Nichirin Co., Ltd. Business Report FY2010

Business Highlights

Financial Overview

(in millions of JPY)
  FY2010 FY2009 Rate of Change(%) Factors
Sales 36,298 27,990 29.7 - Sales increased year-on-year, as the automotive hose division enjoyed increased demand thanks to the effects of the eco-car incentive programs and tax cut systems.
Operating income 1,686 (701) - - The Company returned to profitability, as it cut down on labor costs and other expenses. Its initiatives included establishing a mutual supply system among its group companies and using robots on its production lines.
Ordinary income 1,690 (550) -
Net income 880 (1,216) -

New programs

- The Company started supplying power steering hoses for the Audi D4 series.


R&D Expenditure

(in millions of JPY)
  FY2010 FY2009 FY2008
Overall 844 816 1,009

Technology Licensed-out

(As of Dec. 31, 2010)

Company Country Content of Contract Period of Contract
From To
HS R&A South Korea Manufacturing technology for air conditioner hoses used in automobiles Feb. 24, 2010
Mar. 4, 2013
Manufacturing technology for automotive brake hoses Mar. 3, 2010 Mar. 4, 2013
Manufacturing technology for automotive power steering hoses Jan. 1, 2010 Dec. 31, 2011
PT.Mitra Metal Perkasa Indonesia Assembling technology for automotive brake hoses Oct. 26, 2010 Oct. 25, 2011

New Product Development

Automotive hoses
- The Company enjoyed growing demand for its brake hose called “Slim One”, which offers reduced product weight, improved braking performance, and higher durability. It is also developing Teflon-coated SUS hoses for the aftermarket.
- The Company is developing hoses for air conditioning systems using HFO1234fy refrigerant, which is a prospective alternative to HFC134a fluorocarbon refrigerant that contributes to global warming.

- The Company’s HBMC hose was chosen to support the Hydraulic Body Motion Control (HBMC) Technology used on full-sized sport utility vehicles (SUVs). The hydraulic system is designed to prevent the vehicle from rolling and to help maintain driving stability on- and off-road.

Investment Activities

Capital Expenditure

(in millions of JPY)
  FY2010 FY2009 FY2008
Japan 365 258 930
North America 140 56 85
Asia 558 661 122
Others 2 1 5
Total investment 1,067 978 1,142

New Investment Plan

(As of Dec. 31, 2010)

Name of Company/Plant Location Equipment Estimated amount of Investment
(in millions of yen)
Project Period
From  To 
Nichirin Vietnam Co., Ltd. Bac Giang, Vietnam Production of automotive hoses 590 Dec. 2009 Jun. 2011