Expansion into Factory Automation and Globalisation

「Overseas, we established NITTOKU FA INDIA PVT. LTD. in India in December last year through a joint investment with DAIICHI JITSUGYO CO.,LTD. We aim to strengthen sales of our products and improve profitability by leveraging its broad network and sales capabilities, and will proceed with full-scale operations going forward.」

「On 1 September, NITTOKU SINGAPORE PTE.LTD., a group company of the company, and DAIICHI JITSUGYO CO.,LTD. entered into a joint venture agreement to leverage their respective management resources and expertise in India, designated as a global strategic market, with the aim of improving business efficiency, expanding earnings, and strengthening competitiveness and sales activities in India.」

「In Japan, our business for the semiconductor industry has been handled by the Factory Automation Division. In April 2025, however, we made the Semiconductor Division an independent organisational unit to accelerate our response to market needs and demands. Overseas, we opened a Da Nang branch of our Vietnamese subsidiary in March 2025 to improve services for users in central Vietnam and expand and invigorate sales activities.」

「The company designs and manufactures dedicated automation machinery and provides a variety of production equipment to the automotive industry, its main market, as well as the food and beverage, medical and cosmetics industries. By making the company a subsidiary, we expect synergies from strengthening our manufacturing capabilities and technology development and expanding sales channels for large-scale production equipment for the automotive components industry, centred on motors, inverters and batteries, as well as further strengthening our global structure by expanding sites in the Tokai region of Japan and North America.」

「In April this year, we made Astecnos Co., Ltd., a manufacturer specializing in the design and production of automated machinery, a subsidiary in Japan, and made API Co., which has expertise in electrical measurement and inspection equipment, a subsidiary of our European operating company. We will actively expand our business and operations through synergies from these M&A transactions.」

「By developing global personnel, we improved the level of sales, production and service delivery at overseas sites, promoted the “outsourcing of production engineering” to accurately capture users’ needs and wants, and advanced collaboration and co-creation with users and suppliers.」

「We are continuing to build a business model that integrates mechanical elemental technologies such as winding, tension control and handling with a proprietary OS enabling high-function multiaxis synchronous control through a conveying system and turns them into a platform, thereby providing production systems that enable users to compete successfully in global markets.」

「To provide state-of-the-art production systems and stable services even amid the recent rise in geopolitical risk, we are establishing a one-team structure in which headquarters and overseas bases act as one and respond swiftly and flexibly to the needs and wants of each region and user. This includes establishing microfactories and service bases close to users to add functions to and modify machinery and equipment.」

「Under the concept of local production for local consumption, we promoted a structure for remote sales meetings, specification discussions, completion inspections and installation support. By transferring order intake, production and service operations to overseas sites, among other measures, we improved production efficiency and promoted the “outsourcing of production engineering” to accurately capture users’ needs and wants, as well as collaboration and co-creation with users and suppliers.」

「Under the concept of local production for local consumption, we promoted a system for remote sales discussions, specification meetings, completion checks and installation support, increased production efficiency by transferring order-taking, production and service operations to overseas bases, and promoted “substitution for production engineering” that accurately captures customer needs and wants, as well as collaboration and co-creation with customers and suppliers. As a result, orders on a non-consolidated basis for the first half increased 18.9% year on year to ¥12,874 million.」

「As part of these efforts, our Vietnamese subsidiary began sales operations in April 2022. We will continue expanding into other regions, raising production efficiency and working to shorten delivery times through local production for local consumption.」

「By establishing sites around the world, our group communicates Japanese-origin technology to each region, adapts it to local needs, and provides one-stop solutions and global support.」

「During the fiscal year, we made total capital investments of ¥617 million, mainly for the construction of a new plant for 日特機械工程(蘇州)有限公司 (China), with the aim of expanding production capacity.」

「Under the concept of local production for local consumption, we expanded our overseas production structure to minimize the movement of people, utilized remote technologies, and transferred part of our order-taking and production operations to our European and Chinese subsidiaries. We continued to deploy our strengths further toward the new normal and work to restore business performance.」

「The core of our group’s management strategy is the development and manufacture of automated equipment for producing coils and motors, which are key devices for addressing environmental issues, a major SDG challenge.」

