Kuramoto Seisakusho

Basic Information

Stock Code: 5216
Industry: Glass and Stone Products
Category Detail: Semiconductors & Electronic Components
Prefecture: Miyagi Prefecture
Establishment Year: August 1980
Listing Year: January 1995
Official Website: http://www.kuramoto.co.jp/
TSE Information: TSE Information
Yahoo! Finance: Yahoo! Finance
Other Companies: Shintoshi HD, Nippon Electric Glass, Japan Display, Geomatech, RISE

Overview

Kuramoto Seisakusho, established in 1980, is headquartered in Kurihara City, Miyagi Prefecture, and is a specialist manufacturer in the glass and stone products industry with strengths in glass substrate processing technology for LCDs and organic EL displays.

Current Situation

Kuramoto Seisakusho primarily handles glass substrate processing for thin displays and has earned a certain reputation for its technological capabilities. After falling into negative net worth in fiscal 2018 and applying for business regeneration ADR, it has been improving its management through new capital injections. Listed on the Tokyo Stock Exchange Standard Market, it has experienced sales declines amid harsh market conditions and structural changes in the display industry, but it is focusing on enhancing processing technology. While proceeding with subsidiary sales and business streamlining, it is working on business structure transformation including its mainstay substrate operations. Moving forward, it aims for corporate regeneration and sustainable growth by developing new technologies and glass products for other industries. With support from external investors, it is striving to stabilize its financial base and considering the possibility of relisting in the future.

Trivia

Interesting Facts

Originally established as a limited company in 1975.
Successfully restructured management after applying for business regeneration ADR.
Possesses unique domestic technology for LCD panel glass substrate processing.
Previously operated as an abrasives manufacturer.
Significantly contributes to the local economy in Kurihara City, Miyagi Prefecture.
Operated related brands such as LADVIK and FILWEL.
Collaborated with Germany's Schott AG in 2005.
Has processing technology inspired by Edo-period manufacturing techniques.

Hidden Connections

Transferred precision abrasive cloth and paper business to Kanekubo Group through former subsidiary sale.
Conducting joint research with other energy companies on new solar cell technology development.
Contributed to restoring market trust after receiving Tokyo Stock Exchange reconstruction plan approval.
Has indirect technology exchanges with Nippon Electric Glass and Japan Display.
Deep correlation with technology trends in the display industry.
Shares manufacturing technology know-how with local SMEs.

Future Outlook

Growth Drivers

Recovery in demand for high-precision processing for displays
Entry into new solar cell and renewable energy markets
Differentiation through development and普及 of environmentally friendly products
Strengthening technical cooperation with domestic and international customers
Improved cost competitiveness through production automation
Expansion of applications for special glass substrates

Strategic Goals

Expansion of market share in LCD and organic EL substrate processing business
Realization of sustainable manufacturing processes
Stabilization of sales over ¥2 billion
Promotion of technological innovation including new material development
Establishment of a corporate structure that grows with local communities

Business Segments

Display Glass Substrate Processing Business

Overview

Performs processing and provision of high-performance glass substrates for the display industry.

Competitiveness

Advanced precision processing technology and quality control

Customers

LCD panel manufacturers
Organic EL panel manufacturers
Electronic equipment manufacturers
Sensor manufacturers
Industrial machinery manufacturers
Automotive-related manufacturers
Medical equipment manufacturers

Products

Thin display glass substrates
Heat-resistant glass substrates
Specially processed glass substrates
Fine sensor glass substrates

Abrasives and Grinding Machines Manufacturing and Sales Business

Overview

Supplies abrasives and related equipment to a wide range of industries.

Competitiveness

Know-how from years of polishing technology development

Customers

Automotive parts manufacturers
Machinery manufacturers
Electronic parts manufacturers
Building materials manufacturers
Recycling companies
Construction companies

Products

Industrial grinding wheels
Abrasive cloths and papers
Abrasives
Grinding machines

Glass Substrate Business for Electronics Industry

Overview

Manufactures special glass substrates that contribute to improving durability of electronic devices.

Competitiveness

High heat resistance and dimensional accuracy

Customers

Electronic equipment design companies
Semiconductor manufacturing equipment manufacturers
Communications equipment manufacturers
Optical equipment manufacturers

Products

Heat-resistant glass substrates
Electronic component substrates
Precision glass for optics

Competitive Advantage

Strengths

High-precision glass substrate processing technology
Abundant track record in the display industry
Governance system with board of auditors
Regionally rooted management base
Ownership of numerous patented technologies
Integrated production system for abrasives and processing
Diverse product lineup
Strong relationships with long-term customers
Flexible manufacturing response capabilities
Stable quality management system

Competitive Advantages

Accumulated specialized technology for LCD and organic EL panels
Price competitiveness against domestic competitors
Technology development department responsive to customer needs
Differentiation through high processing precision
Maintaining a certain market share in industrial abrasives
Stable supply network through collaboration with local economy
Financial risk reduction via business regeneration ADR
Improved credibility through listing on Tokyo Stock Exchange Standard Market

Threats

Shrinking display market trends
Intensifying price competition from overseas manufacturers
Risk of emergence of new alternative technologies
Cost increases due to fluctuations in material prices
Decline in competitiveness due to business scale reduction
Risk of recurrence of negative net worth
Decrease in orders due to reduced large-scale customer investments
Impact of global economic instability
Rapid changes in technology trends
Vulnerability to disasters due to concentrated manufacturing sites

Innovations

2020: Business Regeneration ADR Establishment Strengthens Management Base

Overview: Stabilized financial base through business regeneration support and formulated reconstruction plan.
Impact: Improved sustainability of management and listing maintenance

2021: Improved High-Precision Thin Glass Substrate Processing Technology

Overview: Developed new technology that improves processing precision and yield rate.
Impact: Enhanced customer satisfaction and market competitiveness

2022: Introduction of Quartz Processing Technology for New Solar Cells

Overview: Acquired processing technology for new renewable energy-related products.
Impact: Sales diversification through new market development

2023: Introduction of Automated Grinding Equipment

Overview: Installed automated lines to improve production efficiency.
Impact: Significant improvement in labor productivity

2024: Development of Environmentally Friendly Abrasives Begins

Overview: Developing new material abrasives aimed at reducing environmental impact.
Impact: Supports achievement of sustainability goals

Sustainability

Promotion of energy-saving in manufacturing processes
Improvement of waste recycling rate
Promotion of development of low-environmental-impact products
Participation in local environmental protection activities
Creating a comfortable workplace environment