Noritz
Basic Information
- Stock Code
- 5943
- Industry
- Metal Products
- Category Detail
- Construction Materials & Equipment
- Prefecture
- Hyogo Prefecture
- Establishment Year
- March 1951
- Listing Year
- August 1984
- Official Website
- https://www.noritz.co.jp/
- TSE Information
- TSE Information
- Yahoo! Finance
- Yahoo! Finance
- Other Companies
- Fukudagumi, Corona, Chofu Seisakusho, Rinnai, Hokuei
Overview
Noritz is a major metal products manufacturer based in Hyogo Prefecture, founded in 1951, boasting the second-largest share in Japan's domestic water heater market as a specialist in residential equipment.
Current Situation
In the fiscal year ending December 2023, Noritz recorded consolidated sales of approximately 201.9 billion yen and operating profit of 3.8 billion yen, maintaining solid performance in the domestic water heater sector. Its mainstay water heaters and kitchen appliances performed steadily, preserving competitive advantages over rivals such as Rinnai and Chofu Seisakusho. In recent years, the company has focused on improving production efficiency through manufacturing DX initiatives and the introduction of AI-based fault diagnosis technology, while advancing product development that considers environmental impact reduction. Since 2019, it has withdrawn from the residential systems business to concentrate on core operations and practice sustainability management. From 2024 onward, it is advancing a medium-term management plan centered on production efficiency improvements and new technology development. It is also actively engaged in regional contribution activities and sports sponsorship, establishing a corporate structure that fulfills social responsibilities.
Trivia
Interesting Facts
- Uses classical music in water heater voice guidance
- Has promoting bath culture as founding philosophy
- Past experience withdrawing from warm water bidet toilet seat business
- Deep collaborative relationship with production consignee Dainichi Industrial
- History of industry-first product development in gas instantaneous water boilers
- Long-term operation of corporate sports team
- Leader in the industry for product safety
- Actively promoting global expansion
- Mutual product supply with OEM clients
- Only company to obtain sound trademark for water heater remote control
- Regional-focused with head office in Kobe, Hyogo Prefecture
- Stabilized performance by withdrawing from residential systems business
- AI-based fault diagnosis system attracting attention
- Achieved centralized production management at head office factory
- Multiple group companies deployed domestically and internationally
Hidden Connections
- Strong ties with residential equipment industry through OEM supply to TOTO and Hitachi Houses Tech
- Built cooperative relationship in water heater market through capital and business alliance with Chofu Seisakusho
- Implements consignment production of gas fan heaters with Dainichi Industrial to improve production efficiency
- Differentiates from competitors using classical music and voice guidance
- Actively participates in social contribution and sports activities in local Kobe City
- Employs professional announcers for product voice guidance to enhance brand experience
- Has partnerships with some advanced IT companies through manufacturing DX promotion
- Diverse domestic and international group companies support residential equipment and gas appliance markets
Future Outlook
Growth Drivers
- Strengthening energy-saving and environmentally compatible products to meet market needs
- Productivity improvements through manufacturing DX and AI technology
- Stable maintenance of domestic water heater demand
- Expansion of sustainability management
- Expansion and diversification of OEM business
- Dual strategy of regional focus and global expansion
- Advanced customer services
- Promotion of adopting new materials and technologies
- Strengthening digital marketing
- Strengthening revenue base after withdrawal from residential systems business
- Improved brand image through social contribution activities
- Strengthening compliance with laws and regulations
Strategic Goals
- Expand share of top-class environmentally performant water heaters
- Achieve complete digitalization of manufacturing sites
- Achieve over 70% ratio of sustainability certified products
- Expand domestic and international OEM business and acquire new customers
- Establish corporate model coexisting with regional society
- Advance product maintenance using AI
- Improve employee diversity and work-life balance
- Develop and launch new environmentally related products
- Build long-term customer loyalty
- Strengthen product competitiveness through global collaboration
Business Segments
Residential Equipment Manufacturing and Sales
- Overview
- Provides a wide range of residential equipment with comprehensive support for construction sites.
