Sojitz Corporation has made an investment in Guangzhou NEIVE Auto Technology Co., Ltd. (Head office: Fengxing Road, Science Park、Guangzhou; President: Daisin Nishide), a wholly-owned subsidiary of Neive Co., Ltd. (Head office: Kaga City, Ishikawa Prefecture), a manufacturer of checking fixtures for automobile parts. The amount of stock acquired through third-party allocation of new shares is approximately 200 million yen, with Sojitz holding 25% of the shares. Sojitz aims to expand its automobile business in China through the subject investment in Guangzhou NEIVE Auto Technology.

Guangzhou NEIVE Auto Technology designs and manufactures checking fixtures for various automobile parts for Japanese automobile parts manufacturers. The company designs and manufactures a variety of checking fixtures for auto body-related sheet metal parts, interior parts such as seats, roofs, dashboards and doors, and exterior parts such as bumpers, headlights and window glass, regardless of the material or shape of the part. Checking fixtures are essential to the automobile production processes, and Guangzhou NEIVE Auto Technology was among the first to make inroads into the Chinese market and to deliver results, in accordance with trend for Japanese manufacturers to procure checking fixtures locally.

There are more than 1,100 Japanese automobile parts manufacturers with a presence in the Chinese market. Japanese manufacturers have begun procuring dies and checking fixtures locally, and the demand for high-quality, high-precision checking fixtures is expected to increase. Guangzhou NEIVE Auto Technology plans to expand production facilities, and to establish a new plant in the Guangzhou Economic & Technological Development District, into which district a large number of Japanese manufacturers are making forays. The new plant, which is scheduled to commence operations in 2009, will aim to achieve sales of 1.5 billion yen in 2011.

Sojitz has established a value chain with its automobile business; from upstream businesses such as engineering and parts production, midstream businesses such as logistics and production, to downstream businesses such as those involving auto dealers. For its upstream business, Sojitz is working on investments in parts manufacturers and on providing support to companies that will expand their businesses to overseas markets. The company aims to enhance its functions in and increase its profits from the automobile business, while at the same time continuously generating synergistic effects with existing businesses. 

 

Checking fixtures manufactured by Guangzhou NEIVE Auto Technology

Resin parts	Seats, doors, bumpers, instrument panels, pillars, consoles, etc.
Sheet metal parts	Hoods, roofs, doors,pillars, floor, frames, fuel tanks, etc.

 

Outline of Guangzhou NEIVE Auto Technology Co., Ltd.

President	Daisin Nishide
Head Office	Fengxing Road, Science Park Guangzhou
Establishment	January 2005
Capital	US$6 million (Sojitz: 20%, Sojitz (China): 5%, Neive: 75%)