Kinugawa Rubber Industrial Co. Ltd. Business Report FY2010
Business Highlights
Financial Overview |
(in millions of JPY) |
FY2010 (ended Mar. 2011) |
FY2009 | Rate of change (%) |
Factors | |
Sales | 63,815 | 52,177 | 22.3 |
- |
Operating income | 7,313 | 4,105 | 78.1 |
- |
Ordinary income | 7,387 | 4,317 | 71.1 |
- |
Net income | 4,391 | 2,980 | 47.3 |
- |
Recent Developments outside Japan
-ChinaIn December 2010, the Company announced December 24 that it will establish a wholly-owned subsidiary to produce automobile parts in Wuhu, Anhui Province, China. Awarded a new business from a local auto manufacturer Chery Automobile, Kinugawa decided to construct a new plant to deliver products starting in mid 2012. The new company slated to be set up at the end of this month will be capitalized at 400 million yen. The new facility is expected to start production in the middle of 2012 to function as a supply base for not only Chery, but also new prospective customers in the east and central parts of China. It expects to generate 500 million yen in sales for the term ending December 2012, and 5 billion yen for fiscal 2014. The number of employees will be about 300 in 2014. (From an article in the Nikkan Jidosha Shimbun on Dec. 25, 2010)
In May 2010, the Company announced that it will set up a new company in Dalian, China. The unit will design and manufacture molds for automotive rubber and resin components used at Kinugawa Rubber facilities in China. The new subsidiary is due to be established in June 2010 with a capital of 10 million yen to be invested entirely by Kinugawa Rubber. (From a press release on May 27, 2010)
-Mexico
The Company will provide production engineering support to its new plant in Mexico not from Japan, but from its U.S. subsidiary, which has been recently advancing to levels competitive with those at Japanese plants in terms of quality management and rationalization practices since it undertook innovations to streamline management in 2007. The production facility in Mexico is planned initially to produce auto parts destined for the U.S. where demand is expected to grow. Kinugawa has therefore opted to delegate to its U.S. plant the function of overseas production assistance, which has been usually performed by engineering staff sent from Japan, in a bid to maximize efficiency in operations worldwide. (From an article in the Nikkan Jidosha Shimbun on August. 27, 2010)
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
R&D
R&D Expenditure |
(in millions of JPY) |
FY2010 | FY2009 | FY2008 | |
Overall | 1,052 | 1,046 | 1,451 |
Body parts | 661 | 691 | 918 |
Brake parts | 269 | 248 | 250 |
Major Developments
Body parts-Development of materials and a new cross section structure with an aim to reduce a number of attachments. Development of weather strip seals with higher price competitiveness.
-Expansion of application of lighter sealing parts made of low specific gravity rubber for auto bodies.
-Expansion of application of combining interior components with more attractive design.
-Expansion of application of TPV G/RUN made of high-function elastomer with higher recycling efficiency.
-Establishing a manufacturing frameworkthat makes use of the unique features of each locality,ensuring that the company maintains its competitive edge.
Brake parts
-Developing higher performance rubber parts for brake systems; and new production methods that reduce costs.
Technological Licensing Agreements
(As of Mar. 31, 2011)
Partner | Country | Purpose | Contract period |
Faltec Co., Ltd. | Japan | Window moldings and their manufacturing methods | From Apr. 1, 2000 until the production terminates. |
Technical Assistance Contracts
(As of Mar. 31, 2011)
Partner | Country | Purpose | Contract period |
Metzeler | UK | Manufacturing technology for automotive weather-strips | From Nov. 25, 1988 until production terminates. |
Renault Samsung Mortors | Korea | Technical assistant agreement for sealing products for automobile bodies. | From Mar. 01, 2003 until production terminates. |
Investment Activities
Investment Expenditure |
(in millions of JPY) |
FY2010 | FY2009 | FY2008 | |
Overall | Approx. 900 | Approx. 1,200 | Approx. 2,200 |
Body parts | Approx. 400 | Approx. 800 | Approx. 1,100 |
Antivibration parts | Approx. 200 | Approx. 100 | Approx. 400 |
Brake parts | Approx. 200 | Approx. 200 | Approx. 300 |
-Investment was focused on streamlining operations and revamping production lines in order to respond to model changes made by its customers.
Planned Capital Investments
(As of Mar. 31, 2011)
Company/Office Name | Location | Equipment to be installed | Planned amount of investment (in millions of JPY) |
Start | Complete | Remark |
Kinugawa Koriyama Co., Ltd. | Fukushima Pref. Japan |
Auto body components productionfacilities | 35 |
Apr. 2011 | Mar. 2012 | * |
Kinugawa Oita Co., Ltd. | Oita Pref. Japan |
Auto body components productionfacilities | 38 |
Apr. 2011 | Mar. 2012 | * |
Kinugawa Antivibration Co., Ltd. | Tochigi Pref. Japan |
Anti vibration parts productionfacilities | 135 |
Apr. 2011 | Mar. 2012 | * |
Kinugawa Brake Parts Co., Ltd. | Tochigi Pref. Japan |
Brake parts productionfacilities | 120 |
Apr. 2011 | Mar. 2012 | * |
Teito Rubber Ltd. | Saitama Pref. Japan |
Brake parts productionfacilities | 75 |
Apr. 2011 | Mar. 2012 | * |
Kinugawa Rubber (Guangzhou) Co., Ltd. | Guangzhou, China |
Auto body components productionfacilities | 283 |
Jan. 2011 | Dec. 2011 | * |