TACHI-S CO., LTD. Business Report FY2007
|Financial overview||(in millions of JPY)|
|FY2007||FY2006||Rate of Change (%)||Factors|
|Sales||26,520||216,857||22.3||-Sales increased due to launch of new vehicle models by major customers in Japan as well as full-scale production launch outside Japan.|
Recent developments in Japan
-In May 2007, the Company integrated four sewing companies in Asia (Tachikawa Kogyo, Fujiko Kogyo, Tachi Taicang, and Tachi Guangzhou) to establish NuiTec in order to enhance technical development capability and production efficiency.
Recent developments outside Japan
Canada: SETEX Canada
Vehicle models to which the Company supplies the products: Honda MDX/Civic
Production volume: To supply 150,000 vehicles annually
Model mix of the customer changed affected by market trend in the U.S.A. The Company responded to a shift to smaller vehicles by restructuring business composition.
Vehicle models for which the Company supplies the products: Versa, Centra, CR-V, GS, Crio:
The Company now has four plants in Mexico as a result of establishing Zacatecas Plant.
Prior investment completed the first stage. The Company intends to build a revenue base through mass production for the full business year.
China: Tacle Guangzhou, Fuji Autotech Guangzhou, and Tachi-S Taicang
Vehicle models to which the Company supplies the products: Sylphy, Livina, Qashqai
Production volume: To supply 150,000 vehicles annually
Mass production: Stable business due to effects of mass production and new vehicle model launch
UK: Tacle Seating UK
Vehicle models to which the Company supplies the products: Qashqai
Production volume: To supply 220,000 vehicles annually
Preparing designers who develop new models for the summer of 2008.
The Company aims to build a new structure to respond to multiple vehicle models, moving away from the current structure depending on a single model, Qashqai.
The Company works to establish a foundation for future business stability.
U.S.A.: Tacle Seating U.S.A. (Tennessee?飲br>
Vehicle models to which the Company supplies products: Altima and
other models under preparation
Production volume: To supply 50,000 vehicles annually. To establish a structure to supply 150,000 vehicles annually in the summer of 2008 or later.
There is a concern about effects by market trend in the U.S.A.
|R&D Expenditure||(in millions of JPY)|
-In Mar,1993 the Company established and concentrated the R&D division at the Tachi-S Technology Center in Oume City, Tokyo.
-In the Chukyo region, the Company established the Tachi-S Technology Center Aichi in Anjo City, Aichi Pref., in August 1999.
-In July,1986,Established Tachi-S Engineering USA, Inc. in Michigan, USA.
-In June 1998, the Company completed construction of a new building in order to strengthen its capabilities in technological development, with the aim of building a closer relationship between the firm's development centers in Japan and the U.S.
-Dec, 2001, the Company opened a European office in Dusseldorf, Germany. Its objective is to become a hub for collecting European market information and to engage in marketing activities in Europe.
-In October, 2004, the Company established Tachi-S Engineering Europe S.A.R.L. in France, integrating the Company's European operations into it.
-The Company planned to establish Tachi-S Engineering China in Fuzhou, China, in July 2008.
Seats and original mechanical parts
Development of car and other vehicle seats, seat reclining devices, slide rails, heavy-duty lifters, under floor storage devices, long-slide rails and accessories for RVs, rotating units, egress-ingress support systems, etc.
Safety improvement technologies
Development of seats with three-point seat belts, seats with side airbags, seats for smart air bags which can detect passengers, alleviation system against cervical injury systems, safety seats which protect the passengers when the vehicle is collided on the front/back/side
Study of easy-to-scrap seats and development of ultra-light seats made of new materials for Improvement in car fuel consumption, utilizing new structural technologies.
Developed products used on vehicles for physically challenged
Developed a helper seat that is easily operated and makes its easier to get in and out of vehicles.
Standardized and interchangeable Next-generation, low-cost seats in order to shorten development period.
Development of 1) improved technologies for bonding forming seats 2)technologies for one-piece foam molding of headrest and armrest 3) technologies for labor-saving and automatic seat assembly 4) pattern making technology using CAD/CAM etc. Recently, the Company developed a multi-product production line which is capable of producing a wide variety of products in small lots.
Research on seats
Evaluation on seating comfort and in house-research on the design structure of seat construction.
Reduction of time needed for developing new products, and cost-cutting measures through CAE analysis.
Expansion of operations
-The Company will make a full-fledged entry into the mini-vehicle seat business. The supplier, which so far has been offering products mainly for luxury sedans and large-sized commercial vehicles, internally launched a project to begin studying the feasibility of developing mini-vehicle seating systems in the future. Mini-vehicles, which now occupy one third of the domestic new car market, are expected to continue to enjoy high popularity for the time being. This has made the company conclude it is a must to become a full line supplier of products for all types of vehicles from large to mini categories in order to expand its business. (From an article in the Nikkan Jidosha Shimbun on Sep. 12, 2007)
Licensing of technology from other companies (as of March 2008)
Isringhausen GmbH & Co. KG
|-Licensing-in of manufacturing technology and
distributorship for suspension systems.
-Sharing and licensing of manufacturing technology and sales know-how for seats (patented items are excluded)
for an indefinite period
(Subject to expiration with a prior notice of 6 months)
Licensing of technology to other companies (as of March 2008)
|Auto Parts Manufacturers Co., Sdn. Bhd.||Malaysia||- Licensing-out of manufacturing know-how for
- Technological assistance on manufacturing equipment for agreed items (specific agreement is required) etc.
|Mar., 2000 - Feb., 2010|
|Capital investment||(in millions of JPY)|
-In FY2007, which ended in March 2008, the Company invested in the installation of new facilities to respond to new orders, remodeling and the establishment of a new R&D center.
In FY2008, which will end in March 2009, the Company plans to invest 4.600 million yen (3,400 million yen in Japan and 1,200 million yen outside Japan).
Planned capital investments
|Equipment to be installed||Estimated amount of investment (million JPY)||From||To|
|Manufacturing equipment for automotive seats||421||Apr. 2008||Mar. 2009|
|Industria de Asiento
Superior, S. A. de C. V.
|Manufacturing equipment for automotive seats||392||Jan. 2008||Dec. 2008|
|Manufacturing equipment for automotive seats||358||Apr. 2008||Mar. 2009|
| Setex Inc.
|Manufacturing equipment for automotive seats||312||Apr. 2008||Mar. 2009|
|Manufacturing equipment for automotive seats||277||Apr. 2008||Mar. 2009|
|Manufacturing equipment for automotive seats||275||Apr. 2008||Mar. 2009|
|Manufacturing equipment for automotive seats||189||Apr. 2008||Mar. 2009|
|Manufacturing equipment for automotive seats||176||Apr. 2008||Mar. 2009|
|Syn Tech, Inc.||Manufacturing equipment for automotive seats||105||Apr. 2008||Mar. 2009|