Enhancing Competitiveness through New Technologies and Products

「For high-value-added products, the company is also focusing on new development to advance ODDS, coil-spring module development, and functional products that improve vehicle driving stability and convenience.」

「High-value-added, one-of-a-kind ODDS and new stabilizer」

「During the interim consolidated accounting period, sales to major customers increased in Japan due to higher shipments of the new stabilizer (ODDS) and the resolution of the impact of production stoppages at certain customers that occurred in the previous year,」

「For high-value-added products, the company is also focusing on incorporating peripheral components, including through development of ODDS (On Demand Disconnectable Stabilizer) and stabilizer modules.」

「For products, the company is improving its earnings mix through higher sales of new stabilizers incorporating new technologies, while improving global sourcing and promoting engineering procurement, working jointly with suppliers to reduce direct material costs. From a production-technology perspective, it is expanding capital investment in equipment using a cold-processing method that enables spring products to be processed and manufactured with lower-temperature, more compact equipment as part of its response to the SDGs and carbon neutrality.」

「Following suspension coil springs, the company has also achieved higher strength in stabilizers using standard materials by optimizing materials and processing treatments.」

「As part of the development of new products and technologies, we began mass production of the new SDM stabilizer, which combines steering stability and off-road capability. In response to vehicle electrification, our chassis springs were adopted for a strategic battery EV model of a major customer in China. In addition, to expand the business into non-automotive fields, we began production of rail fastening springs for the railway sector and wheelchair towing devices for the healthcare sector, leveraging core technologies cultivated through the development and manufacture of automotive springs and control cables.」

「Looking to the medium and long term, this year is the first year of the Medium- to Long-Term Management Plan formulated at the end of May and a milestone year in which we plan capital investment roughly twice the level of a normal year. This includes investment to expand sales of existing products with a target of sales of ¥100 billion or more, new investment in high-profitability and EV-related products, and investment related to the SDGs.」

「In addition to manufacturing high-performance products, the production preparations include capital investment incorporating a new production method that processes products at lower temperatures. This can substantially reduce total CO2 emissions. The company is also developing a production line with a more compact overall length, which will likewise contribute to reducing total CO2 emissions.」

「As an example of a high-profitability product, development and production preparations for the high-performance chassis spring, which significantly improves safety and ride comfort and for which orders have already been confirmed, are proceeding steadily as planned. In addition, production has begun for chassis springs and precision springs for the flagship cars of major customers as new targets for sales expansion, and orders have been secured for chassis springs for electric vehicles in the Chinese market.」

「Looking ahead, we will actively pursue higher value added for products to further improve profitability, expand our lineup of EV- and FCV-compatible products in response to the electrification strategies of our major customers, and enter non-automotive fields by leveraging technologies cultivated through automotive components. We will strengthen both sales and profitability and focus on achieving 中発Global Vision2025.」

「We will continue to actively expand the lineup of EV- and FCV-compatible products in response to the electrification strategies of our major customers, enhance product value added, contribute to a carbon-neutral environment, and promote initiatives aligned with the SDGs to address social needs, with the aim of advancing both growth and efficiency and achieving the medium- to long-term management plan under 中発Global Vision2025.」

「The company's first railway-related product is already in mass production, and it has newly begun prototyping and evaluation of products that will serve as key components of a new railway-related mechanism scheduled to be launched on the market.」

「In particular, the company newly began mass production of springs for securing the hydrogen tanks of the new MIRAI FCV from TOYOTA MOTOR CORPORATION. It is also mass-producing flocked springs with enhanced quietness for long springs used in power back doors, whose vehicle installation has expanded in recent years.」

「The company began mass production of new products compatible with the new structure of vehicle-mounted batteries, as well as products for mounting and securing cameras for safety-assistance systems that are being installed in an increasing number of vehicles.」

「Revenue increased due to the impact of new products and other items launched in the first half of the fiscal year, reaching ¥4,922 million, up 5.9% year on year. Operating profit was ¥2,835 million, up 32.8%, reflecting progress in efficiency-improvement activities.」

「New products compatible with the new structure of vehicle-mounted batteries, as well as products for mounting and securing cameras for safety-assistance systems that are being installed in an increasing number of vehicles, will enter mass production this year.」

「To improve market satisfaction, the company fully rolled out across vehicle models this year the new coating for suspension coil springs, which it began introducing last year.」

「To improve market satisfaction, we developed a new coating for suspension coil springs with improved coating-film strength and began launching it on the market this year. We are also developing processing technologies to create greater added value and actively advancing development to contribute to further weight reduction and cost improvements. In product evaluation, we developed and began operating a new durability testing machine for suspension coil springs. This has reduced evaluation time by approximately 80% compared with the previous method, while also halving power consumption as part of our environmental efforts.」

「Our group is actively developing new technologies and products to significantly strengthen its competitiveness over the medium to long term.」