Nippon Piston Ring Co., Ltd. Business report FY2008

Business Highlights

Financial Overview (in millions of JPY)
  FY2008 FY2007 Rate of
Sales 44,789 51,924 (13.7) -The sudden and sharp decline in auto production in and after the latter half of the year had a negative impact.
Operating income (636) 2,575 - -Steep rises in material prices as well as the sudden and sharp decline in auto production both had a negative impact.
Ordinary income (1,605) 1,232 -
Current net income (4,915) 532 -
Automotive Parts Division
Sales 39,267 45,469 (13.6) -
Operating income (798) 2,176 - -


R&D Expenditure (in millions of JPY)
  FY2008 FY2007 FY2006
Overall 1,508 1,655 1,705
Automotive Parts Division 1,448 1,588 1,637

R&D Activities
1. Piston rings for aluminum bores
-To address technical challenges that are unique to aluminum bores, the Company, by utilizing the expertise it gained through developing and commercializing aluminum bores, is working to commercialize piston rings developed based on new technologies.

2. Low-friction piston rings
-The Company completed commercializing high precision rings for engines with large-diameter bores by applying ring designs that are high-precision and thinner in width;  and  by applying technology on processing that was developed through manufacturing rings for Formula car races.

3. Highly durable piston rings for diesel engines
-To comply with emission and fuel-consumption regulations such as EuroVI and US10 for heavy-duty vehicles, the Company launched a new technology on PVD film, thus developing the technology to create piston rings capable of achieving both lower emissions and better fuel consumption at the same time.

4. Valve seats
-The Company began developing materials for gasoline engines that are more fuel efficient and lean burning;  and materials compliant with emission regulations for diesel engines. It also started developing valve seats for increasingly popular bio-alcohol fuels such as  E85, mass-producing them for automakers in and outside Japan. 

5. Assembled sintered camshafts
-The Company developed assembled sintered camshafts for high-performance gasoline engines with VVT (Variable Valve Timing), and for passenger-car and commercial-vehicle diesel engines. The volume of these being mass-produced and equipped on vehicles is increasing. 

-The Company successfully achieved developing next-generation assembled sintered camshafts and has begun mass-production of them in 2006.  .

6. MIM products
-The Company developed light magnetic materials based on the MIM method, enabling the Company to increase the production volume of injector parts.

7. New sintered parts
-To meet the needs for highly functional engine blocks, the Company developed an iron-based sintered alloy that has superior reinforcement capability. To achieve this, the Company successfully combined both aluminum and cast iron, which coheres poorly with die-cast aluminum, in engine blocks. The Company is currently mass-producing this alloy for use in gasoline engines. It already has begun being used in diesel engines mounted on passenger vehicles in 2007. 

8. Cylinder liners
-The Company is moving forward in commercializing cylinder liners that are compliant with the New Long-term Emission Regulations, establishing a proprietary specification for these. These liners will be used on diesel engines. It is also developing and evaluating new and complex materials that satisfy regulations on emissions and fuel efficiency, in order for them to be effective in the future. 

Licensing of Technology from Other Companies (As of Mar. 2009)
Name of the licensed company Country Date Details Term of contract
Sejion Cam Co., Ltd. Korea 2000.07.01 Sintered camshaft production methods Seven years after the start of mass-production (To be annually renewed after the term)
Henan Zhongyuan Engine Fitting Co.,Ltd. China 2005.09.02 Cylinder liner production methods Until the Company no longer supplies the products
Yizheng Shuang Huan Piston Ring Co., Ltd China 2005.12.27 Piston ring production methods Seven years
IP Rings India 2005.04.01 Oil ring production methods

Five years

India 2005.03.01 Nitrogenous ring production methods Five years
India 2008.02.21 Steel ring production methods

Five years

India 2003.12.01 Oil ring assembly production methods Eight years
India 2008.04.01 Manufacturing methods of chrome plated rings Five years
2008.12.22 Steel ring production methods Six years
GKS Sinter Metals India 2007.03.31 Sintered alloy valve seat manufacturing methods Tree years

Investment Activities

Investment Expenditure (in millions of JPY)
  FY2008 FY2007 FY2006
Overall 4,262 7,098 5,060
Automotive Parts Division 4,032 6,634 4,603

-The Automotive Parts Division made a capital investment in order to maintain and/or upgrade existing facilities and prepare for the production launch of new products in Indonesia.

Planned Capital Investments (As of Mar. 2009)
Name Location Type of facility Planned total  investment (1000 JPY) Construction start month Planned completion month Capacity upon completion
NPR Manufacturing Kentucky, LLC Kentucky,
Construction of new plants 5,500 2006.05 2011.06 18,000,000