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Press Release 2008

Home > Press Release > 2009 > August 17

Establishment of the Joint Venture of Air Cushions and Vibration-Proof Rubber Products for Railroad Cars in China

August 17, 2009
Sumitomo Electric Industries, Ltd.

Sumitomo Electric Industries, Ltd. (hereinafter Sumitomo Electric) and its consolidated subsidiary Tokai Rubber Industries, Ltd. (hereinafter TRI) have agreed with KTK Group Co., Ltd (hereinafter KTK Group) to establish a joint venture company in Jiangsu province, China for the manufacture and sales of air cushions and vibration-proof rubber products for railroad cars.

 

Air cushions play an indispensable role in comfortable railroad transportation. With the cushions installed between chassis and carriages, vibration transmitted to cars from wheels is effectively dampened. Sumitomo Electric’s air cushions are widely used for Japanese railroad cars, including the N700-series Shinkansen bullet train, and for other passenger cars overseas.

 

In China, there is a huge boom in the construction of middle and high-speed railroads connecting major cities, and the government has scheduled the construction of an approximately 16,000 km railroads by 2020. Subway lines are also expanding rapidly in large cities. Accordingly, strong demand for railroad cars has surged.

 

In the face of such market conditions, Sumitomo Electric was looking at ways to enhance its cost competitiveness in this field and to expand its sales networks into railroad car manufacturers in China. Meanwhile, TRI was moving ahead on the sales of vibration-proof rubber products in the Chinese market. Here, Sumitomo Electric and TRI have agreed to partner with KTK Group, which covers a great share of railroad car interior trims and display units, with wide sales networks within domestic car manufacturers.

 

The signing ceremony of the newly established company was held on 16 August. This joint venture was enabled by the great support of the local government of Wujin district in Jiangsu province, a growing city and one of the main hubs of railroad business in China.

 

The new company will manufacture and sell air cushions and vibration-proof rubber products, both used for railroad cars. We hope that these products also create synergies in the product designs and development and that further sales increase.

 

Profile of New Company

Company name KTS High-Tech Rubber Co., Ltd (tentative name)
Location Changzhou city, Jiangsu province, China
Capital 30 million yuan (about 400 million yen)
Investment ratio Sumitomo Electric 27.5%, TRI 27.5%, KTK Group 45%
Board composition 1 from Sumitomo Electric, 1 from TRI, 2 from KTK Group
Number of employees 50 (in 2012)
Business Manufacture and sales of air cushions and vibration-proof rubber products for railroad cars
Establishment September 2009 (scheduled)
Start of production February 2010 (scheduled)
Annual sales target 170 million yuan (about 2.4 billion yen) (in 2012)

 

References

 

1. Air cushion for railroad car

It is the key component for comfortable railroad transportation, dampening vibration to a car.

Air cushion for railroad car

2. Profile of KTK Group

Company name KTK Group Co., Ltd.
Location Changzhou city, Jiangsu province, China
Capital 120 million yuan
Corporate representative Yu Jinkun
Number of employees 2100
Business Designs and manufacture of interior trims for railroad cars, lighting products, electrical equipment, etc.
Establishment 2003

 

At singing ceremony

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