Nippon Gasket Co., Ltd. Business Report FY ended Mar. 2015

Recent Years

Start producing gaskets for diesel engines (DE)

-The Company will start producing gaskets for diesel engines in 2015. The Company has received an order from Toyota Motor Corporation for the new GD engine that will be launched in 2015. This is the first time for the Company to supply its gaskets for diesel engines on a full scale. The Company has developed dedicated metal gaskets for diesel engines in view of the internal environment of diesel engines. Toyota is planning to install the GD engine on its next-generation IMV series. For the GD engine, Taiho Kogyo Co., Ltd., Nippon Gasket's parent company, will supply vacuum pumps while Toyota Industries Corporation will provide automotive superchargers for the first time. These moves suggest that Toyota Group companies will actively tackle the diesel engine businesses. (From an article in the Nikkan Jidosha Shimbun on June 23, 2014)

-Nippon Gasket (Thailand) Co., Ltd., launched production of cylinder-head gaskets for diesel engines from April 2015, which are being equipped on Toyota's global vehicle series, the IMV.

Recent Development Outside Japan

Commences production of cylinder head gaskets in China
-The Company is positioned to increase sales of gaskets in the Chinese market by ten times to more than JPY 1.6 billion by the fiscal year ending March 2017. The Company has started producing cylinder head gaskets at Yantai Nippon Gasket Co., Ltd. (YNG), a manufacturing and sales subsidiary in Yantai, Shandong Province, China. YNG, which had been producing only exhaust manifold gaskets, has installed new production lines for cylinder head gaskets and is gradually increasing its capacity to strengthen its supply structure in China. Localizing production of its main product will allow the Company to improve its cost competitiveness. The Company aims to secure more orders from Toyota Motor Corporation, its main customer. (From an article in the Nikkan Jidosha Shimbun on December 21, 2013)

-In 2008, Yantai Nippon Gasket Co., Ltd. was established in Shandong, China.


-In 2011, Taiho Manufacturing of Tennessee, LLC, the Company's subsidiary won "Excellent Quality Award" from Toyota Motor Engineering & Manufacturing North America, Inc. (TEMA).


-In 2009, the Company liquidate Nippon Gasket Singapore Co. Pte. Ltd.

R&D Facilities

Name Location
Technology Center Toyota City, Aichi Pref.

-In 2010, the Company built a new R&D Building adjacent to its headquarters building. In line with this move, the Company transferred the R&D Engineering Center of Taiho Kogyo's Hosoya Plant to the Main R&D Center at the headquarters. The R&D Building is responsible for R&D activities on prototypes, while the Headquarters Main R&D Building will house new testing and design functions. This has enabled the Company to have a more flexible and efficient R&D structure.

Investment in Japan

-The Company will expand its Shiga Plant in 2015. According to an article in the Mid-Japan Economist and information obtained through an interview conducted by MarkLines, the Company plans to invest over JPY 1 billion to construct three additional plant buildings by 2018. After the expansion, the Company will begin producing new, cost-competitive gaskets. It will also increase the capacity to produce plastic gears that reduce engine noise.

-The Company will quadruple its monthly production capacity of resin gears for balance shafts to 20,000 units by spring 2014. The Company will invest JPY 300 million to boost capacity of a dedicated line in its Shiga plant in Maibara city, Shiga, Japan. The Company has just started to supply resin gears for Toyota's all-new Crown. Its proprietary pulp molding technology has realized a 15% cost reduction compared with other competitors' resin gears. The Company has received multiple orders for Toyota's upcoming models. In order to expand sales operations to other carmakers, the Company will increase production volume and improve availability of the product. (From an article in the Nikkan Jidosha Shimbun on August 21, 2013)

Investments Outside Japan

-In 2015, the Company will make additional investments in four gasket plants outside Japan, including those in the U.S. and China. According to an article in the Mid-Japan Economist and information obtained through an interview conducted by MarkLines, the Company will increase the four plants' total gasket capacity to 350,000 units per month, a 50% rise from the current level. Investment in this project is expected to reach JPY 400 million. The improvement will allow the Company to meet growing demand from Toyota, its major customer, and to begin producing gaskets for new vehicle models.

Planned Capital Investment

-During the fiscal year that ends March 2016, the Company will invest JPY 558 million in facilities and equipment of gaskets at its Shiga Plant.


Number of Employees (in million JPY)
  FY ended Mar. 31, 2015 FY ended Mar. 31, 2014 FY ended Mar. 31, 2013 FY ended Mar. 31, 2012 FY ended Mar. 31, 2011
Sales 10,763 11,135 10,590 9,993 9,325
Operating income 405 563 455 305 289
Ordinary income 629 752 641 439 353
Net income 448 501 563 289 208

Sales breakdown by customers (Non-consolidated)

FY ended Mar. 31, 2015 FY ended Mar. 31, 2014 FY ended Mar. 31, 2013
Toyota & Toyota related 70.7 74.0 77.0
Kubota & Yanmar 4.5 4.0 4.0
Mazda related 2.5 2.0 2.0
Other 22.3 20.0 17.0
Total 100.0 100.0 100.0