NIHON PLAST CO., LTD. Business Report FY2006
Business Highlights
( in millions of JPY) | FY2006 | FY2005 |
Rate of Change(%) |
Factor |
Sales | 98,277 | 93,639 | 5.0 | see note 1) below |
Operating income | 2,949 | 2,620 | 12.6 | see note 2) below |
Ordinary income | 3,003 | 2,687 | 11.8 | |
Current net income | 2,165 | 2,771 | (21.9) | see note 3) below |
Factors
1) Sales increased due to the greater volume of vehicle models
produced in fiscal year 2005 that ended in March 2006 in Japan,
North America, and China; as well as due to the increased sales
of side-impact airbag modules resulting from the increased production
volume of vehicle models which went into production in fiscal year
2006 that ended in March 2007.
2) Income decreased in Japan due to increased costs such as labor
costs, development costs, initial start-up costs for starting
production of new product models; and other factors. Income increased
overseas, supported by increased revenue, effective cost-reduction
initiatives, and the sustained high level of revenue generated by
the Chinese subsidiary, despite the impact of making prior investments
in the Thai subsidiary.
3) The Company posted gains on sales of investments in securities
it owned in fiscal 2005 that ended in March 2006, but posted a loss
from the liquidation of its domestic mold manufacturing subsidiary.
Current net income decreased due to the above and other factors.
<By Region>
1). Japan
Sales in Japan were 57.116 billion JPY due to increased orders for
airbag modules that resulted when its major customers made model
changes to their vehicles; in addition to other factors.
Operating income stayed the same around at 770 million JPY due to
increased costs such as labor costs incurred to enhance its development
capabilities and initial start-up costs involved with launching
production of new product models, despite the increased revenue.
2). North America
Sales were 42.727 billion JPY due to increased orders for airbag
modules that resulted when its major customers made model changes
to their vehicles; in addition to other factors.
Operating income was 1.553 billion JPY due to increased revenue.
3). Other Regions
Sales were 6.696 billion JPY mainly resulting from launching production
of new models in China.
Operating income was 627 million JPY due to the sustained strong
performance by its Chinese subsidiary.
Dissolving business and capital alliances
The Company and Dalphi Metal Espana, S.A. reached an agreement
to terminate their business alliance and capital tie-up as of July
12, 2006. The Company sold its holding shares in Dalphi Metal Espana,
S.A. to Automotive Holding (Spain) S.L. on August 30, 2006. (From
a press release by the company on Aug. 31, 2006)
R&D
R&D Expenditure
( in millions of JPY) | FY2006 | FY2005 | FY2004 |
Safety components | 964 | 917 | 733 |
Resin components | 728 | 688 | 802 |
Overall | 1,692 | 1,605 | 1,536 |
<R&D Operations>
The technology development department; the design department; and Neaton Auto Products Mfg., Inc, a North America subsidiary, conduct the Company's R&D activities . A total of 166 employees are engaged in R&D activities.
R&D on Safety Components
<Steering products>
-The Company is working on developing magnesium cored bar and low specific gravity urethane to reduce vehicle weight and achieve a higher level of performance in terms of lower by introducing a floating mechanism. It is also developing higher quality products such as airbag covers with metallic separate emblem, steering wheels offering a superior sense of feel, and high-grade wood-tone decorative steering wheels.
-The Company is making efforts to reduce environmental impact by developing cleaner inflator gas and reducing the use of organic solvents in urethane, coating materials, and leather in the production process.
<Passenger seat airbag modules>
-The Company developed hard-material airbags which eliminated the tearing process in order to create products without any seams. In response to the demand for surface embellishments, the Company developed its proprietary NPSS (Nihon Plast Soft Surface) processing method, which is based on the urethane RIM processing method. It also worked on developing a processing method that makes products feel even softer to the touch; and enhanced it product mix of integrated panels for airbags, for which demand is growing.
-The Company also developed a proprietary design structure for air bags, i.e., that incorporates folds, aiming to reduce the possibility of damage and injury.
<Side impact airbag modules>
-The Company worked on developing curtain airbags which provide long lasting protection based on sealing technology in which pressure during overturns is applied to the sewn part. The Company also developed knee airbags which protect occupants' knees.
