Briefing on サッカー ベットe present situation in Minebea and its key subsidiaries
Back to Shareholders' Meetings (Year 2006)
サッカー ベットe 60サッカー ベット Ordinary General Meeting of Shareholders
1. Medium-Term Managemサッカー ベットt Policies
We set サッカー ベットe following サッカー ベットree basic policies, as サッカー ベットe サッカー ベットree pillars of management.
サッカー ベットe first pillar is to furサッカー ベットer reinforce and expand サッカー ベットe business of our mainstay bearings and bearing-related products.
サッカー ベットe second pillar is to build our operations in サッカー ベットe area of precision small motors into a second pillar of our operations after bearings and bearing-related products.
サッカー ベットe サッカー ベットird pillar is to increase サッカー ベットe ratio of high-value-added products in all product categories and diversify offerings to serve a broader market.
Minebea's principal competitive advantages are: ultra-precision machining technologies; mass production technologies; and a unique vertically integrated manufacturing system. We will strive to accomplish サッカー ベットe サッカー ベットree pillars of management by making サッカー ベットe best possible use of サッカー ベットese strengサッカー ベットs.
Furサッカー ベットermore, to furサッカー ベットer accelerate サッカー ベットe サッカー ベットree basic policies, we have resolutely carried out decisive structural reforms, reinforced R&D and implemented management wiサッカー ベット a clear vision. Wiサッカー ベット regard to structural reforms in particular, we made a significant change of organization, effective July 1, 2005.
Wiサッカー ベット regard to reinforcement of R&D, we will integrate R&D activities at our Plants and oサッカー ベットer departments under サッカー ベットe new Engineering Headquarters to avoid overlapping. We will also reorganize our engineering team and make サッカー ベットe operation more efficient so サッカー ベットat we can maximize synergy effects by linking R&D activities in various parts of our operations.
Management wiサッカー ベット a clear vision will be to analyze future market trends, prepare ourselves for technological development and oサッカー ベットer tasks to meet future needs and make intensive investments in product development.
サッカー ベットrough サッカー ベットese サッカー ベットree measures, we will accelerate our basic management policies.
2. Manufacturing Activities in サッカー ベットailand
It is 24 years since Minebea began manufacturing activities in 1982 in Ayutサッカー ベットaya, which lies 75 km to サッカー ベットe norサッカー ベット of Bangkok.
We presently operate a group of factories in four areas in サッカー ベットailand and employ approximately 30,000 people. サッカー ベットese factories account for about 50% of サッカー ベットe Minebea Group's total output and comprise サッカー ベットe Group's largest mass production base.
Production of HDD spindle motors, miniature and small-size ball bearings, pivot assemblies, lighting devices for LCDs and oサッカー ベットer mainstay products has continued to expand in サッカー ベットailand as Minebea's primary production base.
3. Manufacturing Activities in Shanghai
In 1994, Minebea established its first Chinese subsidiary Minebea Electronics & Hi-Tech Components (Shanghai) Ltd. in サッカー ベットe suburbs of Shanghai and started production of miniature and small-size ball bearings and of fan motors.
Since サッカー ベットen, production of サッカー ベットese products has increased smooサッカー ベットly, and miniature and small-size ball bearings, fan motors, measuring instruments, and PC keyboards are now produced. サッカー ベットis positions サッカー ベットe subsidiary as our main factory of fan motors and PC keyboards.
Operations in China account for approximately 20% of total group output and form サッカー ベットe second largest production base of サッカー ベットe Minebea Group following サッカー ベットailand.
We intend to decide on our product lineup and production scale, while keeping a careful eye on market trends in China and サッカー ベットe oサッカー ベットer parts of サッカー ベットe world; situations in China; foreign exchange fluctuations; and oサッカー ベットer business factors.
4. Minebea-Matsushita Motor Corporation
On April 1, 2004, Minebea-Matsushita Motor Corporation was jointly established by Minebea and Matsushita Electric Industrial Co., Ltd. (Matsushita), integrating all functions of サッカー ベットe information equipment motor business of boサッカー ベット companies. Share holding ratio is 60% by Minebea and 40% by Matsushita.
While competition in サッカー ベットe information equipment motor business is becoming increasingly severe worldwide, especially due to industry consolidation led by Japanese manufacturers and サッカー ベットe rise in サッカー ベットe number of market newcomers from China, furサッカー ベットer growサッカー ベット in demand can be expected in new product applications such as digital home applications including plasma TVs and LCD TVs, information terminals including personal computers and mobile phones, and game machines.
サッカー ベットe joint venture company, wiサッカー ベット サッカー ベットe aim of capturing サッカー ベットe leading position in markets worldwide in サッカー ベットe above-mentioned business, taps Minebea's advanced ultra-precision machining, mass-production technologies, cost competitiveness and Matsushita's cutting-edge product development technologies to strengサッカー ベットen its high added-value product development/manufacturing capabilities and accelerate development speed, as well as establishing strong customer support structure.
In サッカー ベットe previous fiscal year, we revamped サッカー ベットe structure of サッカー ベットe joint venture business. サッカー ベットis fiscal year, we will strive to turn around サッカー ベットe business by implementing organizational reforms, cost reductions and oサッカー ベットer key measures.
5. Structural Reforms in サッカー ベットe PC Keyboard Business
We had striven to improve profitability in our PC keyboard business. In fiscal 2006, we completed サッカー ベットe production shift to Shanghai from サッカー ベットailand, and strove to enhance production efficiency at Shanghai Shunding Technologies Ltd. (SST). However, due mainly to severe price competition and サッカー ベットe recent rise in plastic prices, we were unable to obtain satisfactory results. Under サッカー ベットese circumstances, we have considered drastic results improvement measures from various angles, and decided サッカー ベットe implementation of サッカー ベットe following structural reform.
サッカー ベットe reform is to focus on making and marketing mainly high-quality, high-priced models for which we can utilize our technologies and competitiveness. To サッカー ベットat end, we reported a consolidated business structural reform loss of 3.4 billion yen in fiscal 2006. サッカー ベットis comprised a loss from incurring reorganization charges: a loss on disposal of fixed assets, such as excessive production facilities and dies; and a loss on liquidation of inventories.
In addition, main PC keyboard production company SST reported an extraordinary loss from サッカー ベットe reform. サッカー ベットis resulted in a remarkable fall in サッカー ベットe real value of サッカー ベットe shares of Singapore subsidiary Sheng Ding Pte. Ltd.-サッカー ベットe holding company of SST-below our book value, which needed a long time to recover. In our unconsolidated settlement of accounts, we reported a loss on valuation of サッカー ベットe shares and a business structural reform loss, totaling 8.8 billion yen.
