NOK Corporation Business Report FY2011

Business Highlights

Financial Overview

(in million JPY)
  FY ended Mar. 31, 2012 FY ended Mar. 31, 2011 Rate of
Change (%)
Sales 495,251 498,932 (0.7) -
Operating income 30,012 35,134 (14.6) -
Ordinary income 34,694 32,426 7.0 -
Current net income 16,016 16,685 (4.0) -
Sealing product division
Sales 259,143 255,050 1.6 -The Company was impacted during the first half of the year by lower production volumes by OEMs as a result of the Great East Japan Earthquake. However, thanks to a quick recovery of the supply chain, operating revenue in Japan recovered.
-Operating revenue slightly increased year-on-year due to strong automotive production levels in the U.S.A. and developing countries.
Operating income 26,294 24,716 6.4 -

Recent Developments in Japan

-The Company will launch into the business of secondary battery components for electric and hybrid vehicles. The company is conducting development of anti-vibration rubber and gaskets, targeting automakers and battery manufacturers. Among the Company's product line, the following items are expected to be used around the batteries of electrified vehicles: anti-vibration rubber to control oscillation of the battery unit; flexible printed circuit (FPC) boards integrated with wiring and substrates; gaskets to prevent air, water and oil from coming into the battery unit; and electrode sealing to seal in electrolytic solution. The company aims to respond to the needs of car manufacturers and battery suppliers by engineering and producing technologies that can support both nickel-metal hydride batteries and lithium-ion secondary batteries. (From an article in the Nikkan Jidosha Shimbun on May 27, 2011)

Recent Developments Outside Japan

-The Company will start manufacturing sealing products for automatic transmissions outside Japan. Up until now, production of sealing parts have been conducted exclusively at the company's Nihonmatsu facility in Fukushima Prefecture, Japan. The company has decided to set up new plants in Thailand and China, which will have the capacity to produce about 300,000 units a year, respectively. New operations are scheduled to begin in the year ending March 2013. Conducting production at multiple locations globally will allow the company to enhance support to transmission manufacturers that are intending to source sealing products locally, while diversifying disaster risks. (From an article in the Nikkan Jidosha Shimbun on February 2, 2012)

Outlook for FY ending Mar. 31, 2013

(in billion JPY)
  FY ending Mar. 31, 2013
FY ended Mar. 31, 2012
Rate of
Change (%)
Sales 564.0 495.3 13.9
Operating income 41.4 30.0 38.0
Ordinary income 45.0 34.7 29.7
Net income 26.5 16.0 65.6

Outlook by Segment for FY ending Mar. 31, 2013

(in billion JPY)
  FY ending Mar. 31, 2013
FY ended Mar. 31, 2012
Rate of
Change (%)
Seal 273.0 259.1 5.4
Electronic Device Product 250.0 194.1 28.8
Roll 28.0 29.1 (3.8)
Other 13.0 12.8 1.6
Total 564.0 495.2 13.9

>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)


R&D Expenditure

(in million JPY)
  FY ended Mar. 31, 2012 FY ended Mar. 31, 2011 FY ended Mar. 31, 2010
Overall 6,403 6,375 6,433
Seal 4,706 4,807 4,689

R&D Activities

-The Company worked to develop environmentally friendly products such as products contributing to lower energy use by lowering frictional loss; and other eco-friendly products for hybrid, electric, and fuel-powered vehicles.

-The Company developed and launched sales of low-friction, automotive oil-seals, developing conventional coated seals and a new type of low-friction seal designed to reduce friction force, in addition to seals based mainly on rubber materials. Also, the Company launched sales of seals that offer better features such as being more dust resistant, which makes them capable of responding to poor rood conditions overseas such as in China and Thailand

-The Company developed O-ring coating materials that are eco-friendly and easier to install; and launched sales of products that respond to the latest coolant, 1234YF.

-As part of its activities designed to create seals for use in EVs and HEVs, the Company developed smaller and low-reaction force gaskets for next-generation vehicles.