-In development activities engaged in manufacturing methods, the Company finished developing a machine that automatically folds curtain bags. It also improved the performance of all its airbags mounted on vehicles, as well as streamlined the manufacturing processes used to make these airbags.
R&D on Resin Components
<Exterior resin products>
The Company developed fender protectors that are made through super-fine injection molding as a means to further advance developments in injection-molding larger parts. It also developed a flexible rubber integrated cover cowl top that is made through a process that involves two-color injection molding based on a mold designed incorporating a slide. This raised the level of product quality and eliminated one process in the production process.
<Interior resin products>
- The Company improved its products' features by designing a louver with a mechanism that enables the louver to shut completely. It also developed a centralized mechanism for ventilators, which diffuses the switching; a part that controls air; and also a ventilator that was made much thinner than conventional ones. It is also developing technology to streamline production, with one example being an automatic assembly bench.
-The Company responded to the demand for low-cost, high-quality resign panels by developing various decorating technologies. These included a processing method that gives the surface of seat cushions a softer touch, and a processing method that can produce upholstered pillars without the need for a bonding process. It also developed glow boxes, consoles, and other products that incorporate highly functional designs while integrating multiple components. This is a feature which is being required more and more.
Licensing of technology (as of March 2007)
Name | Country | Contract | Period |
Honda Belgium | Belgium | Development, production, and sales of automotive parts |
Nov, 2006 - Nov, 2007 |
Neaton Auto Products Mfg., Inc. | U.S.A. | Designing, testing, production, and inspection of automotive parts |
Jan, 2007 - Dec, 2007 |
Business alliance (as of March 2007)
Name | Country | Contract | Period |
Morrar Group KG | Germany | Development, design, and production of automotive interior and exterior resin parts |
Jul, 2000 - Dec, 2007 |
Calsonic Kansei | Japan | Development, design, and production of automotive interior and exterior resin parts |
Sep, 2006 - Sep, 2007 |
Investment Activities
Investment Expenditure
( in millions of JPY) | FY2006 | FY2005 | FY2004 |
Safety components | 3,193 | 2,825 | 2,769 |
Resin components | 3,871 | 2,445 | 2,940 |
Others | 24 | 9 | 28 |
Overall | 7,088 | 5,281 | 5,739 |
Capital investments were made mainly
to either add on to or remodel manufacturing plants; as well as
to make molds in response to automakers' making model changes in
fiscal year 2006 that ended March 2007.
Safety components:
A capital investment of 3.193 billion JPY was made in order to respond
to automakers making model changes; to win new orders, and either
add on to or remodel manufacturing plants.
Resin components:
A capital investment of 3.871 billion JPY was made in molds to respond
to automakers' making model changes.
Major new facilities: |
Company | Plant | Details | Planned amount of investment (in millions of JPY) | Start | End |
Fuji Plant - First | Shizuoka, Japan | Production
facilities for steering wheels and airbags |
286 | Apr, 2007 | Mar, 2008 |
Fuji Plant - Second | Shizuoka, Japan | Production
facilities for airbags |
346 | Apr, 2007 | Mar, 2008 |
Isezaki Plant | Gunma, Japan | Production
facilities for resin components |
1,237 | Apr, 2007 | Mar, 2008 |
Kyushu Plant | Fukuoka, Japan | Production
facilities for steering wheels, airbags and resin components |
727 | Apr, 2007 | Mar, 2008 |
Technical center | Shizuoka, Japan | Test and research facility for steering wheels, airbags and resin components | 235 | Apr, 2007 | Mar, 2008 |
Zhongshan Plast Industry Co., Ltd. | Guangdong, China | Production facilities
for steering wheels and resin components |
1,243 | Jan, 2007 | Dec, 2007 |
Neaton Auto Products Mfg., Inc. | Ohio, U.S.A. | Production
facilities for steering wheels and resin components |
1,197 | Jan, 2007 | Dec, 2007 |
Nihon Plast Thailand Co., Ltd. | Rayon, Thailand | Production
facilities for steering wheels and resin components |
1,188 | Jan, 2007 | Dec, 2007 |