TS Tech Co., Ltd. Business report FY2007
|Financial overview||(in millions of JPY)|
|FY2007||FY2006||Rate of Change(%)||Factors|
-Sales in Japan increased 9.5% to 193,775 million yen despite a slowdown in auto sales in Japan. This slowdown was offset by robust demand in general exports and in particular export of seat parts for its subsidiaries overseas.
-Despite the negative impact of foreign currency translations, the Company enjoyed sales growth of 1.4% year-on-year to 181,575 million yen. This was due to strong auto sales by Japanese carmakers.
-The Company received strong orders in Guangzhou. In Wuhan, it won an increased number of orders due to the full-scale commercial production launch of Honda CR-V. As a result sales in China grew 36.3% from the previous year to 59,138 million yen.
-Sales were up 73.1% from the last fiscal year to 80,457 million yen. This was attributed to Honda's increase in CR-V production in the U.K., market recovery in Indonesia, and strong orders received in other Asian countries and Brazil.
Recent Developments in Japan
-The Company started manufacturing products to be installed on new Honda Accord for export at its Saitama plant in August 2008.
-In October 2007, the Company began producing seats for Honda's new Fit with an improved seat retracting mechanism at its Suzuka plant. It also focused on supplying this model to be targeted at both global markets and Japanese market.
Recent Developments Overseas
-The Company began supplying seats and interior parts for new Honda Accord.
-Production of parts for Honda Civic and CR-V steadily increased.
-The Company started supply of seats and interior parts for new Honda Accord in January 2008.
-It was determined that TS Tech Sun Rajasthan Pvt., Ltd. will be established as the Company's second Indian firm to manufacture automotive seats.
-Sales were brisk backed by a significant increase in auto production; mainly Honda Civic and CR-V in Asian countries, U.K. and Brazil.
|R&D Expenditure||(in millions of JPY)|
-The Company's R&D activities are conducted mainly at the Technical Center in Tochigi Prefecture. The Company also established a technical center at TS-Tech North America Inc.
-The development focus is set on the area of safety technology, environmental technology and comfort technology.
Key R&D areas in fiscal 2008
The Company focused its development activities on the following:
-Various static and dynamic testing;
-Computer and simulation analysis based on various data output;
-The company developed an active head rest which is designed to reduce neck injuries caused by impacts from the rear; and a seat weight sensor which controls the deployment of air-bags.
-The Company is carrying out R&D activities aimed at reducing the use of hazardous materials and volatile organic compounds, right from the product planning stage. Measures include research on substance content, and development and introduction of alternative materials.
-The Company conducted research to facilitate easier decomposition of seats for four-wheel vehicles, etc; and research on make monomaterial products. (Developed active head rests to alleviate neck injury from rear-end collision, and seat weight sensor to control air bag deployment depending on the weight of occupants.)
The development focus is set on the following:
-Development of technology aimed at improving the sitting comfort of occupants from the time they seat themselves in a car; and lessening occupants' fatigue during long-time driving.
-Development of technology to improve static comfort based on ergonomics studies; research on ways to measure fatigue using the Company's proprietary theories.
-Engineering of active devices to improve sitting comfort of next-generation car seats.
4. Multifunctional technology
-The Company is developing originally designed products for small cars and sport utility vehicles (SUVs), vehicles in which multifunctional features are on the rise.
-Developed and commercialized products as tip-up and long-slide mechanism, air conditioning seats, rear power fall down headrests and tip-up one-motion dive-down rear seats and rear ultra seats.
-The Company will pursue technology integration with electric components such as air conditioning seats, newly developed weight sensors as well as multifunctional devices.
5. High-quality finishing technology
-The Company is conducting R&D on a unique technology evaluation standard for each seat element to determine to what extent it contributes to enhance car exterior; and developing seats with the world's top quality finish using computer simulation.
6. Car interior technology
-The Company focuses on developing new and high-quality manufacturing technology, new decorating technology, and lighting technology, which increase the feeling of luxury in car interiors.
|Capital Investment||(in millions of JPY)|
-The Company will largely increase its production capacity in the U.S. It has established a seat manufacturing base in Indiana with an investment of approx. 2 billion yen to supply to Honda and will start an annual production of 200,000 sets from autumn 2008. The new operation, registered last month in New Castle, Indiana, is proceeding with preparations for constructing a plant with a building area of approx. 20,000 sq.m. (From an article in the Nikkan Jidosha Shimbun on May.29, 2007)
Major Capital Investment Projects
|Plant||Location||Type of facility|| Planned
amount of investment
(in millions of JPY)
|Equipment to manufacture automotive seats and interior products||1,067||April 2008||Mar.2009|
|Saitama Plant||Kawagoe city,
| Equipment to manufacture
automotive interior products
|Suzuka plant||Suzuka city,
|Equipment to manufacture automotive seats and interior products||946||April 2008||Mar.2009|
|Prototypes and testing equipment for automotive seats, motorcycle seats and automotive interior, as well as die design systems||1,256||April 2008||Mar.2009|
|Kyusyu T.S Co.,Ltd.||Kikuchi City,
|Equipment to manufacture motorcycle seats and parts, automotive interiors and exteriors||519||April 2008||Mar.2009|
|TS Trim Industries, Inc.||Ohio, U.S.A.||Equipment to manufacture automotive interiors||768||April 2008||Mar.2009|
|TS Tech USA Corporation||Ohio, U.S.A.||Equipment to manufacture automotive seats||805||April 2008||Mar.2009|
|TS Tech Alabama LLC.||Alabama,
|Equipment to manufacture automotive seats||1,108||April 2008||Mar.2009|
|Guangzhou TS Automotive Interior Systems Co., Ltd.||Guangdong,
|Equipment to manufacture automotive seats||1,918||Jan.2008||Dec.2008|
|TS Tech (Thailand) Co., Ltd.||Ayutthaya,
|Equipment to manufacture automotive seats and interior products||1,921||Jan.2008||Dec.2008|
|TS Tech Sun (India) Ltd.||Noida, India||Equipment to manufacture automotive seats||748||April 2008||Mar.2009|
|TS Tech UK Ltd.||Wiltshire,
|Equipment to manufacture automotive seats||582||Jan.2008||Dec.2008|
|TS Tech Sun Rajasthan
|Land, buildings and equipment to manufacture automotive seats||613||July 2008||Mar.2009|