Aisin Group (China) 2011

Business Highlights

Establishment of China Headquarter
- Aisin Seiki Co., Ltd. will reorganize Aisin Seiki (Tianjin) Sales & Trading Co., Ltd. in Tianjin, China and establish Aisin Seiki (China) Investment Co., Ltd., which will function as the Group's Chinese headquarters. With this move, Aisin Seiki will strengthen its management structure, streamline its strategy planning procedure, and facilitate its decision making system to further expand business in the country. The new company will be established in June this year with a registered capital of 65 million US dollars (approximately 5.3 billion yen), which will be fully invested by Aisin Seiki. Fifty-two employees will be working at the new company. (From a press release, February 28, 2011)

<Highlights by segment>

Drivetrain systems
- AW Suzhou Automotive Parts Co., Ltd., Aisin AW’s new consolidated subsidiary established in April 2011, broke ground for its automatic transmission plant at the Wangshan Industrial Park in the Wuzhong District, Suzhou City, Jiangsu Province. (Aisin AW is a subsidiary of Aisin Seiki.) Investment in the new plant, which will become the largest automatic transmission plant in the Yangtze delta area, is expected to total 285 million dollars. The first phase of the construction project is scheduled to be completed in July 2012, ensuring the capacity to manufacture 240,000 automatic transmissions a year in 2013. In the second phase, the company will add production lines to manufacture continuously variable transmissions (CVTs) and in-vehicle navigation systems as well. It is intending to increase its capacity up to 500,000 units a year.The facility will serve as Aisin AW's second production foothold in China, and third outside Japan. Through this expansion, Aisin AW intends to meet increased requirements from Toyota Motor Corporation and other major customers, which are stepping up production in the country. The new company, formed in April 2011 with a registered capital of 100 million US dollars (approximately 8.3 billion yen.), has a building area of around 45,000 square meters on 103,000 square meters of land. It will hire about 600 employees to manufacture step automatic transmissions for front-wheel-drive vehicles. (From a press release on November 24, 2011) 

Brake systems

-July, 2011, Advics Co., Ltd., established ADVICS Fuzhou Automobile Parts Co., Ltd. jointly with Lioho Machine Investment(China) and Toyota tsusho corporation.On December 9th, the company hold a groundbreaking ceremony for the plant and the start of production is expected in year 2013.(From press release on March 15th, 2012)

-Advics established a new company at the Wujin Hi-tech Industrial Zone in Changzhou. The new entity, which will function as Advics’ Chinese regional headquarters and R&D center, was registered at the Administration of Industry and Commerce on June 7, 2011. (From a press release, June 13, 2011)

Body parts

- Aisin Seiki Co., Ltd. announced on November 28 that it has established Aisin Wuxi Body Parts Co., Ltd. in Wuxi, Jiangsu Province, China to manufacture sunroof systems. The new company was established through a joint investment with Hsin Chong Machinery Works Co. Ltd. and Elite Sewing Machine Mfg. Co., Ltd. The joint venture will rent part of the facility of Hsin Chong Machinery Works to set up new production lines. Investment is expected to reach about 300 million yen, majority of which will be used for installing new equipment, and operations are scheduled to begin around March 2012. The Group’s third sunroof plant in China aims to generate sales of 2.5 billion yen in 2015. Aisin Wuxi Body Parts is owned 51 percent by Aisin Seiki, 40 percent by Hsin Chong Machinery Works, and 9 percent by Elite Sewing Machine. (From an article in the Nikkan Jidosha Shimbun on November 29, 2011)

- Aisin Seiki Co., Ltd. announced on November 28 it will establish its first electronic components factory in China, planning its production launch in December 2012. It will form Aisin Seiki Foshan Electronics Co., Ltd., a production facility in Foshan, Guangdong Province to make electronic control units (ECUs) and sensors used in ABSs and sunroof systems. The Foshan Plant will become Aisin Seiki’s second electronic components plant outside Japan, following that in the U.S. The establishment will allow Aisin Seiki to improve its supply efficiency by locally manufacturing ECUs for its group companies in China, which use ECUs in their products. The company is investing 3.4 billion yen in this project, targeting sales of 5 billion yen in 2015. (From an article in the Nikkan Jidosha Shimbun on November 29, 2011)

Aluminum die casting parts and cast iron parts

- Aisin Takaoka Co., Ltd. established its third production facility in China  Takaoka Lioho (Yunfu) Industries Co., Ltd. on May 11. The new plant in the South China will have capacity of producing 30,000 tons of disc rotors and other auto parts and is slated to go into operation in January 2013. Aisin Takaoka, which already has casting and processing facilities in Tianjin and Guangzhou, has decided to set up a new plant in Yunfu in Guangdong in the south in order to meet growing demand from automakers. It is initially serving Toyota, but also intending to expand its business to other customers. The new subsidiary with a capital of 120 million yuan (approx. 1.5 billion yen) will be invested 34.8 percent by Aisin Takaoka, 55.2 percent by the local subsidiary in Tianjin and 10.0 percent by the subsidiary in Guangzhou, respectively. The new plant will be engaged in manufacture and sales of casting and plastic working products employing 200 workers. It expects to generate 2 billion yen in sales in 2013. (From an article in the Nikkan Jidosha Shimbun on May 27, 2011)


Establishment of R&D Center in China
- On August 31, 2011, the company announced that it would set up a subsidiary for designing and developing vehicle body parts in Jiangsu, China, which is called Aisin (Nantong) Technical Center of China Co., Ltd. Designing functions for the Chinese market, which have been so far performed primarily in Japan, will be transferred to the new company. It will be formed as early as September with an investment of approximately 160 million yen and is scheduled to go into operation in October. Initially it will be staffed by 14 engineers, mostly Japanese. But, by fiscal 2015 the number of staff will be expanded to 50 by increasing local hires. This is a second overseas development company for Aisin following its U.S. facility established in 2008. (From an article in the Nikkan Jidosha Shimbun on September 1, 2011)

-On April 9th, 2011, Advics established China R&D center for brake system at the Wujin Hi-tech Industrial Zone in Changzhou.

R&D Structure

Name Main business Location

Establishes year
Aisin(Nantong) Technical Center of China Co., Ltd   Design and develop vehicle body parts Jiangsu Nantong 2011

Advics Changzhou Administration Co., Ltd

Develop brake system   Jiangsu Changzhou 2011