AISIN - News Releases - Business Strategies

Aisin Seiki to Establish New Manufacturing Company in Tomakomai City, Hokkaido
(February 3, 2006)

Aisin Seiki Co., Ltd. (President: Yasuhito Yamauchi; Headquarters: Kariya, Aichi) will establish a new company, Aisin Hokkaido Co., Ltd., to manufacture aluminum die casting products in Tomakomai City, Hokkaido.

Aisin Seiki has owned land in Tomakomai since November 1992 and in the past has received avid encouragement from Hokkaido to set up operations in that region. Aisin Seiki has now decided to establish the new company in Tomakomai utilizing this land. The Tomatou (east Tomakomai) region has attained a harmonious balance between industry and the natural environment and also boasts an abundance of superbly skilled human resources. In view of such benefits, the region also has high expectations for large development in the future.

With the aims of responding to increased production of its customers as well as reorganizing production in each of its businesses, Aisin Seiki is pressing ahead with initiatives to strengthen and enhance the efficiency of its production structure. Aluminum die castings represent one of AISIN’s core businesses, and total domestic production volume of aluminum die castings, including by Group companies, is expected to grow from approximately 180,000 tons in fiscal 2006 to around 220,000 tons in fiscal 2009. Accordingly, Aisin Seiki will establish the new company in Tomakomai as the second base for its main Nishio Plant in an effort to increase and fortify production capabilities. Taking into consideration such factors as logistics costs, Aisin Hokkaido will produce small- and medium-sized products, and approximately 10% (around 10,000 tons annually) of the Nishio Plant’s production will be transferred to the new company.

In Japan, Aisin Seiki currently operates 11 production plants in Aichi Prefecture. Aisin Hokkaido will become the third production base to be set up outside Aichi Prefecture, following the establishment of Aisin Tohoku Co., Ltd. in Iwate Prefecture and Aisin Kyushu Co., Ltd. in Kumamoto Prefecture.

Aisin Seiki aims to further expand its aluminum die castings business by building a global supply structure that encompasses Japan as well as North America, Europe, China and ASEAN regions.

An outline of the new production company is as follows.

1. Company name:	Aisin Hokkaido Co., Ltd.
2. Establishment:	End of February 2006 (planned)
3. Location:	Aza-kashiwabara, Tomakomai, Hokkaido
4. Capital:	490 million yen
5. Shares:	100% owned by Aisin Seiki Co., Ltd.
6. Representative:	Mr. Daisuke Kurihara (Aisin Seiki Co., Ltd.)
7. Plant area:	Land - 200,000 square meters Building site - 22,000 square meters
8. Manufactured products:	Aluminum die casting products (automatic transmission valve bodies, water pumps, oil pumps)
9. Start of production:	April 2007
10. Sales:	Approximately 9.0 billion yen (projected for fiscal 2009)
11. Employees:	Approximately 400 (projected for fiscal 2009)
12. Investment:	Approximately 10 billion yen, including for buildings, equipment and equipment moving expenses