31st March 2005 - Akebono Brakes Establishes New Companies to Reinforce Value-added Manufacturing

Akebono Brake will spin off two new companies, APS Corporation and Akebono Brake Hanyu Manufacturing Co., Ltd., on March 25 in order to reinforce the manufacturing of value-added production under the new "Global 30" three-year medium-term management plan that commences April 2005.

Akebono has for some time been developing various "Kaizen", or continuous improvement activities, at its manufacturing facilities based on a thorough understanding and application of the lean production principles on "Just-in-time" and "Jidoka".  This understanding and related activities are known as the "Akebono Production System".  APS Corporation is to be established to provide consultation and guidance on these issues, aiming to reduce lead-time, attain more competitive costs, and extend the thorough elimination of waste to include corporate management, while further refining the "APS" concept as "Akebono Philosophy and Spirit".

In addition to this, Akebono's Hanyu plant, situated within the company's Ai-City complex, will be spun-off as an independent company to be called Akebono Brake Hanyu Manufacturing Co., Ltd.  Taking advantage of its ideal location within Ai-CIty, the new company is expected to strengthen the business base as a production venue for various small-lot friction materials, including prototypes, while also contributing to the development of friction material manufacturing methods.

Akebono has been strengthening its production facilities by spinning them off as part of a process of clarifying responsibility and authority, and with the establishment of Akebono Brake Hanyu Manufacturing Co., Ltd., all of the Akebono group's production facilities, where it carries out the manufacture of value-added products, will have become independent.

With the attainment of the "Global 30" targets firmly in mind, APS Corporation will work together with each of the Akebono group's production facilities to strengthen overall value-added manufacturing wile also providing increased corporate value.

Source: Akebono Corporation Press Release