Sumitomo Electric Industries, Ltd. Business Report FY2011
|(in million JPY)|
|FY2009||Rate of Change (%)||Factors|
|Current net income||70,614||28,708||146.0||-|
|Automotive related business|
Sales increased because a greater number of the Company’s wire harnesses were being equipped on new vehicle models, and because the Company sold a greater volume of environmentally friendly new products such as high-pressure harnesses for HEVs and EVs. This was in addition to the overall increase in demand in the auto industry worldwide, especially in developing nations.
New CompanyThe Company (SEI) and Sumitomo Wiring Systems, Ltd. (SWS) announced that they will establish subsidiaries to manufacture connectors for automobiles in both China and Vietnam. The Chinese facility will become the Group's third connector plant in the county, while the one in Vietnam will become the first in the nation. The monthly production capacity at these new plants is expected to reach 50 million units each by fiscal year 2013. SEI and SWS are going to increase their production volume of automobile wiring harnesses in both countries. The two companies will also boost production of connectors so that they can stabilize supply to group companies that are making wiring harnesses, in which connectors are used. (From an article in the Nikkan Jidosha Shimbun on February 15, 2011)
Joint VentureThe Company signed a joint venture agreement with Hyosung Corporation, a Korean leading manufacturer of textile tire cord. The two companies will jointly set up Sumiden Hyosung Steel Cord (Thailand) Co., Ltd. to manufacture steel tire cords in Rayong, Thailand. The 1.13 billion Thai baths (approximately 3 billion Japanese yen) joint venture will be 70.0 percent owned by the Company, with Hyosung holding the remaining stake. In China, the Company will participate in the management of Hyosung Steel Cord (Nanjing) Co., Ltd., Hyosung's wholly owned subsidiary manufacturing steel tire cords, by acquiring a 30 percent stake. After the transaction, the venture will adopt a new corporate name, Hyosung Sumiden Steel Cord (Nanjing) Co., Ltd. (From a press release on December 17, 2010)
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income, etc.)
Outlook for FY2011
|(in billions of JPY)|
||FY2011||FY2010||Rate of Change (%)|
|-Automotive related business||960.0
|-Automotive related business||48.0||45.1||6.4|
|-Automotive related business||63.0
|(in million JPY)|
|Automotive related business||45,107||37,512||38,890|
R&D ActivitiesWire harnesses / in-vehicle electronic equipment
R&D activities are mainly conducted at AutoNetworks Technologies, Ltd., which is jointly owned by the Company and Sumitomo Wiring Systems, Ltd. R&D activities are mainly focused on developing new products meeting safety, comfort and environmental needs.
Wire harnesses: The Company established the architecture to develop wire harnesses suitable for applications in next-generation, in-vehicle systems. It is now developing the fundamental technology that is needed.
In-vehicle electronics devices: The Company is now developing electronics devices such as PDs (power distributors)and next-generation in-vehicle LAN (Local Area Network) units in order to respond to the rapid advances taking place in IT. The Company is also launching systems with advanced features and/or networking capabilities.
Environment: The Company is now developing lighter wire harnesses by using materials such as lighter aluminum wires and smaller connectors. It also is developing high-voltage harnesses and components for EVs (electric vehicles) and HEVs (hybrid electric vehicles),which are two growing markets.
The Company announced development of the world's first 100% nonflammable, high-energy density battery. It is a secondary battery that only uses molten salt for the electrolytic solution. Because of its non-flammability, batteries can be assembled into a highly condensed pack that is about half the size of one made of lithium ion batteries. The Company's Osaka Works, Konohana-ku, Osaka, has started an experiment by connecting its 9 kW assembled battery, worth of the amount of electricity consumed by a family of four per day at a single-family house, to the works' power system. The Company will advance its development for practical applications in trucks and buses as well as power storage.(From an article in the Nikkan Jidosha Shimbun on March 7, 2011)
The Company and Sumitomo Wiring Systems, Ltd. announced that they have developed an automotive low-voltage wiring harness using lightweight, aluminum wires and that the product is used in the new Ractis manufactured by Toyota Motor Corporation. The heaviest set of conventional wiring harness using copper wires weighs as much as 20 kilograms per vehicle. The Sumitomo Group says lighter products are required from automakers, which are striving to reduce vehicle weight for improved fuel economy. In response to such demand, the two companies developed lightweight wiring harnesses using thin aluminum wires with a twisted wire structure by redesigning the terminal structure to ensure reliable electric connection. They will continue to develop further advanced technology, aiming to expand use of its aluminum wire harness. (From an article in the Nikkan Jidosha Shimbun on November. 25, 2010)
The Company has developed technology to manufacture a low-cost reactor, which is a component for conversion of electricity used in a hybrid vehicle. The technology uses lower-priced iron-based material, instead of conventional alloy. Lower material cost provides an advantage of reducing product costs, which the Company hopes will be appealing to customers. On the other hand, there is a disadvantage that a bigger loss will be created in power conversion than in the case of alloy material. The Company is, however, expecting to be able to overcome this problem to some extent by enhancing density of soft iron-based material by a stamping process. It also intends to diffuse heat caused by a greater loss by improving cooling performance around the reactor. (From an article in the Nikkan Jidosha Shimbun on May 31, 2010)
The Company announced that it has developed a powder magnetic core for a choke coil in a converter installed on hybrid and electric vehicles. The product dimensions can be reduced by up to 50 percent and use of copper wires can be cut by about 30 percent, which enables the product to be downsized and its performance to be enhanced.(From an article in the Nikkan Jidosha Shimbun on May. 20, 2010)
The Company announced that it is working with a French engineered substrate supplier S.O.I TEC Silicon On Insulator Technologies (Soitec) to develop engineered gallium nitride (GaN) substrates. The alliance will draw on the Company's GaN wafer manufacturing technology and Soitec's Smart Cut layer transfer technology by which ultra-thin GaN layers are transferred from a single GaN wafer to produce multiple, engineered GaN substrates. This technology will therefore facilitate widespread use of GaN substrates in applications such as electric power device designed for hybrid and full electric vehicles. (From a press release on December 1, 2010)
|(in million JPY)|
|Automotive related business||45,666||29,609||69,567|
-The Company invested in the automotive business to increase production and improve the efficiency of wire harnesses and vibration isolating rubber.
Capital Investment Plan (FY2011)-The Company plans to invest 130,000 million yen in FY2011.
-Its Automotive Business Division plans to invest 63,000 million yen mainly in its facility that produces wire harnesses and vibration-isolating rubber.