NIFCO Inc. Business Report FY2010
|(in millions of JPY)|
|Current net income||7,531||4,468||68.6
|Composite plastic molded products|
<Sales in the Japanese auto industry>
The number of vehicle units produced in the first half of the year significantly increased year-on-year because of the tax reductions and sales incentives offered for eco-car purchases. As a result, the Company’s sales grew. In spite of the fact that export volume was strong during the second half of the year, sales volume in Japan decreased as a result of the eco-car sales incentives coming to an end. In addition, the Great East Japan Earthquake caused production slowdowns at its major customers, so the Company’s sales toward the very end of the fiscal year dramatically decreased. Nevertheless, for the entire fiscal year as the whole, both sales and profit were up year-on-year.
<Sales in the auto industry outside Japan>
After the economic recession, the underlying elements leading to a market recovery became more pronounced, so overall sales and operating profit grew significantly higher year-on-year.
The Company has set up a new company to manufacture and sell synthetic resin molded components in Zhangjiagang, Jiangsu Province, China. Nifco currently operates eight facilities in China, supplying its products mainly to Japanese and Korean automakers. The new entity, which is its ninth location in China, will target non-Japanese automakers in China. The 7 million USD (approx. 600 million Japanese yen) entity was fully invested by Nifco (HK) Ltd., based in Hong Kong. (From a press release on January 27, 2011)
The Company announced that it will establish a new company for manufacture and sales of synthetic plastic products in Ezhou, Hubei Province, China in December. A new company capitalized at approximately 600 million yen will be 100 percent invested by Nifco (HK) Limited, Nifco's subsidiary in Hong Kong. The local production facility, which is expected to employ 110 workers at the end of 2011, will allow Nifco to provide expanded service to automakers operating in the midland of China. (From an article in the Nikkan Jidosha Shimbun on October. 5, 2010)
The Company announced it has established a new subsidiary in Shanghai to administer and assist 5 existing subsidiaries in China. The new company called "Nifco Enterprise Management (Shanghai) Co., Ltd." is capitalized at 2 million dollars and will provide assistance in sales and technological activities as well. (From an article in the Nikkan Jidosha Shimbun on May 11, 2010)
The Company announced that it has established two wholly-owned subsidiaries in the north and south regions of India to supply fasteners to Japanese and Korean automakers operating in the country. The company, which has been serving the Indian market by exporting the products from its nearby Asian facilities to local automakers, will respond to growing demand in the future by making inroads to the market. It is the first time for the fastener supplier to set up more than one firms simultaneously in one country. This is in response to the demand divided in the north and south in India. While production will get started in the north by the end of the year, demand will be met by imports for the time being in the south. The northern company is "Nifco India Private Limited" located in Manesar, Gurgaon, Haryana and capitalized at about 570 million yen. The southern company is "Nifco South India Manufacturing Private Limited" located in Chennai, Tamil Nadu and capitalized at about 77 million yen. (From an article in the Nikkan Jidosha Shimbun on July. 27, 2010)
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income, etc.)
|(in millions of JPY)|
|Composite plastic molded products||4,137||2,367||3,865|
Composite plastic molded products
The Company invested in facilities and equipment for dies and fuel-related products in order to respond to new program business from Japanese automakers. It also invested to acquire land for a new technical center.
-Nifco America Corporation invested 546 million yen mainly in fuel-related products and molding machinery and equipment.
-Nifco Korea Inc. invested 794 million yen in facilities and equipment.
-Beijing Nifco Co., Ltd. invested 780 million yen in facilities and equipment.
-In the Company invested a combined total of 1 billion, 250 million yen for facilities and equipment at Nifco (Hong Kong) Ltd.、Shanghai Nifco Plastic Manufacturer Co., Ltd.; Dongguan Nifco Co., Ltd.; and Nifco (Tianjin) Co. Ltd.
-Nifco Thailand Co., Ltd. invested 849 million yen in facilities and equipment.
Facility Construction Plans (Composite plastic molded products)
(As of Mar. 31, 2011)
(in million JPY)
|Nifco (Tianjin) Co. Ltd.
|Buildings and structures||715
|Machinery and measuring instruments||259
|Nifco UK Ltd.
|Buildings and structures||902