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5. Fuji Machinery Co., Ltd. Business Report FY ended Mar. 2014

Fuji Machinery Co., Ltd. Business Report FY ended Mar. 2014

Recent Years

Developments in Japan

Expand domestic production capacity for CVTs and rear differentials
-The Company will expand production capacity to meet growing demand from Fuji Heavy Industries (FHI). Its main plant in Maebashi City, Gunma Prefecture will establish an additional production line to manufacture continuously variable transmission (CVT) components. The new line is expected to increase the plant's CVT parts capacity by 10 to 15% by July 2014. Meanwhile, Fuji Machinery's Jonan Plant in the same city will introduce new equipment to increase rear differential production. The Company intends to invest more than JPY 1 billion in these expansion plans. (From an article in the Nikkan Jidosha Shimbun on February 13, 2014)

-In January 2009, the Company opened its Isesaki Plant in Gunma Prefecture.

Investment in Japan

-The Company will expand production capacity to meet growing demand from Fuji Heavy Industries (FHI). Its main plant in Maebashi City, Gunma Prefecture will establish an additional production line to manufacture continuously variable transmission (CVT) components. The new line is expected to increase the plant's CVT parts capacity by 10 to 15% by July 2014. Meanwhile, Fuji Machinery's Jonan Plant in the same city will introduce new equipment to increase rear differential production. The Company intends to invest more than JPY 1 billion in these expansion plans. (From an article in the Nikkan Jidosha Shimbun on February 13, 2014)

-In January 2009, the Company celebrated the opening of its Isesaki Plant, located in Gunma Prefecture. The plant produces manual transmissions (MTs) for small-sized vehicles. With the launch of this facility, the Company will begin producing MTs for all models manufactured by Fuji Heavy Industries (Subaru). (From a press release on Jan 13, 2009)

-In March 2006, the Company announced that it is going to enhance its production capacity at the Head Office Plant by establishing a new line exclusively for sleeve hubs, which are transmission components. Sleeve hubs for 5-speed and 6-speed transmissions will be produced on the designated line, which will raise the monthly capacity of sleeve hubs by 30%; or from 100,000, to 130,000 units a month. Operation is scheduled to start in April, 2006. Some work which up until now had been outsourced will now be done in-house. With increasing orders for transmissions, the Company will raise both its production capacity and efficiency by building a designated line to produce sleeve hubs exclusively. (From an article in the Nikkan Jidosha Shimbun on Mar. 23, 2006)

-In July 2005, the Company announced that it will boost its production capacity to manufacture rear differential gears at the Jonan Plant in Gunma Prefecture. A new assembly line, which is going to be added by summer 2005, will raise the monthly production capacity by approximately 15%, or 25,000 units. The Company is also going to re-examine the production allocation between the new line and the existing lines to improve efficiency. (From an article in the Nikkan Jidosha Shimbun on July 7, 2005)

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