-The Company is working to develop FPC composites in response to the greater penetration of on board electronics, and is at the stage of conducting some evaluations.

Electronic Device Product
-The Company succeeded in developing a double-sided FPC that can be commercially produced. This FPC, which is 51.5 micrometers thin (half the thickness of existing ones), is part of the Company's efforts at making thinner and lower cost products.

-In its work in the area of multi-layered FPCs, the Company developed technology making it possible to produce FRBBs (Flex Resin Build Boards) that are 0.19mm thick and have four layers. The Company started producing and delivering these multi-layered FPCs that are exceptionally easy to install.

-Customers are demanding more efficient heat releasing (radiation) properties in digital LED signage and automotive LED lights. As a result, the Company developed metal-based FPC technology and is conducting sales activities catered to R&D activities at customers in various business sectors.

R&D Facilities

Shonan Development Center Kanagawa Pref., Japan

Technical Cooperation Agreement

(As of Mar. 31, 2012)
Partner Content Signed on
Freudenberg& Co. KG
Introduction and licensing of such seal product as oil seal, O ring and related technologies Jan. 1, 2009

Investment Activities

Capital Expenditure

(in million JPY)
  FY ended Mar. 31, 2012 FY ended Mar. 31, 2011 FY ended Mar. 31, 2010
Overall 27,158 23,480 18,232
Seal 16,099 13,159 11,666

Sealing business
-In Japan, the Company invested mainly in the facilities at its Fukushima Plant that produces oil seals; and outside Japan, mainly in Wuxi Nok-Freudenber Oil Seal Co., Ltd. and Thai NOK Co., Ltd.

Investment Outside Japan

-The Company will increase production capacity of automotive sealing products in China and ASEAN countries. By expansion of existing facilities and addition of new plant buildings in Thailand, Indonesia and China, the Company will boost production capacity 1.2 times from the current level in early 2013. Enhanced capacity in Asia is meant not only to respond to expanding production by Japanese automakers in China and Southeast Asia, but also to ensure alternative supply sources in case of hazardous happenings like natural disasters. In India, the Japanese manufacturer of sealing products has begun to consider capacity expansion as well. In Indonesia, another new building will be set up in the existing plant to double the capacity. In Thailand, along with an expansion of the plant building, production of seal parts for automatic transmissions will begin on the scale of 300,000 pieces a month. In China, a new building will be added to the Wuxi plant and a monthly production of 300,000 seal parts for automatic transmissions will be kicked off likewise. The Company made an investment of 8 billion yen in sealing operations in Southeast Asia and China in the 2011 business year. It will continue investments in an increase in capacity in the 2012 business year. Foreseeing a further shortage of capacity after 2015, the company will consider continued expansion in China and ASEAN. In India there is a joint venture between Freudenberg, the Company's business partner based in Germany, and a local company. The supplier is also considering enhancing its capacity to meet rising local production by Japanese automakers. (From an article in the Nikkan Jidosha Shimbun on February 22, 2012)

New Facilities

Equipment Amount
(in million JPY)
Date of start Scheduled date of completion
Kitaibaraki plant
(Ibaraki Pref., Japan)
Facility for manufacturing resin processed products
2,194 July 2012 July 2013
Fukushima plant
(Fukushima Pref., Japan)
Plant building to produce oil seals 2,160 Jan. 2012 Oct. 2012
Wuxi NOK-Freudenberg Co., Ltd.
(Wuxi, China)
Plant to produce oil-seals, O-rings, and various kinds of seals. 1,786 Oct. 2011 July 2012
MEKTEC Manufacturing Co., (Suzhou) Ltd.
(Suzhou, China)
Facility for manufacturing Flexible Printed Circuits
1,198 Apr. 2012 Sep. 2012

Outlook of Capital Expenditure for FY ending Mar. 31, 2013

(in billion JPY)
  FY ending Mar. 31, 2013
FY ended Mar. 31, 2012
Rate of
Change (%)
Japan 21.0 11.1 89.2
Asia 22.6 16.0 41.3
Europe 0.2 0.1 100.0
Total 43.7 27.2 60.7