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Automobile industry

Yorozu Corp. Invests $49 Million to Expand Thai Operations

Strategic Insights

— 1 min read

Japanese autoparts maker Yorozu Corp. has earmarked a total of roughly 5.5 billion yen ($49 million) to expand its suspension parts factory in Thailand, driven by strong demand from Japanese automakers. The company plans to begin construction in September to enlarge the plant and add at least one production line, which is expected to start operating in fiscal 2006. Yorozu's Thai operations have been fielding strong demand from major customers Nissan Motor Co., Isuzu Motors Ltd., and Honda Motor Co., leading to an increase in metal dies used in production from 730 in fiscal 2004 to 1,510. The company aims to boost sales from its Thai operations to 8.6 billion yen in fiscal 2007, a 60% increase from fiscal 2004.

Key Takeaways:

  • Yorozu Corp. invests $49 million over three years to expand its suspension parts factory in Thailand to meet strong demand from Japanese automakers.
  • The new production line is expected to start operating in fiscal 2006 and will include a pressing machine for manufacturing suspension members.
  • Yorozu's Thai operations have increased the number of metal dies used in production from 730 in fiscal 2004 to 1,510 to meet orders from major customers Nissan Motor Co., Isuzu Motors Ltd., and Honda Motor Co.
  • The company plans to boost the capacity of Yorozu Engineering Systems (Thailand) Co., an autoparts development unit, to support its growing needs in designing and developing metal dies.
  • Yorozu aims to increase sales from its Thai operations to 8.6 billion yen in fiscal 2007, a 60% increase from fiscal 2004.

Statistics:

  • 5.5 billion yen invested by Yorozu over three years to expand Thai operations
  • 8.6 billion yen target sales from Thai operations in fiscal 2007, a 60% increase from fiscal 2004
  • 1,510 metal dies used in production in Thailand, up from 730 in fiscal 2004
  • 60% target increase in sales from Thai operations in fiscal 2007
  • 2006: Fiscal year when the new production line is expected to start operating
  • 1-million-unit level: Expected car production in Thailand this year

Sources:

  • Yorozu Corp.
  • Nikkei
  • Japan Exchange Group (TSE:7294)
  • TSE:7201 (Nissan Motor Co.)
  • TSE:7202 (Isuzu Motors Ltd.)
  • TSE:7267 (Honda Motor Co.)

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