Improving the supply-demand balance through the consolidation and streamlining of production facilities
First written in FY2017-Q2. 9 of 31 entries say "Restated". Latest entry: 2026-08-07.
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- FY2026-H1WorsenedAnnual report
「In response to these challenging business conditions, efforts are underway to optimize the production structure and review plant operations.」
Demand in major end markets remained weak and plant utilization stayed low, prompting efforts to optimize the production structure and review plant operations. - FY2025WorsenedAnnual report
「Low plant utilization continued against a backdrop of global ethylene oversupply.」
In addition to fluctuations in demand and operating conditions, structurally low plant utilization caused by global ethylene oversupply is cited as an ongoing business condition. - FY2025-H1WorsenedAnnual report
「In the chemical, steel and other industries that are major markets for our Group, production for the automotive sector has shown signs of recovery. However, amid oversupply of basic chemicals resulting from structurally declining demand for petroleum products and capacity expansions at Chinese companies' ethylene facilities, conditions of supply-demand imbalance and declining plant utilization have continued.」
While production for the automotive sector has shown signs of recovery, oversupply of basic chemicals, supply-demand imbalances and declining plant utilization have continued due to structurally declining demand for petroleum products and capacity expansions at Chinese companies' ethylene facilities. - FY2024-Q3Delayed recovery in semiconductors and slowing overseas demand alongside productivity investmentAnnual report
「In the chemical, steel and other industries that are major markets for our Group, demand from the automotive and construction sectors has recovered, but production of related materials remained sluggish due to the delayed recovery in semiconductor-related demand and slowing overseas demand, particularly in China. Meanwhile, as labor shortages have caused production delays and driven up manufacturing labor costs, investment has been considered in digital technologies to improve productivity, environmental measures aimed at achieving a decarbonized society, and new-material development. In the social infrastructure market, consideration is also progressing toward the maintenance and management of infrastructure facilities, national resilience measures, and disaster prevention and mitigation initiatives.」
While demand from the automotive and construction sectors has recovered, the report cites delayed recovery in semiconductor-related demand, slowing overseas demand including in China, and sluggish materials production. It also notes continued consideration of investment in digital technologies, decarbonization, new materials and social infrastructure. - FY2024-Q2Improved semiconductor supply and demand coexist with lower ethylene plant operating ratesAnnual report
「Shipments of related materials remained solid as automobile production recovered following improvements in semiconductor supply and demand. However, the operating rate of ethylene production plants remained below 90% due to the impact on the global economy of the delayed recovery in China's economy and sluggish consumption growth resulting from higher prices.」
While recovery in automotive production and materials shipments is evident, ethylene plant utilization has remained below 90%, indicating diverging operating conditions across the industry. - FY2024-Q1Earlier ordering eases while some lead times remain longAnnual report
「Customers showed signs of easing their stance of placing orders ahead of schedule in anticipation of longer lead times for products, while orders showed signs of slowing, including due to the impact of longer lead times for base vehicles used in special-purpose vehicles for the social infrastructure market, although」
While the previous trend of advance ordering and supply tightness has eased, lead times for base vehicles used in special-purpose vehicles remain long, resulting in signs of slowing orders. - FY2023-Q3Signs of supply normalization coexist with demand for improved production efficiencyAnnual report
「In the chemical, steel, and other major customer industries of the group, signs of normalization in supply systems have begun to emerge for some components whose supply and demand remain tight. However, the global economic slowdown, economic stagnation resulting from China's zero-COVID policy, and the impact of elevated raw material and energy prices have prompted efforts to respond flexibly to production plans and improve production efficiency.」
While there are signs of partial normalization in component supply systems, the global economic slowdown, economic stagnation in China, and soaring raw material and energy prices continue, prompting efforts to make production plans more flexible and improve production efficiency. - FY2023-Q2Declining profitability and operating rates coexist with investment considerationAnnual report
「In the chemical, steel and other industries that are major sales markets for the Group, profitability and operating rates declined due to soaring energy and raw-material prices, as well as the longer lead times for some semiconductors and electronic components. However, consideration is under way of investments in digital transformation (DX) to optimize and improve production efficiency; R&D investments in energy-efficiency technologies toward a decarbonized society; and investments related to disaster prevention, disaster mitigation and national resilience initiatives being advanced by the government and local authorities.」
Higher energy and raw material prices and longer lead times for semiconductors and electronic components reduced profitability and operating rates in major customer industries. Meanwhile, consideration of investments related to DX, decarbonization, energy conservation, and disaster prevention and mitigation continued. - FY2023-Q1High operating rates and capital investment demand coexist with supply constraintsAnnual report
「As a result, there was also a trend toward earlier ordering in anticipation of longer lead times for products, while orders in the social infrastructure and private-sector markets remained solid. Sales increased to the chemical, steel, manufacturing machinery and electrical equipment, and shipbuilding industries, where capital investment and replacement demand remained solid against a backdrop of high production-facility operating rates, and」
