MEIWA INDUSTRY CO., LTD. Business report FY2007

Business Highlights

Financial overview (in millions of JPY)
  FY2007 FY2006 Rate of Change (%) Factors
Sales 22,058 19,749 - -
Operating income 365 127 - -
Ordinary income 252 121 - -
Current net income 13 161 - -
Automotive components Division
Sales 19,130 15,708 - -Newly launched products contributed to sales increase from the 2nd quarter. 
Operating income 144 (7) - -In the 1st quarter the Company recorded an operating loss; but in the 2nd quarter it quickly and successfully improved income through cost reduction activities in all business segments and expanding production of new items. 
*No comparison with the result of fiscal year ended March 2007 is given as the fiscal year ended March 2008 was the first year for the Company to provide consolidated financial results. 

Challenges for FY2008
Development of new products
-To offer new products to carmakers while strengthening business alliances with system suppliers, the Company will conduct further work to develop new products and materials, focusing on weight reduction, enhancing cost competitiveness and environmental consideration.

Expansion and improvement of production facilities
-The Company stepped up efforts to reorganize production structure in Japan, including: Further raising production capacity at its Gifu Plant, increasing value of the products manufactured at its Nagano Plant by specializing in flexible products, and enhancing efficiency at its Kofu Plant into which operations of its former Gunma Plant have been consolidated. 

-The Company aims to establish businesses globally by strengthening operations in China through cooperation with a local company in Dalian. setting up in South China, reinforcing production structure in Southeast Asia, and finding alliance partners in Europe and the U.S.A.


-Total R&D expenses at the Automotive Components Division for FY2007 were 84million yen.

-The Company will focus on shorting the time needed to establish new technologies used in new products, as well as improve on efficiencies for doing so as well. It intends to achieve this by enhancing cooperation with automakers and system suppliers, and furthering the exchange of information with material suppliers, manufacturers of production machinery, trading firms, and other companies concerned.  

Automotive components division
The Company will work on the following ideas in its R&D activities. It will be focusing on reducing costs, creating products that are both lighter in weight and more rigid, improving products to make them more commercially appealing, and making products that contribute to improving the environment. 
-Development of lightweight deck boards
-Making Zem-Light products more commercially appealing.
-Development of a new processing method for Zem-Light SPS
-Development of a foam-injected, light-weight luggage box
-Development of head linings with noise absorbing function

Investment Activities

-Total capital investment for FY2007 was 1,108million JPY. 

-Out of the total amount, 1,099 million JPY was spent on the automotive components division.

-For the automotive components division, the Company invested mainly to acquire land, buildings, and production facilities for the new plant in Gifu, as well as to install production facilities and molds at existing plants in order to manufacture products that are for new orders the Company won. The Company aims to enhance the production capacity and streamline and renew the production facilities through making capital investments.

Establishment of  A New Plant
Name Location Business/Facilities Total Planned  Investment
(million JPY)
Start Planned completion
Gifu Plant Gifu Pref., Japan Manufacturing facilities for trunk-space parts 183 Feb. 2008 July. 2008
Dalian Meiwa Chemical Products Co., Ltd. Dalian, China Manufacturing facilities for trunk-space parts 150 Dec. 2007 Sep. 2008