Tokai Rubber Industries Business Report FY2006
|In million JPY||FY2006||FY2005||Rate of Change (%)||Factors|
|Current net income||13,907||11,481||21.1|
|Rubber product business|
|Sales||228,046||202,977||12.4||Refer to the following explanation.|
Performance at the rubber-products
- Sales of automotive rubber products rose year-on-year, supported by greater production volume by Japanese automakers, which called for increased parts production at the Company's subsidiaries in North America, Asia, and Europe.
- Automotive anti-vibration-rubber products: sales of electronic control mounts increased
- Automotive hoses: sales increased in the area of environmentally friendly products such as low permeability hoses made of resin-rubber composite.
The Company will start manufacturing electric active control engine mounts (ACMs) at the Ohio Plant, U.S.A. Electric ACMs are now made at the company's domestic facilities for application in upper-class vehicles built by Honda as well as in some of the luxury models made by Toyota. The new U.S. line will enable the supplier to provide the products locally to the plants of these customers, which are planning to increase vehicle output in the U.S. Production is scheduled to be launched around next year at DTR Industries Inc., which is making anti-vibration rubber and hoses for automobiles. (From a story in the Nikkan Jidosha Shimbun on Feb. 27, 2007)
- By using advanced technology, the Company focuses its R&D activities on developing environmentally friendly products with greater riding comfort and which are low cost and can be marketed worldwide.
The Company conducts R&D activities at the following four facilities in an effort to develop new products and create new business fields:
- Elemental technology research facility: conducting research on cutting-edge composite technology related to control, design and materials.
- Material technology research facility: developing new materials
- Product development center: developing new products and bringing them into the market
- Manufacturing research center: developing innovating manufacturing technology.
The Company invested 18,152 million JPY in the rubber business for anti-vibration rubber and hose production facilities at the Company's locations as well as at DTR Tennessee, Inc.
The Company has decided to introduce an integrated production line for its high-pressure hoses in China at TRFH Co., Ltd.(TRFH), which it established in 2004 as a joint venture with Fukoku Bussan Co., Ltd. Tokai Rubber will also build a new plant in the technological development zone in Hefei, Anhui Province, where TRFH is located. In addition to expanding the production capacity of the existing plant, it will adopt an integrated production system with a comprehensive line from the production of hoses, and metal fittings to assembly, starting January 2007. The total investment amounts to approximately 1.5 billion yen. The initial monthly production capacity of hoses will be around 220,000 meters, which the company intends to expand to 480, 000 meters in the future. (From a press release by the company on Jan. 15, 2007)
|Equipment to be installed||Facility||Estimated amount of investment (million JPY)||From||To|
|Headquarters and Komaki Plant||Aichi pref. Japan||New R&D facility||3,185||May. 2007||Jun. 2008|