KASAI KOGYO CO., LTD. Business Report FY2008
|Financial Overview||(in millions of JPY)|
|FY2008||FY2007|| Rate of
|Sales||122,452||144,888||(15.5)||-Decline in sales at its major customers in Japan and North America|
|Operating income||1,936||3,894||(50.3)||-Decline in sales|
|Net income||(3,543)||1,302||-||-A re-assessment and review of deferred tax assets and other items was conducted.|
Developments Outside Japan
-In Jul. 2008, the Company announced that it would acquire a majority stake in P.T. Oriental Manufacturing Indonesia (OMI). OMI, based in Indonesia, is an affiliated company of Malaysia-based Teck See Plastic Sdn. In March 2007, the Company established a joint venture with Teck See Plastic in Thailand. Upon completion of the capital increment, the trade name of OMI will be changed to P.T. Kasai Teck See Indonesia. The new company is expected to become a central manufacturing base in the ASEAN market for the Company, coupled with another facility in Thailand, to supply automotive interior parts such as door panels to Japanese carmakers located in Indonesia and will also serve as a hub for exporting component parts to be distributed in Japan and other Asian nations. (From a press release on Jul 15, 2008)
-In Dec. 2008, the Company announced that it will consolidate its two wholly owned subsidiaries making automotive interior parts in Gunma Prefecture. The integration, which will take place in April, 2009. The two companies are KPK Co., Ltd. (Meiwa-cho) and Mikuniseisakusyo Co., Ltd. (Ota City). KPK will absorb Mikuniseisakusyo and adopt a new name, Gunma Kasai Co., Ltd. Mikuniseisakusyo will be dissolved after the amalgamation procedure is completed. (From an article in the Nikkan Jidosha Shimbun on Dec. 16, 2008)
-In Oct. 2008, the Company announced its plan to reorganize manufacturing bases in South Kanto Area. Kasai Kogyo has decided to transfer the automotive interior parts operation at Ayase Plant of APM Co., Ltd., its subsidiary, to the Company's Samukawa Division. Thus, the group's automotive interior parts production capabilities in South Kanto, which have been carried out by the locations in Samukawa and Ayase, will be consolidated into the site in Samukawa. (From a press release on Oct 1, 2008)
Outlook for FY2009
Automotive parts for the Honda Freed in Indonesia
-Start of Production: July 5, 2009
-Planned production volume: 2,000 units/month
-Parts being supplied: door trims (front/slide), tail gates, etc.
Automotive parts for the VW Passat
-Scheduled start of Production: January 2011
-Delivery to: VW's new Chattanooga Plant in the U.S.
-Planned production volume: 160,000 units/year
-Sales volume: approximately 15 billion yen over 5 years
-Parts being supplied: door trims (front/rear), roofs, front pillars, etc.
-Production facility: M-TEK Tennessee Plant
|Sales Forecast by Region (on a Consolidated Basis)||(in millions of JPY)|
|Sales Share by Major Customer||(%)|
|R&D Expenditure||(in millions of JPY)|
-R&D activities are implemented mainly by Development Division
1. Reducing weight of products
The Company developed a new production process, called Kasai Synchro Press (KSP), that reduces weight and thereby contributes to reducing CO2 emissions and fuel consumption. The Company presented this as a solution for producing door trims used on mass-produced vehicles and started to supply the products to its customers. The KSP enabled the Company to reduce the weight of door trims by about 40% compared to door trims with the equivalent shape produced by a conventional process. Also, the Company developed a technology by applying its injection molding process, Kasai Press Molding (KPM) , that does not need any coating in the foam molding for reducing product weight and also ensures good external appearance quality. The Company used the technology in manufacturing doors and luggage trims of commercial vehicles and started to supply the products to its customers. With the foam molding process, the Company succeeded in reducing weight of the products by about 15%.
-The Company successfully created injection molded parts that are capable of absorbing energy, thus contributing to safety inside vehicles. These parts, which are characterized by their unique design structure, are being used in mass-produced vehicles. The accuracy of the Company's technology to analyze lateral collisions has reached the stage to where it can be put to practical use. This technology, which uses CAE (computer simulation), was supported by validations conducted on bench tests.
