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Edition 01/2019
Honda to cease UK manufacturing; impact on parts suppliers?
Honda Motor Co., Ltd. announced on 21 February that its British plant, its only European plant producing 4-wheeled vehicles, will cease manufacturing in 2021. In addition to the uncertain outlook for European sales, the UK’s departure from the EU at the end of March also gave the company a shove in this direction. It is judged likely that a serious retrenchment and shrinkage of the supply chain business will follow the end of production. As confusion continues about Brexit, businesses are unwilling to commit to new investment. On the same day as Honda’s announcement, the company also announced the end of manufacturing at its it plant in Turkey, which supplies the Middle East. Taking into consideration reduced production in Thailand and Japan, Honda’s global output is expected to fall by 6% from current levels by the end of 2021, to around 5.1 million vehicles.
The EU-Japan European Partnership Agreement (EPA) will steadily dismantle tariffs on car exports to the EU, mainly to the advantage of Japan’s domestic plants who will resume exports . Furthermore, in view of Honda’s decision, parts suppliers in Honda’s UK supply chain are inevitably considering closing or shifting their production base.
Major pressings manufacturer Unipress has a plant at Birmingham in central England, where it produces body and assembly parts for Nissan’s plant in the north-east of the country. It also has a multi- million pound annual sales with Honda, and employs more than 100 people. The loss of this customer, the company is now considering closing.
Car body parts maker G-Tekt has 2 factories near Honda’s plant, and supplies almost all of its output to Honda. priding itself on the speed of its information gathering and response. Car seat maker TS Tech which also has a plant in Hungary, is urgently considering the future of its manufacturing in the UK.
Kasai Kogyo, a major supplier of interior parts, is also involved with Honda’s west of England plant. Honda accounted for JYE 1 billion of its its 4 billion JYE UK sales in the FY to March 2018. With the loss of this business, the company has said it is considering concrete steps to reduce its capacity.
The decision of Honda is not a result of BREXIT but a decision based on the company's performance in the European market, but since the tariff barriers have been lowered by EPA etc., export from Japan will be reconsidered. In the future, it will be forced to reconsider the location of the whole automobile industry.
JAPAN
Contact: Heiwa Hasegawa, Representative Telephone: +81 3 5276 6632 Fax: +81 3 5276 2455 E-mail: [email protected]
VDMA-Newsletter “Japan”, Edition 01/2019 Contact: Oliver Wack, Telephone: +49 69 6603-1444 Japan Economic and Industrial Scenario, 01/2019 VDMA JAPAN Liaison Office 2
Current Economic Scenario
Productivity revolution and urgent objectives are themes for the year In a new year address, the Chairman of the Japan Machinery Federation, Hideaki Omiya (who is also Chairman of Mitsubishi Heavy Industries), stressed that the shortage of labour makes innovation all the more urgent for Japan. Even though Japan is increasing employment of foreign workers, smoothly integrating them into machine production is a serious issue, he said.
He pointed to another major challenge in adapting to the changes in international trade brought about by the Trans Pacific Partnership (TPP) 11 and the European Partnership Agreement (EPA) which comes into force this year. He called on the industry to make effective use of these significant trade agreements to expand overseas business. Guest speaker Kouji Inoue, who heads the Manufacturing Industries Bureau at METI, expressed his hope that against an uncertain international outlook, Japan would be a standard bearer for free trade, leading the attack on protectionism, cooperating with the private sector and sharing information.
Mr. Hideaki Omiya, the Chairman of JMF Mr. Tamotsu Saito, the Chairman of JSIM Photo: VDMA Japan Photo: VDMA Japan
Digitisation in disaster prevention and mitigation At a working lunch of the Japan Society of Industrial Machinery Manufacturers also on January 9, its president, Tamotsu Saito, who is Chairman of IHI, spoke of catching the wave of digitisation to cooperate with related industries and other countries in further innovation to bring added value products and services that meet worldwide needs. He cited new technologies and systems providing solutions to problems of ageing social infrastructure, and strengthening the country’s national disaster preparedness and mitigation. He also called on member companies in environmental and energy sectors to apply technological innovation in tackling global environmental concerns such as climate change and waste reduction. He also urged the government to introduce measures to improve the business environment in view of the increase in consumption tax, and to integrate foreign workers.
Signs of recession in domestic economy According to a survey by Teikoku Data Bank, the direct investment index slipped 1.3 Points in January 2019 from the previous month, and now stands at 48.1. It is the second successive monthly decline.
In Japan’s domestic economy, against the background of US-China trade friction, lower shipments of industrial machinery and semiconductors to China caused a major deterioration in manufacturing in January, and the adverse effect is spreading to related wholesale and distribution businesses. There is a high degree of concern about a slowdown in the global economy, reducing trade volume and leading to contract and price renegotiations. Other matters of concern are the trend towards milder winters limiting demand for winter goods, sluggish activity and poor quality materials in local public construction works, and cost increases due to the increasingly acute labour shortage.
Within the survey, the ‘manufacturing’ segment showed a large decline (2.1 points down from the previous month). The machine tools and related sectors saw declining exports to China as well as a sharp fall in domestic activity. Overseas demand for semiconductor manufacturing equipment is shrinking. Furthermore, falling orders from plant and equipment makers for industrial plastics, and the global slowdown in the market for smartphones is putting strong pressure on makers of electronic parts, chemicals and electronic devices. The strong Yen in currency markets over the year end and new year period further clouds the gloomy outlook for exporting businesses. Compounding all of these negative VDMA-Newsletter “Japan”, Edition 01/2019 Contact: Oliver Wack, Telephone: +49 69 6603-1444
Japan Economic and Industrial Scenario, 01/2019 VDMA JAPAN Liaison Office 3 factors, manufacturing industry is continuing to suffer from the corrective rebound after consumer spending was spurred in anticipation of the last consumption tax increase in 2014. The outlook for all 12 sectors is worsening.
Economic DI Projected future DI
52,0 51,1 51,0 50,0
49,0 48,1 48,0 47,6
47,0 46,1 46,0 45,0 44,0 43,0 Jul Jul Oct Oct Apr Apr Jun Jan Jun Jan Jan Mar Mar Feb Feb Nov Dec Nov Dec Aug Sep Aug Sep May May 2018 2019 2020
(Souce: Teikoku Data Bank)
Economic DI Economic Diffusion Index, Machine Manufacture 65,0
62,4 62,0 61,2 60,9 60,7 60,6 59,9 60,0 60,3 59,1 58,1 57,5 55,9 55,0
52,5
50,0 General Machinery Electrical Machinery 45,0 Transportation Machinery, Equipment Precision Machinery, Medical Instruments and Equipment
40,0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 2018 2019
(Souce: Teikoku Data Bank)
For now, capital investment is shifting its gaze to reducing labour. The slow recovery in consumer spending will probably continue. While consumer spending is expected to take a temporary hit from the consumption tax increase, large scale policy measures are expected to cushion the impact. It is also expected that businesses will continue to carry the higher costs for labour and distribution. Exporters will be hit as the effects of the US-China trade friction spread downstream to China and Europe. The direction of US-Japan trade talks, and the repercussions of the UK leaving the EU without an agreement, are core risk factors in global trade. They also have a potentially adverse influence on Japan’s domestic economy, and the situation must be closely monitored.
Nissan after Ghosn; stronger organisation and governance; French board member On February 15, Nissan Motor Co., Ltd. made successive moves to position itself for the ‘post Ghosn’ structure with a new governing structure. Its special committee looking into the former Chairman’s improper dealings met for the third time. President and CEO Hiroshi Saikawa and Renault Chairman Jean-Dominique Senard exchanged opinions on the way to continue the alliance. The two were joined by Mitsubishi Motors CEO Osamu Masako on February 15. The three discussed the direction of the VDMA-Newsletter “Japan”, Edition 01/2019 Contact: Oliver Wack, Telephone: +49 69 6603-1444
Japan Economic and Industrial Scenario, 01/2019 VDMA JAPAN Liaison Office 4 alliance as it gradually recovers after the turbulence caused by the arrest of former chairman Ghosn. Although the Renault chairman and the Nissan chairman have a difference of opinion, the three executives have firmly established a new management structure for the alliance in the three months since Ghosn’s arrest.
