PIOLAX, INC. Business Report FY2010
|(in millions of JPY)|
|FY2010||FY2009||Rate of Change
|Current net income||3,544||1,980||78.9||-|
|Sales||42,351||35,386||19.6||- Sales increased year-on-year as a result of the Company’s accelerating its global expansion plans to meet increased demand in emerging countries especially in Asia.
New Company- The Company announced that it will establish Piolax Mexicana, S.A. de C.V. in Mexico by spinning off the Mexican operation of Piolax Corporation, its U.S. subsidiary. The establishment is intended to strengthen the company's business structure in Mexico, where Japanese automakers are expanding their production operations. The new entity will be located in Apodaca, Nuevo Leon, Mexico. It will be capitalized at 40 million pesos, of which 60 percent will be invested by Piolax and 40 percent by Piolax Corporation of the U.S. In 2011, the company expects to generate 10 million dollars in sales at the Mexican subsidiary. (From an article in the Nikkan Jidosha Shimbun on April. 28, 2010)
- The Company is poised to strengthen its operations in China with new sales offices planned to be established in Shanghai and Tianjin by April 2011. The company now has a plant and sales office in the China South. This year, it has also begun to do business with two local automakers: Chery and Great Wall. PIOLAX is expecting to expand its transactions with automobile manufacturers in the north and central parts of China by setting up new sales bases in the hopes of doubling sales to 5 billion yen in 2014. The new sales offices will become operational in Shanghai this month and in Tianjin in April 2011. (From an article in the Nikkan Jidosha Shimbun on December. 15, 2010)
Contract-The Company has recently developed new battery terminal parts for electric vehicles, reactance coils for inverters and bus rings for use in motors. They have been chosen as parts for the "Nissan Leaf" electric car due to hit the market at the end of this year. (From an article in the Nikkan Jidosha Shimbun on Jun. 23)
|(in millions of JPY)|
R&D Structure-R&D activities were conducted by the design department, development groups in each SBU, and the development division of the Company's subsidiary, Pilolax Medical Devices, Inc.
|Yokohama Technical Center||Kanagawa Pref., Japan|
R&D ActivitiesPrecision springs
-The Company developed low-cost materials for coil springs used in transmissions and engines.
-The Company developed and started mass-producing smaller, lighter, and more cost-efficient transmission units by using technology to analyze product stress and behavior in order to optimize the design.
-The Company put increased emphasis on developing composite springs designed to raise efficiency when being installed in transmission units.
-The Company also worked closely with assembly plants of its customers in order to develop products that best meet the requirements of the customers, while offering the Company's designing expertise.
-The Company increased joint development activities with and deliveries to automakers in emerging nations, while stepping up development programs with Japanese automakers.
-The Company developed fasteners designed for sheets that run in size from thin to thick. Its new products include fasteners which require a minimum level of strength to be installed in vehicles, those with strong fastening power, and those that make dismantling of scrapped vehicles more efficient.
-The Company is working to develop lightweight products that contribute to improving fuel efficiency.
-The Company developed user-friendly net hooks for vehicle interiors.
-The Company developed resin parts for lock handles, side locks and dampers for glove boxes.
-In the area of valves for plastic tanks, the Company enhanced the performance and reduced the manufacturing costs of rollover valves and inlet check valves.
-The Company is developing metal tank valves, focusing on developing a standard type valve that can be sold at a lower price point; and a highly functional, composite valve.
- The Company has won increased orders for its fuel supply system components, in line with growing use of fuel injection systems on motorcycles.
- The Company is working on developing products for environmentally friendly vehicles such as those that run on alternative fuels and hybrids.
The Company developed resin parts for lock handles, side locks and dampers for glove boxes.
- The Company is developing products (for batteries and motors) made from copper and frame-resistant resin materials. These products are for use on electric and hybrid electric vehicles.
- The Company has been working on developing environmentally friendly technologies compliant with the Japan Automobile Manufacturers Association's directive calling for voluntary reductions of volatile organic compounds and other environmentally harmful substances. It is also following both the End-of-Life (ELV) Vehicle Directive and the Restriction of Hazardous Substances (RoHS) in effect in Europe. Also, the Company has been working closely with its European operations in developing technologies that meet European REACH (Registration, Evaluation and Authorisation of CHemicals).
