Nachi-Fujikoshi Corp. (below NACHI) announced on Thursday the firm constructs a world largest production base for hydraulic machines and precision cutting tools. The construction will start in June 2012 and the production will commence in January 2013. The annual sales plan is 10 billion yen for fiscal 2015. NACHI also plans capacity expansion at exist bearing plants in Shanghai and Dongguan. NACHI Group promotes local material procurement and enhance local sales network in China. Then the Group’s revenue in China is expected to increase by 20 billion yen to 35 billion yen in fiscal 2015 from the present.
NACHI established a local company, NACHI (Jiangsu) Industries, with capital fund of US$ 18 million. The site is approximately 54,000 square meters, which is one of the largest offshore sites for NACHI. The employee number is scheduled to reach approximately 200 until fiscal 2015. The plant is regarded as the core business base in China where a showroom will be established inside the plant and production of additional items are scheduled in the next phases. Meanwhile, NACHI plans to expand Shanghai and Dongguan plants as well. Annual revenue of these two plants presently totals 2.5 billion yen while NACHI aims to raise the salesto 4-5 billion yen until fiscal 2015. Then NACHI Group’s sales in China is expected to reach 15 billion yen in fiscal 2015. NACHI also accelerates local material procurement in China. Mr. Hiroo Honma, NACHI’s president, said NACHI aims to raise the local content rate to 100% in January 2013 when the new plant commences operation. NACHI also plans to double local sales staff number to 200 in five sales bases. NACHI announced on Thursday the firm’s consolidated recurring profit almost doubled to 12.9 billion yen in a full business year ended in November 2011 from the previous fiscal year. The net profit hit record high 10 billion yen. The net sales increased by 23.2% to 166 billion yen, increasing by 21.1% to 101.914 billion yen for domestic market and increasing by 26.6% to 64.108 billion yen for overseas market. The net sales especially expanded by 30.4% to 39.7 billion yen for Asia.