Overseas Microfactories and Capacity Expansion at Overseas Sites

「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.」

「The Company is promoting the recruitment of highly capable personnel who can contribute immediately in niche industries through its satellite strategy, which is aimed at securing such personnel by opening technical centers in locations where the people it seeks to hire are concentrated.」

「In light of supply-chain disruptions and other factors, we will progressively convert overseas sites without production functions into “small factories” capable of overhauls and basic equipment assembly, thereby expanding the scope of services available at each site. We will also increase the flow of materials and exchange of personnel between sites and actively use remote technologies to enhance our global support structure, with the aim of responding to customers more quickly.」

「During the fiscal year, we enhanced our service support structure at overseas sites, primarily in Southeast Asia, including by establishing a local subsidiary in the Philippines and opening a branch of our Vietnamese subsidiary in Ho Chi Minh City.」

「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.」

「Under the concept of local production for local consumption, we promoted remote operations centered on overseas sites, seeking to improve productivity and competitiveness by making sales, production and services more efficient and reducing manufacturing costs.」

「Going forward, we will focus on skills training for personnel at overseas sites, primarily in North and Central America, India and Southeast Asia, including Vietnam. We will improve productivity and competitiveness by streamlining sales, production and services and reducing manufacturing and maintenance costs, while raising production efficiency and working to shorten delivery times.」

「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.」

「We will strengthen pre- and after-sales service structures at each site and establish a structure that meets the needs and wants of each region and customer, including designing and manufacturing as microfactories close to customers.」

「With respect to our group’s overseas business activities, local subsidiaries handle order intake, production, delivery and installation. As customers resumed their activities, inquiries, orders and sales all began to trend upward.」

「We also advanced a “With CORONA” operating structure, including the transfer of part of our order intake and production to our European and Chinese subsidiaries.」

「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.」

「Under the concept of local production for local consumption, we are expanding production capacity at overseas subsidiaries to minimize the movement of personnel. We are also strengthening our development, production and sales structures for the new normal while preserving our strengths, and working to restore business performance, which deteriorated as a result of the impact of COVID-19.」

「Aiming to become a global niche leader in our core product areas is a management strategy that serves as the vertical axis for the sustainable growth of our group.」

「Overseas, we are also developing the infrastructure of microfactories, sales and service sites, and training personnel, in part to strengthen communication with customers.」

「As the benefits of expanding the Fukushima and Nagasaki plants will not materialize until next year or later, we are currently strengthening our production structure by expanding overseas production, centered on 日特蘇州社, standardizing and streamlining designs and components, and strengthening our business partners.」

「To expand capacity during the fiscal year, we established 欧州日特有限会社 (Austria) as a microfactory for local development, manufacturing and services, while relocating and expanding 日特機械工程（深圳）有限公司 (China) and 日特タイ社 (Thailand), upgrading them from service sites. The impact on sales will be felt from the following fiscal year onward.」