TACHI-S Co., Ltd. Business Report FY2008
|Financial Overview||(in millions of JPY)|
|FY2008||FY2007||Rate of Change (%)||Factors|
|Operating income||623||3,605||(82.7)||-Income decreased substantially, affected by rapid production decrease and foreign exchange fluctuation.|
|Sales||220,893||264,584||(16.5)||-Since the second half of the fiscal year sales and operating income decreased due to a rapid drop in sales and other reasons.|
-The Company announced that the Group will dissolve its two non-consolidated affiliates, namely Fk, Inc. (Minami-ward, Nagoya City) and Shisei, Inc. (Minami-ward, Nagoya City). The two companies produce and sell sewn products. Since these affiliates have already fulfilled their roles to strengthen the Group's sewing business, the Company decided to liquidate them, aiming for increased business efficiency. The liquidation proceedings are scheduled to be completed on March 31, 2009. (From an article in the Nikkan Jidosha Shimbun on Nov. 25, 2008)
-The Company is closing its Oppama Plant located in Yokosuka, Kanagawa Prefecture, by as early as the end of 2008, and moving a whole set of the equipment to its another plant in Hiratsuka, Kanagawa Prefecture. A supplying plant of seats and their mechanical components delivered to Nissan's Oppama Plant will be switched to the Hiratsuka Plant of the Company. Declining global production of vehicles is expected to squeeze the Company's profit for the term ending March 2009 dramatically by double digits, even in the deficit for the latter half period in particular. The Company is taking emergency measures for drastic reductions in capital investment and fixed expenses, which include consolidation of production facilities both domestic and overseas. (From an article in the Nikkan Jidosha Shimbun on Dec. 5, 2008)
-The Company announced the results of its restructuring measures, including a special early retirement packaged offered by the company at the end of February. While expecting a 600 million cost reduction for this fiscal term by slashing executive remuneration, managers' wages and non-regular headcount, the company is forecasting a special loss of 540 million yen due to additional compensations for employees who have accepted the early retirement scheme. Such restructuring steps will lead to cost savings amounting to 830 million yen for a whole year in the next fiscal term. (From an article in the Nikkan Jidosha Shimbun on Mar. 17, 2009)
Recent Developments in Japan
-The Company started full-scale production of mini-vehicle seats at its Suzuka plant.
Recent Developments outside Japan
-The Company established a new R&D subsidiary in China.
-The Company established a new seat-manufacturing company in Hubei, China, jointly with Johnson Controls, Inc. (JCI).
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|Outlook of Fiscal Year ending March 2010||(in millions of JPY)|
|Breakdown of Sales by Customer||(in millions of JPY)|
|Breakdown of Sales by Location||(in millions of JPY)|
|R&D Expenditure||(in millions of JPY)|
|Tachi-S Technology Center
||Oume City, Tokyo|
|Tachi-S Technology Center Aichi||Anjo City, Aichi Pref.|
|Tachi-S Engineering U.S.A. Inc.||Michigan, USA|
|Tachi-S Engineering Europe S.A.R.L.||France|
|Tachi-S Engineering China||Fuzhou, China|
-The Company conducted development of new products and basic development of technologies, mainly at its technical center in Japan.
-The Company collects information on advanced technologies and peripheral technologies through its facilities in the U.S.A. and Europe as well as technological tie-up partner companies at home and abroad.
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.
Licensing of Technology from Other Companies (As of Mar. 2009)
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 Mar. 2009)
|Auto Parts Manufacturers Co., Sdn. Bhd.||Malaysia||-Licensing-out of manufacturing know-how for agreed
-Technological assistance on manufacturing equipment for agreed items (specific agreement is required) etc.
|Mar., 2000 - Mar., 2010|
|Capital Investment||(in millions of JPY)|
-The Company invested in the installation of new facilities to respond to new orders and remodeling.
Investments outside Japan
-The Company announced that it will establish a development company, TACHI-S Engineering China Co., Ltd., in Fuzhou, Fujian, China by the end of June, 2008 to start operation in July. TACHI-S Engineering China will be capitalized at U.S$1million (approx. 100 million yen), held 70% by the Company and 30% by Hsin Chong International Investment Co., an investment company of the Hsin Chong Group, Taiwan. The president will be appointed from he Company. The total investment is expected to amount to U.S.$1.4 million (approx. 140 million yen). (From an article in the Nikkan Jidosha Shimbun on May 23, 2008)
-The Company announced that it will establish a new seat-manufacturing company in Hubei, China, jointly with Johnson Controls, Inc. (JCI). The new company in Hubei will have a plant to supply automotive seats to Dongfeng Honda Automobile Co., Ltd., a Honda joint venture operating in China. The new plant will begin operation in August 2009 and annually produce 60,000 vehicle seats in fiscal 2010. The joint company to be established in Wuhan as "Wuhan Tachi-S Jonson Controls Automotive Seat Co., Ltd." is capitalized at 63 million dollars (approximately 670 million yen) 70% by Tachi-S and 30% by JCI. (From an article in the Nikkan Jidosha Shimbun on June 4, 2008)
Planned Capital Investments (As of Mar. 2009)
|Equipment to be installed||Estimated amount of investment (million JPY)||From||To|
|Industria de Asiento
Superior, S. A. de C. V.
|Manufacturing equipment for automotive seats||257||Jan. 2009||Dec. 2009|
|Manufacturing equipment for automotive seats||210||Apr. 2009||Feb. 2010|
| Setex Inc.
|Manufacturing equipment for automotive seats||167||Apr. 2009||Mar. 2010|
|Manufacturing equipment for automotive seats||129||Apr. 2009||Mar. 2010|
|Tacle Guangzhou Automotive Seat Co., Ltd.||Manufacturing equipment for automotive seats||94||Jan. 2009||Dec. 2009|
|Manufacturing equipment for automotive seats||78||Sep. 2009||Mar. 2010|
|Manufacturing equipment for automotive seats||69||Apr. 2009||Sep. 2009|