Toyo Tire & Rubber Co., Ltd. Business report FY2006
|in million JPY||FY2006||FY2005||Rate of Change (%)||Factors|
Although unit sales declined due to a decrease in production of vehicles, on which the Company's tires are used, overall revenue at the tire business increased year-on-year, thanks to greater sales of high value-added products.
|Automotive Parts Business|
- Sales at the anti-vibration
rubber segment were supported by an increase in the number
of cars, in which the Company's products are used; greater
production at the Company's North American subsidiary; and
the launch of commercial production at the Company 's new
subsidiary in China.
-Automotive parts business (China)
Toyo Automotive Parts (Guangzhou) Co., Ltd. held its opening ceremony on May 10, 2007. The new subsidiary will manufacture anti-vibration rubber, becoming the Company's first production facility to manufacture this rubber in China, in order to support Japanese automakers' plants in the country. (From a press release on May 16, 2006)
The Company announced that it will consolidate its non-tire business on April 1, 2007. It will integrate its two internal non-tire companies, the Processed Goods Company and the Automotive Parts Company, and will newly set up the Divertech Company. By improving its business efficiencies through the streamlined structure, the Company will expedite decision-making. (From an article in the Nikkan Jidosha Shimbun on Feb. 27, 2007)
Challenges for FY2007
The Company will work on improving productivity at its new North American facility, which became fully operational in October 2006. The Group has positioned this plant as its supply hub of high performance tires in North America. By introducing sales strategies that match each market environment, the Company intends to improve its presence in fast growing markets, while increasing sales of high value-added products. It will also reduce production costs in order to enhance its level of profitability.
(in million yen)
center focuses its development activities for tires on the
- technology on
tire design that incorporates both tire and vehicle behavior
- proprietary simulation technology for analyzing noise and abrasion levels for tires.
|- The Company built a production technology workshop on the premises of its technical center as a means of dealing with issues in elemental technology that are incurred in the process of developing production method and as a means of improving its production technology.|
|Automotive parts business||1,383||- In the area of anti-vibration rubber products, the Company was active in joint development projects with a European anti-vibration rubber manufacturer. It developed new products for strategic vehicles destined for Japan, Europe and the U.S., which resulted in new business.|
- In the area
of chassis systems and engine suspension systems, the Company
continued its effort to reduce development lead-time by employing
advanced simulation and evaluation technology.
- The Company is working on developing light-weight parts which improve fuel economy and vehicle performance; and high-performance products such as next-generation active control mounts for the luxury-class vehicle market.
- The Tire Business Engineering Division, the Corporate Strategy Planning Division, and the Engineering Development Center are jointly working on research and development of next-generation suspensions, which provide greater ride comfort and improved driving stability by reducing vibration and noise. - The Company is working to reduce production costs by implementing revisions to production processes, procuring goods and materials from local-area sources, and setting up a global procurement structure.
|- The Company is making further progress in seat cushion design based on a harmonious combination of function, design and production costs.|
|Division||Actual investment (in million yen)||Objective of the investment|
|Tire business||13,116||Streamlining operations, improving quality, and increasing capacity to meet greater demand for high-grade tires|
|Automotive parts business||4,254||Streamlining operations, improving quality, and establishing a global supply structure.|
Capital investment projects for fiscal 2007
amount of investment for fiscal 2007
(in million JPY)
|Objective of the investment|
|Tire business||11,249||Streamlining operations, improving quality, and increasing capacity to meet greater demand for high-grade tires|
|Chemical and industrial products and automotive parts(*)||5,758||Streamlining operations, improving quality, and establishing a global supply structure.|
|Centralized division||312||Strengthening research on basic technology and enhancing offices and welfare facilities.|
*Note: Since the Company established Divertech Company by consolidating its chemical and industrial products business in April 2007, the planned amounts of investment at the two divisions were combined into one.