Meiwa Industry Co., Ltd. Business Report FY2010

Business Highlights

Financial Overview

(in millions of JPY)
  FY2010 FY2009 Rate of Change (%) Factors
Sales 17,077 15,537 9.9 - Overall sales increased year-on-year, thanks to strong sales of vehicles before the March 11 earthquake.
Operating income 238 107 122.4 -
Ordinary income 18 41 (56.1) -
Current net income 62 (1,808) - -
Automotive components division
Sales 16,096 14,830 8.5 - Sales of automotive parts rose from the previous year’s result, supported by strong sales of vehicles before the March 11 disaster. Some of the major factors behind the increase were the economic growth in emerging markets and the effects of the government’s sales incentive schemes such as tax cut and subsidy for vehicle purchase.
Operating income 280 40 600.0 -

Business Strategy Outside Japan

Meiwa (Dalian) Automobile Parts Co., Ltd.
 - This company was formerly called Dalian Meiwa Chemical Products Co., Ltd.
- Its yearly sales are approximately 1 billion yen.
- The subsidiary started operating in the black.

Meiwa (Foshan) Automobile Parts Co., Ltd.
- Operations started in January 2011
- Sales are expected to reach approximately 300 million yen in FY2011
- Sales are expected to increase to approximately 1 billion yen by 2013

- Started to deal with Chinese companies

Performance Forecast

(in millions of JPY)
Rate of Change (%)
Sales 17,100 17,077 0.1
Operating income 550 238 131.1
Ordinary income 500 18 2,677.8
Net income 50 62 (19.4)


R&D Expenditure

(in millions of JPY)
  FY2010 FY2009 FY2008
Overall 93 84 N.A.
Automotive components division 33 35 32

R&D Activities

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.

-Improving the product performance of Meitone
-Developing a light, highly durable, low-price deck board.
-Improving the product competitiveness of mats by lowering their prices.
-Cooperating with materials makers by conducting joint research on finding new applications for new materials and foaming technology.
-Upgrading technology on recycling, and launching biodegradable products, as ways to reduce environmental impact.
-Research and development with a view toward launching operations into new product sectors.

Product Development

GFPP sheets
- The Company added glass fiber to its existing PP base material for blow molded sheets.
- Reduction of materials thickness contributes to a 20 to 30 percent saving on product weight, while maintaining the strength level.

Reinforced urethane foam PP sheets with three-layer structure
- The Company developed a lightweight and high-strength material. Lightweight, foamed plastic core is sandwiched by reinforced PP sheets.
- Use of urethane foam as a core and adding glass fiber to conventional PP sheets further reduced product thickness, contributing to over a 25 to 40 percent saving on weight.

7th board (aluminum resin composite) jointly produced with Kobe Steel, Ltd.
- Stamping of 3-dimensional structure is possible.
- Reduces product weight by 80 percent compared with steel sheets, 60 percent compared with aluminum sheets.
- Offers superior vibration suppression property and heat insulating/shielding characteristics.

Investment Activities

Capital Expenditure

(in millions of JPY)
  FY2010 FY2009 FY2008
Overall 1,469 926 1,388
Automotive components division  1,466 913 1,385

-For the automotive components division, the Company invested mainly 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.

Planned Capital Investments

(As of Mar. 31, 2011)

Name Location Business/Facilities Total Planned Investment(million JPY) Start Planned completion
Kofu Plant Yamanashi Pref., Japan Facilities for manufacturing automotive interior parts 173 June 2010 Aug. 2011
Facilities for recycling materials 79 Mar. 2011 June 2011