Logistics cost reduction through high-value-added products and a company-owned wharf

「7,018 We made capital investments of ¥7,018 million. Kyushu and Chugoku 4,114 Construction and renovation of warehouse and office buildings, and expansion of processing facilities」

「We also established and expanded processing facilities at existing locations and worked to strengthen sales of processed products with high value added and less exposure to steel product market conditions, thereby pursuing stable earnings growth through continued efforts to secure sales volume.」

「In our group's steel products sales business, amid sluggish demand, weak steel product market conditions and difficulty securing sales volume due to intensifying competition, we actively developed our locations with a medium- to long-term perspective, including the relocation to newly built facilities of the Saga and Yamaguchi sales offices and the opening of the Shizuoka Center in Shizuoka City, while also actively expanding processing facilities at existing locations to increase value added.」

「We will actively develop our network of facilities with a medium- to long-term perspective, including the new construction and relocation of the Saga and Yamaguchi sales offices and the opening of the Shizuoka Center, while also installing new and additional processing equipment at existing facilities.」

「Accordingly, from a medium-term perspective, we actively advanced the enhancement of inventory products and the establishment and expansion of processing facilities at each location, initiatives pursued for some time, and strengthened our ability to meet customer needs beyond previous levels.」

「In our group's steel products sales business, amid sluggish demand and slightly weak steel product market conditions, we actively pursued sales by expanding inventory and establishing and expanding processing facilities at each location to secure sales volume and achieve stable earnings growth less susceptible to market conditions.」

「With steel product market prices trending upward from the previous fiscal year and procurement costs, including the cost of inventory products, remaining high, we actively pursued sales by passing these costs through to selling prices and effectively using processing facilities at each location to increase sales volume and earnings.」

「Accordingly, we worked to increase sales volume and earnings by strengthening inventory at each location, an initiative pursued for some time, and making use of processing facilities.」

「In the steel products sales business, amid sluggish demand and rising procurement costs accompanying a manufacturer-led market upswing, our group worked to reflect these costs in selling prices and actively pursued sales initiatives aimed at securing sales volumes and improving profitability by making maximum use of inventory and processing facilities at each location.」

「In the steel products sales business, amid a manufacturer-led rise in the market for steel products, our group focused on passing higher procurement costs through to selling prices and actively pursued sales initiatives aimed at increasing sales volumes and improving profitability by making effective use of inventory and processing facilities at each location.」

「Against this backdrop, in the steel products sales business, amid continued increases in steel product market prices, our group worked to pass these increases through to selling prices and actively expanded processing facilities at each location, including the establishment and expansion of locations, to increase value added, thereby pursuing higher sales volumes and earnings through the use of inventory products.」

「In the steel products sales business, amid continued increases in steel product market prices, we worked to reflect these increases in selling prices while actively expanding processing facilities to increase value added, thereby pursuing higher sales volumes and earnings.」

「We actively pursued sales expansion to increase sales volume and earnings by making maximum use of inventory and processing facilities at each location.」

「In the steel products sales business, amid a rise in the market for steel products led by manufacturers, our group focused on passing higher procurement costs through to selling prices, while making effective use of inventory and processing facilities at each location to actively pursue sales initiatives aimed at increasing sales volumes and improving profitability.」

「Amid these conditions, our group is pursuing further sales efforts in the construction contracting business and enhancing processing facilities to expand sales areas and market share, increase orders for steel products and improve profitability, and is actively working to secure stable levels of earnings despite future changes in the business environment.」

「In the steel products sales business, amid sluggish demand and a declining market, our group actively pursued sales initiatives to increase sales volumes, focused particularly on selling processed products through stronger processing capabilities, and concentrated on securing earnings.」

「At each location, we actively invested in facilities, including expanding primary processing facilities for steel products to meet customer needs and increase value added. We also entered new fields, including through the acquisition of Morita Kozai Co., Ltd., a reinforcing-bar processor.」

「By the end of March 2021, approximately ¥5 billion in construction funding for warehouses equipped with processing facilities in new areas, including the Kurume and Mie sales offices,」

「At each location, we have expanded primary processing facilities for steel products to meet customer needs and increase value added.」

「We will further improve margins by enhancing our in-house processing facilities at large distribution warehouses to promote sales of higher-value-added products, while also seeking to reduce logistics costs through ownership of company-operated piers.」

「We will further improve margins by seeking to reduce logistics costs through the sale of higher-value-added products and ownership of company-operated piers.」