While earlier ordering occurred in anticipation of longer lead times for products, capital investment and replacement demand increased, as did sales, against a backdrop of high production-facility operating rates. - FY2022High operating rates coexist with shortages and inventory build-upAnnual report
「While demand for high-performance materials and steel products expanded and high operating rates were maintained, supply shortages of components and materials, including semiconductor devices, and soaring raw material prices affected production activity. There were also signs of earlier ordering and inventory build-up in anticipation of longer lead times for procured components.」
Expanding demand and high operating rates coexist with shortages of components and materials, soaring raw material prices, and earlier ordering and inventory build-up in anticipation of longer lead times. - FY2022-Q3Tight supply and demand for electronic components and resin products becomes more pronouncedAnnual report
「Supply and demand were extremely tight for electronic components such as semiconductors and for some resin products, and many companies placed orders ahead of schedule in anticipation of longer lead times for these products.」
In addition to the previously noted recovery in demand and production, the disclosure identifies extremely tight supply and demand for electronic components such as semiconductors and some resin products, as well as advance ordering in anticipation of longer lead times, as features of the business environment. - FY2022-Q2Export recovery coexists with supply constraintsAnnual report
「Exports, mainly to Asia, were on a recovery trend and equipment operating rates rose, but the renewed spread of COVID-19 in Southeast Asia disrupted supply chains and brought various concerns, including shortages of electronic components and higher raw material prices, into sharper relief.」
In addition to the previously noted recovery in demand and production, the disclosure cites a recovery in exports and higher equipment operating rates, while supply-chain disruptions, shortages of electronic components, and higher raw material prices have also become apparent. - FY2022-Q1Recovery in demand for steel products and ethyleneAnnual report
「Demand for steel products and ethylene recovered against a backdrop of improving economic activity, and equipment operating rates are trending upward.」
In addition to the recovery driven by automobile and semiconductor demand, the disclosure identifies the recovery in demand for steel products and ethylene and the upward trend in equipment operating rates as changes in the business environment. - FY2021Production recovery driven by demand for automobiles and semiconductorsAnnual report
「Although demand declined during the COVID-19 pandemic, the production activities of related companies continued to recover as automobile demand recovered and semiconductor demand surged.」
In contrast to previous references to declining production and a cautious investment stance, the disclosure identifies the recovery in production activity accompanying the recovery in automobile demand and surge in semiconductor demand as a change in the business environment. - FY2021-Q3Concrete demand emerges for smart safety, sensors, and information and communications equipmentAnnual report
「Consideration progressed toward the introduction of automated production facilities, condition-monitoring sensors, and information and communications equipment, with a focus on improving productivity and achieving digital transformation (DX) and smart safety at manufacturing sites.」
In addition to traditional demand for automation, IoT, and condition monitoring, specific implementation targets have emerged, including smart safety, condition-monitoring sensors, and information and communications equipment. - FY2021-Q2Concrete demand emerges for DX, condition monitoring, and traceabilityAnnual report
「Some companies remain cautious about investment, but consideration is progressing for automating production equipment using AI and IoT to improve productivity and achieve digital transformation (DX) at manufacturing sites, introducing various condition-monitoring and traceability equipment, and replacing equipment attached to aging production facilities. Demand for social infrastructure investment related to disaster prevention and mitigation measures for increasingly frequent natural disasters remains firm.」
While some companies remained cautious about capital investment, consideration of and demand for investment in DX, AI and IoT, automation, condition monitoring, traceability, replacement of aging equipment, and disaster prevention and mitigation coexisted. - FY2021-Q1Production stoppages coexist with continued investmentAnnual report
「The spread of COVID-19 caused lower operating rates and shutdowns at production plants, and there were also signs of production adjustments following a disruption in the supply-demand balance for ethylene and crude steel production. Regarding capital investment, consideration is progressing toward the introduction of automated production facilities and remote monitoring systems using IoT to support work-style reform and higher productivity, condition-monitoring equipment to improve the reliability and safety of aging production facilities, and investment in social infrastructure for disaster prevention and mitigation in response to the increasing incidence of natural disasters.」
While production plant operating rates declined or plants shut down and production adjustments occurred, consideration of investments related to automation, remote monitoring, condition monitoring, and disaster prevention and mitigation continued, indicating a coexistence of weak demand and continued investment. - FY2020Investment delays coexist with continued investmentAnnual report
「Although there were gradually increasing signs of companies postponing capital investment, investment remained solid in equipment supporting IoT-based equipment management, workplace improvements, and enhanced environmental performance, reliability, safety, and quality, against a backdrop of a declining working-age population due to the declining birthrate and aging population, responses to work-style reform, and demand for the replacement and maintenance of aging infrastructure and production facilities.」
Postponement of capital investment due to U.S.-China trade frictions and higher costs coexists with solid investment in IoT, environmental and safety-related areas, supported by the shrinking labor force and replacement of aging equipment. - FY2020-Q3Production declines coexist with continued investmentAnnual report
