Mitsubishi Steel Mfg. Co.,Ltd. (5632) Stock Price

Mitsubishi Steel operates a diversified business portfolio that includes the manufacturing and sales of special steel materials, springs, raw materials and formed products, and industrial equipment. These operations are managed together with affiliated companies and include related services such as transportation and logistics.

In the special steel materials business, the company supplies specialized steel products including carbon steel, low-alloy steel, and spring steel. Key affiliated companies include Mitsubishi Steel Muroran Special Steel and PT.MSM INDONESIA, with a total of 7 companies engaged in this business segment.

The springs business manufactures coil springs, stabilizers, torsion bars, and related products. The company also handles replacement parts for automobiles and construction machinery. Ten companies participate in this business, including MSSC CANADA INC. and MSSC US INC.

The raw materials and formed products business provides specialized alloy powders and precision castings. Three companies operate in this field, including MSM (THAILAND) CO., LTD. This enables the manufacture of precision machined components and cast steel products.

The industrial equipment business handles forging machinery, industrial machinery, and environmental recycling equipment. Mitsubishi Nagasaki Machinery is the primary affiliated company, with 5 companies involved in this business segment. This allows the company to meet a wide range of industrial machinery needs.

Other operations include domestic maritime shipping, port transportation, and warehousing services. Rhokoh Transportation and Rhokoh Service are the principal affiliated companies, with 3 companies active in this field. These operations enable the provision of comprehensive logistics services.

Mitsubishi Steel is pursuing sustainable growth and enhanced corporate value through a 2030 Vision. To realize this vision, the company is implementing a medium-term management plan from 2023 to 2025. This plan prioritizes strengthening profitability, nurturing strategic businesses, investing in human capital, and advancing sustainability management.

First, to strengthen profitability, the company is maintaining and expanding margins in core businesses and introducing ROIC to achieve capital-efficient management. This enables optimization of the business portfolio, including potential withdrawal from low-margin operations. Additionally, the company is advancing structural reforms centered on overseas operations and concentrating resources in growth areas.

In nurturing strategic businesses, the company targets expanding the revenue ratio from the current 30% to 50% by 2030, focusing on three keywords: "environmental responsiveness," "overseas business," and "EV shift." Results are already emerging in overseas steel materials and precision components businesses, with continued capital investment planned to capture market expansion.

For human capital investment, the company emphasizes developing individual employee capabilities as a core organizational strength. It is advancing wage improvements, workplace environment enhancements, and revisions to personnel evaluation systems. Through dialogue between management and employees, the company is raising engagement to build an organization that supports growth.

In sustainability management, the company prioritizes CO2 emissions reduction as a critical issue, setting a target to reduce total emissions by 50% by fiscal 2030. The company is advancing product development in renewable energy and circular economy sectors, contributing to solutions for social challenges. Additionally, organizational restructuring is underway to strengthen risk management functions and enhance governance.

Through these initiatives, Mitsubishi Steel aims to realize its 2030 Vision and achieve sustainable growth and enhanced corporate value.