Mitsubishi Motors Corporation CEO Osamu Masko reported that CEO Senard joined an executive meeting with the presidents of Mitsubishi Corporation, Mitsubishi Heavy Industries and Mitsubishi UFJ Bank on February 15th. The group executives and Senard are believed to have affirmed their support for the Franco-Japanese three-company alliance. Senard said that the four companies were in absolute agreement on the importance for the alliance of mutual respect and management independence. (The Nikkei Shimbun, 16.02.2019)
Messe / Events
NEPCON, ROBODEX Smart factory EXPO, Wearable EXPO, and "Automotive World" Between January 16 - 18, 2019, at Tokyo Big Sight, "NEPCON JAPAN", Asia's Leading Exhibition for Electronics R&D, Manufacturing and Packaging Technology was held. Also, "Smart factory EXPO", "Robodex", "Wearable EXPO", and "Automotive World" were held simultaneously. Together, 2,640 companies (more 200 exihibitor as previous year) exhibited, and a total of 11,251 people visited during the three days.
At Robodex this time, the presence of cooperative robots and dual arm robots, among others, was prominent. DENSO WAVE demonstrated the cooperative robot "COBOTTA". DENSO divides the exhibition area into three, where 35 COBOTTA were demonstrated for three different usecase. One area called "Industry-area" was designed to represent the factory or production sites. "Laboratory-area" was imaged R&D activities in pharmaceutical industry. And "Academic-area" was demonstrated the use in the educational field and imaged a joint development with the university.
Also, many VDMA member companies including KUKA, B&R, Siemens, Trumpf, FESTO, Balluf, LPKF, Phoenix Contact, ifm efector etc. were also exhibited.
(Photo: VDMA Japan)
VDMA-Newsletter “Japan”, Edition 01/2019 Contact: Oliver Wack, Telephone: +49 69 6603-1444
Japan Economic and Industrial Scenario, 01/2019 VDMA JAPAN Liaison Office 5
Digitalisation in Japan -Quo Vadis
Mitsubishi Electric and AIST prepare AI manufacturing Mitsubishi Electric Corporation and the National Institute of Advanced Industrial Science and Technology (AIST) announced on February 5 that they have developed the necessary preparatory technology for AI manufacturing. With automation, precision control and adjustments which take a skilled technician more than a week to conduct can now be completed in one day. Introducing AI in manufacturing can make up for the shortage of labour, and allows skilled personnel to concentrate on more advanced work.
A mounting machine places microscopic electronic components at predetermined positions on a printed circuit board and controls the motor, causing it to stop quickly at the precise position and suppressing vibration. The operation would take a skilled technician a week to perform, but with AI all the adjustments can be completed in one day. It improves quality in laser processing by adjusting the output, position, cutting speed and other variables. It is expected to be widely used in imaging technology, where skilled laboratory technicians have to process samples many times. In industrial robots, AI programs can be used to detect missing parts or the presence of foreign substances, allowing recovery in one-third of the time required by conventional methods.
Mitsubishi Electric is aiming for the early installation of its developed AI capability in FA equipment. The company is planning to introduce AI programmes to counter labour shortages by reducing the number of work site operations. (The Nikkei Shimbun, 05.02.2019)
5G smartphone, from metal to glass and resin The battle over the materials used for the smartphone main body of the next generation communication standard "5G" is intensifying. In 5G, the body changes from metal to glass and resin and other materials less susceptible to radio waves. Majour Material manufacturers such as glass maker enjoy special procurement demand, but reverse winds blow against metal processing machine companies such as Fanuc Corporation. Now each companies are trying to develop some new technologies to secure existing business.
The Metals such as aluminum have been often used for smartphones. It is because the texture is higher than plastic etc, but there is a weak point that it does not pass radio waves. According to a smartphone maker, the current 4G also uses radio waves through the use of resin and glass as part of the main body made of metal. Because 5G utilizes radio waves of a higher frequency than before, depending on the material, radio waves may be difficult to pass through.
Corning, a major US specialty glass company, has developed a back panel of the body used "gorilla glass" for glasses for smartphones, which is hard to scratch and hard to break. Glass is easier to pass high frequency radio waves than aluminum and stainless steel material, it can increase the efficiency of wireless charging. Apple's "iPhoneX (ten)" has already adopted, and there are many inquiries even for products for 5G.
Teijin, Ltd. developed a rear panel for smartphones made of reinforced plastic using "aramid fiber" which is easy to transmit radio waves. There was such a back panel using resin, but it is lighter and shock resistant than other materials. It was adopted as Sharp's new-type smartphone "AQUOS zero".
This Trend is serious for such manufacturers providing metal processing machines for smartphones like Fanuc and Brother Industries, Ltd.. Chinese electronics manufacturing service (EMS) companies purchase metal processing machines on a scale of thousands of units on the occasion of smartphone model changes. According to the Japan Machine Tool Builders’ Association, the orders from electric industries in China 2017 were JYE 146.2 billion, nearly tripled in 2016. Many orders are seen as special demand due to model change of smartphones.
FANUC expects to increase sales of injection molding machine for resin instead of metal chemical machines, if the main body of the smartphone becomes resin. FANUC also has a high share in precision injection molding machines for IT. It is also possible to utilize advanced technology such as a technique of molding materials with different properties at the same time and mold manufacturing for ultra precision processing machines.
Brother Industries has many orders for metal processing machines for smartphones. Although the company does not anticipate that demand will soon decrease shortly after shifting to 5 G, in recent years it is shifting the center of business for general machinery and automobiles. (The Nikkei Shimbun, 09.01.2019)
VDMA-Newsletter “Japan”, Edition 01/2019 Contact: Oliver Wack, Telephone: +49 69 6603-1444
Japan Economic and Industrial Scenario, 01/2019 VDMA JAPAN Liaison Office 6
Industry Scenario
Automobile Industry
World production of eight Japanese car makers achieve 1.0% growth in 2018. Updated record high for 7 consecutive years. World production of eight domestic car makers such as Toyota Motor in 2018 increased by 1% from the previous year to 28.7 million units. Increased production in the Asian region and an increase in exports to Europe and the United States were a driving force and renewed a record high for the seventh consecutive year. In the domestic market there was a completion inspection problem, but minicars with strong sales were supporting the production slightly increased. The Production grew steadily in China and Southeast Asia, and overseas production increased by 1%.
Eight car makers announced results of 2018 on January 30. Honda and Suzuki made a record high in world production. Honda launched many new models in North America and China and increased 2% to 5.35 million. Toyota fell by 1% to 8.88 million, falling below the previous year for the first time in three years, due to the drop in popularity of sedans in North America. Nissan, which made production adjustments in the United States and other places in the summer, declined by 5% to 5.48 million, which turned out to be the first time in nine years.
