Nichirin
Basic Information
- Stock Code
- 5184
- Industry
- Rubber Products
- Category Detail
- Auto Parts
- Prefecture
- Hyogo Prefecture
- Establishment Year
- May 1914
- Listing Year
- August 1997
- Official Website
- https://www.nichirin.co.jp/
- TSE Information
- TSE Information
- Yahoo! Finance
- Yahoo! Finance
- Other Companies
- Tanabe Industry, Kuriyama HD, Sanko Techno, Okura Industrial, Yama-U Holdings, Fujimac, Nakamoto Pax, RYODEN, Sanwa Tech, Japan Concept
Overview
Nichirin is an automotive rubber hose manufacturer founded in 1914 and is a mid-sized company in the industry with strengths in hydraulic hoses for two-wheeled vehicles.
Current Situation
Nichirin recorded consolidated net sales of 71.356 billion yen, operating income of 9.184 billion yen, and net income of 6.171 billion yen (fiscal year ending December 2024). In its mainstay automotive parts business, it has strong competitiveness in hoses for two-wheeled vehicles and possesses production bases and sales networks both domestically and internationally. It is advancing global expansion through the expansion of overseas subsidiaries in Malaysia, China, the United States, Thailand, and other locations. By establishing a Production Technology Center and actively setting up local corporations, it is promoting technological innovation and strengthening mass production systems. Recently, while developing environmentally friendly products, it is achieving both quality improvements and cost efficiency. It is also focusing on strengthening sustainability and governance, with an eye toward sustainable growth. Within the industry, compared to multiple competitors, it leverages its unique technological development capabilities and ability to meet diverse customer needs to aim for market share expansion. In the future, it has in view expansion into electric vehicle parts and adoption of new materials, as well as business expansion into non-automotive fields.
Trivia
Interesting Facts
- Rubber products manufacturer with a long history founded in 1914
- Industry-leading market share in hydraulic brake hoses for two-wheeled vehicles
- Promoting globalization through numerous joint venture subsidiaries overseas
- Also engaged in business in housing-related hoses
- Installed its own Production Technology Center within the Himeji factory
- Mid-sized company listed on the Tokyo Stock Exchange Standard Market
- Major shareholders include major companies such as Taiyo Kogyo and Sojitz
- Products adopted by famous automotive manufacturers domestically and internationally
- Previously pointed out for income concealment but has implemented improvements
- High brand recognition in Japan's two-wheeled vehicle market
Hidden Connections
- Leveraging capital ties with Taiyo Kogyo to strengthen synergy with mining and industrial parts
- Accelerating overseas market development through collaboration with Sojitz, expanding multinational network
- Honing two-wheeled vehicle hose technology amid competition with rivals, differentiating through specialization strategy
- Characteristic establishment of manufacturing base in close collaboration with Kobe City's local industries
- Focusing on electric mobility parts market against the backdrop of transformation in the automotive industry
- Some environmentally friendly rubber materials were co-developed with environmental groups
- Some products have high recognition in the motorcycle racing market
- In addition to domestic market, early entry into Southeast Asian markets
Future Outlook
Growth Drivers
- Expansion of demand for new rubber hoses for electric vehicles
- Increase in automotive production in overseas markets, especially Southeast Asia
- Increased demand for eco-products due to strengthened environmental regulations
- New application development through high-function material development
- Strengthening of cost competitiveness through production technology innovation
- Expansion of application products in non-automotive fields
- Optimization of global supply chains
- 対応 to electrification and autonomous driving technologies in the automotive industry
Strategic Goals
- Global market share expansion in automotive hoses
- Achieve over 50% sales ratio for environmentally friendly products
- Promote manufacturing innovation centered on Production Technology Center
- Strengthen overseas production bases and local development capabilities
- Achieve top-class ESG evaluation through sustainable management
- Establish technological leadership in the industry through new material technology
Business Segments
Parts Supply to Automotive Manufacturers
- Overview
- Supplies high-quality rubber hoses and related parts to the automotive industry.
- Competitiveness
- High technological capability and production capacity in two-wheeled vehicle hydraulic hoses
- Customers
-
- Domestic two-wheeled vehicle manufacturers
- Domestic four-wheeled vehicle manufacturers
- Overseas automotive manufacturers
- Automotive parts manufacturers
- Products
-
- Hydraulic brake hoses
- Fuel hoses
- Coolant hoses
- Anti-vibration rubber products
- Air hoses
Hose Products for Housing Equipment Industry
- Overview
- Manufactures, develops, and supplies hose products for housing.
