TOKAI RIKA CO., LTD. Business Report FY2007
Business Highlights
in millions of JPY | FY2007 | FY2006 | R.C.(%) | Factors |
Overall | ||||
Sales | 440,001 | 405,139 | 8.6 | - |
Operating income | 33,376 | 24,899 | 34.0 | - |
Ordinary profit | 34,414 | 26,500 | 29.9 | - |
Current net income | 21,282 | 17,948 | 18.6 | - |
Automotive component business | ||||
Sales | 434,574 | 398,372 | 9.1 | - Sales increased, thanks to greater sales of switches, seatbelts, key locks, and shift levers. |
Contracts
The Company has won a new order from Fuji Heavy Industries for shift levers,
one of the supplier's main products. The company will start delivering
shift levers for the next-generation Legacy to Subaru's production base
in North America, Subaru of Indiana Automotive, Inc. (SIA). The Company
will design the products jointly with one of Subaru's main suppliers in
Japan Chiyoda Kogyo in Isezaki-shi, Gunma prefecture, and the new products
will be produced in Japan by Chiyoda Kogyo and in the U.S. by TAC Manufacturing,
Inc., one of US subsidiaries of the Company, who will deliver the products
to SIA. SIA currently produces approximately 100,000 units of the Legacy
a year. TAC Manufacturing will be a sole supplier of Legacy shift levers
to SIA. The Company having supplied switches and seatbelts to Subaru will
sell shift levers for the first time to the automaker.(From an article
in the Nikkan Jidosha Shimbun on Jan. 25, 2008)
Domestic business
Strengthening development and production structure
- The Company established Tokai Rika Northeast Technological Center
in Yamagata Prefecture, Japan.
>>>See R&D for more details
- The company started operations at the Radiowave Experimental Center
No.2, its new testing facility built within the site of its headquarters.
It also opened the Manufacturing Systems Research Center, which integrates
functions to develop new engineering technologies, make prototypes, and
conduct testing using these latest technologies and production methods.
- The Company renewed its plating and heat treatment facilities at its
plant in Toyota City.
Tokai Rubber Industries, Ltd. changed its organization as of February
6 to newly establish four research centers including "Manufacturing
system research center." Creating a production technology development
office within the center, the new manufacturing system research center
will promote development of the production technology based on unified
philosophy, to work toward supplying innovative facilities, equipment,
and systems. It also creates a production support office which is aimed
at handing over the production technologies to the next generation. Other
three research centers established by the change of organization are the
elemental technology research center, the material technology research
center, and the product development research center. These four centers
are a flat organization, intended to speed up the development process.
>>>See Investment for more details
Overseas business
Strengthening development and production structure
<Asia>
- The Company expanded its production subsidiary in China.
- In Oct., 2007, the Company announced that it will expand its operations
in Thailand and boost its seatbelt and key lock production capacity to
increase supply to Japanese automakers' Thai manufacturing bases.
- In Nov. 2007, the Company announced that it will establish Tokai Rika
ASEAN Co., Ltd. (TRA) in Thailand as a holding company in the ASEAN region.
<North America>
- In Mar., 2008, the Company announced that it will augment manufacturing
capabilities at TAC Manufacturing, Inc. in Michigan, U.S., the company's
production subsidiary.
>>>See Investment for more details
Business objectives until 2015 (TOKAI RIKA GROUP 2015
VISION)
1. To reduce the number of critical functional quality issues to zero
2. To earn 600 billion yen or more at the Company's consolidated sales
3. To sustain a ROE (Return on Equity) higher than 10%
R&D
in millions of JPY | FY2007 | FY2006 | FY2005 |
R&D | 18,324 | 17,734 | 17,820 |
Automotive component | 18,106 | 17,496 | 17,622 |
R&D Structures
- In Sept., 2007, the Company announced that it will establish a new technical development center in Yamagata City, Yamagata Prefecture in the northern part of Japan. The Tokai Rika Tohoku Technical Center will conduct designing and assessment of automotive electronics devices such as switches and smart key systems, starting in January, 2008. This new facility will become the group's first R&D center outside Aichi Prefecture in central Japan, where the company's headquarters is situated. The company, which aims to strengthen its software development structure in order to support increasing applications of integrated vehicle control systems, decided to locate a new facility in the Tohoku region (northern Japan), where recruitment of excellent engineers is relatively easy. (From an article in the Nikkan Jidosha Shimbun on Sep. 6, 2007)
R&D achievements
The Company developed the following new products in FY2007:
- Steering switches: The Company, in applying panel in-mold technology,
succeeded in manufacturing switches with complicated
designs.
