Valeo Japan Co., Ltd. Business Report up until FY ended Mar. 2015


-On November 1, 2013, the Company merged Valeo Niles (Niles Co., Ltd.), its wholly-owned subsidiary. In accordance with this merger, Valeo Niles' four wholly-owned subsidiaries, Jonan Industrial Co., Ltd., Akita Niles Co., Ltd., Niles Personnel Service Co., Ltd., and Ami Co., Ltd., were also integrated into Valeo Japan. (From a press release on September 27, 2013)

Recent Developments in Japan

-In April 2015, the Company moved its headquarter from Sendagaya, Shibuya-Ku, Tokyo to Motoyoyogi-cho, Shibuya-ku, Tokyo.

-In November 2014, the Company established a new office in Utsunomiya City, Tochigi Prefecture. The Company's former representative office in Utsunomiya was moved to this new, larger office, which is expected to strengthen the Company's sales activities and build up technical support to customers. The office falls under the Thermal Systems Business Group.

-In 2013, the Company has decided to restrict the number of automaker clients it has in order to deal with the Japanese OEMs' large-scale modularization movement in vehicle development. A large-scale modularization requires the Company to increase production of each component and spend a long period of time for module development. Thus, the Company judged that its current capacity for production and development is insufficient in dealing with a number of automakers. By establishing strategic partnerships with a limited number of automakers, the Company hopes to reduce the cost and workload to develop modules for automakers. (From an article in the Nikkan Jidosha Shimbun on September 20, 2013)

-In 2012, the Company announced that its new factory in Nakatsu City, Oita Prefecture will start manufacturing car air conditioners on April 16. The Nakatsu factory is the Company's second factory in Kyushu, following its existing facility in Kanda, Fukuoka Prefecture, which has been manufacturing front-end modules since January 2010. The new plant is located within the premises of Kyushu Ichikoh Industries, a subsidiary of Ichikoh Industry which is Valeo's alliance partner, and will initially hire 16 people. In order to supply high-quality products with short lead times to its customers, the Company will introduce its "O-line" just-in-time system, which allows for flexible production operations near the facilities of automotive manufacturers. By ensuring an efficient and stable supply system, the Company will further enhance support to its customers. (From an article in the Nikkan Jidosha Shimbun on March 14, 2012)

Recent Developments Outside Japan

-In September 2006, Valeo Fawer Compressor (Changchun) Co., Ltd. began commercial production.

-In May 2005, the Company established a new joint venture in China, Valeo Fawer Compressor (Changchun) Co., Ltd., jointly with Fawer Automotive Parts Co., Ltd., which produces components and is a subsidiary of China FAW Group. It produces compressors for car air conditioners in Changchun, China, supplying variable capacity compressors in China as well as the USA, Japan and other Asian countries. The joint venture, 60% owned by the Company and 40% by Fawer Automotive Parts, will produce 400,000 units a year in the initial phase, increasing the volume to 1.2 million in 2008, the final year of the build-up phase, at its plant with floor space of 7,400 square meters on a site of 25,000 square meters. It will employ 560 people by 2008.

-In June 2005, the Company announced that it will increase its investment ratio for Siam Zexel Company Ltd. (SZC), its joint venture automobile air conditioner manufacturing and sales company in Thailand from 39% to 74.9% to make it its subsidiary and take control of it. Taking this opportunity, the Company will further promote its activities for winning new orders from Japanese and other automakers in the ASEAN region in order to double its sales from THB 2.4 billion (JPY 6.3 billion) in 2004 to THB 4.8 billion in 2010. SZC has 20% share in the automobile air conditioner market in Thailand, and the Company has shifted the production of light weight aluminum condensers from Japan to there aiming to improve cost competitiveness. The Company will also increase its investment ratio for Zexel Sales (Thailand) Co., Ltd. (ZST), in which SZC takes more than 50% stake, from current 15.6% to 29.96%.

R&D Facilities

-The Company holds Research and Development centers in Atsugi City, Kanagawa Pref., Kumagaya City in Saitama Pref. and Tsukuba City, Ibaraki Pref.

-In July 2006, the Company has established an R&D technical center in Shanghai. When operating at full capacity, this center has 60 engineers engaged in R&D activities involved with developing automotive air-conditioners for OEMs based in China, Japan, and Europe. Initially, the engineers develop air conditioners for OEMs based in Japan and Europe only.


Non consolidated

(in millions JPY)
Since FY ended Dec. 31, 2011
FY ended Dec. 31, 2010 FY ended Dec. 31, 2009 FY ended Dec. 31, 2008 FY ended Dec. 31, 2007
Sales 55,500 45,100 67,274 64,503