Mitsui Kinzoku ACT Corporation Business Report FY ended Mar. 2016

Recent Years

Recent Development Outside Japan

-In September 2015, Mitsui Kinzoku Act Corporation, which develops and produces door locks and other functional components for automobiles, will introduce an automated production line at its plant in Mexico. The company plans to invest a total of JPY 10 billion in its operations outside Japan during 2016 and 2017, and intends to spend the majority of this budget in Mexico. Due to buoyant demand in the U.S., the company has been increasing door lock production in Mexico. However, the Mexican operation is faced with rising production expenses due to escalating labor costs. The new automated line is expected to bring down production costs and to help the company establish a stable manufacturing structure in the country. (From an article in the Nikkan Jidosha Shimbun on September 7, 2015)

-In June 2012, the Company announced that it will produce automotive functional parts including door locks in Mexico. As automobile markets in North and Latin Americas are expected to grow, the Group will strengthen production and sales operations in Mexico. Production is scheduled to commence in July 2013. For manufacturing functional parts including door locks in Mexico, the Company will utilize GECOM Mexico, S.A. de C.V., a subsidiary of GECOM Corp, which is Mitsui Kinzoku ACT's U.S. subsidiary. GECOM Mexico, which has represented Mitsui Kinzoku ACT to local customers, will be renamed as Mitsui Kinzoku ACT Mexicana, S.A. de C.V. Mitsui Kinzoku ACT Corp. will hold 99.9% and GECOM Corp. will hold 0.1% of the new company's capital amount of USD 3.8 million. (From an article in the Nikkan Jidosha Shimbun on Jun. 21, 2012)

-In March 2013, the Company announced that it will set up a new subsidiary "PT. Mitsui Kinzoku ACT Indonesia" in Karawang. The new company is scheduled to start manufacturing functional parts for automobiles, such as door locks. (From an article in the Nikkan Jidosha Shimbun on Dec. 25, 2012)

-In 2011, the Company announced that it will establish a wholly-owned subsidiary in Shanghai, China in April 2012 under the name of Mitsui Kinzoku ACT (Shanghai) Management Co., Ltd. The subsidiary will be capitalized at USD 2.1 million, which will be fully provided by Mitsui Kinzoku ACT. Its business activities will cover sales, research and development, procurement and product assurance of automotive functional components, including door locks and management operations. (From a press release on December 22, 2011)

-In 2011, Mitsui Mining & Smelting Co., Ltd. announces that a Group company, Mitsui Kinzoku Act Corporation, will establish a sales subsidiary in Chennai, India under the name of Automotive Components Technology India Private Limited (ACT India). With a total investment of INR 30 million (approximately JPY 55 million), the new company is expected to be established on June 27, 2011. (From a press release on June 15, 2011)