- Low-cost heater control switches: Using hard-coated panels enabled the
Company to develop low-cost switches, without compromising on the level
of quality.
- Leather-covered MMT shift levers: Using non-contact sensors enabled
the company to improve the product reliability of these levers.
- Interior mirrors with built-in ETC systems, and which are equipped with
antennas and card slots
- Outer mirrors with ultra-quiet electric retractable systems
Elemental technology
- The company developed three-dimensional transcription technology, which
enables designs and patterns to be more evenly applied on items having
complex shapes. This technology was used to embellish steering wheels.
Licensing of technology from other companies (as of March 2008)
Company | Partner | Country | Outline of tie-ups | Contract period |
Tokai Rika | ||||
TOTO Frontier Research |
Japan | Agreement to patent use for hydrophilic mirror |
1999.08.01- |
|
Mazda | Japan | Agreement to joint patent filing for steering lock device | 2005.07.28 -the patent expiry date | |
Donnelly Corporation |
U.S.A. | Licensing of patent on automotive mirrors | 2000.04.07 -the patent expiry date | |
Autoliv Development AB |
Sweden | Licensing of |
2007.12.01- - the patent expiry date |
|
TAC Mfg., Co., Ltd. | Miroku Technowood | Japan | Licensing of patent on automobile steering wheels | 2002.06.05, for five years from the date of start of production or until the patent expiration date (whichever comes later). |
Licensing use of technology on shift lever knobs for automobiles | 2005.05.23, for three years from the date of start of production |
Licensing of technology to other companies (as of March 2008)
Partner | Country | Outline of tie-ups | Contract period |
Shinchang Electrics Co., Ltd. |
Korea | Licensing use of patent and technology on switches and steering locks for automobiles | 1978.09.02 - 2008.12.31 |
Licensing use of patent and know-how on switches for automobiles | Apr. 2, 2001, for 10 years from provision of technology data or until the patent expiry date (whichever comes later) | ||
Licensing use of patent and technology on steering locks and slots for automobiles | 2006.02.21, for 10 years from the time the technology is provided or until the date the patent expires expiry date (whichever comes later). | ||
Samsong Industries, Ltd. | Korea | Licensing use of patent and know-how on seat belts for automobiles | 1998.04.01 - the patent expiry date |
Nov. 19, 2003, for 10 years from the the time the agreement was made, or until the patent expiration date (whichever comes later) | |||
2004.02.17, for 10 years from the time the agreement was made, or until the date the patent expires (whichever comes later). | |||
Quality Safety Systems Company | Canada | Licensing use of patent and technology on seat belts for automobiles | 2005.01.01 - 2008.12.31 |
TAC Manufacturing, Inc. | U.S.A. | Licensing use of tpatent and technology on steering wheels, key sets, and shift levers for automobiles | 1998.01.01 - 2008.12.31 |
TRMI, Inc. | U.S.A. | Licensing use of patent and technology on key switches and key sets for automobiles | 1998.01.01 - 2008.12.31 |
TRIN, Inc. | U.S.A. | Licensing use of the patent and technology on switches for automobiles | 1998.01.01 - 2008.12.31 |
TRB Limited | U.K. | Licensing use of patent and technology on switches for automobiles | 1999.12.01 - 2008.11.30 |
Tokai Rika (Thailand) Co., Ltd. | Thailand | Licensing use of patent and technology on key sets for automobiles | 2000.03.01 - 2009.02.28 |
TRP, Inc. | Philippines | Licensing use of patent and technology on switches for automobiles | 1996.03.05 - 2009.03.04 |
Thai Seat Belt Co., Ltd. | Thailand | Licensing use of patent and technology on seat belts for automobiles | 1994.06.02 - 2009.06.01 |
Mindarika Private Limited | India | Licensing use of patent and technology on switches for automobiles | 2003.10.03 - 2013.10.02 |
Licensing use of patent and technology on outer rear view mirrors in mirror assemblies for the automobiles | 2006.03.22 - 2016.03.21 | ||
Rica Auto Parts Co,. Ltd. | Taiwan |
Licensing use of patent and technology on child safety seats |
2004.04.01 - for 10 years from the contract start date, or until the patent expiration date (whichever comes later) |
Licensing use of patent and technology on key switches and key sets for automobiles | 2005.01.01 - 2008.12.31 | ||
Tianjin Tokairika Automotive Parts Co,. Ltd. | China | Licensing use of patent and technology on switches for automobiles | 2005.01.01 - 2010.12.31 |
Wuxi Risho Technology Co., Ltd. | China | Licensing use of atent and technology on seat belts for automobiles | 2005.01.01 - 2010.12.31 |
Foshan Tokairika Automotive Parts Co,. Ltd. | China | Licensing use ofpatent and know-how on switches, key sets and shift-levers for automobiles | 2006.08.01 - 2016.07.31 |
TRCZ s.r.o | Czech Republic | Licensing use of patent and technology on switches and seat belts for automobiles | 2003.04.29 - 2009.04.28 |
Ashimori Industry Co., Ltd. | Japan | Licensing use of patent on seat belts for automobiles | 2007.02.02 - the patent expiry date |
Licensing use of international patent on seat belts for automobiles | 2007.02.02 - the patent expiry date |
Investment Activities
in millions of JPY | FY2007 | FY2006 | FY2005 |
Investment | 21,189 | 20,368 | 21,304 |
<Investments in FY2007>
Domestic investments
- The company started operations at the Radiowave Experimental Center No.2, its new testing facility built within the site of its headquarters. It also opened the Manufacturing Systems Research Center, which integrates functions to develop new engineering technologies, make prototypes, and conduct testing using these latest technologies and production methods.
