1. Home
2. Supplier Database
3. Major Suppliers
4. TACHI-S Co., Ltd.
5. TACHI-S Co., Ltd. Business Report FY ended Mar. 2016

TACHI-S Co., Ltd. Business Report FY ended Mar. 2016

Recent Development in Japan

-The Company will introduce high efficiency production lines to its Suzuka Plant (Mie Prefecture). The Company aims to improve production efficiency 30% by enhancing automation with robots and inspection devices, and efficiently allocating human resources. As the Company's overseas business expands, the importance of global-level quality and strengthened competitiveness is increasing. By enhancing the fundamental quality and productivity levels at its main plants in Japan, the Company is seeking to strengthen its overseas plants as well. The Suzuka Plant mainly produces seats for Honda models with two production lines, and a fixed level of production volume is expected to continue. The Company will make capital investments for expanding the introduction of robots, and improve productivity by enhancing automation. The upgrade work will start in fiscal year 2016 (ends in March 2017), and proceed in phases. The Company will introduce automation mainly in welding processes for components like seat frames. While the welding process is more automated than the assembly process, some of it still includes manual work. The Company will also automate the inspection process, and improve human resource effectiveness for the operation as a whole. (From an article in the Nikkan Jidosha Shimbun on March 29, 2016)

Recent Development Outside Japan

-The Company has raised its global car seat sales target (based on the number of equipped vehicles) for fiscal year 2016 to 4.4 million units, an increase of 1 million units from its FY 2014 results.The Company's global seat sales in FY 2015 are expected to see a significant increase of 500,000 units, or 15%, from 3.36 million units in FY 2014, and maintain the same level of growth in FY 2016. In FY 2015, the Company opened new plants in Mexico and China, which has led to growth in sales, chiefly to Nissan Motor Co., Ltd. and Honda Motor Co., Ltd. For FY2015, Tachi-S expects a two-digit increase in revenue, and a substantial rise in operating profits. Unit sales in FY 2016 are expected to grow by a further 500,000 units from FY 2015. Unit sales in China are expected to account for more than half of the growth, and exceed 1 million units, a major increase from the FY 2015 outlook of 900,000 units. In China, orders from local automakers such as Geely Automobile and Chery Automobile, as well as from Nissan and Honda, are expected to increase. (From an article in the Nikkan Jidosha Shimbun on February 26, 2016)

Contracts

-Major contracts made in FY ended March 2016

Awards

-Major awards received in FY ended March 2016:

Long-term Vision "Global Challenge 177 [GC177]"

-Global Seat System Creator (Manufacture from Seat frame to Complete Seat, Globally)

-3 targets

• Number 1 Quality
• Operating margin: 7%
• Global manufacturing share: 7%

-Global activities

• Setting up R&D function in major regions
• Reorganize and expand production facilities
• Expand parts operations at production plants

-Enhance competitive strengths

• Strengthen product proposals
• Strengthen product manufacturing
• Strengthen ability to respond to change

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

-The Company's planned expects R&D expenditure for FY ending Mar. 31, 2017 is JPY 4,073 million.

R&D Facilities

R&D Structure

-The Company, in order to conduct effective and efficient R&D activities, has positioned its technical center in Japan as the main function accountable for product development and fundamental technology. In addition, however, the Company works with its operations in the U.S.A. and Europe, and with technical-licensing and partner companies, in order to gather information on the latest technologies and peripheral technologies. Also, the Company makes sales presentations to global OEMs and parts suppliers about its wealth of technology on new products and new production methods. Currently, some of these technologies are being used by customers.

-The Company formed two commercial alliances, the first one with Fuji Kiko (in August 1999) and the second with Kasai Kogyo (in November 2006). These alliances are designed to improve its R&D capabilities in the areas of structural products and plastic molded parts, with the idea of jointly using each other R&D functions outside Japan.

-Based on its decision to consolidate all the functions directly involved with product creation, namely development, production, and purchasing, the Company opened its R&D/Product Creation Center in August 2012 in Oume City, Tokyo.

-In China, after establishing Tachi-S Engineering China Co., Ltd. in Fuzhou in Aug. 2008, the Company opened 3 more technical centers, namely in Guangzhou, Zhejiang, and Zhengzhou.

R&D Activities

Development of seats and original mechanism parts
-The Company is developing the following products for automobiles and other vehicles: seats, seat reclining devices, slide rails, heavy-duty/capacity lifters, underfloor devices, and long slide-rails for RVs; in addition to peripheral mechanisms and rotary units as seat systems, delivering them to OEMs.

Development of technology to improve safety
-The Company is developing the following as seat systems to improve safety: seats equipped with 3-point seatbelts, seats equipped with side-airbags, seats compatible with smart airbags with occupant detection feature, and systems to reduce neck injuries, delivering them to OEMs. Also, the Company is conducting R&D activities on seat safety so as to enable seats to respond to frontal, rear, and lateral collisions.

Development of environmentally friendly technology
-The Company is developing materials that will totally eliminate environmentally harmful impact and substances while improving fuel efficiency; and ultra lightweight seats loaded with new technological mechanisms. The Company is making product presentations to OEMs.

Development of products for special needs vehicles for social work
-The Company is developing seats for physically challenged occupants in terms of making them super easy to operate and get in and out of; for special needs vehicles. The Company is making product presentations to OEMs.

Development of low-cost products
-The Company is developing low-cost, next-generation seats based on standardizing and using common parts, making presentations to OEMs both in and outside Japan.

Development of production technology
-The Company is developing technology to improve adhesion-molded seats, technology to foam-mold single-unit headrests and arm rests, technology to automate and reduce energy and labor involved with assembling seats, and technology to manufacture and form-mold based on CAD and CAM; working to increase the models its delivers products to and its product lineup.

Research on seats
-Under the aim of developing seats that are even more comfortable, the Company evaluates "seating comfort" and conducts its own research on what seat architecture and design should be, studying seat mechanisms. In addition, the Company is using CAE in order to shorten development time and reduce costs so as to design seats in less amount of time, which are balanced in terms of performance, quality, and cost.

Development of seat designs
-The Company is working independently to develop designs for various fields in which the Company is engaged, such as future seat concepts, new-product designs, and corporate designs. The Company is making product presentations to OEMs as well as delivering them.

Standard frame
-The Company is developing standard seat frames with general design elements that can be used in common on various types of vehicle models. The Company is making product presentations to OEMs as well as delivering them.

-Contents of the investment by region for FY ended Mar. 2016 are as follows:

-The Company expects capital expenditure for FY ending Mar. 31, 2017 to be JPY 8,833 million.