We would like to announce our decision to establish a new subsidiary company related to our aircraft components manufacturing business.

 

1.We would like to announce our decision to establish a new subsidiary company related to our aircraft components manufacturing business.

As Jamco’s Aircraft Components Company, we produce a variety of parts for aircraft, including carbon fiber structural elements, engine parts and heat exchangers. Our manufacturing operations are currently carried out at our factory located on the grounds of our headquarters (Mitaka, Tokyo, Japan).
In regard to these production operations, as announced prior to this release, we are constructing a new factory at the Medeshima seibu Industrial park (Natori, Miyagi Prefecture) and plan to transfer the entirety of our carbon fiber structural element and engine part production lines there. Construction is proceeding as scheduled, and operations are scheduled to begin April of 2013.

 

Together with this plan to construct the new factory, we have decided to create a new subsidiary company that will be in charge of manufacturing at the facility, and to which we will consign production.
This new company, utilizing both outstanding regional talent and the new factory, will specialize in manufacturing, improve the profitability of the business through pursuing maximum efficiency in production, and strengthen competitiveness while contributing to the growth of the regional community by providing both employment and serving as a stimulus to the regional economy.

2.New Company Profile

Company Name

JAMCO AEROMANUFACTURING Co. Ltd.

President & CEO

Masakazu Hiruma

Head Office (Location of Production Facility)

7-101-36 Medeshimadai, Natori-shi, Miyagi, Japan (Within Medeshima-seibu Industrial Park)

Scheduled Establishment Date

January 4,2013

Scheduled Operations Start Date

April 1,2013

Capital Structure

Completely financed by Jamco Corp. (100% Wholly-owned subsidiary)

Capital

100 million yen.

Fiscal Year End

March 31

Description of Business

Manufacture of carbon fiber structural elements, engine parts and other components for aircraft.

Employees

Planning for approximately 80 by the end of 2013.
Jamco has temporarily hired some of the future subsidiary’s employees from the area around the future facility, and they are currently receiving practical training at the factory located near our headquarters. After the company is established, it is expected that part-time employees will be hired as required.
(first year sales)

Business Plan

(Annual Sales)
FY2013:\1 billion yen
FY2014:\1.3 billion yen
FY2015:\1.3 billion yen

The effects of establishing this new company on our FY2012 financial results are insignificant have been taken into consideration.

Rendering of the new factory of Aircraft Components Company in Natori City, Miyagi Prefecture<br/>(Photo: Courtesy of TAISEI CORPORATION)
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Rendering of the new factory of Aircraft Components Company in Natori City, Miyagi Prefecture
(Photo: Courtesy of TAISEI CORPORATION)