1. Home
2. Supplier Database
3. Major Suppliers
4. NHK Spring Co., Ltd.
5. NHK Spring Co., Ltd. Business Report FY ended 2015

Business Overview

Introduction of compact production line
-The Company has developed a compact production line for stabilizers. The new line requires less cost and a smaller installation space than those needed for conventional lines. Such improvements will allow the supplier to make a profit on small-lot production. It will also make it easier for the Company to deal with considerable fluctuations in demand. The Company had already developed a compact production line for coil springs, and is utilizing it at its plants at home and abroad. The new line for stabilizers is scheduled to be introduced initially at the Company's plant in Mexico during FY 2015 (April 2015-March 2016). It will also be used at its subsidiary in Kyushu, Japan, starting in FY 2016. (From an article in the Nikkan Jidosha Shimbun on January 7, 2015)

Strengthen sales activity of motor cores
-The Company has won an order for motor cores for use in drive motors in hybrid vehicles and started supplying them to a Japanese automaker. While the Company has been producing motor cores for drive motors in electric vehicles in the U.S., it is the first time for the Company to receive an order for hybrid vehicles. It has begun production of motor cores at its Atsugi plant (in Aikawa, Kanagawa prefecture). Taking advantage of this occasion, the Company plans to enhance its sales promotion. Whereas it currently supplies motor cores to only one OEM, it aims to increase the number of customers as the hybrid vehicle market has been expanding in Japan. (From an article in the Nikkan Jidosha Shimbun on October 9, 2014)

Opening ceremony in Mexico
-In November 2014, NHK Spring Mexico S.A. de C.V. and Topura Fastener de Mexico S.A. de C.V. jointly held an opening ceremony in Guanajuato, Mexico. NHK Spring Mexico, a subsidiary of NHK Spring, produces automotive suspension springs. Topura Fastener de Mexico S.A. de C.V. produces precision parts. It is a subsidiary of Topura Co., Ltd., which is owned 100% by NHK Spring. NHK Spring Mexico began operating in February 2015.

Mid-term Business Plan (FY ending March 2015 - FY ending March 2017)

-The Company has set its sales target for the fiscal year ending March 2017 (FY2016) at JPY 670 billion, up 17.6% from FY2013.
The Company targets an operating profit of JPY 51 billion, up 36.3% from FY2013, and a net income of JPY 34 billion, up 38.2% from FY2013. The Company aims to achieve a substantial increase in operating profit with an increase in sales coupled with business streamlining. The Company will increase upfront investments to strengthen its global supply networks.

-Major measures

• Enhance the production capacity of suspension springs in China and India.
• Win more orders for complete seats in and outside Japan to improve profitability.
• Planned capital investment for FY2014-FY2016 is JPY 76 billion (Springs JPY 26 billion, Seats JPY 17.1 billion), exceeding the level in the previous plan. Projected growth rate of suspension springs is especially high at 85.7%.

-Performance targets for Mid-term management plan (ending in March 2017)

• Sales: JPY 670 billion
• Operating income: JPY 51 billion (profit margin 7.6%)
• Ordinary income: JPY 54 billion (profit margin 8.1%)
• Net income: JPY 34 billion (profit margin 5.1%)

*As for FY ending March 2016, it's defined " Net income attributable to owners of the parent".

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

Awards

-In March 2015, the Company received "Global Contribution Award" from Toyota Motor Corporation.

-R&D Expenditure for FY ending March 2016 is planned to be JPY 16,600 million.

R&D Structure

-R&D activities at the Company are conducted by the following functions: Headquarters R&D Center, Technical Development Center, each of the production and business divisions' R&D functions, design functions, and R&D functions at each subsidiary.

-As of March 2015, the Company had 1,000 staffs working in R&D, which is 6.0% of the workforce.

R&D Activities

Suspension Spring Division
-The Company is developing compact and lightweight products that improve fuel efficiency and reduce CO2 emissions. It is also working on improving the durability of these products.

-Major tasks:

• To make coil-springs and stabilizers with FSD (Fully Stressed Design): a design method for balancing/equalizing stress distribution, regardless of position.
• To enhance durability
• To develop new materials
• To adopt Fiber Reinforced Plastics (RRPs)
• To develop new production technologies

-Major achievements: The Company succeeded in development of products with improving durability, ensuring quality.

-Future areas of R&D activities: Development of processes of making stronger, lighter-weight products while using low cost material; as well as development of processes that reduce costs.

Seat Division
-The Company is developing lightweight seats, high-tech seats that use bio signal technologies, and high-performance seats that offer a high level of riding comfort.

-Major achievements:

• The Company developed a lightweight front seat frame made of Carbon Fiber Reinforced Plastics (CFRP). The new seat frame is 20% lighter than existing frames.
• Refreshing seats that utilize biological signals: the Company already made an improved prototype, made presentations to customers, and showcased the technology at auto exhibitions.
• Monitoring seats that measure and display the occupant's physical conditions: the Company completed the system's measuring system. 
• The Company conducted R&D activities to improve overall seat performance: it developed vibration simulation technology by using CAD tools. It also developed a seat frame vibration prediction system, a tool for precisely evaluating the occupant's comfort levels.

Precision Parts Division
-The Company developed precision springs for automotive engines and transmissions.

