Overseas Engineering Expansion in Southeast Asia and North America

「In the global business, we aim to drive growth in new markets and achieve high profitability by leveraging the strengths and expertise we have developed in Japan. At the same time, we need to respond appropriately to changes in the operating environment resulting from geopolitical risks driven by policy trends in individual countries, as well as to commercial practices, market characteristics and volatility that differ from those in Japan.」

「The Global Engineering Unit was temporarily affected in India by long-term maintenance of blast furnaces and other factors at an on-site steel facility. In North America, conditions remained difficult, including the partial withdrawal from the cryogenic equipment business due to a sharp decline in hydrogen-related demand stemming from U.S. policies.」

「In India, demand for industrial gases is expanding with economic growth. The company strengthened its business platform by establishing a new cylinder gas filling plant, and both on-site supply to the steel industry and gas supply by tanker and cylinder performed steadily. In North America, it worked to acquire new customers ahead of the start-up of its gas plant currently under construction.」

「In North America, the company is seeking to expand its industrial gas business alongside its equipment engineering business, which uses the company's low-temperature technologies, and the two industrial gas-related companies newly included in the consolidated accounts in the previous fiscal year made a significant contribution to earnings. In India, demand for industrial gases is expanding with economic growth. The company strengthened its business platform by establishing a new cylinder gas filling plant, among other measures, and both onsite supply to the steel industry and gas supply by tank truck and cylinder remained firm. In addition, the high-output UPS (uninterruptible power supply) business performed well, increasing orders in Asia, North America, and other regions against a backdrop of growing data-centre demand and higher capital investment by semiconductor manufacturers.」

「The company also newly included American Gas Products,LLC, which operates a helium gas supply business in North America, in its consolidated accounts.」

「In the overseas business, the company made proactive investments in North America and India, its priority strategic regions, and expanded the infrastructure of its industrial gas business. In North America, it acquired multiple gas distributors, began construction of a large gas plant in New York State that will be its first manufacturing base in North America, and entered the helium business.」

「In overseas operations and electronics-related businesses, which it positions as growth areas, the company is promoting M&A and expanding manufacturing and supply infrastructure to grow its industrial gas businesses in North America and India, while」

「The company newly acquired Dohmeyer Holding BVBA, which operates a cryogenic refrigeration systems business, and Noble Gas Solutions, LLC., an industrial gas distributor based in New York State, United States, through M&A.」

「In North American industrial gases, orders for cryogenic containers and gas supply equipment remained firm amid growing demand for hydrogen energy and decarbonization-related products. However, results were below the same period of the previous year due to delays in overseas procurement of some component parts.」

「By the end of the previous consolidated fiscal year, we had established a business structure capable of global expansion in the high-output UPS business. We will continue to accelerate our global expansion by targeting growth areas such as data centers and semiconductor factories.」

「In the high-output UPS (uninterruptible power supply) business, focused mainly on Europe and Asia, we acquired Hitec Holding B.V. of the Netherlands last July, establishing an operating structure capable of providing integrated services from equipment development through engineering and maintenance.」

「The overseas engineering business benefited from the effect of newly consolidating Hitec Holding B.V. of the Netherlands, a manufacturer of high-output UPS systems, in addition to three North American companies engaged in industrial gas-related engineering and equipment businesses and one Singaporean company engaged in the high-output UPS business, all acquired through M&A in the previous consolidated fiscal year.」

「The Overseas Engineering business benefited from the effects of newly consolidating 3 companies engaged in industrial gas-related engineering and equipment businesses in North America and 1 company engaged in systems engineering related to high-output UPS systems in Singapore.」

「The Overseas Engineering business benefited from the newly consolidated results of 2 companies manufacturing and selling industrial gas-related equipment in North America and 1 company engaged in the high-output UPS (uninterruptible power supply) business.」

「Overseas, the company plans to develop its business by establishing bases mainly in North America and Asia, including through cross-border M&A.」

「In our overseas business, we are developing a base of operations, primarily in Southeast Asia, to address the needs of domestic users expanding overseas. We will also expand our business by leveraging the technologies and business models cultivated in the industrial gas business, as well as niche-leading products developed in Japan.」

「The company also plans to establish a cost-competitive engineering structure overseas and develop new engineering businesses targeting Southeast Asia and North America.」