Licensing-in Technology from Other Companies
(As of Mar. 31, 2011)
|Norma Germany GmbH||Automotive fuel delivery components||Approved use of patent||September 18, 1995 - August 17, 2000. This contract renews annually|
|Norma Germany GmbH||Plastic fuel tank components||Approved use of patent||Added to the contract above|
|Norma Germany GmbH||Plastic fuel tank components||Approved use of patent||December 13, 2001 - December 12, 2006. This contract renews annually|
Licensing-out Technology to Other Companies
(As of Mar. 31, 2011)
|Piolax of Taiwan Inc.
|Metallic and plastic fasteners||Manufacturing technology||From October 6, 1987 through October 5, 1992. To be renewed every 10 years.|
|Taiwan Houmu Industrial Co., Ltd.
|Pressure springs, torsion springs and valve springs||Manufacturing technology||From November 1, 1978 through October 31, 1983. To be renewed every 5 years.|
|Precision plastic clips, precision springs, and related assembly products for the automotive and electronics industry.||Covers technology, engineering and marketing services||For an indefinite period from April 1, 1993.|
|Precision plastic clips, precision springs, and related assembly products for the automotive and electronics industry.||Covers technology, engineering and marketing services||For an indefinite period from August 8, 1995.|
|Piolax Co., Ltd.
|Precision plastic clips, precision springs, and related assembly products for the automotive and electronics industry.||Covers technology, engineering and marketing services||From June 20, 1996 through June 19, 2006. To be renewed each year.|
|Piolax (Thailand) Ltd. (Thailand)||Covers technology, engineering and marketing services||For an indefinite period from August 10, 2000.|
|Dongguan Piolax Co., Ltd. (China)||Precision plastic clips, precision spring, and related assembly products for the automotive and electronics industry.||Covers technology, engineering and marketing services||From July 1, 2004 through June 30, 2014. To be renewed each year.|
|(in millions of JPY)|
-The Company spent 1,632 million yen in Japan and 1,437 million yen outside Japan.
Investments Outside Japan<China>
- The Company is set to strengthen its operations in China. In response to increasing orders for metallic parts, the supplier will start construction to expand the No.2 plant in Guangdong Province, and also build two parts depots in Shanghai and Tianjin to increase its supply capability to customers. PIOLAX aims to raise share of overseas sales to 30 percent of its total sales in fiscal year 2012. It intends to achieve the target by enhancing its production and supply capacity in a rapidly expanding Chinese market. (From an article in the Nikkan Jidosha Shimbun on Jul. 8， 2010)
- The Company has decided to start production at its planned new facility in India in fiscal year 2011. Following the operation launch, the company is going to transfer production of parts for the European market from Japan to India in fiscal year 2013 or later. The plant is scheduled to be constructed in the suburbs of Chennai, where the company's sales subsidiary is located. Piolax is going to determine the plant site by the end of this year, aiming to begin production in December 2011. Investment in the first phase of the project is expected to reach approximately 100 million yen. The new plant will initially supply its products to local assembly plants of Nissan and Honda. Piolax intends to expand its function as a supply hub for products for Europe. With this move, the company will position the Indian facility as a new pillar of its Asian operations. (From an article in the Nikkan Jidosha Shimbun on June. 14, 2010)
New Facilities (automobile related facilities)
(As of Mar. 31, 2011)
|Business||Expected Investment (Thousands of yen)||From||To||Purpose of the investment|
|The Company||Production facilities and dies||1,682||Apr. 2011||Mar. 2012||Investment was focused on updating equipment, mainly to improve production efficiency. Only a minor increase was made in terms of production capacity.|
|Subsidiaries in Japan||Production facilities and dies||420||Apr. 2011||Mar. 2012||Investment was focused on updating equipment, mainly to improve production efficiency. Only a minor increase was made in terms of production capacity.|
|Subsidiaries outside Japan
||Production facilities and dies||2,394||Jan. 2011||Dec. 2011||Since a wide range of products are made at facilities outside Japan, the level of increase in production capacity is unclear.|