||Mar. 2007||Factors|
|Sales||52,205||Brisk sales of auto body parts in and outside Japan, casting facilities for parts production to respond to new vehicle models for the U.S. and Chinese markets, and prototypes in Japan contributed to the financial performance.|
The Company will additionally invest in its Brazilian subsidiary, Kikuchi do Brazil Ltda., in line with a production increase plan by Honda Motor Co., Ltd, its major customer, in the Brazilian market. The additional investment amounts to approx. 30,000 reals to increase the capital of the subsidiary to 45,600 reals. (From a press release on Feb. 26, 2007)
Challenges for FY2007
(1)Conduct sweeping quality improvement activities and strengthen cost competitiveness
-Take aggressive steps to improve quality control at the development stage
-Minimize loss and waste through rationalization of production,
-Strengthen cost competitiveness through the global optimum purchasing policy and other steps.
(2)Fortify capabilities of technology and development, and take aggressive presentation-type business approaches
In response to basic needs required of an vehicle in the coming years,
-Undertake aggressive business activities by improving technology further to reduce weight and increase rigidity as well as to expand its application.
-At the same time, keep or enhance safety.
(3)Focus on die development, and expand the production area of die products.
-Make efficient use of the Company's proprietary technology and digitalize die-making process
-Take steps to raise the percentage of in-house production of dies to improve competitiveness in the area of development and manufacturing.
(4)Make efficient use of management resources and expand the global business
-Use management resources efficiently, such as human resources, property, money and information.
-Reinforce sales and production facilities in North America, Latin America and Asia as part of its global business expansion program along with training of human resources.
-Establish three new production facilities in a rapidly growing market of China.
(5)Establish risk management policy and compliance system
-Investment of 11,296 million JPY in production
facilities and equipment in response to an increase in production and
model changes for FY2006.
-The Company plans to strengthen its die production capability in Japan. The automotive parts supplier will start manufacturing dies at its Gunma Plant, where stamping parts for Fuji Heavy Industries Ltd. are currently produced. In addition to enhancing die production capability, the company aims at improvement of processing accuracy of its dies by having both die production facilities and mass production facilities for stamping parts at the same site. It will install a large stamping machine of three-ton class to establish a system for on-the-spot trials of the finished dies and their direct shipment to overseas operations. The supplier plans to increase its annual die production from the current 200 units to 450 units in five years. For a while, Kikuchi will work to build a corporate system to concentrate production of dies used at both domestic and overseas plants in the Gunma area and only to make adjustments in dies at each production plant. For the future, however, it plans to locally purchase dies used at its overseas plants.(From a story in the Nikkan Jidosha Shimbun on Apr. 21, 2006)
-The Company will start producing automotive stamping dies at its plant in China. It will install die production facilities at the plant of its subsidiary for stamping parts manufacturing in Guangzhou, China. While dies used at the plant are currently imported from Japan and Thailand, the company seeks for higher efficiency by producing dies locally at an adjacent site to stamping lines. In China, Kikuchi's second plant for automotive stamping parts started operation in February this year. As the production volume is expected to further grow in China, it will produce dies locally in China by introducing machinery and equipment for die production at its first plant in Guangzhou, Auto Parts Alliance (China) Ltd. It plans to start with dies for the 1,500-ton tandem press line. It will then gradually increase variation of dies for local production, targeting at automotive stamping parts for 2008 models.(From a story in the Nikkan Jidosha Shimbun on May 25, 2006)
New equipment installations
|Plant||City||Equipment to be installed||
Estimated amount of investment
(in million yen
|Gunma Plant||Ota City, Gunma Pref.||Equipment for development and making of dies (Stamping machines, NC machine tools etc.)||1,467|| Nov.
|Hamura Plant||Hamura City, Tokyo||Equipment for manufacturing auto parts (Dies, jigs and tools)||3,262||-||-|
|Austin Tri-Hawk Automotive Inc.||Indiana, U.S.A.||Equipment for manufacturing auto parts (Stamping machines, welding machines, etc.)||874||Dec. 2006||Oct. 2007|
|Auto Parts Alliance (China) Ltd.||Guangzhou, Guangdong Province, China.||Equipment for manufacturing auto parts (Stamping machines, welding machines, etc.)||2,180||Jan. 2007||Dec. 2007|
|KIKUCHI Do Brasil LTDA||Sao Paulo, Brazil||Equipment for manufacturing auto parts (Stamping machines, etc.)||900||Feb. 2007||Dec. 2007|
|Conghua K&S Auto Parts Co., Ltd.||Guangzhou Chonghua, Guangdong Province, China.||Equipment for manufacturing auto parts (Stamping machines, , etc.)||234||Jan. 2007||Dec. 2007|