Integrated production from materials development to finished products and joint development with customers

「Recovery progressed from the decline in orders for automotive turbo components caused by product specification changes that had continued from the previous fiscal year. Mass-production shipments resumed during the interim consolidated accounting period, and from the third quarter of the consolidated accounting period onward we established a structure aimed at full production.」

「Sales volumes increased, driven in particular by the resumption of mass-production shipments of automotive turbo components and the expansion of component types ordered for high-performance industrial equipment components, making a significant contribution to sales growth.」

「Supply of the 5 automotive turbo component items resumed during the first quarter of the consolidated fiscal period, but orders declined from the second quarter onward as the project entered a preparation period associated with product specification changes, and shipment volumes fell substantially below the initial plan.」

「In this business, orders for 5 automotive turbo component items had been temporarily halted because of various issues attributable to business partners and inventory adjustments associated with switching production to our company, but supplies resumed during the current first quarter of the consolidated fiscal year. Orders for high-performance components, including ceramic components for CMOS sensors and ball-screw components, also remained strong.」

「Shipments of mass-produced automotive turbo components resumed in August 2022, but orders were temporarily halted due to various issues attributable to business partners and inventory adjustments associated with the switch to our products. Shipments are expected to resume from June 2023.」

「Shipments of mass-produced automotive turbo components resumed in August, but orders were temporarily halted due to various issues attributable to business partners and inventory adjustments associated with the switch to our products. Shipments are expected to resume from the fourth quarter of the consolidated fiscal year.」

「Shipments of mass-produced automotive turbo components began in May. Orders were temporarily halted due to inventory adjustments associated with the switch to our products and various issues attributable to business partners, but shipments are expected to resume in the latter half of the third quarter of the consolidated fiscal year.」

「We will sequentially expand mass production of 5 standard mass-produced components, totaling 15 part numbers, with 4 major companies, including IHI Corporation and THK CO.,LTD.」

「The number of mass-produced components has expanded to a total of 32 part numbers, including 5 automotive turbo component part numbers. We also received 3 new prototype project orders.」

「Mass production of 5 automotive turbo component part numbers for IHI Corporation began in December 2021. We are now ramping up mass production of the initial deliveries and safety stock. We will continue strengthening our production capabilities by applying the advanced manufacturing expertise developed in our high-function components business, establishing a mass-production system offering stable quality and high yields, and reinforcing our workforce.」

「We had been preparing for the agreed October 2021 start of mass production with IHI Corporation, but production is expected to be delayed because of delays in commissioning some equipment and repeated postponements of the entry into Japan of foreign technical intern trainees during the COVID-19 pandemic. The automobile manufacturer's final test, the high-temperature endurance test, has also been delayed by 2 months because of the pandemic and is expected to be completed at the end of October.」

「Toward the start of mass production in October 2021 agreed with IHI Corporation, the launch of the production molds and production equipment already ordered is largely complete. We will continue working to establish stable mass-production technology and advance PPAP (Production Part Approval Process) approval activities as needed.」

「We have already received instructions to order the production molds and production equipment required 1 year before the start of mass production. We will proceed as scheduled with equipment installation and commissioning, establishing stable mass-production technology, and PPAP approval activities, working to build a robust production structure after the start of mass production is decided.」

「We passed the final test conducted by the major domestic turbo manufacturer, our customer, namely the high-temperature endurance test, and will now move to the automobile manufacturer's final approval testing, which will take 2 months. At the same time, we formally received instructions to place orders for the production molds and production equipment required 1 year before the start of mass production, and began ordering new equipment required for mass production. After passing the automobile manufacturer's final evaluation test, scheduled for completion during the fourth quarter of the consolidated fiscal year, we will accelerate completion of the PPAP (Production Part Approval Process) in parallel with preparations for the main audit scheduled for May 2021.」

「We had been advancing prototype activities for diesel VG turbo components, on which we had focused since the third quarter of the previous consolidated fiscal year, targeting a mass-production start in December 2020. However, because of COVID-19, the evaluation schedule with the relevant departments of the customer automobile and turbo manufacturers has been substantially delayed. Against this backdrop, submission of all prototype components for final approval was completed at the end of June, 4 months late. All dimensions for the 5 part numbers passed, and some performance evaluations were completed. We will now move to the customer's final implementation testing, namely high-temperature endurance testing.」

「We signed a basic agreement for the mass production of automotive diesel turbo engine components and focused on prototype activities, but plans scheduled with the automobile manufacturer and the relevant departments of the turbo manufacturer, both customers, have been delayed because of COVID-19.」

