Sanoh Industrial Co.,Ltd. Business Report FY2010

Business Highlights

Financial Overview

(in millions of JPY)
  FY2010 FY2009 Rate of Change
Sales 79,768 72,274 10.3 1)
Operating income 6,623 4,643 42.6 -
Ordinary income 6,206 4,577 35.5 -
Net income 3,204 2,342 36.8 -

- Sales increased year-on-year, as production volumes of tubes for automobiles and construction machineries as well as automotive plastic products grew, supported by a global recovery in vehicle production especially overseas.

- Sales of automotive tubes (brake tubes and fuel tubes), brazed products for engine systems (fuel injection rails, water tubes, and oil cooler tubes), plastic products (quick connectors, plastic tubes), and vehicle safety products (seatbelt parts) increased from the previous year’s results.

Overview by Region

- The Company won increased programs businesses, as production volumes at its customers recovered supported by the eco-car incentive programs, which completed during the first half of the year.

North and South America
 Sales and profit grew year-on-year due to improvements in operational efficiency and productivity following its customers’ increasing production and its own structural reorganization project.

Although the Company won greater business in the growing Chinese automotive market, sales rose but profit dropped due to the impact of the yen appreciation.

Sales and profit increased year-on-year, supported by a large improvement in the automotive markets in Thailand, Indonesia and other Southeast Asian countries.

Sales increased but the Company posted a loss due to a delay in production recovery at its customers.  

New Company

-The Company opened its Chinese headquarters in Shanghai in October 2010. The new company, which controls Sanoh's Chinese operations, houses administration, sales, purchasing, development and manufacturing functions. The headquarters has an R&D center to develop products for the Chinese market entirely on its own. The workforce at the Chinese headquarters is planned to be increased to 300 by 2015. (From a press release on February 17, 2011)


-The Company announced that it is supplying various products including fuel injection rails and cluster tubes for the Honda Fit Hybrid (Jazz Hybrid). This is the third hybrid model from Honda to have adopted Sanoh's products following the Insight and the CR-Z. (From a press release issued in January 2011)

-The Company Sanoh Industrial Co., Ltd. announced that it is supplying tubes for the Nissan Fuga Hybrid (Infiniti M Hybrid). Sanoh's oil tubes are utilized for driving the actuator in the original, one-motor, two-clutch parallel hybrid system. Sanoh's tubing is also used in the cooling system for the inverter. (From a press release issued in January 2011)


-P.T. Sanoh Indonesia, Sanoh's unit in Indonesia, received the Best Quality Award from PT Hino Motors Manufacturing Indonesia. P.T. Sanoh was recognized for its delivery quality with zero defective parts during FY 2009. The Indonesian operation also received commendations for its performance in quality from Aisan Nasmoco Industri and Toyota Motor Manufacturing Indonesia. (From a press release issued in July 2010)

-STI Sanoh India Ltd., Sanoh's unit in India, has been awarded the 2010 Gold Award from Honda Siel Cars India Ltd. (HSCI) in the "Cost" category. STI Sanoh supplies brake and filler neck tubes to HSCI for the City, Jazz, Accord, and Civic models. (From a press release issued in May 2010)


R&D Expenditure

(in millions of JPY)
  FY2010 FY2009 FY2008
Overall 1,855 1,463 1,582

R&D Structure

 - In 2010, the Company established the Global Research and Development Division to conduct research and development activities based on a medium- and long-term prospective.

R&D Activities

Tubing for automobiles 
 -Putting the highest priority on responding to the needs for lightweight and eco-friendly products contributing to high fuel efficiency and low CO2 emissions, the Company developed new products by using lightweight materials such as plastic and aluminum and engineered new production technology. Its major development achievements included high-pressure fuel injection rails, fuel tubes, EGR pipes, and ultra high-pressure fuel injection tubes.
-The Company focused on developing module products for electric and hybrid vehicles. It also developed new products and production methods with the aim of improving its cost competitiveness in the growing global markets.

Investment Activities

Investment Expenditure

(in millions of JPY)
  FY2010 FY2009 FY2008
2,086 - -
North and South America
1,450 - -
78 - -
248 - -
307 - -
Group 4,169
2,731 5,789

Investments in FY2010
-Investments were focused on improving productivity and renewal of equipment.

-Sanoh Industrial (Wuxi) Co., Ltd., which is the company's Chinese subsidiary, announced it will set up additional manufacturing facilities. The new plants will produce plastic components such as plastic tubes and quick connectors, as well as engine components including fuel delivery pipes and water pipes. In addition, the expansion will triple the subsidiary's capacity to manufacture brake tubes. After the new lines are completed, the Chinese operations will be able to produce the Group's full product range for automotive application. The total investment amount for the new facilities will be 1.5 billion yen. The Wuxi unit, which generated 1.1 billion yen in sales in 2009, plans to generate 6.3 billion yen in 2015. (From a press release on February 17, 2011)

-Sanoh America, Inc., US subsidiary of the company, has launched the operations at its Archbold Plant in Ohio. The plant engages in the production of automotive tubular products, such as brazed steel tubing and welded steel tubing. The facility is the 5th Sanoh tubing production base, joining those in Japan, China, India, and Thailand. (From a press release issued in April 2010)