「Wisdom does not arise where there is no knowledge or experience. Our global niche-leading strategy is centered on a business model that combines a diverse range of elemental technologies, processes and materials expertise with the latest digital technologies to develop, build and provide production lines.」

「Our group continues to pursue a basic strategy of expanding into adjacent fields while maintaining a position focused on researching, developing and providing total precision factory automation lines for manufacturing devices, tools and modules.」

「Our group aims to make a broad contribution to society worldwide by becoming our customers’ solution engineer, planning, developing and providing original, optimal equipment, namely production equipment, for each customer, while also providing support through services, thereby helping achieve numerous initiatives to improve quality of life.」

「Including comprehensive maintenance, support and solutions, our group meets future-oriented needs in major production and development regions around the world, particularly in Asia, Europe and North America, as well as Japan.」

「Against this backdrop, our group has positioned itself upstream of these manufacturers and has invested management resources in the development and manufacture of customised production-line equipment as a core business. We have also pursued strategies including the development of global personnel, expansion of business partners, and stronger alliances centred on open innovation. In particular, we have focused on expanding into total factory automation lines that include the assembly of modules, differentiating ourselves in the winding machine and factory automation industries. This differentiation has enabled us to provide solutions to manufacturers that are narrowing their investments to high-quality and highly efficient production amid the recent uncertain economic environment. In the first quarter on a standalone basis, orders exceeded the record ¥7,890 million recorded in the same quarter of the previous year. Quarterly orders amounted to ¥9,036 million, the second-highest level after the record ¥12,081 million posted in the third quarter of the fiscal year ended March 2017.」

「The long-term challenge is to gain global market share by making these total solutions the de facto standard. Working backward from this vision, we will strive to increase capacity, secure personnel, develop technologies and products, and train global personnel.」

「Our group has pursued a partnership strategy of meeting increasingly sophisticated needs, such as high-quality, high-efficiency, labor-saving and integrated-line production of the hardware and devices manufactured by companies competing in these markets, while solving a wide range of challenges and acting as a substitute for customers’ production engineering across a broad range of industries, thereby taking responsibility for an important part of customers’ value creation.」

「Accordingly, our group develops factory automation lines, equipment and systems by applying coil-related technologies, acquiring materials expertise, and, where necessary, leveraging open innovation, alliances and M&A. We also operate a global service network to support customers as part of our turnkey solutions. Manufacturers capable of jointly building precision factory automation lines as turnkey solutions are rare. Recently, orders from top-tier electronics, electrical equipment and automotive manufacturers worldwide have increased sharply. Compared with the same period of the previous year, orders doubled in the automotive sector, increased 70% in the information and communications sector, and quadrupled in the audio-visual and home appliance sector.」

「During the third quarter of the current consolidated fiscal year, the company completed a proprietary new production method for EV motors developed for the automotive industry using technologies and expertise accumulated through many years of R&D, and proposed it to automakers and motor manufacturers. Going forward, the company will develop production equipment using the new method and pursue global expansion of production equipment for EV motors, together with equipment based on improvements to conventional methods.」

「Our group develops and manufactures production equipment for electrical and electronic devices. By deepening and expanding our core and elemental technologies based on winding, we have established a global niche-leading position in precision factory automation equipment. To become a leading member in creating the future represented by AI, M2M, smart factories and de facto standards associated with Industry 4.0, we continue to invest resources in initiatives aimed at stepping up to become a factory automation integrator. We provide total solutions covering the development, installation and stable operation of production equipment for a wide variety of devices, production control, traceability, quality control, service and maintenance, parts sales, and other solutions, while also proposing sustainable innovation.」

「Our group develops factory automation equipment and certain products used to manufacture the electrical, electronic and communications components and devices required in these fields. We have begun implementing a strategy to become a leading company providing total solutions for a wide range of advances, including not only factory automation equipment development but also production engineering, maintenance, new processes, new technologies, device innovation, and productivity and quality improvements.」

「Alongside expanding its share of the winding machine business, our group’s core business, we aim to enhance corporate value and meet stakeholder expectations by expanding into the factory automation business through the integration of adjacent technologies and businesses via business alliances, M&A, open innovation and open shared businesses, while also pursuing globalisation.」