Ichikoh Industries, Ltd. Business Report FY2010
|(in millions of JPY)|
|FY2010||FY2009||Rate of Change (%)||Factors|
|Sales||81,166||82,760||(1.9)||-Due to increased in demand of exports, unit-production volume was on the road to recovery, while demand in Japan remained stagnant.|
Business Partnership-The Company announced on May 31 that it will form a business alliance with Ficosa International, S.A., a multinational company, in the area of global automotive mirror business. Headquartered in Barcelona, Spain, Ficosa manufactures and supplies automotive parts and systems around the world. The two companies plan to conclude a tie-up agreement by the end of June. As the first step of the collaboration, Ficosa will take over Ichikoh's sales and production operations in the U.S., integrating them into its existing production facility in the country. The Company and Ficosa have already created teams to cooperate in fields such as sales, procurement, product design/development, and project management with an aim of improving cost efficiency and streamlining business operations. The Company and Ficosa now have a large presence in North and South America, South Africa, and Asia. Among these areas, the new alliance places the highest priority on Asia.
(From an article in the Nikkan Jidosha Shimbun on June. 1, 2010)
Joint-ventures-The Company announced that the company and Fiem Industries Ltd. of India will launch a project to establish a joint-venture company to manufacture and sell automotive and motorcycle lamps in India. The Japanese major automotive lamp and mirror supplier and its counterpart in India are soon going to sign a memorandum of understanding on the establishment, intending to conclude a formal agreement by the middle of December this year. Fiem will provide 34 percent of the joint venture's initial capital, while the Company will offer necessary funds for purchasing a piece of land and production equipment for the new facility. Ichikoh, which has been lending technical support to Fiem since 2005, formed a business and capital tie-up with the Indian company in April 2009 involving an acquisition of a 5 percent equity share in Fiem. With the addition of the joint venture, the Company is aiming to more than triple its yearly sales in Asia to 20 billion yen by fiscal year 2014. (From an article in the Nikkan Jidosha Shimbun on October. 4, 2010)
-The Company and Mitsuba Corporation announced their intention to liquidate Ichikoh Mitsuba Inc. (IMIC), their US joint venture headquartered in Kentucky, around October 31, 2010. IMIC engages in the manufacturing and sale of automotive mirrors, small lamps and molded/painted plastic components. The company has a 75% stake in IMIC with the remaining 25% shares held by Mitsuba. With downward changes in the US market and slim possibility of turning the business around in the future, the two companies have adopted a resolution to dissolve the US entity. (From a press release on May 21, 2010)
|(in millions of JPY)|
|R&D||Development of advanced technologies|
|Development & Design Office||Development of technologies that enable new products and value to be created|
|Production Engineering||Development of products that reach commercialization|
R&D Facilities-The Company completed construction of its new headquarters and technical center building "i-Wing" on the premises of the Isehara Plant in Kanagawa Prefecture on September 14. The headquarters and the administrative section of the technology division will be integrated to improve efficiency in accommodation and speedy decisions among organizations within the company. Environmental considerations are given to the building as seen by LED lighting, solar panels and intake of light from the roof. The headquarters function will officially start on October 1. The new headquarters is a four-story building with a total floor space of 11,695 square meters and is used not only for the company administration, but also for development of technologies for automotive lamps, mirrors and other products. The Isehara Plant has been the company's core production facility since it was founded by the former Ichikawa Seisakusho in 1962. Volume production of next generation LED headlamps of ultra low consumption of electricity is being planned at the plant. The Company intends to improve total efficiency by this reorganization.
(From an article in the Nikkan Jidosha Shimbun on September. 15, 2010)
Lighting equipment and signals
1) Highly functional automotive lighting equipment suited to meet car designs.
2) Research on situation-sensitive light distribution properties and evaluation systems.
Ichikoh light distribution simulation system
3) Development of high-definition automotive signals.
4) Development of new light sources.
1) Development of nescience prevention mirror system.
2) Development of view-related systems, utilizing functional thin membranes, electronics, etc.
3) Development of car control systems and control devices.
4) Development of vehicle perimeter sensing and security devices.
1) Development of display devices using new light sources such as LED.
2) Development of multiple transmission systems for motor vehicles
3) Development of mechatronics devices utilizing membrane/precision molding technologies.
Major Technical Assistance Agreements
(As of Mar. 31, 2010)
|Company Name||Country||Technology||Coverage||Contract Period|
|Anpas Industries Co., Ltd.||Thailand||Manufacturing technologies for automotive lamps and rear view mirrors||Licensing of patents and expertise||Apr. 15, 1999||Apr. 14, 2011 (yearly automatic renewal from then on)|
|Tokyo Electrica de Mexico S.A. de C.V.||Mexico||Manufacturing technologies for automotive lamps and rear view mirrors||Licensing of patents and expertise||Nov. 21, 1997||Until sales of products are ended|
|FIEM Industries Ltd.||India||Manufacturing technologies for rear view mirrors||Licensing of expertise||Nov. 11, 2005||Nov. 10, 2010 (yearly automatic renewal from then on)|
|Valeo Sylvania L.L.C.||U.S.A.||Manufacturing technologies for automotive lamps||Licensing of patents and expertise||Feb. 18, 2008||Until sales of products are ended|
|Foshan Ichikoh Valeo Auto Lighting Systems Co., Ltd.||China||Manufacturing technologies for automotive lamps||Licensing of patents and expertise||Mar. 24, 2006||Mar. 24, 2011 (renewal every three years)|
|(in millions of JPY)|
-The Company invested in the facilities and automation equipment at its automotive parts production and sales division in order to produce new and upgraded products.
|Plant||Location||Segment (business division)||Estimated amount of investment (million yen)|
|Isehara Plant||Kanagawa Pref.,
|Manufacturing and sale of automotive parts||1,879|
|Mirror Plant||Gunma Pref.,
|Manufacturing and sale of automotive parts||483|
|Fujioka Plant||Gunma Pref.,
|Manufacturing and sale of automotive parts||1,564|
New Equipment Installment
(As of Mar. 31, 2011)
|Plant||Equipment to be installed||Estimated amount of investment (million yen)||Project Period||Percentage of capacity increase (%)|
(Kanagawa Pref., Japan)
|Facilities for manufacturing automotive parts||246||Apr. 2011||Mar. 2013||minor|
(Gunma Pref., Japan)
|Facilities for manufacturing automotive parts||421||Mar. 2011||Mar. 2012||minor|