In major regions, production in China increased by 4% to about 4.83 million units. New car sales are slowing down since autumn last year, but Honda and Nissan have updated their record highs in production. US production decreased by 2% to about 3.67 million units. With sluggish sedan sales, only Honda outperformed the previous year among the four companies that are entering the United States. (The Nikkei Shimbun 30.01.2019)
Domestic Overseas Company Export Domestic sales production production
3,138,751 5,746,782 1,890,750 1,564,309 Toyota Motor Corporation (-1.6%) (-1.2%) (4.0%) (-4.2%) 930,997 4,555,909 504,168 615,966 Nissan Motor Co., Ltd.. (-8.7%) (-4.1%) (-19.6%) (4.2%) 891,248 4,465,765 176,715 747,177 Honda Motor Co., Ltd. (9.0%) (1.1%) (220%) (3.1%) 1,013,916 2,422,673 193,947 714,599 Suzuki Motor Corporation (2.7%) (4.7%) (-6.2%) (7.3%) 996,264 600,503 829,963 220,734 Mazda Motor Corporation (2.6%) (-5.6%) (4.6%) (5.3%) 646,317 778,750 445,698 104,590 Mitsubishi Motors Corporation (16.7%) (23.4%) (23.8%) (14.2%) 929,401 537,567 1 646,874 Daihatsu Motor Co., Ltd. (1.1%) (56.3%) (-50.0%) (2.5%) 659,965 359,399 533,001 148,453 SUBARU Corporation (-7.0%) (1.0%) (-2.9%) (-16.0%) 9,236,859 19,467,348 4,573,663 4,762,702 Sum of 8 japanese car makers (0.5%) (1.0%) (3.1%) (0.8%) （The Nikkei Shimbun 30.01.2019）
New car sales increase slightly to 5,270,000 in 2018 on tax advantage for light vehicles Domestic sales of new cars (including automated drive cars) reached 5,270,000 vehicles in 2018, auto industry groups reported on January 7, a slight increase of 0.7% from the previous year. This is the second consecutive annual increase, and also the second consecutive year that sales have exceeded 5 million vehicles. Although the number of registrations (vehicles over 660cc emissions volume) was lower, the market overall is robust.
Figures from the Japan Automobile Dealers’ Association and the Japan Mini Vehicles Association show a 1.3% fall in sales of registered vehicles, to 3,347,943 in 2018. However, light vehicles increased 4,4%, to 1,924,124 units. Honda’s ’N-Box’ and Suzuki’s ‘Spacia’ were strong sellers throughout the year. Overall the proportion of light vehicles was 36.5%. (The Nikkei Shimbun 07.01.2019)
KDDI and Toyota ‘connected car’ with AT&T KDDI announced on January 8 that US telecoms giant AT&T will join it and Toyota in the joint ‘connected car’ development. It will use AT&T’s mobile network to connect with the Internet. Toyota
VDMA-Newsletter “Japan”, Edition 01/2019 Contact: Oliver Wack, Telephone: +49 69 6603-1444
Japan Economic and Industrial Scenario, 01/2019 VDMA JAPAN Liaison Office 7 plans to provide Internet connectivity in all its new cars sold in the US by 2020. It will make remote control of air-conditioning and other functions possible using smartphone network connections. KDDI has telecommunications links with every country in the world, and is building a platform to promote Japanese products throughout the world. It will connect automatically to service providers in other countries. It will use AT&T’s network in the United States.
The merit for exporters is that they do not need separate contracts with providers in each country. The connected car platform will not be limited to cars; it will also be proposed to machinery and construction vehicle builders. (The Nikkei Shimbun, 08.01.2019)
Hamamatsu Photonics; highest ever capital investment JYE 22 billion Hamamatsu Photonics K.K. will increase its capital investment budget this year by 57%, over JYE 22 billion on a consolidated basis, a record high. The company plans a new headquarters building in Hamamatsu. It is continuing to invest in increased production of compound semiconductors, and is also aiming at new markets with automatic driving technology.
Building No. 14, under construction at the company’s headquarters site, will increase the production of optical semiconductor modules used for medical equipment and semiconductor manufacturing equipment, while at its Toyooka Plant (Iwata City, Shizuoka Prefecture) construction has stared on the Building No 5, which will strengthen the development capabilities of electronic tube products. In addition, its "Compound Materials Center (Hamamatsu City) was completed in 2017, and its production capacity continues to increase. (The Nikkei Shimbun, 18.01.2019)
Nippon Seiki subsidiary in Poland for automotive display Instrument maker Nippon Seiki Co., Ltd. announced on February 25th that it will ramp up production of its car-mounted heads-up display (HUD) screen which speeds up driver information. It will establish an HUD manufacturing subsidiary in Poland, which will import concave base parts from the company’s plant at Nagaoka, Niigata Prefecture. It will meet growing demand for HUD in Europe.
The subsidiary was established in Lodz, Poland in February with 100% parent company capital investment. A production facility is being constructed in the company’s 5.4 hectare site. HUD production is expected to start in October 2020 and the plant will have annual capacity of 1 million units. Nippon Seiki already manufactures in Japan, the US and the UK., and the new plant will strengthen the local response to growing demand for HUD from European car makers. Production of the concave base parts produced in Japan will also be increased. For this purpose, the company is investing approximately JYE 1 billion on refurbishing its Nagaoka plant, which it expects to be operational in April 2020. (The Nikkei Shimbun, 25.01.2019)
Toyota and Panasonic EV battery joint venture: explores China; moving towards standardisation Toyota Motor Corporation and Panasonic Corporation have announced a new joint venture company for in-vehicle batteries for EVs and HVs. For Toyota, with its leading position in HVs, securing a steady supply of reliable batteries has been a concern. In addition to exploring the Chinese market where EVs are rapidly catching on, the tie- up with Panasonic, which owns many in- vehicle battery technologies, looks like an initiative towards battery standardization.
The equity ratio is Toyota 51% Panasonic 49%. The new venture will be involved in everything from R&D to production and procurement. The new company will employ (C) shutterstock_605472758 around 500 people transferred from Toyota, and 3,000 from Panasonic. Panasonic will take on the sales role, placing a strong emphasis on external sales. With the exception of its output to Tesla, all of its battery production will move to the new plant. (The Nikkei Shimbun, 22.01.2019)
VDMA-Newsletter “Japan”, Edition 01/2019 Contact: Oliver Wack, Telephone: +49 69 6603-1444
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World’s first Pure-Electric tanker completed 2020 Asahi Tanker Co. Ltd, together with its partner Exeno-Yamamizu Corporation Tokyo, announced on August 17 that they has jointly developed the new domestic shipping tanker design which incorporates “zero emission electric propulsion”. In anticipation of future adaptations to regulatory conformity ClassNK has been appointed to make technical advice on ship design and electric propulsion.
Commercial model development of “e5” design is underway for all bunker supply vessels trading in Tokyo Bay. The target of the first vessel launching is set for quarter four 2020. The project is also working for creating “e5” coastal vessels which would require longer cruising range. The “e5” concept creates solutions to issues such as shortage of crews, vessel demand balance and environmental regulation thus contributing to the sustainability of the domestic shipping industry. The project is confident that by utilizing the “e５” concept of ocean transport that a stable energy supply will be achieved enriching people’s lives and adding value to each client.
A domestic seafarer occupies a majority of over 50 years old, and aging and labor shortage are also serious problems. Electrification the tanker enable labor in the engine section to work simplify , making it easy for even inexperienced crewmen to operate. Construction cost is expected to be 2 to 40% higher than that of ordinary domestic shipping vessel of JYE 7 to 800 million, but maintenance cost is suppressed because parts are reduced. The company consider installing fuel cells in tankers in the future. (The Nikke Shimbun, 17.01.2019)
Hino Motors, a new factory within the Furukawa plant with JYE 8 billion On January 29, Hino Motors announced that his 100% subsidiary Trantex Corporation, a bodywork manufacturer, will build a vehicle rebuilding plant in the Furukawa plant. With this construction work, the company will construct a wing van's rebuilding factory in the Furukawa plant, consistently carry out the production from chassis production to car rebuilding, and link production to improve efficiency.
Trantex rebuilds the chassis produced by Hino Motors within the same premises, eliminating the need for vehicle land transport between bases. As a result, Hino Motors will be able to shorten the delivery term of products and aim for further elimination of the driver shortage.
