NOK Corporation Business report FY2007
Business Highlights
In million yen | FY 2007 | FY 2006 | Rate of Change(%) |
Factors |
Overall | ||||
Sales | 526,331 | 479,815 | 9.7 | - |
Operating income | 42,465 | 41,657 | 1.9 | |
Ordinary income | 44,812 | 45,399 | (1.3) | |
Current net income | 25,843 | 24,793 | 4.2 | |
Sealing product division | ||||
Sales | 283,743 | 213,869 | 11.1 | Sales and operating income increased year-on-year, thanks to increased export volume and greater production volume mainly in North America and Asia of Japanese brand vehicles. |
Operating income | 25,956 | 17,466 | 29.3 |
Domestic business
- In March 2008, the Company completed constructing a new plant within
the premises of its Nihonmatsu Plant in Fukushima Prefecture. The new
facility, which has a total floor area of 19,122 square meters, will
specialize in making bonded piston seals (BPSs) used in oil seals of automatic
transmission vehicles. The addition will enable the Company to achieve
a seamless manufacturing structure for BPSs; from production of
metal products, bonding, up to shipping of products, as demand for BPSs
is on the rise. In order to minimize environmental impact, the new plant
is equipped with machinery that require a limited amount of solvents.
Overseas business
<Vietnam>
In April 2007, the Company began operations at its new O-ring facility
at Vietnam NOK Co.,
Ltd. in Vietnam, which manufacture oil seals at its existing plant. In
the meanwhile, Vietnam NOK will manufacture 4 million oil seals and 5
million O-rings per month, targeting the Japanese market. It intends to
launch commercial full-scale operations by fiscal 2009, with a monthly
production volume of 10 million oil seals and 20 million O-rings. Then
in 2010, NOK Vietnam will launch construction of its second oil-seal plant.
>>>See Capital Investment for
more details
<U.SA,>
Freudenberg-NOK General Partnership, which is a joint-venture company
formed by the Company and Freudenberg, announced that it has acquired
the assets of Precision Industries Corporation of Germantown, Wisconsin,
a developer and manufacturer of specialized custom diaphragms. This acquisition
provides Freudenberg-NOK with the desired fabric reinforced diaphragm
capabilities in North America, as well as on a global basis with its partners
in Europe and Japan. (From a press release on Oct. 31, 2007)
Three-year business plan (April 2007 through March 2010)
Financial targets:
- Sales: 600 billion yen
- Operating income: 62 billion yen
- ROA: 6.6 percent
R&D
< Sealing product division >
-The Company developed low friction oil seals that have the same performance as conventional seals in terms of sealing but with improved performance in terms of lower friction. The Company released these new oil seals for use in vehicles.
- The Company was successful in commercializing some encoding seals (which use magnetic rubber) used for integrated vehicle control. This includes controlling the vehicle's speed, for example. The Company is currently developing encoders, giving them more precision-level magnetization and greater functions, creating multi-task encoders.
-In the area of fuel-cell parts, the Company developed seals for fuel cells, humidification film modules, materials used for gas diffusion layers (non-woven carbon fabrics) and other products. It is now testing the products on vehicles.
Technical cooperation agreement (as of March 2008)
Partner | Content | Signed on |
Freudenberg(Germany) | Introduction and licensing of such seal product as oil seal, O ring and related technologies | Jan. 8th 1989 |
Joint venture agreement (as of March 2008)
Joint venture partner | Content | Name of the joint venture company | Signed on |
Freudenberg GmbH (Germany) | A joint venture in the field of such seal products as oil seal and O ring and related products between NOK Inc, a US subsidiary, and Freudenberg's US subsidiary | Freudenberg NOK GP | March 23, 1989 |
Investment Activities
A total of 60,881 million
yen was invested during FY2007, of which 38,986 million yen was appropriated
for the sealing business.
<Sealing business (automotive products)>
Japan
The Company is working on revamping its pre-treatment lines at the Fukushima
Plant and Shizuoka Plant.
Overseas :
The Company focused its investment activities on improving production
structures at Thai NOK Co., Ltd.; Vietnam NOK Co., Ltd.; and Unimatec
Singapore Pte. Ltd.
Recent investment project
<Vietnam>
The Company will start to construct a second plant in Viet Nam in 2010.
A new plant building will be set up on the current plant site or the adjoining
site the Company has obtained assuming future expansion, and new production
lines for oil seals and O rings will be introduced. Since the existing
production lines are expected to reach full capacity in fiscal 2009, which
is the last year of its current mid-term business plan, the Company will
start the second phase expansion in the first year of the next mid-term
business plan. Products manufactured there will be exported to Asian countries
including Japan to enhance price competitiveness. The new plant building
will be constructed on the site of Vietnam NOK Co., Ltd., which was established
in September 2004. Its first plant started operation in July 2007 to produce
oil seals and O rings. It currently produces about 4 million oil seals
and 5 million O rings per month which are exported mainly to Japan. As
the Company expands the market to across Asia, it plans to increase the
capacity at full operation to 10 million oil seals and 20 million O rings
in 2009. (From an article in the Nikkan Jidosha Shimbun on Dec. 5, 2007)
Name of Company and Facility (Location) |
Location | Facility | Expected Investment (millions of yen) |
Started | Expected to Complete in: |
NOK Fukushima Plant |
Fukushima Prefecture, Japan | Plant for manufacturing oil seals | 11,120 | Apr. 2008 | Mar. 2012 |
Thai NOK Co., Ltd. Panthong Plant | Chonburi, Thailand | Plant for manufacturing rubber cushions | 3,760 | Jun. 2007 | Dec. 2008 |