Calsonic Kansei Corporation Business Report FY ended Mar. 2018

Business trend

ｰThe Company announced it will make a full entry into the automotive cyber security field. Calsonic Kansei and the French IT venture Quarkslab have established White Motion LLC, a joint venture company, to develop in-vehicle security software. White Motion will develop software for the automotive industry for the time being and then widen the scope of its business to include Internet of Things (IoT). The head office of the JV company is located within headquarters of Calsonic Kansei. It is capitalized at JPY 20 million and is owned 50/50 by the two companies. The president of White Motion, recently appointed, is Yuichi Kuramoto from Microsoft Japan. Main businesses are development of products and of services to strengthen security measures for automobiles, as well as security evaluation of in-vehicle components, security education, and security consulting. (From an article in the Nikkan Jidosha Shimbun on July 20, 2017)

R&D

ｰThe Company has announced plans to increase the number of engineers it employs within Japan by 30% by 2021 as part of its plan to strengthen capabilities in cutting-edge technology research. The company is aggressively pursuing the hiring of software engineers due to mid-term business plans that emphasize the field of electronics. Calsonic also plans to increase its engineering capacity in centers in China and Myanmar as it bolsters its global presence. (From an article in the Nikkan Jidosha Shimbun on September 19, 2017)

Product

ｰThe Company announced that it has launched a new product, the "CK-SMiTH" which dramatically improves the weight saving and catalyst temperature rise by converting the turbine housing of turbocharger into sheet metal. The "CK-SMiTH" is the world's first product for diesel engine vehicles, achieving a 15% reduction in weight, and improved catalyst temperature rise performance compared to conventional cast housings. Its name comes from the initials of "Calsonic Kansei Sheet Metal innovative Turbine Housing". (From a press release on October 25, 2017)

Capital expenditure

ｰThe Company announced a USD 16.33 million investment for a facility in Madison, Mississippi, creating 98 new jobs. Calsonic Kansei (CK) is a supplier to Nissan’s Canton automotive assembly plant. The company employs more than 500 workers at the Nissan Supplier Park, and will relocate 42 of those employees to the new facility. The new facility is currently operating, with Phase 2 expected to be completed in 2018. (Mississippi Economic Development Corp. release on July 17, 2017)

Mid-term Business Plan Compass 2021

ｰThe Company aims to achieve added-value revenue* of JPY 750 billion in the fiscal year that ends in March 2022 as a system solution provider.

Priority areas are: large gauges, HUDs, display panels of cabins featuring autonomous driving, electrification and connectivity; integrated control between EUCs; next-generation power electronic products including regenerative batteries, inverters and BMSs; thermal management systems including heat exchangers and high efficiency air conditioners.

The Company set a goal to raise the ratio of value-added sales* of new and innovative products from 6% to 30%.
The product planning division was established in October 2017 for the development of products that extend across business units.

*Sales other than those designated or supplied by OEMs