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Automobile industry

Japan's Kinugawa Rubber to Invest in Thailand

Strategic Insights

— 1 min read

Japanese automaker Kinugawa Rubber is expanding its operations in Thailand, aiming to raise sales from 500 million yen in 2005 to 1 billion yen by 2008. The company plans to invest up to 1 billion yen in its Thai subsidiary by 2008, with the goal of boosting sales in the Asian market outside Japan. Kinugawa Rubber currently supplies rubber products to Nissan and Honda's local operations in Thailand, and with Japanese automakers increasing output in the country, the company is facing higher demand. The new facilities in Thailand will be compatible with thermoplastic elastomers, which are light and easily molded, and will increase the company's production capacity.

Key Takeaways:

  • Kinugawa Rubber Industrial Co. will invest up to 1 billion yen (US$8.5 million) in its Thai subsidiary by 2008.
  • The company aims to raise sales in Thailand from 500 million yen in fiscal year 2005 to 1 billion yen by fiscal year 2008.
  • Kinugawa (Thailand) Co. supplies rubber products and sealing materials to Nissan and Honda's local operations in Thailand.
  • The company plans to either expand its existing plant or construct new facilities to increase production capacity between 2007 and 2008.
  • The new facilities in Thailand will be compatible with thermoplastic elastomers, which are light and easily molded.
  • Kinugawa Rubber has finished expanding its factory in Guangzhou, China, and plans to boost sales in the Asian market outside Japan.
  • The company aims to raise Asian sales to 8 billion yen in fiscal year 2008, a 50% increase from fiscal year 2005.

Statistics:

  • 500 million yen: Kinugawa Rubber's sales in Thailand in fiscal year 2005.
  • 1 billion yen: Kinugawa's target sales in Thailand by fiscal year 2008.
  • 50%: Increase in Asian sales from fiscal year 2005 to fiscal year 2008.
  • 8 billion yen: Kinugawa's target Asian sales in fiscal year 2008.
  • US$8.5 million: Kinugawa's planned investment in its Thai subsidiary.
  • 1 billion yen: Planned investment in the Thai subsidiary by 2008.

Sources:

  • Nikkei 28-09 1258 (no date provided)
  • Japanese Weekly (no date provided)

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