The start of operation of the car rebuilding factory is scheduled for 2021, and the investment amount for the construction is expected to be about JYE 8 billion. (Setsubitoushi Journal, 30.01..2019 )
VDMA-Newsletter “Japan”, Edition 01/2019 Contact: Oliver Wack, Telephone: +49 69 6603-1444
Japan Economic and Industrial Scenario, 01/2019 VDMA JAPAN Liaison Office 9
Electronics
Home electric products increase for third consecutive year; 4.1% y-o-y growth to JYE 2.4 trillion. The Japan Electrical Manufacturers’ Association (JEMA) announced on January 28 that shipments of domestic appliances rose 4.1% in 2018 from the previous year, reaching JYE 2.44 trillion. This was the third successive annual increase. With a long, hot and humid summer, demand for air-conditioning and fridges was high, as was washing machines. Last year was the sixth highest for shipment volume.
In 2018, the shipment value of home electrical appliances in all months excluding April was more positive than in the same month of the previous year, and it also increased by 7.8% in December to JYE 235.4 billion for 8 consecutive months. A JEMA official in charge said, "The number of households has not decreased even with a declining population, and the demand for air conditioners has increased due to factors such as the hot weather in the summer."
The Shipment volume of air conditioners increased by 8.1% year on year to 9.65 million units. The Shipment value increased by 9.4% to JYE 791.0 billion. According to the Japan Meteorological Agency, the average temperature in East Japan was the highest since the start of the statistics in June and August last year, and nearly a third of the major observation points throughout the country have become the highest ever, and the demand has expanded.
Shipment volume of refrigerators increased by 1.6% to 3.93 million units, shipment value increased by 3.9% to JYE 437.9 billion. The shipment of large-sized products in high price range continued to increase. Demand for large-capacity washing machines is high due to the increase in dual-income households, the annual shipments increased by 0.8% to 4.44 million, shipments increased by 6.1% to JYE 347.9 billion.
The Domestic production of home electrical appliances and heavy electric machinery has also been relatively stable. (The Nikkei Shimbun, 29.01.2019)
Production of Home Electrical Appliances and Power and Industrial System JYE Million Equipment 500.000 450.000 400.000 350.000 300.000 250.000 200.000 150.000 100.000 50.000 0 Jul Jul Oct Apr Oct Apr Jun Jan Jun Jan Mar Feb Mar Feb Nov Dec Aug Sep Nov Dec Aug Sep May May 2017 2018
Production of Home Electrical Appliances Production of Power and Industrial System Equipment Source: JEMA
Nidec acquires press machine maker SYS and reduction selection maker Desch Antriebstechnik Nidec Corporation announced through its subsidiary Nidec Shinpo on February 5th that it is acquiring all shares in the German press peripherals manufacturer SYS. The acquisition strengthens the company’s position in the European press machine sector. The value of the acquisition was not disclosed. Nidec Shimpo concentrates mainly on speed reducers and accelerators for drive machines, but recently it has expanded its business base by successively acquiring European and American press and peripheral equipment makers. By March, Nidec also expects to acquire Desch Antriebstechik, a German manufacturer of large scale drive reduction machines. The purchase price was not disclosed but is VDMA-Newsletter “Japan”, Edition 01/2019 Contact: Oliver Wack, Telephone: +49 69 6603-1444
Japan Economic and Industrial Scenario, 01/2019 VDMA JAPAN Liaison Office 10 estimated at around JYE 10 billion. The acquisition will be handled through the Nidec Shimpo subsididiary, which is expected to acquire 70% of Desch shares. This acquisition positions Nidec Shimpo to handle precision reduction gears from small to large, and will also create synergistic effects in the press machine business. (The Nikkei Shimbun, 06.02.2019)
NIDEC to invest JYE 200 billion in new production at ‘second headquarters’; 4 buildings planned Nidec Corporation announced on January 8 a capital investment programme of JYE 200 billion to 2030, involving new production facilities adjacent to the company’s headquarters in Kyoto. Construction of the first phase is to start in 2021 of four buildings comprising a ‘second headquarters’ and a manufacturing research centre. The surface area is 60,000 hectares, The headquarters workforce is expected to swell from its current level of around 800 to 5,000 people ultimately. The new facilities will conduct trial operations of new products. By March 2022 the subsidiary company Nidec-Reed and the he R&D function of subsidiary Nidec-Shinpo are expected to re-locate to Nidec headquarters. (The Nikkei Shimbun, 09.01.2019)
Disco Corporation considering JYE 50 billion investment; largest ever new plant will increase semiconductor production Positioning itself to increase production of semiconductor manufacturing equipment, Disco Corporation is considering constructing a new factory in Kure on the same scale as its Kuwabata plant, currently its largest. Based on medium and long term plans, the investment amount is assumed to be around JYE 50 billion. Demand for semiconductors is steadily increasing as AI and IoT expand, requiring additional capacity in semiconductor manufacturing plant. Tokyo Electron will also strengthen its production base in Miyagi Prefecture to respond to vigorous demand. (C): shutterstock 1015265728 Disco is moving ahead with plans to start construction of the new buildings for semiconductor manufacturing equipment at the Kuwabata factory and its Chino factory (Aichi) in 2019, strengthening its production structure in anticipation of medium and long-term demand expansion. Tokyo Electron is investing around JYE 40 billion to acquire a 110,000 hectare site next to the headquarters of its Miyagi subsidiary by March 2021. In addition to doubling its production capacity, the company also intends to use the site as a technology development centre and training centre in order to shorten lead times. (The Nikkei Shimbun, 05.02.2019)
Tokyo Electron plans JYE 1 trillion in 10 years in R&D Major semiconductor manufacturer Tokyo Electron plans to invest JYE 1 trillion in research and development over ten years, CEO Toshiki Kawai told the Nihon Keizai Shimbun. He observed that the ‘supercycle’ theory where demand for semiconductors is continuing to withstand economic waves, is already evident; but the next direction is towards improvements in energy efficiency, processing speeds, through miniaturisation to narrow the line widths and vertical stacking of memory elements in layering. He also disclosed plans to invest at least JYE 1 trillion over 10 years to develop manufacturing equipment indispensable for high added value manufacturing. (The Nikkei Shimbun, 13.01.2019)
FDK is first to move to all solid-state batteries, to market by 2020 Fujitsu group electronics parts maker FDK is accelerating its commercialisation of all solid-state batteries, widely regarded as the main next-generation battery technology. It has begun shipments of a finger-tip sized small chip, and has set up a special unit for the full-scale launch after 2020. The company anticipates a wide range of applications such as wearable terminals will take advantage of the batteries’ high reliability. AI will be used in the manufacturing process to keep costs competitive. The solid-state battery developed by FDK has a length of 4 mm and a height of 2 mm, and can easily be mounted on electronic parts. In addition to the current sample, FDK is also supplying a test large-output type in April. The company believes its early move ahead of rivals such as Murata Manufacturing and Taiyo Yuden will result in orders. Efficiency enhancements will also be made while the battery is in customer trials.
VDMA-Newsletter “Japan”, Edition 01/2019 Contact: Oliver Wack, Telephone: +49 69 6603-1444
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Since 2018, FDK has been using Fujitsu’s ZInrai AI protocol for planning, development, and field engineering of all its battery types. This has enabled the company to increase productivity and adjust its manufacturing processes to fewer people. It aims to deploy further processes within the year, not only on existing lines, but also to expand the know-how to all solid-state batteries. FDK is positioning itself to provide superior cost effectiveness as well as productivity when commercialisation begins in earnest. (The Nikkei Shimbun, 09.01.2019)
Electric wire companies create new business for EVs Electric wire companies are speeding up their strategies to meet expanded auto-related growth. In addition to the increasing output to meet growing demand for wire harnesses, the companies are also creating new business areas for electric vehicles (EVs) by providing a suite of functionalities collectively known as CASE (Connected, Automated, Shared, Electrified). All of the companies in the sector are quickening their strategies so as not to miss a business opportunity.
Furukawa Electric formally announced on January 21 that it will build a new plant in Ho Chi Minh City, Vietnam to produce aluminium electric cord for car wire harnesses. The investment is valued at approximately JYE 3.5 billion. Production will begin in September 2020. The new plant is expected to quadruple the company’s current production of its aluminium drive wire by December 2021. Sales of the aluminium wire harness are expected to double, reaching JYE 70 billion.
