Nakayama Steel Works
Basic Information
- Stock Code
- 5408
- Industry
- Steel
- Category Detail
- Iron, Steel & Metal Products
- Prefecture
- Osaka Prefecture
- Establishment Year
- December 1923
- Listing Year
- May 1949
- Official Website
- https://www.nakayama-steel.co.jp/
- TSE Information
- TSE Information
- Yahoo! Finance
- Yahoo! Finance
- Other Companies
- Kyodo Steel, Tokyo Steel, Kyoei Steel, Yamato Industry, Tokyo Tekko, Hokue Metal, Osaka Steel, Chubu Steel Plate, Press Kogyo
Overview
Nakayama Steel Works is a steel manufacturer in Osaka Prefecture founded in 1923. It has transitioned its steelmaking technology from blast furnaces to electric furnaces and provides a diverse range of steel sheet products.
Current Situation
Nakayama Steel Works recorded consolidated net sales of approximately 188.5 billion yen and ordinary income of approximately 13.3 billion yen for the fiscal year ended March 2023. Its core steel business relies on material procurement from the Nippon Steel group while shifting to electric furnace steelmaking to improve production efficiency. Since 2010, it has shut down blast furnaces and converters, completed the transition to electric furnaces, and developed strengths in thin steel sheet processing. The successful business revitalization plan has restored its financial foundation, fully consolidated manufacturing subsidiaries, and strengthened the group structure. Through the establishment of a new company for electric furnace expansion, it aims to double production capacity while closely monitoring the impact of low-priced imported steel materials. In human resource development, it continues collaboration with the Institute of Industrial Technology Junior College to enhance technical capabilities. Moving forward, it will advance diversified resource procurement, product value enhancement, and environmental burden reduction efforts, pursuing sustainable steel manufacturing from a medium- to long-term perspective.
Trivia
Interesting Facts
- Established an integrated pig iron and steel mill shortly after the war, as an established company
- Factory used as a filming location for Hollywood movie 'Black Rain'
- Commercialized world's first ultrafine-grained hot-rolled steel sheet (NFG) in 2001
- Contributes to Kansai economy as a key member of Sansui-kai and Midori-kai
- Established Nakayama Hoeon-kai educational support group in 1940, contributing to local education
- Actively dispatches personnel to Institute of Industrial Technology Junior College to foster engineers
- Achieved business revitalization in 2013 with support from Regional Economy Activation Support Corporation
- Successfully reduced environmental impact through steelmaking process transition (blast furnace to electric furnace)
- Advanced group management efficiency by fully consolidating subsidiaries
- Historically receives material supply from Nippon Steel and Kobe Steel
- Merged Nakayama Bar Steel in 2021 to expand product lineup
- Funamachi Plant in Taisho-ku, Osaka City serves as headquarters and main production base
- Actively participates in local community contribution activities in Osaka
- Built energy-saving production system by suspending blast furnaces and converters
- History of growth from family-owned business to listed company
Hidden Connections
- Influential in Kansai business world as a key member of Sansui-kai and Midori-kai
- Deep capital and transaction ties with Nippon Steel & Sumitomo Metal (now Nippon Steel)
- Formerly held Nankai Chemical as a subsidiary, involved in chemical industry
- Operated corporate baseball club since prewar era, contributing culturally to the region
- Implemented private reorganization revitalization with support from Regional Economy Activation Support Corporation
- Continues active personnel dispatch to Institute of Industrial Technology Junior College, unique in steel industry
- Rare case of steelworks used as filming location for Hollywood movie
- Connections with diverse companies like Osaka Gas and Air Water
Future Outlook
Growth Drivers
- Building efficient production system through electric furnace capacity expansion
- Increasing demand for high-value-added ultrafine-grained steel sheets
- Strengthened collaboration with major steelmakers like Nippon Steel
- Advancement of low-carbon manufacturing technologies for environmental regulations
- Steel demand from domestic and overseas construction machinery and automotive industries
- Promotion of new materials and special steel development leveraging technology
- Advanced automation and DX of production equipment
- Talent securing through strengthened ties with Institute of Industrial Technology Junior College
- Market risk diversification through diversified product portfolio
- Maintaining cooperative relationship with Regional Economy Activation Support Corporation
- Enhanced cost competitiveness through energy-saving technologies
- Expansion of sales channels for overseas markets
Strategic Goals
- Expand electric furnace production capacity to more than double current levels
- Increase electric furnace ratio to over 80% of total production
- Reduce CO2 emissions by 50% compared to 2019
- Raise high-value-added steel sheet sales ratio to 50%
- Strengthen collaboration system with regional technical education institutions
- Achieve full automation of manufacturing equipment and DX promotion
- Stabilize procurement through resilient supply chain
- Flexible response to market needs with diverse product lineup
- Strengthen recycling for sustainable resource circulation
- Continuously promote social contribution activities in collaboration with local community
Business Segments
Steel Product Processing and Sales
- Overview
- Provides high-quality steel sheets and processed steel materials for diverse industrial applications, meeting a wide range of client needs.
