I Metal Technology Co., Ltd. Business report FY2007

Business Highlights

Financial overview (in millions of JPY)
  FY2007 FY2006 Rate of Change (%) Factors
Sales 55,794 50,395 10.7 -
Operating income 2,760 3,113 (11.3) -Operating income rose as a result of the Company's successful expansion of its production and sales volumes. However, the soaring costs for materials such as scrap metal had a huge impact on its profit.
Ordinary income 2,588 2,794 (7.4)
Net income 1,005 1,290 (22.1) -Since the Company reported a 504 million JPY extraordinary loss for paying fixed asset retirement costs, and also paid more in taxes, its net income declined as a result.

Domestic Business
-The Company expanded an existing facility and constructed a new building at its plants in Ibaraki and Iwate Prefectures, respectively.

Overseas Business
-The Company expanded its production capacity in Indonesia.


R&D Expenditure (in millions of JPY)
  FY2007 FY2006 FY2005
R&D Expenditure 351 302 252

R&D achievements
-By the summer of 2008, the supplier will establish a new engine parts R&D facility in Kitakami-shi, Iwate prefecture, aiming to increase efficiency in development work and make better proposals, as well as to improve technical support to its production bases at home and abroad. Production of diesel engines for passenger cars is increasing and sophisticated large-sized engines for commercial vehicles are becoming more popular, mainly in Europe. The company tries to respond to such needs and maintain its competitiveness in the area of formed and fabricated materials, including casting parts-the supplier's specialty-and die cast aluminum parts-its priority product for the future. The supplier currently has R&D centers in its headquarters in Tsuchiura-shi, Ibaraki prefecture, and in an adjacent area to its production plant in Kitakami-shi. (From an article in the Nikkan Jidosha Shimbun on Jun.4, 2007)

Investment Activities

Capital investment (in millions of JPY)
  FY2007 FY2006 FY2005
Capital Expenditure Approx. 4,200 Approx. 2,800 Approx. 1,100

-The Company announced expansion plans of its Ibaraki and Iwate plants to enhance casting parts production as well as R & D. A total of 7.6 billion yen will be invested in expansion and new construction of buildings and facilities. The company aims to reinforce its business foundation in Japan by responding to growing demand for casting parts including diesel engine parts and to advancement of technologies. A new building of 6,966 sq.m. for an additional casting line will be constructed at the Kita-Ibaraki plant, Kita-Ibaraki City, Ibaraki Prefecture, and 6.2 billion yen will be invested in the new building and equipment. Construction is scheduled to start in January 2008 to start operation in October 2008. The monthly production capacity will be 2,800 tons. 1.4 billion yen will be invested to open a technical center at its Kitakami plant, Kitakami City, Iwate Prefecture. It will reinforce research and development mainly of engine parts and clarify the division of the roles between the headquarters (Tsuchiura City, Ibaraki Prefecture) responsible for drivetrain parts and itself so as to raise efficiency and improve performances. The technical center is scheduled to open in November 2008. (From an article in the Nikkan Jidosha Shimbun on Jul. 31, 2007)

-The Company plans a great expansion of its casting production base in Indonesia. New equipment will be installed with an approx. 800 million yen investment to raise the current annual production of 13,000 tons to approx. 17,000 tons as early as the beginning of 2008. The company plans to improve and stabilize its supplying capacity to respond to globally growing sales of pickup trucks produced in Indonesia by Isuzu Motors Ltd., its major customer. The Company is a casting parts supplier of the Isuzu Group, established in April 2007 jointly by Automobile Foundry Co., Ltd. , Isuzu Castec Co. and Jik Material. The Indonesian base produces engine and axle parts and supply them for the Isuzu pickup trucks. The Isuzu one-ton pickup truck "D-MAX" series, fully remodeled in the summer last year, have maintained the highest share in its major market of Thailand. Their exports to the Middle East and Africa are greatly rising as well. The Isuzu Panther, a multi-purpose vehicle for the Indonesian market, is also selling well. The casting supplier, therefore, plans to increase production capacity of its Asian base promptly to prepare itself well for the growing demand. (From an article in the Nikkan Jidosha Shimbun on May.18, 2007)

New Facility
Name Location Type of facility Planned investment amount (million JPY) Starting date Planned completion
Kitaibaraki Plant Kitaibaraki City,
Ibaraki Pref.
Facility to produce casting parts 6,200 Jan. 2008 Feb. 2009
Kitakami Plant Kitakami City, Ibaraki Pref.

Facility to test and experiment casting parts

1,400 Apr. 2008 Dec. 2008