Toyo Tire & Rubber Co., Ltd. Business report FY2007
|Financial overview||(in millions of JPY)|
|Sales||252,495||218,531||15.5||-Domestic sales for new vehicles remained unchanged from those of the previous year in terms of volume. But thanks to increased sales of high-value-added products, the Company's sales in terms of monetary value significantly increased year-on-year.|
|DiverTech and others|
Sales in the transportation equipment industry grew, thanks to steady orders both at home and abroad for the Company's main product, various types of antivibration rubber for automotive applications.
-Expanding its production operations (Japan)
In November 2007, the Company announced a plan under which it will raise the volume of products it produces at its Sendai Plant (Iwanuma City, Miyagi Prefecture) and Kuwana Plant (Toin-cho, Mie Prefecture).
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-Expanding its production operations (Outside Japan)
The Company plans to increase the volume of its annual tire production capacity in 2009 at Toyo Tire North America, Inc., in Atlanta, Georgia, to 3.3 million tires.
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-Business Restructuring (USA)
On January 1, 2008, the Company renamed one main subsidiary and three sub-subsidiaries in the USA.
|Previous name||New name||Main business activities|
|Main subsidiary||Toyo Tire International, Inc.||Toyo Tire Holdings of Americas Inc.||Serves as shareholding company for business operations in North America|
|Sub-subsidiary||Toyo Tire (U.S.A.) Corp.||Toyo Tire U.S.A. Corp.||Sales of Toyo brand tires|
|Sub-subsidiary||Nitto Tire North America, Inc.||Nitto Tire U.S.A. Inc.||Sales of Nitto brand tires|
|Sub-subsidiary||Toyo Tire North America, Inc.||Toyo Tire North America Manufacturing, Inc.||Manufacturing of tires|
The Company is planning to expand the functions of Toyo Tyre International,
Inc. (Toyo Tire Holdings of Americas Inc.) )a shareholding company
overseeing the Company's business operations in North America, in
order to manage its North American business more effectively. (From
a press release dated December 26, 2007)
DiverTech and others business
-Business Restructuring (Australia)
The Company has agreed to sell its automotive interior business in Australia to a local manufacturer. The site, buildings and equipment of Sunshine factory, Victoria, Australia, of Toyo Tyre & Rubber Australia Ltd., New South Wales, will be sold. (From an article in the Nikkan Jidosha Shimbun on May 17, 2007)
-The Company carries out its R&D activities on tires mainly at Toyo Technical Center located in Itami-shi, Hyogo Prefecture.
|R&D Expenses||(in millions of JPY)|
|DiverTech and Other Businesses||2,951||-||-|
|Chemical and industrial products||-||1,663||1,662|
|Tire|| The technical center focuses its development
activities for tires on the following:
-technology on tire design that incorporates both tire and vehicle behavior analysis;
-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.
| DiverTech and Other Businesses
-Advanced Technology: As part of its efforts
to create suspension systems that feature the most suitable
grounding performance, the Company completed development of
a product called LF-BUSH that largely improves both passenger
comfort and driving performance. The Company is preparing
to launch the new product.
-Advanced Technology: As part of its efforts to create suspension systems that feature the most suitable grounding performance, the Company completed development of a product called LF-BUSH that largely improves both passenger comfort and driving performance. The Company is preparing to launch the new product.
-The Company developed an electromagnetic actuator control system, which is designed to make the car body generate antiphase oscillation that offsets and lowers noise in the vehicle.
-Environment: The Company had been focusing on developing hexahydric-chrome-free products. But its recent focus is on reducing VOC (volatile organic compound) emissions in its production lines as well as in its products by increasing the use of alternative materials.
-Fuel Economy: The Company is trying to develop parts that are not only lighter but also have higher performance, by making use of aluminum and resin materials; and by also developing new methods and new materials.
|Capital Expenditure||(in millions of JPY)|
|DiverTech and others||5,389||-||-|
|Chemical and industrial products||-||659||1,694|
The Company will strengthen its tire production capacity in Japan. In order to cope with buoyant demand from the passenger vehicle markets overseas, it intends to raise its total production volume at its two facilities, namely its Sendai Plant (Iwanuma City, Miyagi Prefecture) and Kuwana Plant (Toin-cho, Mie Prefecture), by 900,000 tires in fiscal year 2008 and by 1.4 million tires in fiscal year 2009, compared to the volume manufactured in 2007. The total amount of investment in this project is estimated to reach 3.2 billion yen. (From an article in the Nikkan Jidosha Shimbun on Nov. 14, 2007)
The Company will significantly boost the capacity of its production facilities in the U.S.A. In response to the sales expansion of tires for both aftermarket and installation on new vehicles, it will increase the production volume of high-performance tires. Investing about 6 billion yen, the company will raise an annual production capacity of Toyo Tire North America. Inc. in Georgia, which started operation in March 2006, to 3.3 million tires, about 1.7 times as much as the current volume by 2009. Toyo Tire North America produces tires for passenger cars and pickup trucks by fully adopting a new production method capable of seeking high quality, space efficiency, automation, as well as low-volume, multi-type production. (From an article in the Nikkan Jidosha Shimbun on May. 16, 2007)
The Company plans to upgrade its tire production operation in the U.S., Toyo Tire North America, Inc., Atlanta, Georgia, to the integrated tire production base by 2015. In addition to the current products of SUV tires and high-performance, large-size LT (light-truck) tires, production of PC (passenger car) tires will soon begin. New R&D facilities, where U.S. specifications of tires developed in Japan will be decided, will be constructed. TB (truck & bus) tires will also be produced there in the future. The Company plans to eventually establish this U.S. operation as its first plant where all the production of its full lineup will be carried out by the new process, with annual production of almost nine million tires, more than four times as many as the current volume. After the ongoing phase one of the expansion construction is completed, PC tire production will start on a full-scale and the annual production volume will be raised by 1.3 million tires from current two million to the total of 3.3 million by 2009, when the full production operation is scheduled for. Around 2009, the new R&D facilities, where detailed specifications will be decided for local production models, will be constructed. (From an article in the Nikkan Jidosha Shimbun on Jul. 19, 2007)
Capital Investment Plans (FY2008)
Planned amount of investment
(in million JPY)
|Objective of the investment|
|Tire||20,532||Streamlining operations, improving quality, and establishing a global supply structure.|
| DiverTech and Other Businesses
||5,271||Strengthening research on basic technology and enhancing offices and welfare facilities.|