-Major tasks

• To develop next-generation auto parts such as motor cores by using technology on high-precision stamping processes, parts for fuel cells, and weight-reduction technology that works to improve fuel efficiency.
• To develop high-strength materials while using low cost materials

Product Development

Plastic Seatback Frame
-The Company has developed a new plastic seat-back frame designed to reduce the weight of a seat drastically. The product is made of carbon fiber reinforced plastic (CFRP) and therefore is both lightweight and highly rigid. The Company will propose the new frame to automakers and aims to begin mass production as soon as possible. The use of CFRP in the seat-back frame has reduced the weight by 33% compared to a lightweight metallic seat frame with the same specification. The Company intends to propose the frame for fuel-efficient gasoline, electric, and ultra-micro electric vehicles. (From an article in the Nikkan Jidosha Shimbun on May 23, 2014)

-Capital Expenditure for FY ending March 2016 is planned to be JPY 29,500 million.

-Planned capital investment for FY2014-FY2016 is JPY 76 billion (Springs JPY 26 billion, Seats JPY 17.1 billion), exceeding the level in the previous plan. Projected growth rate of suspension springs is especially high at 85.7%.

Capital Expenditure by division for FY ended March 2015
Suspension Spring Division
-The Group made a capital investment mainly to win orders for new products and improve the productivity of its existing products.
-The Company made a major investment in the production facilities of manufacturing suspension springs at the Yokohama Plant, NHK Spring (Thailand) Co., Ltd., New Mather Metals, Inc. and NHK of America Suspension Components Inc.

Seat Division
-The Group made a capital investment mainly to win orders for new products and improve the productivity and quality of its existing products.
-The Company made a major investment in seat production facilities at the Toyota Plant, NHK Spring (Thailand) Co., Ltd., and NHK Seating of America Inc.

Precision Parts Division
-The Group made a capital investment mainly for development and to win orders for new products orders,  and improve the productivity and quality of its existing products.
-Investment was mainly spent on facilities producing precision parts at its Komagane Plant, Ina Plant, NHK Spring (Thailand) Co., Ltd., and NAT (Dongguan) Co., Ltd.

Investment in Japan

Established a wholly owned production subsidiary in Kyushu
-The Company announced that it will establish a wholly owned production subsidiary in Fukuoka Prefecture, Japan in June 2014. The new company, NHK Spring Kyushu, will take over production of coil springs and stabilizers for the Kyushu region from NHK Spring's Shiga Plant. New operations are scheduled to begin in April 2016. Approximately JPY 2 billion will be invested in the new facility, which will cover 40,000 square meters of land and will introduce cost-efficient and compact new production lines. The plant will be located adjacent to Faurecia-NHK Kyushu, the Company's seat production joint-venture with Faurecia of France. Having received a new program from Nissan, the joint venture's major customer that is increasing local sourcing, the Group has decided to make spring products locally in Fukuoka as well. It hopes to supply its springs also to the local facilities of other automakers. Annual sales at the subsidiary are expected to reach JPY 1.5 billion by the fiscal year ending March 2019. (From an article in the Nikkan Jidosha Shimbun on May 14, 2014)

Investment Outside Japan

Suspension Spring Division
<Hungary>
-The Company will set up a new company to produce suspension springs in Hungary in March 2015. The new company, tentatively named NHK Spring Hungary Kft., will be capitalized at EUR 1 million or JPY 135 million. The new company will be fully owned by the Company's subsidiary in the Netherlands, NHK Spring Europe B.V. The Company will build a plant with a floor space of 11,000 square meters on an 80,000-square-meter site in Komarom-Esztergom, a Hungarian county on the northern border with Slovakia. This plant will start its operations in December 2015 and will produce 3.5 million units of coil springs and 1.2 million units of stabilizers a year in the fiscal year ending on March 31, 2021. The Company already has a suspension spring plant in Spain. The new plant will allow the Company to enhance supply capacity and expand business in Europe. (From an article in the Nikkan Jidosha Shimbun on March 5, 2015)

Seat Division
<Cambodia>
-The Company said its Thai subsidiary will establish a new seat cover sewing company in Cambodia. The subsidiary, NHK Spring (Thailand), Co., Ltd., anticipates future expansion of car seat production in Thailand and decided to beef up its capacity to produce seat covers. The new company, NHK Spring (Cambodia), Co., Ltd., will be established in April 2015, capitalized at THB 120 million or JPY 384 million. It will be 75% owned by NHK Spring (Thailand) and 25% by a local company. A 12,000-square-meter plant will be built on a 23,520-square-meter site in Poipet, a border town between Thailand and Cambodia. The plant will start producing seat covers in April 2016. Its sales target is THB 2.2 billion or JPY 7.04 billion in the fiscal year ending on March 31, 2021. (From an article in the Nikkan Jidosha Shimbun on March 5, 2015)

Precision Parts Division
<India>
-The Company will construct a new plant for producing precision springs for engines and clutches in India. The Company plans to begin production at the new plant in May 2016. In response to growing local demand, the Company will bolster its production capacity in India. The new plant will be built in Aurangabad, located in the central part of India, and will belong to NHK Automotive Components India Private Limited, the Company's subsidiary in India. The plant's annual production capacity will be 80 million units for engine valve springs and 190 million units for clutch springs in the fiscal year ending in March 2020 (FY 2019). The Company plans to employ 300 people by the end of FY 2019. (From an article in the Nikkan Jidosha Shimbun on December 19, 2014)