Ryobi Eyes 70B Yen of Overseas Die Casting Sales in F2014

Ryobi projects to increase its overseas annual revenue of die casting to 70 billion yen in fiscal 2014 ending in March 2015, about 1.7 times of fiscal 2011. At the productive subsidiaries in Asia, the revenue is expected to expand by 2.1 times to 16 billion yen at Ryobi Die Casting Dalian in China, while increase to 9 billion yen at Ryobi Die Casting Changzhou in China and to 5 billion yen at Ryobi Die Casting (Thailand). In Japan, Ryobi plans to construct a mold factory inside Hiroshima East plant site with 2.5 billion yen capex. The factory will start mold supply to Ryobi Group’s die casting plants at overseas in mid 2013.

Ryobi’s president Akira Urakami overviewed the Group’s operations at press conference in Tokyo on Wednesday. Ryobi follows the demand expansion in emerging countries where local car markets continue stable growth. Mr. Urakami said die casting revenue in China and Thailand is expected to represent 20-30% in Ryobi’s total die casting sales in fiscal 2014.

Ryobi Group’s total annual investment plan is 15.2 billion yen in China, 1.9 billion yen in Thailand, 3.7 billion yen in the USA and 10 billion yen in Japan in fiscal 2012.

In Asia, the Group is expanding productive capacities. Ryobi Die Casting Dalian is constructing no.2 factory which will complete in August 2012. Ryobi Die Casting Changzhou is under the first phase construction. Commercial production is scheduled to start in August 2012. Ryobi Die Casting (Thailand) plans to finish the plant construction at the end of 2012 and to start production in June 2013.

As for a new mold factory inside Hiroshima East plant, Mr. Urakami explained the Group’s overseas die casting plants have procured new molds from local third parties due to low price when original molds supplied from Japan have aged. He said the new factory can supply cost-competitive molds to the Group’s overseas sites.