U.S. Parts Makers Supplying More Japanese

November 30, 2001

Sacramento - When Honda, Nissan and Toyota first began establishing assembly plants in North America, they most often brought with them their own parts suppliers. It was a great opportunity for many smaller Japanese firms who never dreamed they would be making parts outside of Japan, then suddenly they were in the U.S. and vying for business with the Big Three as well.

There are signs, however, that Japanese automakers looking to expand in North American are looking closely as American or Canadian firms as suppliers and sometimes they look for a blend, encouraging joint ventures between Japanese and American suppliers.

Take for instance the recent establishment of Seimitsu Associates LLC, a Groveport, Mich. firm organized by Warren, Mich.-based Mariah Industries Inc. and Japan's Nifco. Mariah Industries is an assembly genius and assembles parts for the Big Three. Nifco makes plastic fasteners and related parts, primarily for Honda and Nissan.

The two companies have decided to combine their talents in forming Seimitsu and will establish their first plant in the Greenpoint Business Park, employing as many as 100 people by next March. The plant will perform subassembly for one of the Japanese automakers who they say are looking more and more for local companies close to the assembly plant to perform subassembly of parts and components.

More in line with typical supply chain organization, Nissan Motors announced recently it has invited M-Tek, a Japanese-owned and Manchester, Tenn.-based injection molder of automotive interior parts, to supply its new Madison Country, Miss. plant. M-Tek is a subsidiary of Japan's Kasai Kogyo Ltd., which is partly owned by Nissan. M-Tek is building its own 219,000 sq.ft. plant in the Madison County Central Mississippi Industrial Center, from which it will supply Nissan on a JIT basis.