Daikyo Nishikawa

Basic Information

Stock Code
4246
Industry
Chemicals
Category Detail
Auto Parts
Prefecture
Hiroshima Prefecture
Establishment Year
April 2007
Listing Year
March 2014
Official Website
http://www.daikyonishikawa.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Toyota Boshoku, Seriren, Nishikawa Rubber, Uni-Pres, G-Tekt, Toa Seisakusho, Nippon Hatsujo, Press Kogyo, Taiheiyo Kogyo, Toyoda Gosei, Murakami Kaimeido, Te-Estech, Grandy

Overview

Daikyo Nishikawa is Japan's leading manufacturer of resin products for automotive parts, founded in 1961, with Mazda as its primary customer and strengths in supplying parts to a diverse range of automakers.

Current Situation

Daikyo Nishikawa continues steady business operations with consolidated sales of approximately 159 billion yen and around 5,600 employees for the fiscal year ending March 2024. In the automotive sector, it produces interior and exterior parts as well as resin components around engines, holding the top domestic position with about 70% of sales to Mazda. Since the latter half of the 2010s, it has increased orders from major players like Toyota and Honda Motor and is advancing business diversification. Its high-level technology for resin oil strainers for engines is adopted by various Japanese companies, serving as a source of competitiveness. Overseas, it has production bases in China, Southeast Asia, and North America, achieving stable supply to Japanese automakers through multiple subsidiaries as a result of its global expansion. Aiming for sustainable manufacturing, it actively implements environmental measures and R&D investments, positioning business foundation strengthening and market development toward 2030 as key strategies. In recent years, it has focused on expanding resin products in response to electrification and lightweighting needs in the automotive industry, continuing technological innovation.

Trivia

Interesting Facts

  • Largest domestic resin parts supplier through transactions with Mazda.
  • Approximately 1% world share in resin oil strainers.
  • Increasing orders from Toyota and Honda since latter half of 2010s.
  • Head office located in Terike Industrial Park, Higashihiroshima City, Hiroshima Prefecture.
  • Multiple overseas production bases in Asia and North America.
  • Diverse product lineup of automotive resin parts.
  • Holds numerous intellectual property rights in resin engine parts.
  • Once engaged in golf course business.
  • Current name established by merger of three companies in 2007.
  • Expanded from local Hiroshima industrial park nationwide.
  • Active in establishing overseas Japanese factories for globalization.
  • Superior customer specification対応 with advanced design and development capabilities.
  • Transaction expansion with Toyota Group as one of key management issues.
  • Proactive in technology development within the industry.
  • Subsidiary AFT Co., Ltd. jointly established with Daihatsu.

Hidden Connections

  • Close relationship with Nishikawa Rubber Industry promoting technology development.
  • Strengthened collaboration by having a factory inside Mazda Hofu plant.
  • Stable revenue base through diversified supply to automakers.
  • Many proprietary patented technologies in synthetic resin field.
  • Head office and factories concentrated in Higashihiroshima City industrial park.
  • Fundraising capability improved after listing on Tokyo Stock Exchange First Section in 2014.
  • Focused on developing production bases in Asia to enhance international competitiveness.
  • Partnerships exist between long-established companies in automotive resin parts field.

Future Outlook

Growth Drivers

  • Increasing demand for lightweighting and high-function automotive resin parts
  • New parts development demand from EV market expansion
  • Accelerated development of environmentally compatible products due to stricter environmental regulations
  • Demand expansion from increasing overseas automotive production sites
  • New application development through advanced resin processing technology
  • Customer base expansion and strengthened approaches to new manufacturers
  • Maintaining competitive edge through new resin material development
  • Production efficiency improvements via digitalization and automation
  • Brand value enhancement through focus on sustainable management
  • Optimization of global supply chain

Strategic Goals

  • Achieve sales over 200 billion yen
  • Expand resin oil strainer world share to over 3%
  • Raise EV parts sales ratio to over 30%
  • Reduce CO2 emissions by 40% by 2030
  • Expand overseas production ratio to over 50%
  • Maintain annual new customer acquisition at 10+ companies
  • Introduce advanced quality management system for resin parts
  • Company-wide adoption and compliance with sustainable procurement policy
  • Maintain technology development investment at over 7% of annual sales
  • Realize symbiotic management in collaboration with local communities

Business Segments

Automotive Parts Manufacturing and Supply

Overview
Develops and manufactures a wide range of resin parts for Japanese automakers and supplies them stably.
Competitiveness
Proprietary technology for resin engine parts and multi-site production system
Customers
  • Mazda
  • Toyota Motor
  • Honda Motor
  • Daihatsu Motor
  • Suzuki
  • Nissan Motor
  • Mitsubishi Motors
  • Hino Motors
  • Isuzu Motors
  • Overseas Japanese automakers
Products
  • Automotive interior resin parts
  • Automotive exterior resin parts
  • Engine resin parts
  • Resin oil strainers
  • Airbag parts
  • Resin radiator parts
  • Seat parts

