In an IR interview with President and Representative Director Yamaguchi (山口), KK DI-NIKKO ENGINEERING disclosed its business overview centered on EMS PCB assembly, its ROIC-focused growth strategy, and its regional strategy built around Japan, China, Thailand and Vietnam.
KK DI-NIKKO ENGINEERING emphasizes an integrated EMS service centered on PCB assembly, including support for upstream design processes and finished-product assembly. The company says it aims to secure high-value-added projects for the automotive, medical-device and industrial-equipment sectors, and identifies its analog-circuit development and design capabilities and manufacturing technology as key strengths.
The company was founded in 1979. From the latter half of the 1980s, orders from the Canon Group accounted for the majority of its business, but it was listed on the JASDAQ market in 2007. It is said to have diversified its customer base, with automotive-related orders increasing in the 2010s, and shifted to a portfolio designed to avoid dependence on specific customers.
The company entered Thailand following a capital alliance in 2013. Based in China, Thailand and Vietnam, it is seeking to expand orders mainly across ASEAN and has shifted toward a business model that emphasizes partnerships with collaborating companies.
As a pillar of its growth strategy, the company has adopted a policy of emphasizing ROIC. It is increasing the proportion of high-value-added processes from upstream operations through finished products, improving inventory turnover and promoting more effective use of capital, while presenting a long-term plan extending to 2030. In its regional strategy, it has indicated that it will not completely eliminate its dependence on China, but will balance the shares of Thailand, Vietnam and Japan, focusing mainly on Japanese customers.