Date: January 2003

After successfully developing its European business in Germany, France and the UK, Kayaba Industry Company Ltd, one of world’s largest manufacturers of shock absorbers and suspension components, has now officially opened its fourth European office in Italy.

The company has been present in the Italian aftermarket since early 2001, when it began the not inconsiderable task of establishing a network of independent distributors across the country. Commercial and logistic programs have also now been completed to serve the needs of this network, and the new office will be located close to Milan.

Kayaba Italy will support its distributors and stockists from the company’s European Central Warehouse situated in Paris.

Italy has a car parc of approximately 30 million cars, making it one of the largest in Europe. There is a projected replacement aftermarket volume of some 2.6 million shock absorbers a year, and Kayaba has tailored its stockholding of shock absorbers, mounting kits and protection kits to meet the specific needs of the Italian market by providing car parc coverage of 97%, and an order fill rate of 99%.

New customer service and distribution systems have been designed to ensure the highest standards of service, with the means to meet the specific needs of the Italian car market quickly and efficiently.

Italy is regarded by Kayaba as being quite different from other European markets, where the lack of wholesaler buying groups and the relative infancy of ‘fast-fit’ repair centres means that there are an estimated 65,000 small, independent auto repair shops served by 2,500 local wholesalers. Consequently, a more traditional and fragmented distribution system is required.

Commented Mr Maekawa, managing director of Kayaba Europe, " We are committed to rapidly developing our presence in Italy and growing market penetration of our KYB branded shock absorbers and associated products, by focusing on the highest possible standards of service and customer satisfaction.

"As we have done in other countries, we will give customers every assistance with both commercial and technical aspects, and our highly skilled people will work closely with them to ensure the delivery of top quality products when and where they want them, while also helping to develop a strong and long lasting business relationship."

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Kayaba Industry Company Ltd is Japan’s leading hydraulics manufacturer with a revenue of approximately $1.8 billion. 60% of sales are from automotive shock absorbers, and it is the world’s largest supplier of shock absorbers to vehicle manufacturers, with a 23% market share. Of the 55 million pieces manufactured each year, around 8 million are destined for the aftermarket, where worldwide it has an 8% share. In key European markets - notably France, Germany, the UK and now Italy - Kayaba is making considerable in-roads and already has a market share of around 15%.

Ref: KYB02/2003

• Kayaba UK is one of five wholly owned European subsidiaries of Kayaba Industry Company Ltd based in Tokyo. The other four companies are located in France, Germany, Italy and Spain
• Kayaba Industry Company Ltd is Japan’s leading hydraulics manufacturer with a revenue of approximately $1.8 billion
• 60% of sales are from automotive shock absorbers
• Kayaba is the world’s largest original equipment supplier of shock absorbers to vehicle manufacturers, with a 23% market share. Manufacturers supplied include Nissan, Renault, Toyota and Ford, among many others. The company also supplies original equipment front fork assemblies to many leading motorcycle manufacturers, for example Suzuki, Kawasaki and Yamaha, and makes aircraft landing gear and suspension components for the Japanese Bullet train
• Kayaba products are sold under the KYB brand
• The aftermarket product range for the UK includes four oil and gas shock absorber types for standard and performance cars, LCVs and 4x4s; suspension mounting kits; protection kits and coil springs. A range of vehicle lowering kits was launched in 2002
• Kayaba UK has a stockholding of 130,000 shock absorbers and provides car parc coverage of 98.7%, and order fill of 99%
• Kayaba UK was established in 1997, and has its office and 20,000 sq ft central distribution centre located adjacent to the M62 motorway at Warrington
• Kayaba supplies the UK aftermarket through a network

• Kayaba’s European headquarters are based at Meerbusch, near Dusseldorf , Germany