KINUGAWA RUBBER INDUSTRIAL Business Report FY2007
|Financial overview||(in millions of JPY)|
|FY2007||FY2006||Rate of change(%)||Factors|
Despite some negative factors such as escalating prices of materials,
operating income and ordinary income increased significantly as
a result of the following factors:
|Net income||490||(1,397)||-||-Although there were special losses, which include added product warranty costs and losses incurred from the Company's reorganizing its subsidiaries and affiliates, net income rose year-on-year thanks to improved operating profit.|
*2: up 2,969 million yen year-on-year
-In order to improve production efficiency, the Company integrated its body sealing production lines in the Kanto region into the Koriyama district. Before this consolidation, the Company had been manufacturing body sealing product also in the Moka district.
-The Company established the Precision Elastomer Division for the purpose of expanding sales of auto parts other than brakes as well as industrial components. The Company intends to develop these products by incorporating and upgrading its technology used in making precision rubber products and plastic parts.
-Kinugawa Rubber (Guangzhou) Co., Ltd. enjoyed greater sales, thanks to greater volume of production at Dongfeng Nissan, its major customer. Kinugawa Rubber (Guangzhou) was established in 2006.
-Fuzhou Fukwang Rubber & Plastic Co., Ltd. won new contracts from Volvo. It was also awarded increased business from Ford after having been given the automakers' Excellent Quality Award. The total revenue from these two companies grew 70 percent from what it was last year.
-In June 2007, the Company acquired a 49.0 percent share in CPR of Thailand, which is listed on the Thai MAI market. The acquisition added the anti-vibration and molded rubber parts segments to the Company's operations, expanding its scope of business in the country.
|R&D Expenditure||(in millions of JPY)|
The Company's R&D spending is focused on the following developments:
-The Company is working to develop products that meet the current and expected customer demand for high performance, high quality, and high value-added features, especially focusing on the development of environmentally friendly elastomer material and processing technology.
-The Company is working on conducting research and development activities through a collaboration of industry, government, and academia in cooperation with research institutions including universities, in preparation for entry into new business areas.
-Development of coating material and adhesive which do not use organic solvent; in order to satisfy regulations which control the use of organic solvent.
-Development of hybrid rubber materials which do not require reforming coating.
-Development of highly recyclable, highly functional plastic materials
-Development of low-density and highly foamable rubber materials in order to make lightweight products.
-Development of metallic luster exterior components that improve design.
-Development of sealing components with high-performance insulating properties that improve sound reduction.
-Development of ultra-hard products that are aimed at improving the durability of brake cups exposed to high hydraulic pressure.
-Developed new manufacturing methods for producing brake couplings and piston seals.
Technological Licensing Agreements (As of March 2008)
|Faltec Co., Ltd.||Japan||Window moldings and their manufacturing methods||From 20004.01 until the production terminates.|
Technical Assistance Contracts (As of March 2008)
|Metzeler||UK||Manufacturing technology for automotive weather-strips||From 1988.11.25,
until production terminates.
|AIA||Korea||Technical assistant agreement for sealing products for automobile bodies.||From Sep. 2, 2003 to Sep. 1, 2008|
|Renault Samsung Mortors||Korea||Technical assistant agreement for sealing products for automobile bodies.||From March 1, 2003,
until production terminates.
|Investment Expenditure||(in millions of JPY)|
|Investment||About 1,700||About 2,300||About 3,300|
|Body parts||About 700||About 1,600||About 2,000|
|Antivibration parts||About 400||About 200||About 300|
|Brake parts||About 300||About 300||About 300|
Plans for construction of new facilities (As of March 2008)
|Company/Office Name||Location||Purpose|| Planned amount of investment
( in millions of JPY )
|Kinugawa Koriyama Co., Ltd.||Fukushima Pref., Japan||Manufacturing facilities||134||Apr., 2008||Mar., 2009||*|
|Kinugawa Oita Co., Ltd.||Oita Pref., Japan||Manufacturing facilities||160||Apr., 2008||Mar., 2009||*|
|Kinugawa Antivibration Co., Ltd.||Tochigi Pref., Japan||Manufacturing facilities||232||Apr., 2008||Mar., 2009||*|
|Teito Rubber Ltd. Headquarter Plant||Saitama Pref., Japan||Manufacturing facilities||139||Apr., 2008||Mar., 2009||*|
|Kinugawa (Thailand) Co., Ltd.||Ayutthaya, Thailand||Manufacturing facilities||128||Jan., 2008||Dec., 2008||*|