KOBELCO WIRE COMPANY, LTD. (5660) Stock Price

Shinko Steel Wire Industries operates in four main business segments: specialty steel wire products, wire rope products, engineering-related products, and other businesses.

The specialty steel wire business manufactures and sells PC steel wire, PC strands, cable-processed products, spring steel wire, plated steel wire, stainless steel wire, and specialty metal wire. Raw materials for these products are sourced from the parent company Kobe Steel, Ltd.

The wire rope business manufactures and sells wire rope products including general-purpose rope, specialty rope, steel strands, and stainless steel rope. These products also use raw materials from Kobe Steel, Ltd., with some manufacturing processes outsourced to affiliated companies.

The engineering-related business manufactures and sells installation and tensioning components, equipment, and tertiary-processed wire products. Part of the manufacturing is outsourced to affiliated companies to maintain an efficient production system.

Other businesses include real estate leasing and asset utilization operations. This diversification strategy helps establish a stable revenue base.

Shinko Steel Wire Industries aims to contribute to the realization of a sustainable society by implementing a growth strategy centered on sustainability management. Based on its "Shinko Steel Wire Mission" and "Shinko Steel Wire Credo," the company's corporate philosophy is to continue providing "indispensable value" to society.

The medium-term management plan "Next Innovation 2026" seeks to build a corporate foundation capable of adapting to environmental changes and achieving sustainable growth. Specifically, the company targets ROIC of 5% or higher and operating profit of 2.1 billion yen or more, while deploying measures to establish a stable earnings base. In fiscal 2024, the company achieved ROIC of 2.9% and operating profit of 1.2 billion yen.

The company is improving profitability through price pass-through and productivity gains in its specialty steel wire, steel rope, and engineering-related businesses. It is also expanding markets in new energy fields and high-value-added products while focusing on developing sustainability-contributing products. Through these efforts, the company aims to balance social contribution with business growth.

To address uncertainty in the business environment, Shinko Steel Wire Industries is leveraging its technology and expertise to develop new demand and enhance cost competitiveness. In particular, the company is advancing product development to address labor shortages and meet growing demand in earthquake-resistant and disaster-prevention applications. Through these initiatives, the company is pursuing sustainable growth.