- Competitiveness
- High-quality steel sheet production using electric furnace technology and proprietary processing techniques
- Customers
-
- Automotive manufacturers
- Construction companies
- Machinery manufacturers
- Shipbuilding industry
- Home appliance manufacturers
- Industrial machinery manufacturers
- Steel distributors
- Products
-
- Thin steel sheets
- Cold-rolled steel sheets
- Processed steel parts
- Special steel sheets
- Coated steel sheets
Steel Manufacturing Plants and Equipment
- Overview
- Provides technical solutions through design and manufacture of steel production equipment and development of environmentally friendly devices.
- Competitiveness
- Advanced engineering capabilities backed by years of experience
- Customers
-
- Steel manufacturers
- Plant construction companies
- Environmental companies
- Products
-
- Steelmaking equipment design
- Plant manufacturing
- Environmentally friendly equipment
Raw Material Procurement Support
- Overview
- Provides material procurement services from Nippon Steel, Kobe Steel, and others to support stable supply.
- Competitiveness
- Strong procurement network with industry leaders
- Customers
-
- Steel distributors
- Steelmaking companies
- Products
-
- Steel slab procurement
- Scrap supply
Competitive Advantage
Strengths
- Successful transition of steelmaking technology from blast furnaces to electric furnaces
- Advanced thin steel sheet manufacturing technology
- Strong ties with business networks such as Sansui-kai
- Collaboration with Institute of Industrial Technology Junior College for talent development
- Stable material supply from Nippon Steel group
- Stabilized business base through strengthened consolidated subsidiaries
- Possesses advanced engineering technology
- Geographical advantage of Osaka base
- Flexible material procurement system
- Environmental response through expanded electric furnace production ratio
- Credit backed by long history
- Proactive investment stance in production capacity expansion
- Product supply network across diverse industries
- Efficiency improvements through restructuring
- Diverse processing technologies
Competitive Advantages
- Promotes technological innovations such as world's first ultrafine-grained hot-rolled steel sheet development
- Doubling electric furnace production capacity through new company establishment
- Cost reduction effects from suspending blast furnace equipment
- Stable procurement through collaboration with Nippon Steel and Kobe Steel
- High quality control and product customization capabilities
- Diversified revenue structure via engineering business
- Strengthened management base through Regional Economy Activation Support Corporation revitalization support
- Financial improvement via debt forgiveness and capital increase from financial institutions
- Credit as a Tokyo Stock Exchange Prime Market listed company
- Securing excellent talent through collaboration with Institute of Industrial Technology Junior College
- Maintaining stable supply channels to diverse industries
- Active development of environmental burden reduction technologies
- Accumulated proprietary technologies unique to an established company
- Improved management efficiency by fully consolidating manufacturing subsidiaries
- Enhanced management efficiency through proactive restructuring
Threats
- Inflow of low-priced imported steel from domestic and overseas markets
- Intensifying price competition in the steel industry
- Global fluctuations in raw material prices
- Procurement instability due to complex supply chains
- Potential cost increases from stricter environmental regulations
- Long-term declining trend in domestic steel demand
- Funding constraints for new technology investments
- Competitors' pace of technological innovation
- Challenges in talent acquisition and technology succession
- Demand fluctuations due to global economic uncertainty
- Rising imported material costs from exchange rate fluctuations
- Delayed adaptation to long-term market shifts
Innovations
2024: New Electric Furnace with Nippon Steel
- Overview
- Established new company with Nippon Steel in Osaka City to double electric furnace production capacity.
- Impact
- Contributes to enhanced competitiveness and improved profitability through increased production capacity.
2023: Expanded Use of Advanced Ultrafine-Grained Hot-Rolled Steel Sheet (NFG) Technology
- Overview
- Enriched production lines for ultrafine-grained hot-rolled steel sheets and expanded to automotive industry.
- Impact
- Successfully expanded sales of high-value-added products, increasing revenue.
2022: Diversification of Processed Steel and Robot Introduction
- Overview
- Introduced robots in production equipment to improve processing precision and efficiency.
- Impact
- Achieved manufacturing cost reductions and quality improvements.
2021: Expanded Electric Furnace Ratio to Reduce CO2 Emissions
- Overview
- Strengthened electric furnace utilization after blast furnace shutdown to reduce environmental impact.
- Impact
- Enhanced the company's environmental responsiveness.
2020: Launched New Material Development Project
- Overview
- Advanced development of high-strength and heat-resistant steel sheets to explore new applications.
- Impact
- Planned to acquire new customer segments.
Sustainability
- CO2 emissions reduction through increased electric furnace ratio
- Introduction of plant equipment to reduce environmental impact
- Promotion of recycled resource utilization
- Collaboration with local Institute of Industrial Technology Junior College on environmental education
- Introduction of advanced factory wastewater treatment systems
- Continuous adoption of energy-saving technologies
- Compliance with international safety and health standards
- Strengthening sustainable resource procurement
- Regular regional cleanup activities
- Continuous improvement of environmental management systems
- Improved work environment to enhance employee satisfaction
- Implementation of waste reduction programs