- The Company renewed its plating and heat treatment facilities at its plant in Toyota City.
Investments in overseas facilities
<Thailand>
- In Oct. 2007, the Company announced that it will expand its operation
in Thailand and boost its seatbelt and key lock production capacity to
increase supply to Japanese automakers' Thai manufacturing bases. It is
now studying the feasibility of the capacity expansion as well as the
establishment of its local management company. In Thailand, sales of Japanese
pickup trucks, including the Toyota IMV series, are likely to increase
steadily. The Company, therefore, will expand its local production capacity
to respond to the growing needs. It also has a plan to extend the role
of the facilities in Thailand by starting to supply products to areas
outside Asia, such as North America in the future. (From an article in
the Nikkan Jidosha Shimbun on Oct. 18, 2007)
- In Nov., 2007, the Company announced that it will establish Tokai Rika
ASEAN Co., Ltd. (TRA) in Bang Na, Samut Prakan Province, Thailand as a
holding company in the ASEAN region. TRA, capitalized at approx. 140 million
yen, will be responsible for operations including marketing, procurement,
accounting, production technologies and quality assurance and will control
the overall businesses in the ASEAN countries including the company's
three production bases in Thailand and the Philippines. (From an article
in the Nikkan Jidosha Shimbun on Nov. 2)
<USA>
- In Mar. 2008, the Company announced that it. will augment manufacturing
capabilities at TAC Manufacturing, Inc. in Michigan, U.S., the company's
production subsidiary. To cope with brisk needs for shift levers, the
company will add new facilities at TAC Manufacturing to start production
at the end of 2008. Tokai Rika will increase output for Toyota Motor,
its major customer, and for Ford Motor. The company has been supplying
mainly switches to Ford, but orders for shift levers have been on the
increase due to enhanced competitiveness of Tokai Rika products. (From
an article in the Nikkan Jidosha Shimbun on Mar. 12, 2008)
Investment projects for FY2008
*Approximately 25,000 million JPY is planned for FY2008 mainly for the
automotive parts business.
Company Location |
Purpose | Planned total investment (million JPY) | Starting | Planned completion |
Tokai Rika Co., Ltd. | ||||
Head Office Plant (Aichi Pref., Japan) |
Parts production, assembly, test facilities for electronics products, switches etc. | 7,200 | Apr. 2008 | Mar. 2009 |
Nishibiwajima Plant (Aichi Pref., Japan) |
Test, assembly facilities for switches etc. | 200 | Apr. 2008 | Mar. 2009 |
Toyota Plant (Aichi Pref., Japan) |
Parts production, processing, assembly facilities for seat belts, decorating products | 2,500 | Apr. 2008 | Mar. 2009 |
Otowa Plant, Hagi Plant (Aichi Pref., Japan) |
Parts production, assembly facilities for key locks, steering wheels etc. | 4,000 | Apr. 2008 | Mar. 2009 |
Consolidated subsidiaries | ||||
Foshan Tokairika Automotive
Parts Co., Ltd. (Foshan, China) |
Plant construction, manufacturing facilities | 1,750 | Apr. 2008 | Mar. 2009 |
Tokai Rika Thailand Co.,
Ltd. (Chonburi, Thailand) |
Plant construction | 900 | Apr. 2008 | Mar. 2009 |
Tianjin Tokairika Automotive
Parts Co., Ltd. (Tianjin, China) |
Plant construction | 900 | Jan. 2008 | Dec. 2008 |
Wuxi Risho Technology Co., Ltd.)(Wuxi, China) | Plant construction | 800 | Jan. 2008 | Dec. 2008 |