1. Home
2. Supplier Database
3. Major Suppliers
4. Toyoda Gosei Co., Ltd.
5. Toyoda Gosei Co., Ltd. Business Report FY ended Mar. 2018

Toyoda Gosei Co., Ltd. Business Report FY ended Mar. 2018

Financial Overview

(in millions of JPY)

Consolidating LED Production in Japan

-The Company announced that it will discontinue LED production at its Saga Plant in Saga Prefecture by the end of September and transfer it to the Company's Heiwacho Plant in Aichi Prefecture and its subsidiary, TS Opto Co., Ltd., in Chiba Prefecture. The Company plans to reduce its LED production capacity and aims to improve efficiency. Moving forward, the Company will focus on increasing sales for its LED business in Southeast Asia where demand for lighting is growing and on winning more order for industrial and automotive lighting products. The Saga Plant was converted to an LED production facility in 2009, but is now expected to switch back to producing automotive components. (From an article in the Nikkan Jidosha Shimbun on August 31, 2016)

Investments Outside Japan

-The Company announced on August 30 that it will establish a new plant in Vietnam to produce "bag" modules, the deployed component of airbags. It will invest USD 24.6 million (JPY 2.6 billion) in this project. With the new plant, the Company's production capacity for bag modules in Vietnam will increase from 14.5 million units in fiscal year 2016 (ended in March 2017) to 23 million units in FY 2023. The airbag parts will be exported to Toyoda Gosei's final airbag assembly plants in Japan, North America, Europe, and other regions. The new plant will be established in Thai Binh Province as a branch plant of Toyoda Gosei Haiphong Co., Ltd. Construction will begin in March 2018 and production of bag modules will start in July 2019. The new plant is expected to employ 1,000 people as of March 2021. (From an article in the Nikkan Jidosha Shimbun on August 31, 2017)

-On May 22 The Company announced that it will establish a new production plant for airbags and other automotive parts in Gujarat, India. The new plant will be the Company's fifth in India. Excluding expenses for buildings and land, Toyoda Gosei will invest a total of INR 732 million (approximately JPY 1.2 billion) in the production facility. The new plant will begin production in the second half of fiscal year 2018 to supply automotive parts to Suzuki's Indian subsidiary. Toyoda Gosei is working to respond to growing automobile production in India and the expected increase in demand for airbags as stricter safety regulations will be adopted in October 2017. The Company aims to expand its sales in India 1.4-fold to approximately JPY 20 billion by FY 2021 from its FY 2016 results. (From an article in the Nikkan Jidosha Shimbun on May 23, 2017)

R&D Activities

Development focus is set on the following areas:
-Advanced products and technology for next-generation vehicles such as bio-fuel vehicles, hybrid vehicles, electric cars, and fuel cell vehicles
-Materials, products, and technology that comply with various environmental regulations

Product Development

a steering wheel with a grip sensor
-The Company announced that it has developed a steering wheel with a grip sensor that can detect the driver's grip on the steering wheel. The new steering wheel has built-in sensors that monitor with high precision whether the driver is gripping the steering wheel and can be used to keep drivers from taking their hands off the wheel. Toyoda Gosei jointly developed the new product with Toyota Motor Corporation. It has been adopted for the all-new Lexus LS. The two companies are Japan's first to develop a steering wheel with a grip sensor. (From an article in the Nikkan Jidosha Shimbun on October 31, 2017)

a large radiator grille
-The Company announced that it has developed a large radiator grille that is lighter while at the same time roughly 10% larger than previous products, and offers an improved quality design. Using simulation technology for the plastic flow during forming, Toyoda Gosei has been able to make the complicated mesh section of the grille a single piece by modifying the structure of the mold. The new large grille will be used on Toyota Motor Corporation's new Lexus LS. The new grille measures 53 centimeters in length and 116 centimeters in width, about 10% larger than previous grilles. The single piece mesh eliminates the need for accessory parts that connect the upper and lower parts, contributing to weight reduction. (From an article in the Nikkan Jidosha Shimbun on November 17, 2017)

an automotive glass run
-The Company announced that it has developed an automotive glass run with a new structure. The Company improved the appearance by eliminating the difference in the level between the side window and the center pillar, and will promote the technology as one that will contribute to quietness for interiors. The new run has been adopted for Toyota Motor Corporation's new Lexus LS. (From an article in the Nikkan Jidosha Shimbun on November 20, 2017)

a new side airbag
-The Company announced on July 19 that it has jointly developed a new side airbag with Toyota Motor Corporation (Toyota). The new side airbag lessens impacts to the human body like the chest and abdomen by the new innovative structure. It contributes to receiving high scores in stringent collision safety assessment tests in the U.S., Europe and other countries. It is used on the new Toyota Camry and is scheduled for future use on about 2.5 million vehicles annually, including other Toyota models. The side airbag is mounted by the side of the seat (door side) and protects the chest and abdomen of the passenger during side impacts. Conventional side airbags have a two-bag structure for the chest and hip. The new side airbag has a three-bag structure for the shoulder and back, front chest, and hip. (From an article in the Nikkan Jidosha Shimbun on July 20, 2017)