3. Global environmental protection
-The Company is replacing glue and cleaning agents that contain VOC (Volatile Organic Compounds). The Company instead will use standard and water-based adhesives, in addition to materials, that are free of VOCs. As to the use of vinyl chloride materials, the Company is switching over to olefin-based thermoplastic elastomer (TPO) and urethane based thermoplastic elastomer (TPU).
4. Comfortable interior space
-The Company introduced CAE in its development activities to create cabin-interior products that improve anti-noise/soundproofing performance. These products offer a high degree of flexibility in their shape and come in a large selection of materials. They also are high precision, high quality products. The Company is also making sales presentations of products that offer a high level of customer convenience, which were developed and planned based on benchmarking activities.
-The Company developed an applied technology that better stabilizes the final appearance of exterior surfaces of plastic molded products, thus reducing the number of defective products created while being manufactured.
6. Creating added values
-The Company is in the process of developing designing, coloring, and decorating technology for decorative components such as door-waist embellishments.
|Investment Expenditure||(in millions of JPY)|
-Investments were made in die production facilities in response to vehicle model changes.
|Investment by Business Unit||(in millions of JPY)|
|Mikuni Seisakusho Co., Ltd.||537|
|KPK Co., Ltd.||315|
|Kasai-Tec Co., Ltd.||204|
|Guangzhou Kasai Automotive Interior Trim Parts Co.,Ltd.(China)||692|
|Kasai Mexicana S.A. de C. V.(Mexico)||108|
|Kasai Teck See Co.,Ltd.(Thailand)||68|
New Facilities(As of Mar. 2009)
|Location||Type of facility||Planned investment
|Head Office||Kanagawa Pref., Japan||Quality measurement instruments, inspection tools||5,528||2009.04||2010.03|
|Samukawa Division||Kanagawa Pref., Japan||Facilities to assemble automotive interior parts, tools, and other items||134||2009.04||2010.03|
|Yorii Division||Saitama Pref., Japan||Facilities to assemble automotive interior parts, tools, and other items||15||2009.04||2010.03|
|Kyushu Division||Ohita Pref., Japan||Facilities to assemble automotive interior parts, tools, and other items||641||2009.04||2010.03|
|Mie Kasai Co., Ltd.
|Mie Pref., Japan||Facilities to assemble automotive interior parts, tools, and other items||43||2009.04||2010.03|
|Mie Kasai Co., Ltd.
|Shiga Pref., Japan||Facilities to assemble automotive interior parts, tools, and other items||12||2009.04||2010.03|
| Gunma Kasai Co.,Ltd.
|Facilities to assemble automotive interior parts, tools, and other items||7||2009.04||2010.03|
|Gunma Kasai Co.,Ltd.
|Facilities to assemble automotive interior parts, tools, and other items||2||2009.04||2010.03|
|Iwatekasai||Iwate Pref., Japan||Facilities to assemble automotive interior parts, tools, and other items||1||2009.04||2010.03|
|Kasai-Tec Co., Ltd.||Shizuoka Pref., Japan||Facilities to produce dies for automotive interior parts, tools, and other items||8||2009.04||2010.03|
|M-TEK Inc.||Tennessee, USA||Facilities to assemble automotive interior parts, tools, and other items||933||2009.04||2010.03|
|R-TEK Ltd.||Tyne and Wear, UK||Facilities to assemble automotive interior parts, tools, and other items||716||2009.04||2010.03|
|Kasai Mexicana S.A. de C. V.||Guanajuato, Mexico||Facilities to assemble automotive interior parts, tools, and other items||679||2009.04||2010.03|
|Guangzhou Kasai Automotive Interior Trim Parts Co.,
||Guangzhou, China||Facilities to assemble automotive interior parts, tools, and other items||242||2009.4||2010.3|
|Kasai Teck See Co.,Ltd.
|Facilities to assemble automotive interior parts, tools, and other items||918||2009.4||2010.3|