ICHITAN CO., LTD. Business report FY2007

Business Highlights

Financial overview (in millions of JPY)
  FY2007 FY 2006 Rate of change (%) Factors
Sales 11,361 10,969 3.6 -Overall sales grew year-on-year, thanks to increased sales of automotive components.
Operating Income 345 383 (9.9) -Income declined partly because of increased depreciation costs and material prices.
Ordinary income 264 249 5.6 -
Current net income 149 168 11.3 -
Automotive components
Sales 10,731 10,305 4.1 -

Challenges for FY2008
Under the aim of becoming one of the best suppliers of forged products with a solid business structure, the Company is committed to:
1. Drastically improving its production efficiency, while reducing overall costs
2. Reforming the level of its quality assurance system 
3. Strengthening its sales and marketing structure 
4. Enhancing both its core and proprietary technology 
5. Maintaining its human resources and providing a safe working environment in a systematic way


Development Structure
-R&D expenses in fiscal 2007 were 38million yen.

-Number of R&D staff : 17 people 

Research and Development Activities
-The Company tried to reduce production costs while improving quality by developing new products, technology and production methods.

-In order to improve the accuracy in forging processes and lower production costs, it also developed new technology to make precision forged products and toothed products that are formed through net-shaping technology. The Company developed and improved production methods using three-dimensional simulations, as well.

-The Company aggressively worked on responding to new needs from the automotive industry for applying advanced systems to improve fuel economy and environmental performance. As a result, it won new customers.

Activities in FY 2007 are as follows;
1. Development of automotive transmission components, of which the toothed parts are net-shaped by using hot and cold forging machines.
2. Development of technology to make precision toothed parts using net-shaping technology
3. Development of technology to make precision forged parts using thick plate forging technology
4. Development of technology to make bevel gears using cold block forging technology
5. Development of technology to lower costs in the hot forging process
6. Basic research to make the product-lives of dies longer

Investment Activities

-The total capital investment in fiscal 2007 was 933million yen.

-The Company installed a 3800T forging press, renovated a 4500T forging press, and installed a NC turning machine. Kyushu Ichitan renovated its heat treatment oven, press machines, and other out-dated production facilities.

New facilities
Company name
Business establishment
Type of facility Planned investment amount
(thousand JPY)
Construction start date  completion  Production capacity upon completion
Head office/ Plant
(Gunma pref., Japan)
Forging facilities 1,118,765 2007.09 2008.06 Increased productivity
Kyushu Ichitan
Head office/ Plant
(Oita pref., Japan)
Forging facilities 150,000 2008.03 2009.03 Increased productivity
Daiichi Forging Dalian Co., Ltd.
Head office/ Plant
(Dalian, China)
Forging facilities 27,428 2008.01 2008.12 Increased productivity