The company will invest Yen 250 million (US$2.2 million) to build a new plant in Anhui Province via local group member Anqing TP Powder Metallurgy Co. Land has been secured adjacent to an existing plant and the new plant is expected to be in operation by summer 2008.

The expansion will increase the company's valve seat production capacity by 30 per cent to 4 million units per month and double valve guide production capacity to 2 million units per month.

The Chinese unit supplies parts to local automakers and automakers in Malaysia and Iran. Orders have also been received from Suzuki Motor Corp's Chinese joint venture. Valve seats are parts used in automobile and motorcycle engines to prevent wear caused by the movement of valves. Valve guides support valves to ensure stable movement.