Ryobi

Basic Information

Stock Code
5851
Industry
Nonferrous Metals
Category Detail
Iron, Steel & Metal Products
Prefecture
Hiroshima Prefecture
Establishment Year
December 1943
Listing Year
June 1960
Official Website
https://www.ryobi-group.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Sakata INX, Daiki Aluminium Industry, Japan Light Metal Holdings, UACJ, NICI Autotech, Alerest, Iseki Agri, Sumitomo Realty

Overview

Ryobi is a leading company in the nonferrous metals industry founded in 1943, primarily manufacturing die-cast parts for automobiles along with printing equipment and construction products, operating as a global die-casting manufacturer.

Current Situation

Ryobi achieved consolidated sales of approximately ¥220.5 billion in 2019, with domestic and international transactions in automotive-related die-cast parts as its mainstay business. Management remains stable with net assets of about ¥129.6 billion, and the company is advancing a strategy to focus on core operations amid diversification. It has established an integrated system from design to manufacturing and painting to improve quality. The transfer of the power tool business in 2018 and spin-off of the printing machinery division have rationalized its earnings structure. In 2023, construction began on a new head office annex to strengthen the production base. It is also focusing on technological innovation, such as enhancing relationships with major domestic and overseas customers and establishing gigacasting factories for EVs. Moving forward, the company aims for growth by promoting sustainable manufacturing technologies alongside strengthened global expansion.

Trivia

Interesting Facts

  • Founded in 1943 as a subcontractor related to Mitsubishi Electric.
  • Company name is a coined term inspired by the place names Bingo and Bitchu.
  • Holds world top-class share in automotive die-cast parts.
  • Previously manufactured fishing gear, power tools, and golf equipment.
  • Printing equipment business spun off as a joint venture with Mitsubishi Heavy Industries.
  • Ryobi brand fishing gear continues to be used even after business transfer to Jomo-ya.
  • Transferred power tool business to Kyocera Group in 2018.
  • Has long advertised at MAZDA Stadium, home of the Hiroshima Toyo Carp.
  • Gained nationwide recognition as a sponsor of professional baseball national broadcasts since the 1980s.
  • Established the Ryobi Social Contribution Fund internally to continue regional support.

Hidden Connections

  • Historical background starting as a die-casting subcontractor for the former Mitsubishi Electric Fukuyama Factory.
  • Ongoing capital relationships with the Mitsubishi Group.
  • Collaborative relationship for technology inheritance and brand maintenance with business transferees.
  • Connections with local companies contributing to regional revitalization in Fuchu City, Hiroshima Prefecture.
  • Maintained relationship with Kyocera even after withdrawing from the power tool market through business partnership.
  • President from the founding family, ensuring continuity in management.
  • Nationwide brand recognition expansion through sponsorship of various sports.
  • Synergy from establishing a joint venture with Mitsubishi Heavy Industries in the printing equipment business.

Future Outlook

Growth Drivers

  • Increasing demand for gigacasting with EV market expansion
  • Deepening transactions with major domestic and international automakers
  • Competitive edge from integrated system from design to manufacturing and painting
  • Widespread adoption of advanced low-environmental-impact technologies
  • Strengthening of global production network
  • Efficiency gains from digitalization of manufacturing processes
  • Stable demand in the building materials market
  • Enhanced brand value through strengthened ties with regions and society
  • Pursuit of possibilities in new product fields
  • Rigorous quality control and technological innovation

Strategic Goals

  • Expand sales ratio of EV die-cast products to over 50%
  • Achieve 30% CO2 emission reduction through low-environmental-impact technologies
  • Expand world market share through strengthened technological capabilities
  • Diversify revenue through new businesses and product development
  • Optimize global production bases and sales networks
  • Continuously strengthen coexistence with local communities and CSR activities
  • Improve productivity through digital transformation initiatives
  • Promote sustainable material procurement and recycling
  • Build diverse workforce and pleasant work environment
  • Enhance customer satisfaction and deepen trust relationships

Business Segments

Die-Casting Business for Automotive Manufacturers

Overview
Provides high-precision automotive die-cast products on a one-stop basis.
Competitiveness
Integrated manufacturing system from design to painting is a key strength.
Customers
  • Toyota Motor
  • Honda
  • Nissan Motor
  • General Motors
  • Ford Motor
  • Volkswagen
Products
  • Cylinder Block
  • Transmission Case
  • Engine Parts
  • Gear Case

