Nifco - Business Report FY2006
|(in million JPY)||FY2006||FY2005||
|Current net income||9,391||5,756||63.1%|
|Plastic component business division|
Overview of business performance
at the plastic component business
<For the domestic automotive industry>
The Company increased the total amount of content per vehicle by selling more interior parts such as cup holders, fuel system components that address environmental problems, bumpers, and retainers; in addition to its mainstay products, fasteners.
<For the oversees automotive market>
Sales increased mainly in Asian countries such as Korea, China, and Thailand, as a result of Japanese automakers procuring more parts locally in Asia because they have expanded their production volume overseas in these countries. In addition, consolidated subsidiaries overseas marked year-on-year increases in sales and profits due to improved performance by European subsidiaries, as well as other factors.
Major business performance by region
|(in million JPY)||FY2006||FY2005||
|Sales||82,609||78,870||4.7%||Sales increased as a result of steady domestic production of four-wheel vehicles by automakers, which resulted from a rise in the volume of export products|
|Operating income||11,594||11,533||0.5%||Good performance at the Company's main business contributed to increased income|
|Sales||32,908||26,280||25.2%||Increased sales resulted from the good performance by subsidiaries overseas, mainly in Korea, supported by growth at Hyundai Motor Company; as well as in China and Hong Kong|
|Operating income||3,928||2,716||44.6%||Increased profit was driven by increased sales|
|Sales||14,841||14,128||5.0%||Sales rose because of increased revenue that was attributed to the growth of Japanese automakers|
|Operating income||618||721||(14.3%)||Operating income decreased as a result of higher costs such as start-up costs and costs for production improvement activities|
|Sales||6,730||8,911||(24.5%)||Sales decreased due to a change (reduction) in the accounting period at the UK subsidiary (a nine-month reporting period), and due to the withdrawal of unprofitable products, etc.|
R&D expenses in FY2006 ending Mar.
31, 2007, were 1,788 million yen. The major share of the expenses
were for the composite plastics molded products business, in which
the Company invested 1,657 million yen.
R&D activities in the composite plastic molded products business (Automotive)
Technology responding to environmental issues
The Company developed products in response to the California, USA PZEV regulations. These include a thinner FLVV (Fill Limit Vent Valve) for fuel tanks that are thinner than conventional tanks; and a small ROV (Roll Over Valve) that provides greater added value because of having many functions integrated within it.
Technology on elemental systems
The Company developed new dampers such as a sophisticated small damper that has more consistent torque under any temperature range and improved features in terms of temperature factors; and a damper that responds at medium and high torque ranges.
Technology Agreements (Inward) (as of Mar. 2007)
|Partners||Contents of tie-ups||Country||Contract term|
|Illinois Tools Works||Plastic buckles||U.S.A.||
|Mitsubishi Gas Chemical Company, Mitsubishi Corporation||Gas assisted
injection molding methods and related equipment
(Including a sublicense of a patent of Sympress, UK)
|Thixomat||Injection molding technology for molten metal (magnesium) to which thixotropy phenomenon is applied.||U.S.A.||
Technology Agreements (Outward) (as of Mar. 2007)
|Partners||Country||Contents of contract||Contract term|
|Taiwan Industrial Fastener Corporation||Taiwan||Manufacturing technologies for plastic buckles and industrial fasteners||
|Korean Industrial Fastener Corporation (KIFCO)||Korea||Manufacturing technologies for plastic buckles and fasteners||
|Nifco Manufacturing (Malaysia) Sdn. Bhd.||Malaysia||Manufacturing technologies for plastic buckles and industrial fasteners||
|Nifco (Hong Kong) Ltd.||Hong Kong||Manufacturing technologies for plastic buckles, plastic or metal fastener assembly||
|Nifco (UK Limited) Ltd||U.K.||Industrial plastic parts and assemblies that contain other parts and materials||
|Nifco America Co.||U.S.A.||Industrial plastic parts and assemblies that contain other parts and materials||
|Nifco Products Espana S.L.U.||Spain||Buckle/industrial plastic parts and assemblies that contain other parts and materials. Manufacturing technologies for dies for these parts and finished products||
|Shanghai Nifco Plastic Manufacturer Co., Ltd.||China||Resin and metal parts/finished goods with fastening properties. Products combining resin parts and metal parts; buckles; and manufacturing technology for dies used to manufacture these parts and finished products||
Nifco Shi-Long Plastic Factory
|China||Resin and metal parts/finished goods with fastening properties. Products combining resin parts and metal parts; buckles; and manufacturing technology for dies used to manufacture these parts and finished products||
|Nifco Thailand Co., Ltd.||Thailand||Buckle/industrial plastic parts and assemblies that contain other parts and materials. Manufacturing technologies for dies for these parts and finished products||
|NIFCO (Donngguan) Co., Ltd.
||China||Resin and metal parts/finished goods with fastening properties. Products combining resin parts and metal parts; buckles; and manufacturing technology for dies used to manufacture these parts and finished products||
|Beijing Nifco Co., Ltd.||China||Resin products with adhesive properties, metal parts and components, complex products with resin and metal parts, buckles and the related production technology and tools for these parts and components.||
The Company invested 4,308 million JPY in the composite plastic molded products business for die equipment, fuel system facilities, and automated assembly facilities to respond to new business won from Japanese automakers.
The Company invested 528 million JPY in JT Nifco and Kyushu JT Nifco in order to build a domestic production system that utilizes the Company's expertise on automation.
The Company announced that it will establish a new subsidiary in the United States in response to an increasing production volume by Japanese automobile manufactures, its primary customers, in North America. Nifco is planning to set up a new, wholly-owned subsidiary, Nifco North America Inc., in Kentucky in March 2007, for the production of industrial plastic fasteners and parts for automotive use. The new company will be capitalized at 8.5 million USD (approx. 1 billion yen) and will start its operations with approx. 150 people. Nifco North America is the Company's second facility in the United States, following Nifco America Corporation (Ohio). (From a press release on Mar. 14, 2007)
Nifco Thailand Co., Ltd. invested 430 million JPY mainly in its die plant in order to improve product quality.
Korea Industrial Fastener Corp. (KIFCO) invested 238 million JPY.
Taiwan Industrial Fastener Corporation (TIFCO) invested 118 million JPY.
The Company made a capital investment of 1,564 million JPY throughout the entire Asian region in order to build an organizational framework which enables it to produce and sell high-value added products to both Japanese and non-Japanese automakers globally.
Newly added facilities (Composite Plastic mold business)
|Type of facility||Planned total investing amount (million JPY)||Construction|
|Starting month||Completion month|
(Kawachi gun, Tochigi, Japan)
|Buildings and plants||134||Apr. 2007||Mar. 2008|
|Mechanical equipment and measuring instruments||202|
|Mechanical equipment and measuring instruments||660||Apr. 2007||Mar. 2008|
(Toyota, Aichi, Japan)
|Buildings and plants||760||Apr. 2007||Aug. 2007|
|Mechanical equipment and measuring instruments||750|
|All the offices||Dies||2,650||-||-|
|Buildings and plants||169|
|Mechanical equipment and measuring instruments||283|
|Buildings and plants||420||Dec. 2006||Apr. 2007|
|Mechanical equipment and tools||510||Apr. 2007||Mar. 2008|
|Buildings and plants||595||Jun. 2007||Mar. 2008|
|Mechanical equipment and tools||178|
sp. z o. o.
|Buildings and plants||407||Feb. 2006||Mar. 2007|
|Mechanical equipment and tools||192|