Overseas Business Expansion

Overview
Has multiple production and sales bases in North America and Asia, supporting local sites.
Competitiveness
Global resin parts supply network
Customers
  • North American Japanese automakers
  • Chinese Japanese production sites
  • Thai automotive industry
  • Indonesian Japanese manufacturers
  • Mexican auto assembly manufacturers
Products
  • Automotive resin parts produced locally overseas
  • Global対応 design and development services
  • Quality management system support

Industrial Plastic Products Manufacturing

Overview
Supports industries through the supply of molded plastic products for industrial goods.
Competitiveness
Proprietary processing technology for high-function resin materials
Customers
  • Equipment manufacturers
  • Factory line operators
  • Material handling equipment manufacturers
  • Heat-resistant parts manufacturers
Products
  • Conveyor nets
  • Plastic foam materials
  • Abrasion-resistant reinforced plastic parts

Parts Supply for Home Appliances

Overview
Supplies resin parts with functionality and design to home appliance manufacturers.
Competitiveness
Know-how in part design combining durability and quietness
Customers
  • Home equipment manufacturers
  • Ventilation fan manufacturers
  • Water area parts manufacturers
Products
  • Ventilation fan blades
  • Plastic covers for water areas
  • Home decorative parts

Special Resin Parts Development

Overview
Designs and develops advanced technology resin products utilizing intellectual property rights.
Competitiveness
Numerous resin patents and accumulated know-how
Customers
  • Automotive-related technology development companies
  • New materials research institutions
  • Patent technology user companies
Products
  • Patented resin molded products
  • Lightweighting technology products
  • Environmentally friendly resin products

Competitive Advantage

Strengths

  • Largest resin supplier in the Mazda group
  • Oil strainer technology with numerous intellectual properties
  • Broad automotive parts対応 capability
  • Multi-site production system domestically and internationally
  • Long industry experience and stable customer base
  • High-durability and lightweight product development capabilities
  • Improving presence in overseas markets
  • High-quality interior and exterior resin products
  • Proprietary material processing technology
  • High trust from automakers
  • Development of environmentally compatible products
  • Stable financial base
  • Production emphasizing sustainability
  • Specialized know-how in engine parts
  • Expanding transactions with Toyota and Honda

Competitive Advantages

  • Superiority in the engine parts market supported by advanced patented technology
  • 対応 to customer needs with a wide parts lineup
  • Strong transaction network centered on long-term Mazda dealings
  • Rapid supply capability through global production system
  • Adapting to market changes through active rollout of environmentally friendly products
  • Product differentiation utilizing specialized resin material processing technology
  • Robust technology development investment and IP protection system
  • Design and production capabilities meeting diverse customer demands
  • Good balance of local attachment and overseas expansion
  • Diverse manufacturing equipment and efficient production management system
  • Business sustainability backed by stable earnings structure and financial strength
  • Track record of technical collaboration and joint development with competitors
  • Sustainable manufacturing processes and CSR activities
  • Ongoing orders due to high customer satisfaction
  • Strengthening new business development with Toyota and Honda

Threats

  • Risks from fluctuations in global automotive demand
  • Intensifying competition due to technological advances in alternative materials
  • Impact of raw material costs from exchange rate fluctuations
  • Price pressure from new entrants
  • Equipment investment burden accompanying stricter environmental regulations
  • Supply chain disruption risks
  • Rapid changes in demand for EV parts
  • Tariff impacts from international trade friction
  • Risks from changes in customer order specifications
  • Speed of technological innovation by global competitors
  • Difficulty securing factory labor
  • Overseas production impacts from geopolitical risks

Innovations

2024: Mass production technology established for high-performance resin oil strainers

Overview
Began mass production of new resin oil strainers achieving lightweighting and high durability.
Impact
Expanding adoption by automakers and increasing market share

2023: Development and investment in resin parts for electric vehicles

Overview
Advancing design and development of lightweight resin parts for electric vehicles, opening new markets.
Impact
Contributes to future business foundation expansion

2022: Efficiency improvements through production line automation

Overview
Introduced AI and robotics in domestic factories to achieve productivity gains.
Impact
Succeeded in cost reduction and shorter delivery times

2021: Practical application of new resin materials

Overview
Commercialized new resin materials with enhanced heat and weather resistance to strengthen technological differentiation.
Impact
Extended product lifespan and improved customer satisfaction

2020: Expansion and quality enhancement of overseas production bases

Overview
Enhanced production capacity at Indonesian factory to respond to increasing demand.
Impact
Overseas sales expansion and strengthened supply system

Sustainability

  • Promotion of CO2 emissions reduction plans in manufacturing processes
  • Efforts to improve recycled plastic utilization rate
  • Strengthening R&D of low-environmental impact materials
  • Compliance with environmental laws and establishment of voluntary audit systems
  • Implementation of CSR activities aiming for coexistence with local communities
  • Promotion of energy-saving production equipment introduction
  • Regular publication and disclosure of environmental reports
  • Improvement of workplace safety and health and labor environment
  • Strengthening environmental management cooperation with suppliers
  • Establishment of sustainable procurement standards