Sumitomo Electric is also planning to expand its production of auto-related wire harness products. It foresees the proportion of its aluminium use in auto wire harnesses to grow from its current 10% to 60% per one vehicle by 2025. Among measures the company is taking to strengthen its production capabilities, its factory in Thailand has started producing aluminium material for the wire harnesses.
Fujikura has launched plans to improve profitability in its low margin wire harness business. The unit eyes new business in EV-related applications along with its data transmission systems and energy. Showa Holdings identifies EV-related applications as one of the new business areas it wants to enter by 2026, by which time it intends to invest a cumulative JYE 5 billion to capture JYE 3.8 billion gross profit. (The Nikkei Shimbun, 22.01.2019)
Shimadzu Corporation new development facility in Kawasaki Shimadzu Corporation announced the establishment of a new development facility in Kawasaki on January 15. The facility is to be opened in April 2021. It is located in ‘Kings Sky Front,’ a development promoted by Kawasaki City as a hub for research in the life sciences. Shimadzu plans to increase its research personnel to around 100 by 2022. The facility will concentrate on new applications for materials micro analysis devices. The facility is a four-storey structure with a floor area of 9,500 square meters. Shimadzu will lease the building at an annual rent of JYE 700 million, and invest around JYE 1.3 billion in equipment before the facility opens. Construction started in January and is expected to be completed by December 2020. (The Nikkei Shimbun 15.01.2019)
Yamagata University and NSC develop bendable organic EL panels Yamagata University announced on January 17 that it has developed a bendable EL panel using a glass substrate. It offers better durability than film-type bendable panels and will be cheaper to produce. There is expected to be demand for curved panels for car-mounted displays, and production is being readied for commercialisation during 2021. The product is a joint development between Professor Yoshiyuki Suzuri of Yamagata University and NSC Technologies, a company based in Toyonaka City, Osaka Prefecture. They used a chemical polishing and treatment technique to make a panel with a thickness of 0.15 mm from a glass substrate of more than 1 mm thickness.
NSC cooperates with several Japanese companies in the surface treatment of liquid crystals, and is in a technical partnership with Shirisato laboratory to research mixing organic EL materials in the substrate. Existing LCD production lines can be adapted, meaning that large investment is not needed. Currently organic EL is more expensive than liquid crystal material, but the price gap is expected to narrow. (The Nikkei Shimbun 17.01.2019)
Hayashibara invests JYE 7.5 billion on plant to increase water-soluble capsule ingredients Biotechnology company Hayashibara announced on February 4 that it will set up a new facility at its Okayama plant to produce Pullulan and other enzymes used in water-soluble capsules such as supplements. The construction represents an investment of JYE 7.5 billion, and will increase its production capacity by 20%. The company signed a long-term partnership agreement with the large
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Swiss pharmaceutical firm Lonza in September 2018 to produce Pullulan, and the investment allows the company to stabilise supply and meet increased demand.
Pullulan is produced by fermenting corn starch with yeast. It is widely used as an ingredient in food and cosmetics due to its excellent water solubility. Hayashibara developed the manufacturing method in 1972 and has been supplying it to Capsugel of America, a major producer of capsules for medicines and a subsidiary of Lonza since 2002. The company intends to continue its joint development of new products with Lonza. (The Nikkei Shimbun, 04.02.2019)
Ricoh to produce secondary inkjet battery Ricoh has developed a technique to produce secondary lithium-ion batteries for inkjet technology. Changing the major parts of the battery to ink, it can be used as a printer in digital printing. It allows for a much finer design than existing technologies. The technology is expected to satisfy wide-ranging demand as IoT expands to uses such as wearable terminals. The company aims to start mass production in FY 2021. (The Nikkei Shimbun, 29.01.2019)
Taiyo Yuden invests in new LLCC production at Niigata Taiyou Yuden announced on January 28 that it will invest around JYE 15 billion in a new multi-layer ceramic condensor (MLCC) to be constructed on the site of its subsidiary in Niigata Prefecture. Construction is to start in June, with completion expected in April 2020 and operation in the same year. The plant will increase output capacity by 40%, and will position the company to meet the expected growing demand from e-mobility and 5G communications.
The MLCC production subsidiary will add a fourth building adjacent to its existing site. The building will cover an area of approximately 17,000 square meters, giving a floor space of around 32,000 square meters. From October 2020 the company plans to recruit around 200 new employees as the facility becomes operational. The company’s third MLCC plant was completed in December 2018 and becomes operational in March. (The Nikkei Shimbun, 29.01.2019)
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Chemicals & Pharmaceuticals
Domestic ethylene production, 5.7% reduction last year due to concentrating on equipment maintenance The Petrochemical Industry Association announced on January 24 that domestic ethylene production in 2018 was 5.61% lower than the previous year at 6,155,500 tons. The fact that seven plants entered periodic repair one after another is the main cause of production decline.
The average operation rate has exceeded 96% for the third consecutive year. Korihiro Morikawa, President of Japan Petrochemical Industry Association (also President of Showa Denko) said that in the year 2019 there are fewer ethylene plant maintenance in the Asian region, while more European fixation is scheduled in Europe. The domestic ethylene production outlook for 2019 is about 6.5 million tons, and a total of 3 units will be scheduled for regular maintenance. (The Nikkei Shimbun, 25.01.2019)
Ethylene Production in Japan 1000 ton 9.000
8.000 7.522 7.739 6.882 6.913 7.018 6.883 7.000 6.689 6.696 6.647 6.531 6.145 6.279 6.156 6.000
5.000
4.000
3.000
2.000
1.000
- 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Source: The Petrochemical Industry Association
Toyo Tanso expands production capacity of high purity graphite products On February 7, Toyo Tanso Co., Ltd. announced that it will increase the production capacity of high purity graphite products at the Takumi Plant (Kagawa Prefecture). The company invests about JYE 2 billion and adds high purification processing furnace of graphite and building accompanying it.
Toyo Tanso manufactures and sells graphite products that are adopted as structural parts of semiconductor manufacturing equipment indispensable for the development of electronics. Demand for graphite products is also rising as a result of robust demand for semiconductors due to progress of IoT, AI and others. There is also a growing demand for high purity graphite products in various fields such as semiconductor ion implantation processes and solar cells, optical fibers, compound semiconductors, and SiC semiconductor manufacturing processes.
The capital investment is aimed not only to increase production, but also to increase production efficiency by promoting mechanization and automation between processes and processes. As a result, in FY 2020 the total production capacity of high purity graphite products will be about 1.2 times. (Nikkan Kogyo Shimbun, 08.02.2019)
Denka, invest JYE 8 billion for expansion of heat dissipation material for EV Denka Company Limited announced that the Company has decided to undertake capital investment totaling approximately ¥8 billion to boost its capacity to produce thermally conductive materials in order to swiftly accommodate growing demand resulting from a switchover to electric vehicles (EVs) in automotive industries worldwide.
Denka has secured a strong track record as a ceramic substrate manufacturer by effectively employing an integrated production system that includes the manufacture of raw material powder (silicon nitride powder). The Company plan to increase the production capacity of ceramic substrates at the Omuta Plant
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(Fukuoka Prefecture). With this in mind, Denka intends to introduce a cutting-edge pre-production automation process to enhance its silicon nitride ceramic substrate manufacturing system and thus increase its production capacity threefold (compared with the 2018 level), with the aim of solidifying its position as a leading manufacturer of these products. The total investment for Omuta Plant is about JYE 4 billion. Operation is planned for the second half of 2020.
Meanwhile, Denka believes that going forward, the Company will face growing needs for its spherical alumina among its customers due to growth in demand for thermal solutions for use in lithium ion batteries, which constitute key components of eco-friendly vehicles, and various driving-control systems as well as the widespread use of electronic devices equipped with ever more sophisticated functions.
