2012-01-16
Manufacturing Plant for Industrial-use Chain Products Established in Tianjin China
On January 12, 2012, Tsubakimoto Chain Co. (Headquarters: Osaka, Japan. President: Isamu Osa) established Tsubakimoto Chain (Tianjin) Co., Ltd., as a manufacturing subsidiary. Construction of the new company begins in February, while mass production is scheduled to begin in October.
Purpose of the New Company
In our Medium-term Management Plan spanning fiscal 2010-12, we adopted the goal of expanding the volume zone as well as our overall business in the Chinese market; toward this end, we have accelerated our efforts to strengthen our business foundation in China.
To date, the industrial chain we have sold in the Chinese market has comprised exports from Japan sold through sales subsidiaries in Shanghai. Most of these sales are to Japan-based companies.
However, in order to expand business in the rapidly growing Chinese market, it is essential that we develop and manufacture products that meet local needs while providing a timely production and supply system. Therefore, we acquired land for a factory in the city of Tianjin with the goal of establishing a manufacturing subsidiary.
Initially, the factory will produce only conveyor chain, a made-to-order product. We intend to gradually expand this plant's product lines to include mainly high-end lines, our flagship products, and grow our market share in China through three initiatives: Developing markets that encompass both Japanese companies and local Chinese firms; shortening lead times measured from order acceptance to production and sales; and increasing our cost competitiveness by promoting local procurement.
Outline of the New Company
| Company name | Tsubakimoto Chain (Tianjin) Co., Ltd. |
|---|---|
| Representatives | Chairman (part-time): Tadasu Suzuki (Chain Manufacturing
Division, Director and Managing Executive Officer, Tsubakimoto Chain) President (full-time): Yasuhiro Akesaka (Manager, Management Planning Office, Tsubakimoto Chain) |
| Address | Road 8 South Side, North District, Economic Development Zone of Jinghai, Tianjin, China |
| Capitalization | US$38.5 million (¥3 billion) Ownership ratio: Tsubakimoto Chain 90%, Toan 10% |
| Dates of establishment & production | January 12, 2012 Scheduled start of production: October 1, 2012 |
| Scope of business | The design, manufacture and sale of industrial chain and power transmission equipment, and other business |
| Planned staffing levels | 50 in fiscal 2012, 150 within three years |
| Scale of plant | Site area: 60,000 square meters Factory floor area: 13,000 square meters |
| Sales forecast | • ¥200 million for fiscal 2012 (Oct. 1 to Dec. 31) • ¥4,500 million estimated by fiscal 2015 |
* Our joint venture partner, Toan Corporation is a machinery trading company with experience in the Chinese business world. Tsubakimoto Chain partnered with Toan in a previous joint venture through a conveyor equipment business serving motor vehicle makers.
Outline of Toan Corporation
| Company name | Toan Corporation |
|---|---|
| Representative | President: Jui Yogawa |
| Address | 2-1-8 Kanda Nishikicho, Chiyoda-ku, Tokyo, Japan |
| Businesses | Support for capital investment in China and other Asian countries and related trade operations |
Additional Data
The Tsubaki Group's Presence in China
