Aisin Seiki to Establish New Production Company on the U.S. West Coast and New Plant in Canada to Bolster Manufacturing Structure for Door Frames in North America (Oct. 31, 2006)

In an effort to strengthen its manufacturing structure, Aisin Seiki Co., Ltd. (President: Yasuhito Yamauchi; Headquarters: Kariya, Aichi) will establish a production company, Aisin Mfg. California, LLC (AMC), in the U.S. state of California together with building a second plant at Aisin Canada, Inc. (ACI) in Canada to address increasing orders for door frames on the U.S. West Coast and in Canada.

Until now, the production of door frames was concentrated at Aisin U.S.A. Mfg., Inc. (AUM; Representative: Shunzo Hattori; Headquarters: Seymour, Indiana), with products delivered to respective customers in North America. In order to respond to an increase in orders, AISIN is currently restructuring its production framework for door frames in North America by establishing a new production company on the U.S. West Coast and new plant in Canada as a means of building an efficient manufacturing and supply structure.

These augmentation measures being undertaken at this time are aimed at expanding AISIN’s production capacity of door frames in North America from 5.4 million units at present to approximately 1.5 times higher in 2010.


Outline of New Production Company

1.	Company name:	Aisin Mfg., California, LLC (AMC)
2.	Establishment:	November 13, 2006 (planned)
3.	Location:	Stockton, California, U.S.A.
4.	Capitalization:	US$5 million (*equivalent to approximately 600 million yen)
5.	Equity stake:	Aisin Holdings of America. Inc.: 100%
6.	Representative:	Mr. Katsunori Nakanishi (currently in charge of the Plant Administration & Control Group, Shintoyo Plant)
7.	Plant area:	Land – approximately 16,000 square meters Building site – approximately 5,500 square meters
8.	Manufactured products:	Door frames and other body related components
9.	Start of production:	January 2008 (scheduled to roll off the production line)
10.	Sales:	Approximately US$16 million projected for fiscal 2010 (*equivalent to approximately 1.9 billion yen)
11.	Employees:	Approximately 60 projected for fiscal 2010
12.	Investment:	Approximately US$10 million, including building renovations and equipment (*equivalent to approximately 1.2 billion yen)
13.	Major customer:	New United Motor Manufacturing, Inc. (NUMMI)
14.	Other:	22nd production company of the AISIN Group in North America

*Assumed exchange rate: US$1.00 = ¥ 119.



Outline of Aisin Canada, Inc.

1.	Company name:	Aisin Canada, Inc. (ACI)
2.	Establishment:	October 1, 2002
3.	Location:	Ontario, Canada First plant in Woodstock; second plant in Stratford
4.	Capitalization:	C$16 million including capital increase of C$11 million (*equivalent to approximately 1.7 billion yen)
5.	Equity stake:	Aisin World Corp. of America: 100%
6.	Representative:	Mr. Norihisa Inagaki
7.	Plant area:	First plant Land – approximately 32,000 square meters Building site – approximately 5,000 square meters Second plant Land – approximately 65,000 square meters Building site – approximately 11,000 square meters
8.	Manufactured products:	First plant: Manual operated seats, belt moldings and other body related components Second plant: Door frames
9.	Start of production:	First plant: August 2003 Second plant: January 2008 (scheduled to roll off the production line)
10.	Sales:	Approximately C$49 million in fiscal 2005 (*equivalent to approximately 5.2 billion yen) Approximately C$64 million projected for fiscal 2010 (*equivalent to approximately 6.8 billion yen) *Above amounts include approximately C$29 million of sales of door frames (*equivalent to approximately 3.1 billion yen)
11.	Employees:	Approximately 110 in fiscal 2005 Approximately 210 projected for fiscal 2010 *Approximately 100 new employees are projected for the second plant
12.	Investment:	Approximately C$26 million, including for land, buildings and equipment (*equivalent to approximately 2.8 billion yen) (current investment only)
13.	Major customer:	Toyota Motor Manufacturing Canada Inc.

*Assumed exchange rates: US$1.00=C$1.12, C$1.00= ¥ 106.