Building Materials Manufacturing Business

Overview
Stably supplies metal products for buildings with a focus on quality control.
Competitiveness
Provides highly durable and reliable building components.
Customers
  • Construction companies
  • Building materials distributors
  • Renovation contractors
Products
  • Door Closer
  • Metal Building Components
  • Architectural Metal Parts

Printing Equipment Business

Overview
Provides high-quality printing equipment tailored to industry needs.
Competitiveness
Joint venture with other companies to strengthen technology and spun off.
Customers
  • Printing companies
  • Publishing companies
  • Packaging manufacturers
Products
  • Offset Printing Machines
  • Screen Printing Machines

Overseas Operations and Related Companies

Overview
Expanding globally to increase market share overseas.
Competitiveness
International transaction track record and local production bases.
Customers
  • Overseas automakers
  • Overseas building materials companies
Products
  • Die-Cast Parts
  • Construction Products

Competitive Advantage

Strengths

  • World top-class high-precision die-casting technology for automobiles
  • Integrated manufacturing system covering up to painting
  • Strong transaction relationships with major domestic and international automakers
  • Long history and stable financial base
  • Capital ties with Japanese group companies
  • Expansion into diverse metal product fields
  • Continuous investment in R&D
  • High product quality and reliability
  • Global production network
  • Business rationalization and focus
  • Strong corporate brand
  • Flexible production response to demand
  • Establishment of environmental conservation committee and CSR promotion

Competitive Advantages

  • Possesses an integrated system capable of handling from design to manufacturing and painting
  • Trusted by major manufacturers for high-precision, durable automotive die-cast parts
  • New gigacasting factory for EVs introduces cutting-edge technology
  • Stable transaction relationships with major customers built over long periods
  • Multiple bases domestically and internationally, building a global supply chain
  • Improved profitability and cost reduction through business restructuring
  • Strengths in technological innovation and quality control differentiate from competitors
  • Active efforts in environment and safety enhance corporate evaluation
  • Promotion of production methods considering sustainability
  • Possible collaboration with Mitsubishi Group, etc., leveraging capital relationships

Threats

  • Risk of order reduction due to fluctuations in the automotive industry
  • Tariff risks from international situations such as US-China trade friction
  • Low-price offensives from emerging market manufacturers
  • Need to keep pace with rapid advancements in casting technology
  • Risk of rising manufacturing costs due to stricter environmental regulations
  • Impact on earnings from yen appreciation fluctuations
  • Challenges in adapting to part structure changes with new EV proliferation
  • Global surge in resource prices
  • Decline in production capacity due to labor shortages
  • Intensifying technological competition with rival companies

Innovations

2023: Completion of EV Gigacasting Factory

Overview
Established a production base for large die-cast parts for next-generation electric vehicles.
Impact
Contributes to improved production efficiency and capturing new demand.

2024: Domestic Development of Gigacast Molds Begins

Overview
Manufacturing large gigacast molds domestically to improve response speed.
Impact
Achieves lead time reduction and quality stabilization.

2022: Advancement of Digitalization in Production Processes

Overview
Advanced manufacturing management and quality inspection through smart factory initiatives.
Impact
Achieved defect reduction and production efficiency improvements.

2021: Development of Low-Environmental-Impact Die-Casting Technology

Overview
Developed new casting processes that are energy-efficient and reduce emissions.
Impact
Contributes to environmental regulation compliance and cost reduction.

2020: Introduction of Advanced Painting Technology

Overview
Introduced the latest painting equipment to improve durability and appearance quality.
Impact
Strengthens customer satisfaction and market competitiveness.

Sustainability

  • Establishment and reinforcement of activities by the Ryobi CSR Promotion Committee
  • Introduction of low-environmental-impact manufacturing processes
  • Promotion of using recycled aluminum materials
  • Participation in environmental conservation activities in collaboration with local communities
  • Thorough occupational safety and health measures
  • Investment in energy-efficient equipment
  • Reduction and reuse promotion of waste
  • Employee environmental awareness training
  • Promotion of building sustainable supply chains
  • Acquisition and maintenance of ISO 14001 and other environmental management certifications