「Inquiries from a major domestic turbo manufacturer regarding the manufacture of several components, including nozzle vanes made using our PIM process, have increased substantially. In addition to securing formal prototype orders for 5 part numbers for 2 vehicle models, a project to switch to our products based on VA (value analysis aimed at improving productivity) proposals that reduce costs versus existing products is also under way.」

「During the first quarter of the consolidated fiscal year, we signed a memorandum of understanding with a major turbo manufacturer covering the mass production of several components, including nozzle vanes for current diesel turbo engines, and began prototype activities targeting mass production during the fiscal year ending March 2021.」

「We also signed an MOU with a major turbocharger manufacturer concerning the mass production of several components, including nozzle vanes for current diesel-turbo engines. The agreement is based on mass production one year later. We plan to move successively into prototyping, approval, and mass-production preparations.」

「Orders expanded substantially from the third quarter of the consolidated fiscal year onward. The number of high-performance components expanded to 11 items, including linear-motion bearings for THK CO.,LTD., and the number of material-sales delivery customers increased to 12, resulting in record-high operating income.」

「Among the three major items mentioned above, we received a formal prototype order for approximately 100 sets of VG turbochargers for gasoline engines supplied to a German automaker from a major domestic turbo manufacturer under the MIM (metal injection molding) process, targeting mass production in 2022. We will further strengthen coordination with the customer toward formal adoption for mass production.」

「For sales of these components and materials, we will establish an expanded sales structure integrating manufacturing and sales, with a minimum mandatory target of net sales of at least ¥300 million by the fiscal year ending March 2021, excluding the three major items.」

「Excluding the 3 major products, we aim for revenue of at least ¥300 million in the fiscal year ending March 2021 from sales of these materials and products, and will build an integrated production and sales structure for expanded sales.」

「With a view to mass production of nozzle vanes for next-generation gasoline turbo engines, we passed the VDA 6.3 potential audit, a German automotive standard, conducted by a major domestic turbo manufacturer and were certified as a fully approved supplier candidate.」

「With a view to mass production of nozzle vanes for next-generation gasoline turbo engines, we passed the VDA 6.3 potential audit, a German automotive standard, conducted by a major domestic turbo manufacturer and were certified as a fully approved supplier candidate.」

「Having completed the establishment of an in-house secondary-processing technology for sintered bodies finished to a near-net shape using our PIM process, we completed the audit for the first supplier certification under the German automotive standard VDA 6.3. Going forward, we will work to establish mass-production technology and build a robust quality-control system for prototyping and final review.」

「We are set to sign a memorandum of understanding (MOU) with a turbo unit manufacturing and sales company whose main customer is the world's largest turbocharger manufacturer, concerning the supply of several turbo components, including nozzle vanes. A mass-production project for next-generation gasoline turbo vehicles is also under way with Japan's largest turbocharger manufacturer, and we will further strengthen our internal structure toward commercialization.」

「We entered negotiations with a major overseas turbo manufacturer and 2 major domestic turbo manufacturers on specific volumes, prices, and the mass-production start date (SOP: Start of Production), and began full-scale consideration of short- to medium-term mass production through 2020.」

「Our PIM process minimizes burr formation through precision injection molding and has established technology for completely removing the small amount of burrs before the debinding and sintering process, with a fully automated burr-removal production line currently under construction. This will enable us to reduce the grinding time for ceramic bearing balls to one-quarter of that required for products made using other companies' processes.」

「With the aim of commencing full-scale mass production at our new plant in Shiga, we began establishing a fully automated production line covering molding, burr removal, debinding, and sintering. Under other companies' processes, voids remain inside the balls, requiring their removal through secondary firing called hot isostatic pressing (HIP). The substantial cost of HIP treatment has therefore been regarded as another process disadvantage. We have also completed, with 3 major domestic bearing manufacturers and 1 major overseas manufacturer, agreements on specifications for voids by bearing application, addressing void defects inside the balls by suppressing their formation during the primary sintering process under our PIM process and eliminating the costly HIP treatment.」

「During the current first quarter of the consolidated fiscal year, we signed basic agreements with 2 additional companies and are conducting performance tests with 3 major domestic companies and 1 major overseas company.」

「As the world's only comprehensive PIM manufacturer with integrated production from materials development through finished products, we will leverage the advantages of our proprietary technologies and manufacturing processes, further strengthen our development framework with each customer, and focus on the early adoption and mass production of our products.」