Tokai Rubber Industries. Ltd. Business Report FY2010

Business Highlights

Financial Overview

(in millions JPY)
Mar. 2011)
FY2009 Rate of Change (%) Factors
Sales 272,488 234,131 16.4
Operating income 16,796 10,799 55.5
Ordinary income 15,983 9,314 71.6
Current net income 9,940 3,579 177.7
Automotive parts
Sales 217,708 185,634 17.3
Sales of anti vibration rubber and hoses, urethane interior products, and sound insulating materials for automobiles all increased from last year’s results.
Operating income 13,440 9,568

Recent Developments Outside Japan

In December 2010, the Company announced that it will set up a local joint venture in Tianjin, China in partnership with a Chinese auto parts supplier for manufacture and sale of anti-vibration rubber products for automobiles. A new company will be established in January 2011 and is expected to start operations in June of the year. It will be capitalized at 100 million yuan. Sixty percent will be invested by Tokai Rubber and the remaining by the local auto parts supplier. The plant building with a floor space of 9,400 square meters will be constructed on the land of 21,000 square meters. The joint venture is expected to hire 660 employees and generate 370 million yuan in sales by the fiscal year of 2015. (From an article in the Nikkan Jidosha Shimbun on December 15, 2010)

In November 2010, the Company announced that it will establish in 2011 Tokai Rubber Compounding (Thailand), Ltd. (TRCT), a new company for kneaded rubber production in Thailand to start operations in January 2013. The company aims to expand its output and supply capacities of anti-vibration rubber materials by performing the rubber kneading/compounding process locally at the production area of natural rubber. With this addition, Tokai Rubber Industries will organize the Japan-U.S.-Thailand trilateral framework for supplying the kneaded/compounded rubber. TRCT will supply to manufacturing bases for automotive anti-vibration rubber in Thailand and the neighboring area including Indonesia, China and India. Tokai Rubber Industries will hold 75% and Tokai Eastern Rubber (Thailand) Ltd. (TER) will hold 25% of TRCT's capital amount of one billion baht (approx. 2.77 billion yen). (From an article in the Nikkan Jidosha Shimbun on November 25, 2010)


The Company has maintained mutual supply agreements with Trelleborg AB for the automotive anti vibration rubber business since February 2001 and with Hutchinson SA for the automotive hose business since March 2001. It, however, will terminate the contracts as opportunities for mutual supply arrangements are decreasing in line with increased moves by automakers to shift from local sourcing to the optimum global procurement system.

Name of partner Name of contract Date of agreement for contract termination
Trelleborg AB
General Collaboration Agreement
Feb. 14, 2011
Hutchinson SA
Global Strategic Alliance Agreement
Feb. 14, 2011

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


R&D Expenditure

(in millions JPY)
  FY2010 FY2009 FY2008
Overall 8,182 - -
Automotive parts 6,596 - -
Rubber products business  - 6,241 6,727

R&D Structure

At its Technopia center, the company is developing new technology through collaboration of its materials development division and the new business development division. At the development collaboration center established in March 2009, the company has been working to establish a new business for consumer use, while engineering components for the next generation vehicles. In May 2011, the development collaboration center was divided into a collaboration unit for new industry and a collaboration unit for automotive products, which are expected to accelerate commercialization and development of new products.

Investment Activities

Capital Expenditure

(in millions JPY)
  FY2010 FY2009 FY2008
Overall  14,938 10,277 27,437
Automotive parts 12,530 - -
Rubber products  - 8,448 20,548

-The Rubber Products Business invested both in Japan and overseas mainly to upgrade equipment used for producing anti vibration rubber and hoses.