「In our Group's existing business areas, including the petrochemical, steel and machinery manufacturing industries, production volumes have continued to decline, particularly among export-oriented companies, although there have also been moves to bring materials related to next-generation 5G communications to market. In terms of capital investment, companies continue to implement investments in equipment management using IoT to improve productivity against a backdrop of a declining working-age population due to Japan's declining birthrate and aging population, research and development investments for the future, and replacement of aging infrastructure and production equipment. They are also considering investments to strengthen environmental performance, safety and security.」
While production volumes, mainly among export-oriented companies, continued to decline, the demand environment was characterized by the launch of materials related to 5G markets and continued investment in IoT-based equipment management, research and development, and the replacement of aging equipment. - FY2020-Q2Higher replacement demand coexists with an impact on orders for machine toolsAnnual report
「Orders increased for replacement equipment following equipment trouble caused by aging facilities and issues involving the transfer of skills from experienced technicians, while the slowdown in overseas markets also affected orders for equipment used in machine tools.」
While equipment trouble resulting from aging facilities and skills-transfer issues increased replacement demand, the slowdown in overseas markets affected orders for equipment used in machine tools, indicating a mix of strong and weak demand. - FY2020-Q1Sustained investment demand coexists with a partial slowdownAnnual report
「Although there were signs of efforts to assess changes in the earnings environment following a decline in machine-tool orders caused by higher raw material prices and the impact of U.S.-China trade frictions, investment continued from the previous fiscal year in automation to improve productivity against a backdrop of labor shortages, replacement of aging equipment to ensure stable operation, research and development to improve quality, and the introduction of predictive maintenance using IoT.」
While the decline in machine-tool orders is identified as a factor slowing activity, investment demand for automation, equipment replacement, research and development, and predictive maintenance continues. - FY2019-Q3RestatedAnnual report
「In our group’s existing business areas, including petrochemicals, steel, and machinery manufacturing, production declined in some areas because of scheduled repairs and equipment trouble, but domestic demand remained firm, particularly for functional materials and high-value-added products. Capital investment also remained solid, supported by high corporate earnings, including replacement of aging equipment, expansion of production equipment for high-performance materials, increased automation and labor-saving investment to improve productivity, and investment to restore quality and reliability.」
The disclosure reconfirms a business environment in which domestic demand, capital investment, replacement of aging equipment, and automation and labor-saving investments remain solid despite temporary factors reducing production. - FY2019-Q2RestatedAnnual report
「Although production temporarily declined in some areas due to scheduled periodic repairs and natural disasters, demand for manufactured products remained high, supported by the resilient domestic economy.」
The disclosure reconfirms a business environment in which demand for manufactured products remains high, supported by the domestic economy, despite temporary factors reducing production. - FY2018RestatedAnnual report
「In the group's existing business areas, including petrochemicals, steel, and machinery manufacturing, demand remained resilient in both domestic and overseas markets, and equipment operating rates remained high.」
The disclosure reconfirms a business environment in which resilient demand and high equipment operating rates continue in the existing business areas. - FY2018-Q3RestatedAnnual report
「In our group’s existing business areas, including petrochemicals, steel, and machinery manufacturing, demand conditions have remained firm and equipment utilization rates have stayed high. Companies remain willing to invest in automating production equipment using IoT and big data to improve productivity, as well as in research and development linked to new materials and technologies.」
The disclosure reconfirms a business environment characterized by resilient demand, high equipment operating rates, and continued willingness to invest in equipment automation and research and development. - FY2018-Q2RestatedAnnual report
「Against a backdrop of solid domestic and overseas demand, equipment utilization remains high, and companies' willingness to invest in automating production equipment using IoT and big data to improve productivity, as well as in improving the efficiency of aging equipment, remains undiminished,」
The disclosure reconfirms a business environment in which high equipment operating rates and the willingness to invest in the automation and efficiency enhancement of production facilities continue. - FY2018-Q1RestatedAnnual report
「Equipment utilization remains high, and companies are considering investments to automate production equipment using IoT and other forms of big data to improve productivity, as well as efficiency improvements for aging equipment.」
The disclosure reconfirms a business environment in which equipment operating rates remain high and consideration of investments in the automation and efficiency enhancement of production facilities is progressing. - FY2017RestatedAnnual report
「In the group's existing business areas, including petrochemicals, steel, and machinery manufacturing, corporate earnings have been affected by higher raw material costs and exchange-rate fluctuations, but the supply-demand balance has improved and production is recovering, supported by a recovery in domestic and overseas demand.」
In addition to the improvement in the supply-demand balance resulting from the consolidation of production facilities and other factors, the disclosure notes that production is on a recovery trend. - FY2017-Q2First statedAnnual report
「The supply-demand balance has gradually improved as the consolidation of production facilities has progressed.」
The disclosure identifies progress in consolidating production facilities in the group's existing business areas and the resulting improvement in the supply-demand balance as changes in the business environment.