- Competitiveness
- Superior product design in durability and safety
- Customers
-
- Housing equipment manufacturers
- Housing construction companies
- Equipment maintenance companies
- Products
-
- Water supply hoses
- Drain hoses
- Durable hoses
Industrial Machinery Hose Manufacturing
- Overview
- Manufactures and supplies various durable hoses for industrial machinery.
- Competitiveness
- Dedicated design technology for multi-purpose applications
- Customers
-
- Industrial machinery manufacturers
- Construction machinery manufacturers
- Hydraulic system manufacturers
- Products
-
- Oil-resistant hoses
- Heat-resistant hoses
- Industrial flexible hoses
Overseas Local Supply Business
- Overview
- Local supply operations from bases in Malaysia, Thailand, China, and the United States.
- Competitiveness
- Utilization of global production network
- Customers
-
- Local automotive manufacturers
- Overseas parts manufacturers
- Local trading companies
- Products
-
- Various automotive hoses
- Anti-vibration rubber products
- Environmentally friendly products
Technology Development Support Services
- Overview
- Provides consulting on production technology and quality improvement.
- Competitiveness
- Technological accumulation through in-factory Production Technology Center
- Customers
-
- Client automotive parts manufacturers
- Product design departments
- Production technology departments
- Products
-
- Production technology consulting
- Manufacturing process optimization
- Quality management systems
Competitive Advantage
Strengths
- High hydraulic hose technology and quality control capabilities
- Global production and sales network
- Abundant overseas subsidiaries and local operations
- Credit from long industry experience and history
- Diverse product lineup and customization capabilities
- Existence of technology development and Production Technology Center
- Stable financial base and profitability
- Strong market share in two-wheeled vehicle hoses
Competitive Advantages
- Industry-leading technological strength in two-wheeled vehicle hydraulic brake hoses
- Cost competitiveness and rapid response through overseas local production
- Ability to meet customer needs with a wide product lineup
- Long-term transaction relationships with major domestic and international automotive manufacturers
- Manufacturing process optimization and quality improvement through Production Technology Center
- Pioneering efforts in environmentally friendly product development
- Market penetration through diverse sales channels
- Stable capital structure through sound management
Threats
- Fluctuations in parts demand due to electrification of domestic and international automotive markets and shift to electric vehicles
- Local political and economic risks at overseas production bases
- Geopolitical trade friction and tariff increases
- Cost increase pressure from material price fluctuations
- Risk of market share loss due to competitors' technological innovations
- Increased product compliance costs due to strengthened regulations
- Emergence of new entrants or alternative materials
Innovations
2024: Establishment of Production Technology Center
- Overview
- Opened a production technology research base within the Himeji factory to advance manufacturing processes.
- Impact
- 20% improvement in production efficiency, enhanced quality stability
2023: Development of Environmentally Friendly Hose Materials
- Overview
- Successfully developed automotive hoses using recyclable eco-materials.
- Impact
- Expanded product lineup and reduced environmental impact
2022: Strengthening of Overseas Local Production System
- Overview
- Achieved production capacity improvement by introducing latest equipment to factories in China and Malaysia.
- Impact
- Resolved production delays and shortened delivery times
2021: Improvement of High-Durability Hose Technology for Two-Wheeled Vehicles
- Overview
- Development of high heat- and pressure-resistant hoses contributed to export expansion.
- Impact
- 10% increase in overseas market sales
2020: Inventory Management Optimization through IT Introduction
- Overview
- Improved inventory turnover rate and achieved cost reduction through IT system implementation.
- Impact
- 15% reduction in logistics costs
Sustainability
- Active adoption of recycled materials and development of environmentally friendly products
- Promotion of energy conservation in manufacturing processes and reduction of CO2 emissions
- Improvement of labor environment through strengthened safety management system
- Thorough management of wastewater and waste to reduce environmental impact
- Participation in environmental conservation activities through collaboration with local communities
- Strengthening of business operations based on ESG indicators
- Establishment of sustainable supply chains
- Continuous promotion of social contribution activities