R&D Structure

-R&D activities are conducted globally through cooperation among several organizations within the Company: the R&D center; Production development technology department; Opto Electronics business engineering department, and Engineering departments at each business segment outside Japan, namely Toyota Gosei North America Corporation, Toyoda Gosei Asia, Toyoda Gosei (Shanghai), and Toyota Gosei Europe (Europe & Africa).

R&D Facilities

-Overall capital expenditure for FY ending March 2019 is planned to be JPY 52,000 million.

Contracts

-The Company announced that its large plastic roof panel has been adopted for Toyota Motor Corporation's fuel cell (FC) bus that will be launched in 2018. The plastic roof is about 30% lighter than metal roofs, and contributes to the weight reduction of FC buses and improves the travel distance of electrified vehicles. Toyoda Gosei developed the new roof panel by utilizing its mold-making and integral molding capabilities in the production of large plastic parts like radiator grilles. (From an article in the Nikkan Jidosha Shimbun on January 29, 2018)

Recent Acquisitions/Changes to Subsidiaries

-The Company announced that it will make its Chinese automotive rubber parts joint venture, Tianjin Star Light Rubber and Plastic Co., Ltd., a wholly owned subsidiary in April. The Company will acquire shares in the JV from Kinugawa Rubber Industrial Co., Ltd. (Kinugawa Rubber) and its Chinese holding Company, Starlight Rubber & Plastic Development Ltd. (Starlight Rubber & Plastic Development). Toyoda Gosei will speed up management decision making. It intends to satisfy the needs of Japanese and local automakers in China and expand its business in growing markets. The JV produces weatherstrip products like glass runs in Tianjin City. It has dealings with Japanese and local companies, and estimated sales for the fiscal year that ended in March 2018 were about JPY 8 billion. Toyoda Gosei first invested in the JV in 2000. Toyoda Gosei owns 51%, Starlight Rubber & Plastic Development 42%, and Kinugawa Rubber 7%. (From an article in the Nikkan Jidosha Shimbun on April 2, 2018)

ｰThe Company announed that the Company will merge its two manufacturing subsidiaries in east China, Toyoda Gosei (Zhangjiagang) and Toyoda Gosei (Zhangjiagang) Plastic Parts. These two companies, both established in 2003, produce safety systems and interiors & exteriors, respectively. The merged Company will continue under the name Toyoda Gosei (Zhangjiagang). With the merger, Toyoda Gosei aims to improve its management efficiency. The merger will be completed in July 2018. (From a press release on April 2, 2018)

-The Company announced that it has decided to establish a fully-owned subsidiary called Toyoda Gosei Kyushu, in Kyushu, Japan and transfer its automotive parts business in that region to the subsidiary. Toyoda Gosei currently has three manufacturing plants in Kyushu (Fukuoka Plant, Saga Plant, Kitakyushu Plant). The business management of those plants will be transferred to the new subsidiary in order to speed up management decision-making and business execution in Kyushu. The new Company will be established in November 2018 and has JPY 10 million in capital. As of April 1 2019, there will be approximately 420 employees. Sales are expected to reach approximately JPY 30 billion in the fiscal year ending March 2020. (From a press release on March 23, 2018)

-The Company announced on August 25 that it will turn Pecval Industria Ltda. (Pecval), a manufacturer of automotive interior and exterior parts in Brazil, into a wholly owned subsidiary. Pecval is jointly owned by Toyoda Gosei and a subsidiary of Denso Corporation. Toyoda Gosei will purchase full equity interest from the Denso subsidiary for JPY 2.4 billion by December 2017. Toyota Motor Corporation and other Japanese OEMs are increasingly producing vehicles in Brazil. Toyoda Gosei anticipates that the country's automotive market will grow in the long term, and as a result, will bolster its supply network in the country in response to growing demand for radiator grilles and other exterior parts. (From an article in the Nikkan Jidosha Shimbun on August 28, 2017)

*Since the Company switched to using the International Financial Reporting Standards (IFRS) from the fiscal year that ends in March 2019, the rates of change are not provided here.

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