Nishikawa Rubber_Business Report FY2007
Business Highlights
Financial Overview
-Recent Development of Subsidiaries and Affiliates
As of April 1, 2007, the Company's equity method affiliate, Nishikawa Kasei Co., Ltd. merged with G.P. Daikyo Company. After the merger, Nishikawa Kasei, a surviving company was renamed as Daikyo Nishikawa Co., Ltd. and, is a producer and seller of automotive urethane foams, plastic shaped products and urethane processed parts. The Company owns 20% of shares in the new company.
-Restructuring and Reinforcement of Production System
The Company will start installing injection molding machines made in China at its plants in Japan from FY 2008. Several tens of low-cost injection molding machines jointly developed with a Chinese machine tool accessory manufacturer will be introduced so as to reduce investment in raising production.
The Company will boost production of automotive rubber sealing parts in Japan and other Asian nations. It will add two sets of extrusion equipment at its two plants in Japan by fiscal year ending March 2009,
| (in million JPY) | FY2007 | FY2006 | Rate of change(%) |
Factor |
| Overall | ||||
| Sales | 58,033 | 53,255 | 9.0 | The Company improved its corporate structure by expanding capacity to manufacture and sell mainly automotive products outside Japan and promote cost reduction activities through product development and lead-time reduction. |
| Operating income |
3,268 | 2,517 | 29.8 | |
| Ordinary income |
4,107 | 3,285 | 25.0 | |
| Net income |
2,397 | 1,799 | 33.2 | |
| Automotive | ||||
| Sales | 52,610 | 47,758 | 10.2 | Sales were slow in North America, but thanks to strong automotive sales in Japan, China and Thailand, the Company received more orders for automotive parts. |
| Operating income |
3,079 | 2,341 | 31.5 | The Company's consolidated subsidiaries in Asia maintained their strong performance. |
-Recent Development of Subsidiaries and Affiliates
As of April 1, 2007, the Company's equity method affiliate, Nishikawa Kasei Co., Ltd. merged with G.P. Daikyo Company. After the merger, Nishikawa Kasei, a surviving company was renamed as Daikyo Nishikawa Co., Ltd. and, is a producer and seller of automotive urethane foams, plastic shaped products and urethane processed parts. The Company owns 20% of shares in the new company.
-Restructuring and Reinforcement of Production System
The Company will start installing injection molding machines made in China at its plants in Japan from FY 2008. Several tens of low-cost injection molding machines jointly developed with a Chinese machine tool accessory manufacturer will be introduced so as to reduce investment in raising production.
The Company will boost production of automotive rubber sealing parts in Japan and other Asian nations. It will add two sets of extrusion equipment at its two plants in Japan by fiscal year ending March 2009,
R&D
R&D Expense
| (in million JPY) | FY2007 | FY2006 | FY2005 |
| Automotive parts |
104 | 164 | 209 |
R&D Activities (FY2007)
(1)Development of technology to make lighter products
The Company developed and started mass production of seal material that uses resin, in stead of steel sheet, for seal members, based on the Company's advanced foaming technology. This new seal material is 23% lighter than conventional materials. The Company is now trying to develop technology to make other seal products lighter, as well.
(2)Development of technology to improve product appearance quality
In order to make its rubber seal products fit better with other automotive interior components, the Company developed technology to carve fabric-like patterns on rubber in stead of fusing fabric to rubber. The Company has already started mass production of rubber products based on this particular technology, which allow it to offer seal products that are priced lower than conventional fabric-rubber products.
(3)Development of technology to comply with environmental needs
In order to reduce in-vehicle VOC (Volatile Organic Compounds) contents, the Company is trying to replace particular organic solvents in its products and change certain adhesive agents and primers.
Investment Activities
Capital Expenditure
Automotive parts business (FY2007)
-Production facilities for new seal products
-Production facilities to support rationalization investments that reduce costs.
The Company will start installing injection molding machines made in China at its plants in Japan from FY 2008. Several tens of low-cost injection molding machines jointly developed with a Chinese machine tool accessory manufacturer will be introduced so as to reduce investment in raising production. Trial production has already been completed at its plant in China and quality inspections to prepare for volume production have been finished as well. The Company expects several hundred million yen for FY 2008 domestic investment related to injection molding. Since soaring prices of major materials such as plastic and rubber have decreased its profit in spite of its volume growth, it aims to lower manufacturing cost by utilizing Chinese machines. The injection molding machine introduced at Shanghai Nishikawa Sealing System Co., Ltd., its subsidiary in Shanghai, China, only costs two thirds of Japanese-made one even with expense for necessary adjustments of electric current source, accessories and others made for application in Japan, and cost for transportation and installation. (From an article in the Nikkan Jidosha Shimbun on Feb. 29, 2008)
The Company will boost production of automotive rubber sealing parts in Japan and other Asian nations. It will add two sets of extrusion equipment at its two plants in Japan by fiscal year ending March 2009, while introducing one set in Thailand and two sets in China. Capacity to knead rubber materials will also be reinforced. As a result, a total investment in production equipment is expected to amount to several billion yen. The Company will speed up investment to increase supply to Japanese automakers in response to their brisk demand mainly in Asia. (From an article in the Nikkan Jidosha Shimbun on Mar. 5, 2008)
New equipment installations
*Most of the domestic investments were for renewing or rationalizing facilities for new product launches, and generated no significant improvement in the Company's production capacity.
