In the series of medium-term management plans with the slogan of “Growth & Change” since fiscal year 2012, the Group has been continuing to promote global “Growth” and “Change” to achieve a highly profitable business structure. Given that the long-term trend of expanding overseas demand and contracting domestic demand remains unchanged, the Group positions G&C 2021 as the final stage of G&C.
The Group will work to expand its cash flow creation capabilities for future growth with “For the completion of G&C and future growth” as a basic principle, putting priority on increasing the earnings power of businesses that were enhanced under G&C 2018. At the same time, the Group will aim for sustainable growth beyond the 100th anniversary of the Company’s foundation in 2021 by continuing to work on the development of new businesses and products that will meet customer and social needs.
(1) Increase in earnings power
The Group will increase the earnings power of the Automotive & Industrial Machinery Components Business and the Steel Business, its core businesses, by focusing on operating profit. The Group will reap the results of growth measures implemented in G&C 2018 and promote measures based on customer needs, the strengths and weaknesses of the Group, and the further cost reduction of the entire value chain in response to the expanding corporate size.
(2) Manifestation of the Group synergies
The Group will promote the following measures to maximize synergistic effects with Ring Techs Co., Ltd. and Asahi Tec Corporation, which joined the Group in fiscal year 2018.
(Synergistic effects with Ring Techs Co., Ltd.)
Optimization of domestic and overseas production systems in response to falling domestic demand for steel wheels for passenger vehicles, and the improvement of costs and productivity through the standardization of design, technologies and purchase.
(Synergistic effects with Asahi Tec Corporation)
Mutual sales expansion of steel wheels for passenger vehicles and aluminum wheels globally, including the U.S. and Europe, and the improvement of costs and productivity through the standardization of design, technologies and purchases.
(3) Enhancement of strategic products
For synthetic mica, which is a basic ingredient in cosmetics, the Group will capture demand that is expected to grow in Japan and overseas by utilizing the production capacity that increased in G&C 2018. For crawler robots, the Group will make a full-scale entry into the market where demand is expected to increase on the back of the labor shortage by positioning crawler robots as an automated guided vehicle (AGV), differentiated from existing tire-system vehicles.
In the Automotive & Industrial Machinery Components Business, the Group will accelerate the development of lightweight wheels that will meet needs of automotive manufacturers for lighter body weight and promote the development of wheels that will pursue high-quality design. In the Steel Business, the Group will further deepen the manufacturing and processing technologies of deformed section steel, which is the Group’s strength, and differentiate its new product TACoil® by increasing its size.
(4) Taking on the challenge of innovation
[E] The Group will aim for manufacturing at eco-friendly and environmentally conscious production plants and bases.
[S] The Group will promote the provision of products that will contribute to society and regional contribution activities.
[G] The Group will work to strengthen the governance system that aims to prevent and minimize risks.
(5) Further strengthening of the management foundation
The Group will strengthen its product and technology development capabilities by increasing research and development expenses to take on challenges for the future by polishing its proprietary technologies. The Group will also promote smart factories by utilizing IoT at the production site to strengthen manufacturing. In addition, the Group will secure and cultivate human resources who will take a leading role over the next 100 years by focusing on the creation of a creative workplace through continuous efforts for activities to improve job satisfaction and promote diversity, which were successful in G&C 2018.
(6) Quantitative goals and numerical target plans
２) Numerical target plans (in billions of yen)
The Topy Industries Group plans to spend approximately 37.0 billion yen as a maintenance investment over the three years and other growth strategy investments of approximately 15.0 billion yen.