NIHON PLAST CO., LTD. Business Report FY2008
|Financial Overview||(in millions of JPY)|
|FY2008||FY2007|| Rate of
|Sales||93,263||105,719||(11.7)||-Sales at subsidiaries located in North America suffered because of negative currency translation resulting from the appreciation of the yen. Sales also suffered as a result of automakers reducing their production volume.|
|Operating income||384||3,283||(88.2)||-As a result of launching a new car, and the added costs incurred because of that, the Company posted an operating income loss.|
|Current net income||(3,556)||1,993||-||-|
Recent Developments Outside Japan
-The Company announced that its subsidiary, PT. Nihon Plast Indonesia, will construct a new plant.
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-The Company announced its plan to establish a new, wholly owned subsidiary (Wuhan Plast Auto Parts Co., Ltd.) in Wuhan, Hubei Province, China. The new company, which is due to be set up in September 2008, will be capitalized at 800 million yen. The new company will produce and sell curtain airbags for automobiles, becoming the Company's second manufacturing subsidiary in China. The facility, which is expected to break ground in January 2009, is scheduled to begin operations in January 2010. (From a press release on Aug 22, 2008)
Financial forecast for the fiscal year ending in March 2010
|(in millions of JPY)|
|Sales by Geographic Area||(in millions of JPY)|
|Sales by Products||??n millions of yen?飲/td>|
|Sales by Major Customer||(in millions of JPY)|
|R&D Expenditure||(in millions of JPY)|
-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 162 employees are engaged in R&D activities.
|Technical center||Fujinomiya City, Shizuoka Pref.|
|Technical center 1||Fujinomiya City, Shizuoka Pref.|
|Technical center 2||Fuji City, Shizuoka Pref.|
R&D on Safety Components
-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
-In order to create airbag modules without any seams, the Company developed hard-material airbags which eliminated the tearing process that occurs in conventional airbags. In response to the demand for surface embellishments, the Company developed its proprietary NPSS (Nihon Plast Soft Surface) and NPFS (Nihon Plast Foamed Surface) processing methods, which are 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 its 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 Mar. 2009)
|Neaton Auto Products Mfg., Inc.||U.S.A.||Designing, testing, production, and inspection of automotive parts|| Jan. 2009 -
Business Alliance (As of Mar. 2009)
|MollerGroup GmbH & Co.KG||Germany||Development, design, and production of automotive interior and exterior resin parts|| Jan. 2009 -
|Calsonic Kansei||Japan||Development, design, and production of automotive interior and exterior resin parts|| Sep. 2008 -
|Investment Expenditure||(in millions of JPY)|
-Capital investments were made mainly in molds to respond to vehicle model changes.
-In the Safety Components Division, the Company made a capital investment to respond to vehicle model changes and to win new orders.
-In the Resin Components Division, the Company made a capital investment in molds to respond to vehicle model changes.
Investments Outside Japan
-The Company announced that its subsidiary, PT. Nihon Plast Indonesia, will construct a new plant. This is based on the Company's strategy to not only do the complete assembly of airbags but also conduct in-house production of all integral parts used in airbag modules, in Indonesia. Therefore, the Company decided to build a new cut-and-sew facility within the premises of the existing plant run by its Indonesian unit. As a result of this expansion project, the Company will strengthen its technological capabilities in the production of airbags, becoming more cost competitive and exploring new opportunities for global growth. The new facility is expected to begin operations in April 2009. Total investment in the project will be approximately 900 million yen. (From a press release on Jun 25, 2008)
Major New Facilities
|Company||Plant||Details||Planned amount of investment (in millions of JPY)||Start||End|
|Fuji Plant - No. 1|| Shizuoka,
for steering wheels and airbags
|464||Apr. 2009||Mar. 2010|
|Fuji Plant No. 2|| Shizuoka,
|245||Apr. 2009||Mar. 2010|
|Isezaki Plant|| Gunma,
for resin components
|742||Apr. 2009||Mar. 2010|
|Kyushu Plant|| Fukuoka,
for steering wheels, airbags
and resin components
|199||Apr. 2009||Mar. 2010|
|Technical center|| Shizuoka,
|Test and research facility for steering wheels, airbags and resin components||48||Apr. 2009||Mar. 2010|
|Zhongshan Plast Industry Co., Ltd.||Guangdong,
for steering wheels
and resin components
|830||Jan. 2009||Dec. 2009|
|P.T. Nihon Plast Indonesia||Jakarta,
for steering wheels and airbags
|462||Jan. 2009||Dec. 2009|