With this in mind, the Company aims to undertake capital investment in its consolidated subsidiary in Singapore to establish new spherical alumina production lines. To date, Denka’s spherical alumina production has been concentrated at its Omuta Plant; by securing a second, separate manufacturing site, the Company is positioning itself to formulate more robust business continuity plans (BCPs). The move is intended to raise Denka’s overall spherical alumina production capacity fivefold (compared with the 2018 level). In such ways, Denka will establish an even stronger supply structure capable of dominating the global market and accommodating burgeoning demand. (Nikkan Kogyo Shimbun, 22.01.2019, Pressrelease of Denka)
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Steel
Three steel companies revised down thier financial forecas for full-year Consolidated financial results of three major steel maker for April-December were all present.
Nippon Steel Sumikin and JFE Holdings (HD) increased sales and profits. Natural disasters, production troubles and influence of the raw material price, for all this it was successful in passing the rise in raw material prices on to steel sales prices, the profit improved.
In the case of Nippon Steel & Sumitomo Metal, which announced its financial results on February 6, price increasing was one of the main factor of increasing operation income of JYE 144 billion as compared with (C): shutterstock_373999234 the same period last year.
JFEHD reduced the production of crude steel due to disasters, but it also secured an increase in profit due to increased price.
Kobe Steel, which has a high proportion of luxury goods, saw higher sales and lower profit, because of a delay in passing the rise in raw material prices on to sales prices. In addition profitability of aluminum and copper business deteriorated due to problem of quality fraud. (Nikkan Kogyo Shimbun, 07.02.2019)
Half-year earnings at 3 big steel makers: April - December 2018 Turnover Operaion income Company April-December Full year ending April- December Full year ending half March half March (results) (forecast) (results) (forecast) Nippon Steel & Sumitomo Metal 45,191 62,000 1,507 … Corporation (8.8%) ( - ) (9.2%) … 29,391 39,000 1,708 1,900 JFE Holdings, Inc. (10.0%) (6.0%) (-0.9%) (-23.0%) 14,483 19,900 382 450 Kobe Steel, Ltd. (5.0%) (5.8%) (-46.8%) (-49.4%) (Nikkan Kogyo Shimbun 07.02.2019)
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Energy
Japan’s nuclear power in a blind alley with zero overseas projects Hitachi has confirmed its decision to halt the construction of a nuclear power plant planned in the UK. With this decision, Japanese companies have almost zero involvement in nuclear power overseas. Although many of Japan’s domestic nuclear power plants are ageing, the government shows no intention of building new plants. The objective of exporting nuclear generation technology in order to maintain a domestic nuclear power industry has failed. This raises the question of how nuclear power can maintain its position and attract talent. There is an urgent need to revise energy policy. (The Nikkei Shimbun, 12.01.2019)
Hitachi to withdraw from wind power generator manufacturing; increase its role in management and storage. Hitachi announced on January 25 that it will withdraw from the production of wind power generators. It will expand its procurement collaboration with the German company Enercon, and concentrate on maintenance and operation of wind power stations and next-generation services combined with storage batteries. The company will also continue to focus on renewable energy including wind power, and forecasts substantially higher sales of JYE 80 billion in FY2018. Annual output from the company’s wind power generator at Hitachi City in Ibaraki Prefecture is approximately 2000 Kilowatts from its 100 turbines. Development costs have ballooned as the windmill sizes have been increased. (The Nikkei Shimbun, 25.01.2019)
TEPCO: MOU with major offshore wind power company Tokyo Electric Power Company Holdings, Inc. and Denmark 's leading electric power company Ørsted collaborate on offshore wind power generation projects. Both companies will consider the wind farm business at the coast of Choshi, Chiba prefecture, where TEPCO HD is investigating feasibility, and collaborate towards a strategic partnership. The two companies signed a memorandum of understanding on January 18. TEPCO HD has developed renewable energy projects of 6 to 7 million kW both at domestic and abroad, and has also considered business opportunities for offshore wind power.
In Feasibility Study on offshore wind farm at the coast of Choshi, from November 2018, TEPCO conducted a drilling survey and acoustic survey to investigate the ground structure. For the offshore wind power generation equipment (output 2.4 MW) established in January 2013 as a demonstration experiment, the first commercial operation in Japan began in January 2019. (Nikkan Kogyo Shimbun 21.01.2019)
Tohoku Electric Power expand renewable energy, Mainly wind power generation for 2 million kW On January 30, Tohoku Electric Power announced its business policy for 2019 incorporating expanded introduction of renewable energy and strengthened gas business. As of the end of 2017, the company's renewable energy sources such as solar, hydraulic, geothermal, and biomass power generation total 2.639 million kW, and the renewable energy ratio (including FIT electric power) in the sold electricity amount will be 14%. If all the 2 million kW listed as the target is covered by wind power generation, the ratio of renewable energy is expected to increase to 20%.
In addition, in order to utilize renewable energy for a long term and sustainable use, it is important to involve in the business related to the entire life cycle from development to operation, maintenance, abolition and replacement. The company is also planning the operation and maintenance business (O & M) and the development of power supply replacement business etc. In promoting the project, Tohoku Electric Power will set up the "Renewable Energy Business Promotion Council" with top management as the top within the fiscal year, and in July 2019 the company will set up the "Renewable Energy Business Promotion Office" to strengthen the organization. (Nikkan Kyogyo Simbun, 30.01.2019)
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General Industry Development
Machine tools forecast to drop 12% in FT2019; first fall in three years Orders in the machine tool sector will fall by 12% in FY 2019, according to a forecast by Yoshihiro Iimura, Chairman of Japan Machine Tool Builders’ Association (JMTBA) and President of Toshiba Machine on January 9. This is the first fall in three years, and is influenced by the continuing US-China trade friction, and weaker demand for Apple's smartphone. “The tide is changing, and weaknesses are starting to appear” he commented, although last year was the third highest on record.
The machine tools industry news digest however was more bearish, estimating the 2019 decline at 18%, reducing total order value to JYE 1.5 trillion. Both companies pointed to international tensions cooling the appetite for investment and deferring purchasing decisions as the background for the decline. (The Nikkei Shimbun, 09.01.2019)
JYE million Machine tool orders in 2017-2018
2.000.000 1.800.000 1.600.000 1.400.000 1.200.000 1.000.000 800.000 600.000 400.000 200.000 - 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Domestic demand Foreign demand
Source: JMTBA
Machine tool orders increased by 10% in 2018, a record high for the second consecutive year. However, orders for machine tool orders in December were sluggish for China, down 18% from the previous year Machine tool industry orders in 2018 grew by 10%, extending the record high to two years. However, December orders were down 18% from the previous year due to sluggishness in China. The 2018 figures released by the Association on January 15, 2019 show 10.3% increase over 2017, to JYE 1.81 trillion, the second consecutive year of record highs. The Association forecasts a 12.1% decline from this level in 2019, to JYE 1.6 trillion.
Preliminary figures released by the Association on January 15 for total machine tool orders in December 2018 were JYE 135.5 billion, a year-on- year decrease of 18.3% and the third consecutive monthly decline. External demand fell by 23.6% to (C): shutterstock_654693583 JYE 78.37 billion; domestic demand fell 9.8% to JYE 57.175 billion. Mainstay exports to China were unable to break free of the influence of US-China trade friction and continued at the same level as the previous year.
Similarly, confirmed figures released by the Association on January 23 also show an 18.3% drop in December 2018 from the previous year’s volume, to JYE 135.5 billion, the third consecutive monthly decline compared to the previous year. In addition to ten consecutive months of falling orders from China and continuing sluggishness, domestic sales, which had remained relatively firm, fell below the previous year for the first time in 23 months, as the impact of US-China trade friction starts to spread to domestic manufacturing.
