TOKYO (Jan. 30, 2008) — Kasai Kogyo Co. is joining Sanwa Kogyo Co. to invest $7.5 million to manufacture urethane-based car ceiling foam in Japan and China.
The Japanese unit, which is scheduled to start production in July, will supply headliners to Nissan and Honda and will be called SK Kogyo Co. Ltd., automotive parts maker Kasai said.
Hiroshima-based Sanwa, a car ceiling foam manufacturer, will own 51 percent of the Japanese company, which will be located in Gunma Prefecture, and Kasai will own the rest.
The Chinese venture will operate under the name Guangzhou SK Automotive Interior Co. Ltd. and will be based in Guangzhou Province. It will produce urethane foam and assemble ceiling parts.
The Chinese business is expected to start up in May, and ownership will be split 75-25 between Sanwa and Kasai. respectively.
Kasai said the joint venture will help it to increase the competitiveness by starting in-house production of substrates. The company said Sanwa has expertise and high technology to help it achieve this aim. In addition, Kasai plans to begin producing urethane materials in North America using Sanwa´s expertise.