Aisin Group (China) Business Report FY ended Dec. 2012

Business Highlights

<Highlights by segment>

Drivetrain systems

Establishment of China Headquarter
-Aisin AW Co., Ltd., Based in Anjo City, Aichi Prefecture, announced that it formed a wholly-owned subsidiary in Shanghai to oversee the group's operations in China. The new company, AW China Co., Ltd., was established in July 2012 with a capital of 52.90 million dollars (approximately 4.23 billion yen). By locating a regional headquarters in China, the company enhanced support to its customers and improved its management functions in the fast growing market. (From an article in the Nikkan Jidosha Shimbun on May 30, 2012)

-Aisin AW Co., Ltd. announced that it will establish a new plant in Tianjin, China to manufacture automatic transmissions. The Company will invest 16 billion yen to mass produce 6-speed automatic transmissions for front-wheel drive vehicles. Production is scheduled to start by the end of 2014. The factory is expected to produce 400,000 transmissions annually. The Company is already producing automatic transmissions in China for rear-wheel drive vehicles. In addition, the Company is also planning to open a new plant to manufacture 4-speed automatic transmissions for front-wheel drive vehicles by the middle of 2013. The Company will be able to produce over 700,000 transmissions a year in China once operations begin in the new Tianjin facility. In April, prior to the start of construction at the Tianjin facility, the Company will form a wholly-owned production subsidiary headed by Izumi Mizutani, currently the plant manager of Plant No. 2 at Aisin AW headquarters. The Company's expansion project follows the move by Japanese automakers' to step up operations in China. The Company aims to be more competitive in the market by increasing procurement from local suppliers. Though the Company's current local content ratio for transmissions is at approximately 60 percent, the new Tianjin plant will raise the ratio to approximately 70 percent. (From an article in the Nikkan Jidosha Shimbun on March 26, 2012)

Brake systems

-Advics Co., Ltd., a major supplier of brake systems, aims to increase its sales in China to 100 billion yen a year by the fiscal year ending in March 2018. The figure is 2.5 times the estimated sales for the FY 2012. In order to achieve this target, the company is looking to acquire new customers, specifically targeting Chinese automakers and parts suppliers. The company will also focus efforts on increasing supply volumes and enhancing cost efficiency. In an effort to impress its original, advanced technology on Chinese manufacturers, the company will hold test-ride events, inviting various local companies. Advics' Chinese operations, which are currently procuring the majority of parts and materials from Japan, will accelerate its plans to switch to local sourcing. Advics R&D Center in Changzhou City, Jiangsu Province will function as the procurement office to find new suppliers and help nurture the local parts manufacturing industry. (From an article in the Nikkan Jidosha Shimbun on March 19, 2012)

-ADVICS Yunfu Automobile Parts Co., Ltd., Advics' subsidiary in Yunfu, Guangdong, broke ground for its new plant on July 18, 2012. Advics is investing approximately 150 million yuan in the facility, which is due completion in the first half of 2013 to manufacture brake products for Toyota and other Japanese automakers. (From news releases issued by multiple sources on July 18, 2012)

-Advics Co., Ltd. announced that it is going to establish a new plant in Yunfu City, Guangdong Province, China in 2013. The new facility, scheduled to start operations in December 2013, will manufacture brake boosters and disc brake calipers. The facility will be the Company's fourth production facility in China, following the plant in Fuzhou which was scheduled to begin operations in April 2013. The establishment of this new facility in the southern region of China will complement the company's brake booster and caliper production operation as demand for these products rises in China. Currently, production of brake boosters and calipers only occurs at the company's plant in Tianjin. The new company will be capitalized at approximately 1.2 billion yen, of which 80 percent is invested by Advics and 20 percent by Lioho Machine Works (China) Holding Co., Ltd. The new plant has a surface area of 18,400 square meters on a 66,700 square meter plot. The plant is expected to create approximately 350 new jobs by March 2017. (From an article in the Nikkan Jidosha Shimbun on May 23, 2012)

-In July 2011, Advics Co., Ltd., jointly established ADVICS Fuzhou Automobile Parts Co., Ltd. with Lioho Machine Investment (China) and Toyota Tsusho Corporation. In December 2011, the Company held a groundbreaking ceremony for the plant. Production is scheduled to start in 2013. The new company is responsible for design, production and sales of automotive and motorcycle anti-lock braking systems, electronic stability system, regenerative modulation assembly and so on. (From press release on March 15th, 2012)


-Asmo Co., Ltd. held a ceremony to mark the completion of its new Chinese plant, Asmo Hangzhou Xiaoshan Small Motor Co., Ltd. The plant supplies small motors for automobiles. Operations were scheduled to begin in August 2012. (From a press release on July 26, 2012)


Establishment of R&D Center in China
-Aisin AW Co., Ltd. in Aichi Prefecture announced that it had established AW Suzhou Technical Center Co., Ltd. in Suzhou, China for the research and development of automatic transmissions. This facility is the Japanese supplier's first technical center in China and the third overseas, following technical centers in Europe and the US. The new technical center is involved in the design and evaluation of automatic transmissions. Additionally, the facility participates in product development and provides technical support in coordination with automakers from Japan, US, and Europe that also operate in China. Aisin intends to win more contracts through this business expansion. AW Suzhou Technical Center plans to hire approximately 60 employees by November 2013 for upcoming projects. (From an article in the Nikkan Jidosha Shimbun on Dec. 14, 2012)

R&D Structure

Name Main business Location Year established
AW Suzhou Technical Center Co., Ltd Design and develop automatic transmissions Jiangsu Suzhou 2012
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