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Overall external demand (exports) amounted to JYE 78.37 billion, down 23.6%. On a country and regional analysis, orders from China were valued at JYE 15.46 billion, down 56.4%. Orders for electrical and precision products such as smartphones fell by 90.5% to JYE1.5 billion. Reflecting economic trends, orders for general industrial machinery also decreased by 35.2% to JYE 4.79 billion, a highly significant fall.
For 2019, the Association expects the total value of orders from China in to be in the region of JYE 12 - 13 billion, about one third of the recent peak of JYE 42.1 billion in November 2017.
Domestic demand dropped 9.8% to JYE 57.1 billion, the first time in 23 months when the figure was lower than for the corresponding month of the previous year. Within the domestic business, orders for general industrial machinery decreased 21.3% to JYE 21.45 billion, the single lowest month in 2018.
JYE million JYE million China, EU, USA 200.000 Machine tool orders in 2017-2018 45.000
180.000 40.000
160.000 35.000 140.000 30.000 120.000 25.000 100.000 20.000 80.000 15.000 60.000 40.000 10.000 20.000 5.000 - - Jul Jul Oct Oct Apr Apr Jun Jun Jan Jan Mar Mar Feb Feb Nov Dec Nov Dec Aug Sep Aug Sep May May 2017 2018 Domestic demand Foreign demand China EU USA
Source: JMTBA
Orders for industrial robots up 4%; investment in automation maintaining pace Japan Robot Association Chairman Yasuhiko Hashimoto, who is also on the board of Kawasaki Heavy Industries, forecasts 4% growth in orders for industrial robots in 2019, to JYE 1.5 trillion (combining members and non-members), reaching a second consecutive record high. Despite trade friction between China and the US and the cloudy international outlook, many observers point to the continuing robust appetite for major robot makers to deliver automated solutions. It was announced at the same time that the annual value of orders in 2018 grew 7% over the previous year to JYE 1.1 trillion, exceeding the JYE 1 trillion point for the first time.。 (The Nikkei Shimbun, 11.01.2019)
Industrial robot orders for the October-December period, down 17%, for the first time in 10 quarters It is the first time in 10 quarters that orders received fall below the previous year. Robot orders continued to be strong due to an increase in investment in automation, but the decline of investment motivation in various industrial fields has also influenced robot orders. Japan Robot Association (JARA) announced on January 25th that the industrial robot order amount (member base) in the October- December 2018 period was JYE 164.6 billion, down 17.7% from the same period last year. It is the first time in 10 quarters that orders received fall below the previous year. Robot orders continued to be strong due to an increase in investment in automation, but the decline of investment motivation in various industrial fields has also influenced robot orders. Even the number of ordered robots fell by 15.7% compared with the same period last year and was negative for 2 consecutive quarters. The order trends by country / region and industry are not announced, but according to JARA, in December 18, the orders received for a single month, especially the depression was noticeable.
JARA said, "It seems that there were various factors such as the prospects that the US and China trade conflict will prolong, and the fact that China's automobile sales have declined."
Total shipments in the October - December 2018 period increased by 1.0% to JYE 181.3 billion, which was the first time in 2 quarters. Domestic shipments were strong, up 8.5%. In exports, exports to the US
VDMA-Newsletter “Japan”, Edition 01/2019 Contact: Oliver Wack, Telephone: +49 69 6603-1444
Japan Economic and Industrial Scenario, 01/2019 VDMA JAPAN Liaison Office 19 fell by 17.4% to JYE 24.5 billion, while those for China with a large amount fell 2.6% to JYE 51.4 billion, which was a slight decrease. Since the order value is decreasing, shipment value is expected to JYE decrease in the future. Annual order value based on JARA members in 2018 increased by 2.8% to 780.8 billion, total shipment value increased by 4.5% to JYE 744.4 billion, both of which were updated to record highs. (The Nikkei Shimbun, 25.01.2019)
JYE million Order, production and shipment of robot 250.000
200.000
150.000
100.000
50.000
- 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2015 2016 2017 2018 Order Production Shipment Source: JARA
Mitsubishi Electric and Kuka strengthen collaboration on industrial robots Mitsubishi Electric and the German company Kuka Robotics are cooperating in the area of industrial robots. They are jointly developing a control programme and functions for both companies’ robots, using Mitsubishi's numerical control device for guiding machine tools. The objective is to make it easier for the machine tool and robot to cooperate, and to boost the robot’s utilization by installing workpieces on the machine tool. Mitsubishi produces small robots, and Kuka has a wide range of robots from small to medium sizes. The collaboration aims to widen the choice of robots available to meet growing worldwide demand for factory automation. Source: VDMA Japan Mitsubishi Electronics is strong in compact, small size robots of less than 20 kilograms used for roles such as assembly of electronic parts; while Kuka’s strength is in medium and large scale robots deployed in automobile factories and other industries. It has achieved impressive results in Asia and Europe.
In addition, Mitsubishi Electric is developing a function which integrates all three control programs necessary for communicating between the machine tool and the robot, and guiding the robot’s movements, into one NC device. Until now, separate programs had to be developed for the tool and the robot. By loading the new function in the robot and placing it in the centre of a work process, the tool and the robot can work on different operations simultaneously through the connective functions. (Nikkan Kogyo Shimbun, 11.01.2019)
Takasago Thermal Engineering strengthens R&D with JYE 10 billion investment; new facility in Ibaraki. Takasago Thermal Engineering announced a JYE 10 billion investment to strengthen its R&D structure on January 24. Its technology research centre will relocate to a new facility being built in Tsukuba Mirai City in Ibaraki, which will also integrate the head office development function. Completion of the facility is expected in January 2020. Reflecting the importance of its links with local universities and research laboratories, the new facility will also assume a role in incubation and marketing. Construction of the new facility, provisionally designated the ‘innovation center,’ covers an area of around 22,700 square meters. It will have a surface floor area of approximately 16,000 square meters, including display areas and presentation rooms.
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It will deploy the latest technology to promote research and development, with high specification air- conditioning and construction to improve air flow and storage. The building adheres to energy efficient and other high environmental standards. Specifically, it will use subterranean thermal water and co- generation (heat and power) with woody biomass power generator. (The Nikkei Shimbun, 25.01.2019)
SANKO invested a total of JYE 22 billion to increase production of logistics materials SANKO Co., Ltd., the biggest logistics pallet maker in Japan, will boost the production capacity of the logistics material factory in Mie prefecture and Nara prefecture. The company's pallet enable to realize more efficiency transportation work by saving labor of management with wireless IC tag. As the shortage of manpower becomes conspicuous, the company will capture the labor-saving demands for the International Expo held in Osaka in 2025. Including the establishment of a food container plant in Hokkaido, the company will invest JYE 22 billion.
Currently it will expand facilities of the Kansai 3rd Plant (Nara Prefecture) of 45,000 square meters by 40,000 square meters by October, doubling the production capacity. According to Mr. Toshihiko Goto, company president, it will be one of the largest pallet factory in the world. The Kansai 2nd plant (Mie prefecture) will also be expanded to a total of 24,000 square meters, which is twice the present number.
Wooden pallets that can carry luggage and store it and move with a forklift have been used frequently. However, at the present time, switching to a new type made of plastic with high durability is advanced in many companies. Demand for new models is growing as it can utilize "IoT" technology which everything connects to the net, and also can advance logistics. (The Nikkei Shimbun, 17.01.2019)
Forming machine orders received in 2018, 7.9% increase, the highest domestic growth JYE 389.8 billion According to Japan Forming Machinery Association, the orders received for the forging machine in 2018 increased by 7.9% from the previous year to JYE 389,838 million, the highest amount since 2003 adopting the current statistical standards was recorded. All three fields of press machine, sheet metal machine and service increased. The export ratio of machinery excluding services totaled 39.9%, which confirmed aktive investment in domestic market.
