Chuo Spring Co., Ltd. Business Report FY2009

Business Highlights

Financial Overview

(in millions of JPY)
  FY2009 FY2008 Rate of Change
Sales 72,854 81,071 (10.1) 1)
Operating income 2,144 (2,461) - -
Ordinary income 2,364 (2,373) - -
Current net income 2,707 (3,993) - -

Suspension springs
-Sales at the suspension spring division totaled 23,768 million yen, a decrease of 1.2 percent year-on-year due mainly to a fall in sales of torsion bars.

Precision springs
-Sales at the precision spring division were 17,212 million yen, a drop of 9.3 percent year-on-year because of a decrease in sales of spiral springs, and because of other factors also.

Control cables
-Sales at the control cable division amounted to 18,725 million yen, a decline of 14.8 percent, since sales of transmission cables and other products decreased.

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


R&D Expenditure

(in millions of JPY)
  FY2009 FY2008 FY2007
Overall 325 361 345

R&D Activities

Suspension Spring Business
-The Company developed a cold-formed suspension spring using two new technologies, one for coating springs and another for controlling lateral force.   These technologies improve both driving stability and riding comfort. It already started to mass-produce this spring for use in a hybrid electric vehicle.
-In order to improve its expertise and become more competitive, the Company started developing new, space-saving production equipment. It also introduced its unique method of measuring its products into some of its mass-production lines.
-The Company continues to develop reinforcement treatment techniques and high-strength materials that contribute to reducing weight.
-For the purpose of making a thorough assessment of high performance springs and weight-saving technology before launching these springs, the Company is now setting up dedicated trial production lines in stages.

Precision Spring Business
-The Company is developing a new, high-strength valve spring for engines, aiming to launch it in fiscal year 2010 or after.
-The Company is enhancing its production capacity to produce large disc springs used on hybrid vehicles by installing an additional high-frequency heat treatment line that can reduce the effects on the environment.
-In the area of spiral springs for seats, the Company started producing surface lubrication films at its own facility. It is working on further upgrading its in-house production capacity by investing in new facilities and equipment.
-In response to increased demand for diesel engines, the Company completed preparations for starting commercial production of knitted mesh springs for exhaust gas recirculation systems.
-The Company focused on developing high-precision and highly functional leaf springs by leveraging technology capable of advanced analysis and by using its proprietary precision stamping technique. It is also working on manufacturing dies on its own.
-The Company has developed various types of inspection instruments by using its proprietary image processing technology. These devices have already been introduced into various production processes.

Control Cable Business
-For the purpose of handling all production processes at its own facilities, the Company is working on improving its technology for testing cable strength by developing a simulation system, which helps in producing high quality products right from the designing stage.
-By reinforcing its partnership with Chuhatsu Techno Co., Ltd., a subsidiary engaged in designing, the Company expanded its designing business (in the area of springs and cables) and development activdesigningities on cable systems.
-The Company is also enhancing is capability to develop advanced equipment and devices for evaluation, inspection, and measuring.

Agreements on Licensing Technology

(As of Mar. 31, 2010)

Suppliers Country Contents of contract Date of Contract Contract period
Supreme Spring (A Division of Metindustrial (Proprietary) Ltd.) South Africa Chassis springs for automobiles and railroad cars. 1984.03.31 Five years
(with provision for automatic extension)
Metal Textiles Corporation USA Knitted wire meshes 1994.06.01 Five years
(with provision for automatic extension)
Knitmesh Limited UK Knitted wire meshes 1991.04.01 Five years
(with provision for automatic extension)
Dura Automotives Systems, Inc. USA Control cables 1995.06.02 Five years
(with provision for automatic extension)
Mubea, Inc. USA Automotive chassis springs 2005.06.30 Until the project is terminated
Tiajin Lizhou Hardware Spring Co., Ltd.
China Valve springs, Torsion bars 2006.09.01 Five years
Rozmas Celik Sanayi Ve Ticaret A.S. Turkey Automotive chassis springs 2010.02.20 -
Muhr Und Bender KG Germany Automotive chassis springs 2008.06.10 Until the project is terminated

Investment Activities

Investment Expenditure

(in millions of JPY)
  FY2009 FY2008 FY2007
Overall 1,278 2,289 5,229

Suspension spring business
-Major investment projects at the suspension spring division included increasing production capacity and improving the Company's efficiency to manufacture stabilizers and leaf springs.

Precision spring business
-The precision spring business invested mainly in boosting production capacity and improving the efficiency of its production lines making spiral springs snap rings.

Control cable business
The focus of the investment activities:
-preparing production lines to make new products; and
-improving the efficiency and product quality on its existing lines.

New Facilities and Refurbishment Plans

(As of Mar. 31, 2010)

Company name Category Facility plan Planned budget
(in millions of JPY)
Construction start
and completion
The Company Building Manufacturing facilities for chassis springs 921 Nov. 2009 - Mar. 2011
Machinery Manufacturing facilities for precision springs 254 June, 2009 - Mar. 2011
Machinery Manufacturing facilities for cables 112 Apr. 2010 - Mar. 2011
Industrial tools Dies and jigs 32 Apr. 2010 - Mar. 2011