Ogura Clutch Co., Ltd. Business Report FY ended Mar. 2018

Recent Development in Japan

-In April 2018, the Company announced that it will acquire the operations of Sansen Co., Ltd. (Sansen), which handles parts like electromagnetic coils and electromagnetic clutch components. The Company will expand the scope of its business by adding Sansen's products to its lineup. At the same time, it will efficiently use both companies' production facilities and coordinate their plants outside Japan to strengthen its group's business foundation. Sansen runs operations for electromagnetic clutch components like friction plates and electromagnetic coils, as well as coils for electromagnetic variable valves, and has plants in the Philippines and Japan.

Recent Development outside Japan

-The Company will withdraw from the production of car air-conditioner clutches in Brazil in 2020. In March 2018, it is preparing to liquidate its production subsidiary, Ogura Clutch do Brasil LTDA.

-In March 2018, the Company announced that Ogura Clutch (Changxing) Co., Ltd., a Chinese subsidiary of the company, has established a second plant in Changxing, China and started operations there. Ogura Clutch's annual production capacity for car air-conditioning clutches tripled to 1 million units from the FY 2014 actual output. It will meet brisk demand from Chinese OEMs and other customers. Ogura Clutch invested JPY 1 billion in this project. Ogura Clutch (Changxing) will shift production of car air-conditioning clutches from the first plant to the new second plant.