Press machines were sluggish for large-sized equipment for North American automobiles, but orders from domestic automobiles were good throughout the year, up 6.2% to JYE 18,189 million. It has increased for the second consecutive year, and it was the fourth favorable track since 2003. Domestic orders increased 9.8% and exports increased by 2.2%. The sheet metal machines increased by 13.8% from the previous year to JYE 123,285 million, up for the second consecutive year. Domestic orders increased by 15.3% and exports increased by 10.7%, which was the highest level since 2003. Services increased by 3.5% to JYE 84,657 million. It has increased for the fifth consecutive year, also the highest.
Orders received in December 2018 increased by 2.0% year on year to JYE 35,739 million, the first increase in two months. (17.01.2019, Nikkan Kogyo Shimbun)
JYE million Order: Press Machine, Fabricating Machine and Service/Part/Tooling Ratio in % 4.500 70,0 4.000 60,0 3.500 50,0 3.000 2.500 40,0
2.000 30,0 1.500 20,0 1.000 10,0 500 - 0,0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Press Machine Fabricating Machine Service/Part/Tooling Export ratio
Source: JFMA VDMA-Newsletter “Japan”, Edition 01/2019 Contact: Oliver Wack, Telephone: +49 69 6603-1444
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Exhibitions
April 2019
Name of the Exhibition INTERMOLD TOKYO (2019) / Die & Mold Asia TOKYO (2019) Japan Metal Stamping Technology Exhibition TOKYO (2019) Date 17.04.2019 – 20.04.2019 Location Tokyo Big Sight URL http://intermold.jp/english/top/ Organizer Japan Die & Mold Industry Association Visitor number 45,937 (including: 1,861 foreign visitors) Exhibitor number 333
Name of the Exhibition Transport Infrastructure Week 2019 • Station & Airport Terminal Expo 2019 • Bus & Truck Service System Expo • Parking System Expo • International Drone Expo Date 17.04.2019 – 19.04.2019 Location Makuhari Messe (Chiba) URL https://www.jma.or.jp/st/en/index.html Organizer Japan Management Association (JMA) Visitor number 3,643 Exhibitor number 54
Techno-Frontier 2019 • Motortech Japan 2019 • Motion Engineering Japan 2019 • Mechatronics Technology 2019 • Sensing Technology 2019 Name of the Exhibition • Parts Design & Processing Technology 2019 • Power System Japan 2019 • Next Generation Power Supply • Battery Technology 2019 • EMC Japan 2019 • Thermal Engineering 2019 Date 17.04.2019 – 19.04.2019 Location Makuhari Messe (Chiba) URL https://www.jma.or.jp/TF/en/index.html Organizer Nikkei Business Publications, Inc. Visitor number 19,792 Exhibitor number 448
Name of the Exhibition 2019 Japan Meat Industry Fair 44th
Date 17.04.2019 – 19.04.2019 Location Tokyo BigSight URL http://www.shokuniku-sangyoten.jp/ Organizer Japan Meat Industry Fair Commission
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Visitor number 77,470 Exhibitor number 94
OPIE’19: OPTICS & PHOTONICS International Exhibition • Laser Expo • Lens EXPO (Design & Manufacturing) Name of the Exhibition • IR+UV EXPO (Applied Technology) • Industrial Camera & Advanced Imaging EXPO • Space & Astronomical Optics EXPO • Sensing Technology 2019 • Positioning EXPO Date 24.04.2019 - 26.04.2019 Location Pacifico Yokohama URL https://www.opie.jp/en/ Organizer NPO Japan Photonics Council
Visitor number 16.103 (including: 492 foreign visitors) Exhibitor number 372 (including: 53 foreign exhibitors)
May 2019 Name of the Exhibition CITE Japan 2019 Date 15.05.2019 - 17.05.2019 Location Pacifico Yokohama URL https://www.citejapan.info/en/index.html Organizer Federation of Japanese Cosmetic Ingredients Association Visitor number 38.711 Exhibitor number 316 (including: 35 foreign exhibitors)
Name of the Exhibition MEX Kanazawa, Machinery & Electronics Exhibition in Kanazawa Date 16.05.2019 - 18.05.2019 Location Ishikawa Sangyo Tenjikan URL https://www.tekkokiden.jp/mex/ Organizer MEX Support Office. Visitor number 56,469 Exhibitor number 217
Name of the Exhibition JECA Electrical Construction Equipment and Materials Fair 2019 Date 22.05.2019 - 24.05.2019 Location Tokyo Big Sight URL https://www.jecafair.jp/en/ Organizer Japan Electrical Construction Association (JECA) Visitor number 95,454 Exhibitor number 229
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Name of the Exhibition Construction & Survey Productivity Improvement EXPO Date 22.05.2019 -24.05.2019 Location Makuhari Messe URL http://cspi-expo.com/en/
Organizer Construction & Survey Productivity Improvement EXPO Exective Committee Visitor number 30.594 (including: 398 foreign visitors) Exhibitor number 177 (including: 6 foreign exhibitors)
Name of the Exhibition Automotive Engineering Exposition Yokohama 2018 Date 22.05.2019 - 24.05.2019 Location Pacifico Yokohama URL https://expo.jsae.or.jp/english/ Organizer Society of Automotive Engineers of Japan, Inc. Visitor number 93,487 Exhibitor number 597
Name of the Exhibition TRANSPORT SYSTEM EXPO 2019 Date 29.05.2019 - 31.05.2019 Location Tokyo Big Sight URL http://www.truckexpo.jp/2019/en/index.html Organizer Executive committee for Transport System Expo Visitor number 54,423 Exhibitor number 287
Name of the Exhibition Wireless Japan 2019 / Wireless Expo IoT 2019 Date 29.05.2019 - 31.05.2019 Location Tokyo Big Sight URL http://www8.ric.co.jp/expo/wj/ Organizer RIC Telecom / E.J. Krause & Associates, Inc. Visitor number 54,423 Exhibitor number 287
Name of the Exhibition International Drone Expo Date 29.05.2019 - 31.05.2019 Location Tokyo Big Sight URL http://www.dronesolution-expo.com/2019/en/index.html Organizer EJK Japan, Ltd. Visitor number 54,423 Exhibitor number 287
VDMA-Newsletter “Japan”, Edition 01/2019 Contact: Oliver Wack, Telephone: +49 69 6603-1444
24 Japan Economic and Industrial Scenario, 01/2019 VDMA JAPAN Liaison Office
Name of the Exhibition Wireless Technology Park (WTP 2019) Date 29.05.2019 - 31.05.2019 Location Tokyo Big Sight URL https://www.wt-park.com/2019/en/index.html
Organizer EJK Japan, Ltd.
Visitor number 54,423 Exhibitor number 287
VDMA-Newsletter “Japan”, Edition 01/2019 Contact: Oliver Wack, Telephone: +49 69 6603-1444
25 Japan Economic and Industrial Scenario, 01/2019 VDMA JAPAN Liaison Office
VDMA Japan Liaison Office
The VDMA liaison office in Japan represents the interests of the German engineering industry toward the Japanese administration and is responsible for exchange with the Japanese association world. The office also assists individual member companies. Simple questions are answered free of charge, while for more complex tasks, the office estimates the expected service costs as an offer. The main tasks so far were:
• Making or sourcing of particular market surveys • Search for business partners • Information about specific Japanese companies • Organize symposia and similar presentations of VDMA members • Supporting of trade fairs • Finding personnel and office/warehouse facilities • Setting up of a Japanese office
Contact: VDMA, German Engineering Federation Japan Liaison Office Heiwa Hasegawa, Representative c/o German Chamber of Commerce and Industry in Japan Sanbancho KS Bldg., 5F, 2-4 Sanbancho, Chiyoda-ku 102-0075 Tokyo, Japan
Tel: +81 3 5276 6632 Fax: +81 3 5276 2455 E-Mail: [email protected] Internet: http://vdmajapan.org
VDMA-Newsletter “Japan”, Edition 01/2019 Contact: Oliver Wack, Telephone: +49 69 6603-1444