Yorozu Corp. Expands Production Capacity in China

Strategic Insights -

Yorozu Corp. is gearing up to meet the growing demand from Japanese automakers in China, including Honda Motor Co., Toyota Motor Corp., and Nissan Motor Co. The company will invest 4.4 billion yen (US$38.1 million) to increase production capacity of suspension parts in China, with the goal of raising sales to about 8 billion yen in fiscal 2008, nearly double the forecast for the current fiscal year.

Key Takeaways:

  • Yorozu Corp. will increase production capacity of suspension parts in China by investing 4.4 billion yen (US$38.1 million).
  • The company is responding to growing production in China by Japanese automakers, including Honda, Toyota, and Nissan.
  • Yorozu plans to raise sales in China to about 8 billion yen in fiscal 2008, nearly double the forecast for the current fiscal year.
  • The company will expand its plant facilities in Guangzhou, adding five tandem presses and increasing the number of presses from 9 to 14.
  • Investments will include 2.4 billion yen in structures and presses, and another 2 billion yen in dies, jigs, and other equipment.
  • Yorozu plans to add 102 people to the workforce, increasing it to 330 people by 2008.
  • The company will invest a total of 25.1 billion yen in fiscal 2007-2008, a 30% increase from the previous three-year period.

Statistics:

  • Investment in China: 4.4 billion yen (US$38.1 million)
  • Target sales in China for fiscal 2008: 8 billion yen
  • Current factory floor space: 12,600 sq. meters
  • Planned expansion of factory floor space: 10,000 sq. meters (to reach 22,600 sq. meters)
  • Investment in structures and presses: 2.4 billion yen
  • Investment in dies, jigs, and other equipment: 2 billion yen
  • Planned increase in workforce: 102 people
  • Current workforce: 228 people (as of March 2007)

Sources:

  • Asia Pulse - Yorozu Corp. to Increase Production Capacity in China
  • Nikkei (no date provided)
  • Yorozu Corp. (company profile)