AKEBONO REPORT 2012
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AKEBONO REPORT 2012 Akebono Brake Industry Co. Ltd. 11    Vietnam■ Swift Response to Demand for Motorcyclesin ASEAN RegionIn November 2011 Akebono Brake Astra Vietnam (AAVH) was establishedat Thang Long Industrial Park II which is located in the outskirtsof Hanoi City to manufacture disc brakes and mastercylinders for the motorcycle factories of Japanese-affiliated companiesin Vietnam.To date we have been supplying motorcycle brake products tomajor countries in ASEAN region through exports from our Indonesianfactories. By establishing a factory in Vietnam our supply structurewill be able to more swiftly respond to customer needs improving our competitiveness in the local market. Looking ahead we aim to supply 100% of the brakes needed by Japanese affiliatedmotorcycle manufacturers in Vietnam.For PT. Akebono Brake Astra Indonesia (AAIJ) a group memberwith a 60% share of AAVH the expansion in Vietnam is a first steptoward becoming a truly global company. The Akebono Group is aimingfor further growth in Asia through AAIJ.■Consideration for Local Human ResourcesFrom the very beginning nearly all of AAVH’s 28 associates havebeen Vietnamese with the exclusion of one Japanese and twoIndonesian staff. We are particularly eager to appoint a local associateas the manager in charge of human resources and generalaffairs a key position in the company and note that the personappointed may become involved in management to an even greaterextent in the future.Guided by the high regard for human rights?a managementphilosophy inherited from its parent company AAIJ AAVH will striveto facilitate motivation communications and teamwork among itsassociates.In its first fiscal year of operations AAVH will begin with assemblyproduction using parts imported from Indonesia. However AAVHwill gradually initiate fabrication in its own plant. At that point it willseek to switch to the purchase of parts from domestic suppliers.We believe that maintaining high regard for human rights is anessential in establishing our supply chain too. We must ensure thateven our sub- or sub-sub contractors’ businesses operate with considerationfor human rights.In addition we will utilize our experiences at AAIJ to ensure environmentalconservation and proactively work on such initiatives asmaterial recycling the treatment of drainage water from the plantand the maintenance of greenery on the premises.Net salesOperating income15.822.621.127.92.23.73.53.8(Billions of yen)(Billions of yen)’12 (FY)(forecast)*05101520253001234’09 ’10 ’11’12 (FY)(forecast)*’09 ’10 ’11Akebono’s Network in Asia* Based on fiscal 2012 forecasts by region releasedon May 8 2012Data for Asia is a graphic representation of theaggregate totals for China Thailand and Indonesia(please see page 47 for details)Akebono Corporation (Suzhou)Manufacture and sale ofdisc brake padsAkebono Brake (Thailand) Co. Ltd.Manufacture and sale ofdisc brakes and padsPT. Akebono Brake Astra IndonesiaManufacture and sale of disc brakes drum brakes pads and linings andother brake componentsAkebono Corporation (Guangzhou)Manufacture and sale of disc brakes anddrum brakesAkebono Brake Astra Vietnam Co. Ltd.Manufacture and sale of disc brakes andmaster cylinders for motorcyclesOutline of Akebono Brake Astra Vietnam Co. Ltd.(AAVH)Location: Plot D-10 (Rf-1a) Thang Long Industrial Park II Yen My District Hung Yen Province VietnamRepresentative: Tetsumaru ArakawaPaid-in capital: US$1.5 million (scheduled to increase in stages)Shareholders: Akebono Brake Industry Co. Ltd. (20%)AAIJ (60%) PT. Astra Otoparts Tbk. (20%)Date of establishment: November 14 2011Business activities: Manufacture and sale of disc brakes andmaster cylinders for motorcyclesNet sales and operating income includeinter-segment transactions.

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