4 Oct 2023
Projects part of Japanese group's plan to grow sales by 35% within three years
Tokyo – Fukoku Rubber is expanding production capacity for windshield wipers in India and Thailand as part of a strategy to increase annual sales by more than 35% over the next three years.
The Japanese rubber components manufacturer has set itself a target of Yen120 billion (€770 million) for sales by 2026, from Yen88 billion reported in fiscal year 2023, ended 31 March.
Furthermore, Fukoku Rubber aims to increase operating profit margin to 8.0% by 2026, from 4.4% in 2023, the group said in its recently issued mid-term business strategy.
Under the strategy, the Japanese group is to invest Yen21 billion in expansion projects, Yen9.3 billion of which will be carried out in Japanese plants and Yen12 billion in facilities overseas.
Among other projects, Fukoku Rubber aims to expand the production of automotive rubber wipers at its manufacturing site in Thailand in response to future demand.
According to president and CEO Ikuo Oshiro, a key goal is to increase global presence by expanding into Europe, China and ‘winning market-share from competitors’ in the US.
In addition, Fukoku Rubber is working to increase sales and market-share within the aftermarkets in China and America.
Another target, Oshiro noted, is to increase 'damper' capacity and strengthen industrial-related production facilities in “priority region” India.
The move will support Fukoku’s ambitions to increase sales from just under Yen30 billion within ASEAN and India region in 2023, to Yen40-45 billion by 2026.
The group also aims to more than double operating income to Yen3-4 billion in the region over the next three years.
“We are paying particular attention to India's growth potential, and from this perspective we are proceeding with the reorganisation of our factories in India,” said Oshiro.
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