Jatco raises production target by 40%

In response to growing demand from its top customers Nissan Motor Co. and Mitsubishi Motors Corp., Jatco Ltd. will raise its production target for continuously variable transmission (CVT) systems that will be manufactured in a plant in Thailand by 40%. Construction of the new plant will cost ¥20 billion (US$260.7 million) and production is scheduled to begin in the summer of 2013. Jatco’s CVTs help improve fuel efficiency. It plans to have an initial annual capacity of 500,000 units in the new plant, which will be raised to 700,000 units by 2016, with an additional investment of ¥7 to 8 billion (US$ 91.2-104.3 million). Exports of CVTs from Japan are declining because of the strong yen, which makes them more expensive outside of Japan. CVTs made in Thailand will supply Nissan’s factories in Thailand and Indonesia, and the plants of Mitsubishi Motors and Suzuki Motor Corp., which are now under construction in Thailand. (December 29, 2011)