- Competitiveness
- Environmentally high-performance product lineup and strong sales network
- Customers
-
- Equipment contractors
- Home builders
- Renovation companies
- Real estate management companies
- Products
-
- Gas water heaters
- Oil water heaters
- Bathtubs
- Hot water heating equipment
- Kitchen appliances
Commercial Kitchen Appliance Sales
- Overview
- Strength in comprehensive proposals with a diverse range of commercial kitchen appliances.
- Competitiveness
- OEM production technology and customized proposals tailored to customer needs
- Customers
-
- Restaurants
- Hotels
- Welfare facilities
- School lunch facilities
- Products
-
- Commercial gas stoves
- Ventilation fan systems
- Kitchen water heaters
Production Efficiency Improvement Services
- Overview
- Deploys advanced solutions aimed at improving manufacturing line efficiency and quality.
- Competitiveness
- Proven track record of significant cost reductions through introduction of French software
- Customers
-
- Manufacturing plants
- Production management departments
- Products
-
- Manufacturing DX software
- AI fault diagnosis system
Competitive Advantage
Strengths
- High market share in domestic water heaters
- Product development strong in environmental technologies
- Efficiency improvements through production DX
- Diverse product lineup
- Strong OEM supply system
- Extensive sales channels
- Solid financial foundation
- Community-focused social activities
- Long industry experience
- High brand reliability
- Unique voice guidance system
- Product safety and quality management
- Proactive stance on technological innovation
- Overseas group companies
- Sports sponsorship and cultural promotion activities
Competitive Advantages
- Possesses latest technologies like Eco-Jozu that consider the environment
- Advanced fault detection service using AI diagnosis
- Achieved cost reductions on the scale of 3 billion yen through management rationalization
- High expertise specialized in residential equipment
- Superior manufacturing and brand power over major competitors like Rinnai
- Domestic largest-class production and sales network
- Unique customer service combining voice and classical music
- Strengthened earnings structure through business selection and concentration
- Stable revenue sources secured through diverse OEM supplies
- High employee satisfaction and organizational strength
- International expansion with multiple group companies domestically and abroad
- Flexibility in product customization to meet customer needs
- Maintains good regional relations through support for local sports activities
- Proven track record of rapid support during disasters
- Eco-First certified company by the Ministry of the Environment
Threats
- Declining demand due to population decrease in domestic market
- Profit pressure from intense price competition
- Burden of responding to strengthened international environmental regulations
- Market entry by emerging overseas manufacturers
- Risk of raw material price fluctuations
- Decline in competitiveness due to delays in technological innovation
- Impact of natural disasters on production and logistics
- Uncertainty in business environment due to changes in laws and regulations
- Changes in consumer energy-saving preferences
- Impact of exchange rate fluctuations on overseas business earnings
- Risk of product safety issues
- Cybersecurity threats in the digitalization era
Innovations
2024: Expansion of AI Diagnosis System Introduction
- Overview
- Rolling out new service using AI for predicting failures in water heaters and stoves.
- Impact
- Contributes to improved customer satisfaction and reduced maintenance costs.
2024: Production Efficiency Revolution through Manufacturing DX
- Overview
- Implemented centralized factory production management by introducing French manufacturing management software.
- Impact
- Succeeded in annual cost reductions of 3 billion yen.
2023: Development of Enhanced Eco-Jozu with Improved Environmental Performance
- Overview
- Launched high-efficiency water heater equipped with the latest energy-saving technology.
- Impact
- Contributes to market share expansion and environmental load reduction.
2022: Expansion of IoT-Compatible Hot Water Systems
- Overview
- Introduced water heater control system compatible with smartphones.
- Impact
- Significantly improved user convenience.
2021: Registration of Classical Music Water Heater Voice as Trademark
- Overview
- Registered bath filling completion melody as a sound trademark.
- Impact
- Brand differentiation and enhanced customer satisfaction.
Sustainability
- Obtained Eco-First program certification
- Continuous improvement of energy-saving performance in water heaters
- CO2 emission reduction plans in manufacturing processes
- Promotion of resource recycling and regeneration business
- Participation in regional environmental and disaster prevention support activities
- Active adoption of low-environmental-impact materials
- Improvement of working environment and promotion of diversity
- Promotion activities for普及 of energy-saving products
- Promotion of renewable energy utilization
- Product design considering water resource protection
- Implementation of environmental education programs
- Building sustainable supply chains