Pacific Industrial Co., Ltd. Business Report FY2010

Business Highlights

Financial Overview

(in millions of JPY)
  FY2010 FY2009 Rate of Change
Sales 84,631 78,202 8.2
5,151 3,073 67.6 -
5,281 3,595 46.9 -
Current net income 2,969 2,498 18.9 -
Stamping/resin product business
Sales 60,209 58,610 2.7 - Sales decreased from the last year’s result in Japan. However, sales increased at subsidiaries overseas thanks to growth in local markets, especially in China.
Operating income 2,950 1,609 83.3 - Operating income increased largely year-on-year as a result of the Company’s cost cutting efforts and a decline in depreciation cost.
Valve product business
Sales 24,091 19,120 26.0 - Sales of tire valves and other valve products were strong buoyed by growing sales of the Tire Pressure Monitoring Systems (TPMSs). The company’s TPMSs are sold mainly in the U.S.
Operating income 2,219 1,494 48.5 - Despite the negative impact of soaring materials prices and the rising value of the yen, profit increased year-on-year supported by greater sales volumes and effects of cost cutting measures. 


Medium-term management plan OCEAN-12

-Period: Fiscal year 2010 through FY2012
-Purpose: Achieving results with limited resources, solidifying CSR activities, and establishing and developing technologies
OCEAN-12 numerical targets FY2012
Sales 80 billion yens
Ordinary income ratio
Sales in and outside Japan (as percentages of total sales) In Japan 74%
Outside Japan 26%
 Breakdown of sales of functional and non-functional products (as percentages of total sales) Functional 43%
Non-functional 57%
Sales by product (as a percentage of total sales) Stamping/resin 74%
Valve 14%
TPMS 11%
Others 1%


>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)


R&D Expenses

(in millions of JPY)
  FY2010 FY2009 FY2008
Overall  735 684 757
Stamping/resin products business  114 73 141
Valve products business  84 84 404
Common  525 518 206


R&D Activities

Major activities
Stamping/resin products business

- The Company researched and developed new stamping methods, including cold stamping technology using ultra high-strength steel.
- The Company also developed non-plated technology using bright films, as well as foam molding technologies, which contribute to reducing weight and noise.

Valve products business

- Tire valves: in response to the European initiative to reduce materials that impact the environment, the Company researched and developed lead-free alternative metals for tire valves. It also conducted a research and development to blend rubber that doesn't contain environmentally harmful materials.
- Valve products for car air conditioner: the Company researched and developed valves for air conditioners used in electric vehicles.
- TPMSs (Direct Tire Pressure Monitoring Systems): the Company developed the TPMS B-01 for the consumer market
- High-precision stamping products: the Company developed an aluminum forging method and technology to mold products by utilizing a progressive transfer system. As a result, it received orders for more items such as major components used in hybrid vehicles.

Common  The Company also conducted the following R&D activities:
- developing and launching non-plated products to which bright film has been applied
- developing multi functional, plastic components
- developing elemental technology to achieve noise and vibration absorption structure

Investment Activities

Capital Expenditure

(in millions of JPY)
  FY2010 FY2009 FY2008
Overall  5,065 4,359 14,194
Stamping/resin products  3,074 3,888 13,026
-In Japan  2,687 2,636 9,717
-Outside Japan  387 1,252 3,308
Valve products  1,936 424 1,140


Business segment

Stamping/resin products In Japan:
-To respond to new products such as molds for new vehicle models, etc.

Outside Japan:
-To respond to new products in its stamping business in China and North America.
Valve products Production increase and preparation for production of new products


New Facilities

Business segment Purpose Planned total investment
( in million JPY)
Start Planned completion Production capacity growth after completion
The Company
Nishi Ogaki Plant
(Gifu, Japan)
Stamped and resin New products, etc. 3,946
Jun. 2010 Mar. 2014 None
Automation and rationalization 526
Apr. 2010 Sep. 2012 None
The Company
Higashi Ogaki Plant
(Gifu, Japan)
Stamped and resin New products, etc. 1,524
Sep. 2010 Sep. 2013 None
Automation and rationalization 576
Sep. 2010 Apr. 2012 None
The Company
Yoro Plant
(Gifu, Japan)
Stamped and resin
New products, etc. 104
Aug. 2010
Aug. 2013 None
The Company
Kyushu Plant
(Fukuoka, Japan)
Stamped and resin Automation 25
Apr. 2011
Sep. 2011
The Company
Tohoku Plant
(Miyagi, Japan)
Stamped and resin Automation 53
Dec. 2010
Aug. 2011 None
The Company
Kita Ogaki Plant
(Gifu, Japan)
Valve New products, etc. 536
Mar. 2010 Feb. 2014 None
Automation and rationalization 552

Nov. 2010

Oct. 2013
The Company
Mino Plant
(Gifu, Japan)
Valve Automation and rationalization 208
Dec. 2010 Sep. 2013 None
Pacific Industries USA Inc.
(Ohio, USA)
Stamped and resin,
New products, etc. 408
Apr. 2011 Mar. 2012 None
Pacific Valve (Taiwan) Co., Ltd.
(Taichung, Taiwan)
Stamped and resin,
New products, etc. 92
Jan. 2011 Dec. 2011 None
Pacific Valve Industrial Co., Ltd.
(Yangsan, Korea)
Valve Maintenance and retooling 62
Jan. 2011 Dec. 2011 None
Pacific Air Controles Co., Ltd.
( Asan, Korea)
Valve Production expansion 3,934
Jan. 2011 Jul. 2012 100%
Pacific Industries (Thailand) Co., Ltd.
(Chachoengsao, Thailand)
Valve Maintenance and retooling 79
Jan. 2011 Dec. 2011 None
Tianjin Pacific Auto Parts Co., Ltd.
(Tianjin, China)
Stamped and resin, New products, etc. 586
Jan. 2011 Dec. 2011 None