OWARI PRECISE PRODUCTS CO.,LTD. (E01290) Stock Price

Owari Seiki is a company specializing in precision component manufacturing for the automotive industry. The company manufactures and sells precision forged products, various fasteners, and aircraft components. It demonstrates particular strength in high-precision automotive transmission parts such as synchronizer rings, shift forks, and welding nuts.

The company's primary customers are automotive manufacturers including Toyota Motor Corporation and related parts suppliers, with the majority of revenue derived from automotive-related operations. The company operates seven subsidiaries domestically and internationally, and has established local production systems in the United States, India, Thailand, and Indonesia to secure stable orders as customers expand overseas.

Operations are divided into five regional segments. In Japan, the parent company and three subsidiaries work in coordination to conduct integrated production from manufacturing through surface treatment. Overseas, each facility supplies specialized products such as small screws and synchronizer rings to local automotive manufacturers, while receiving technical support and die supply from headquarters to maintain unified quality control.

Owari Seiki is executing a strategic business transformation to survive a major upheaval in the automotive industry. As domestic demand for its core product, synchronizer rings, declines due to overseas relocation, the company is actively pursuing new growth areas in automatic transmission (AT) parts and continuously variable transmission (CVT) parts. In particular, sun gears (AT parts), which began mass production in December 2019, are expected to see increased orders from December 2020 onward, and the company is rapidly preparing increased production capacity.

The core of the company's differentiation strategy is strengthening its global production footprint. OSR, INC. in the United States completed construction of a new factory in January 2020 and finished relocation in April of that year. PT. Owari Seiki Indonesia in Indonesia also relocated its factory in April 2020. Additionally, OWARI SEIKI (THAILAND) in Thailand has begun local production of stepped bolts, expanding production capacity and enriching product lineups across all overseas operations.

In new market development, the company views the automotive industry's CASE initiatives—electrification, autonomous driving, connectivity, and sharing—as important opportunities. By accelerating the product shift from traditional manual transmission parts to AT and CVT parts, the company is responding to changing market needs. Through strengthened overseas production bases, the company is building a system to maintain competitiveness in global markets while meeting diverse customer demands.

In technology innovation efforts, guided by the management philosophy of "delivering better products faster through technology and creativity," the company focuses on advancing precision machining technology and improving production process efficiency. Through decision-making based on actual conditions and reliable execution of PDCA cycles—planning, execution, evaluation, and improvement—the company achieves improved product quality and shortened lead times. Even amid the impact of COVID-19, the company is rebuilding its earnings foundation through production adjustments responsive to demand fluctuations and fixed cost reductions, pursuing sustainable growth.