*Investments in overseas subsidiaries were made to respond to more orders.
| (in million JPY) | FY2007 | FY2006 | FY2005 |
| Overall | 8,120 | 6,132 | 4,768 |
| Automotive parts business | 7,830 | 5,863 | 4,671 |
Automotive parts business (FY2007)
-Production facilities for new seal products
-Production facilities to support rationalization investments that reduce costs.
The Company will start installing injection molding machines made in China at its plants in Japan from FY 2008. Several tens of low-cost injection molding machines jointly developed with a Chinese machine tool accessory manufacturer will be introduced so as to reduce investment in raising production. Trial production has already been completed at its plant in China and quality inspections to prepare for volume production have been finished as well. The Company expects several hundred million yen for FY 2008 domestic investment related to injection molding. Since soaring prices of major materials such as plastic and rubber have decreased its profit in spite of its volume growth, it aims to lower manufacturing cost by utilizing Chinese machines. The injection molding machine introduced at Shanghai Nishikawa Sealing System Co., Ltd., its subsidiary in Shanghai, China, only costs two thirds of Japanese-made one even with expense for necessary adjustments of electric current source, accessories and others made for application in Japan, and cost for transportation and installation. (From an article in the Nikkan Jidosha Shimbun on Feb. 29, 2008)
The Company will boost production of automotive rubber sealing parts in Japan and other Asian nations. It will add two sets of extrusion equipment at its two plants in Japan by fiscal year ending March 2009, while introducing one set in Thailand and two sets in China. Capacity to knead rubber materials will also be reinforced. As a result, a total investment in production equipment is expected to amount to several billion yen. The Company will speed up investment to increase supply to Japanese automakers in response to their brisk demand mainly in Asia. (From an article in the Nikkan Jidosha Shimbun on Mar. 5, 2008)
New equipment installations
| Plant | Equipment to be introduced | Estimated amount of investment (million JPY) |
Project Period | |
| From | To | |||
| Nishikawa Rubber | ||||
| Shiraki Plant (Hiroshima, Japan) |
- Manufacturing equipment for automotive seals - Components for general industry |
886 | Sep. 2007 |
Mar. 2009 |
| Asa Plant (Hiroshima, Japan) |
- Manufacturing equipment for automotive seals - Components for general industry |
1,534 | Oct. 2007 |
Mar. 2009 |
| Yoshida Plant (Hiroshima, Japan) |
- Manufacturing equipment for automotive seals and interior/exterior components - Manufacturing equipment for exterior walls for housing |
993 | Sep. 2007 |
Mar. 2009 |
| Mihara Plant (Hiroshima, Japan) |
- Manufacturing equipment for automotive door seals. - Manufacturing equipment for exterior walls for housing |
800 | Dec. 2007 |
Mar. 2009 |
| Others | - Buildings and R&D equipment and others | 852 | Sep. 2007 |
Mar. 2009 |
| Domestic subsidiaries | ||||
| Nishikawa Bussan (Hiroshima, Japan) |
- Manufacturing equipment for automotive seals - Manufacturing dies |
370 | Nov. 2007 |
Mar. 2009 |
| Seiwa Kougyo Co., Ltd. (Hiroshima, Japan) |
- Manufacturing equipment for automotive seals - Components for general industry |
93 | Dec. 2007 |
Mar. 2009 |
| Nishikawa Big Ocean Co., Ltd. (Hiroshima, Japan) |
- Manufacturing equipment for automotive seals | 167 | Mar. 2008 |
Mar. 2009 |
| Nishikawa Rubber Yamaguchi (Yamaguchi, Japan) |
- Manufacturing equipment for automotive seals | 373 | Mar. 2008 |
Mar. 2009 |
| Nishikawa Big Well Co., Ltd. (Hiroshima, Japan) |
- Manufacturing equipment for automotive seals | 115 | Mar. 2008 |
Mar. 2009 |
| Overseas subsidiaries | ||||
| Nishikawa Tachaplalert Rubber Co., Ltd. (Thailand) |
- Manufacturing equipment for automotive seals | 953 | Jun. 2007 |
Dec. 2008 |
| Shanghai Nishikawa Sealing System Co., Ltd. (Shanghai, China) |
- Manufacturing equipment for automotive seals | 567 | Apr. 2007 |
Dec. 2008 |
| Guangzhou Nishikawa Sealing System Co., Ltd. (Guangzhou City, Guangdong Province, China) |
- Manufacturing equipment for automotive seals | 31 | - | Dec. 2008 |
*Investments in overseas subsidiaries were made to respond to more orders.