TONE

Basic Information

Stock Code
5967
Industry
Metal Products
Category Detail
Manufacturing Machinery & Electrical Equipment
Prefecture
Osaka Prefecture
Establishment Year
August 1938
Listing Year
May 1963
Official Website
https://www.tonetool.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Auto Server, Tenryo Saw, Asaka Kogyo, KTC, Lobtex, Super Tool, Max, Toho Remac, Sonocom

Overview

TONE is a leading tool manufacturer in the metal products sector founded in 1938, expanding into the market with advanced technology centered on bolt fastening tools under the 'TONE' brand.

Current Situation

TONE Co., Ltd. maintained solid performance in the fiscal year ending May 2020 with consolidated sales of 5.948 billion yen and operating profit of 960 million yen. Its mainstay bolt fastening tools, centered on torque wrenches, provide high-quality products sold to major domestic home centers. Technologically, it differentiates through proprietary satin finish processing, pursuing functionality and durability. It has enhanced logistics bases for efficient management with a lean organization, aiming for annual sales of 10 billion yen. While competing with rivals, it seeks to expand market share with highly specialized products, focusing on diversifying sales channels and product development. Recently, it has integrated manufacturing and logistics bases and relocated its head office functions to improve organizational efficiency. It promotes sustainable manufacturing alongside activities to enhance brand value.

Trivia

Interesting Facts

  • The 'TONE' name derives from the Tone River, a unique brand name.
  • Changed company name from 'Maeda Metal Industry' to 'TONE' in 2013.
  • Tool manufacturer with advanced specialization in bolt fastening.
  • Founding traces back to predecessor company in 1925, over 100 years of history.
  • Satin finish processing technology effectively used for market differentiation.
  • Practices efficient organization management with a lean staff.
  • Opened latest logistics warehouse in Tondabayashi City to strengthen logistics functions.
  • Maintains strong trading relationships with numerous major domestic home centers.
  • Representative Director Daisiro Yano has extensive management experience.
  • Fully owns subsidiary Lock Co., Ltd.
  • Products used by a wide range of customers from professionals to DIY enthusiasts.
  • Historical ties with Yamazen, linked to the founder.
  • Established stable position in Japan's metal products industry.
  • Proprietary processing technology born from strong focus on printing and marking.
  • Relocated sales office to Tokyo to strengthen sales in the capital region.

Hidden Connections

  • Founder has work experience at predecessor store of Yamazen founder and was influenced by it.
  • Company name change aimed to unify with product brand and improve market recognition.
  • Collaborates with numerous domestic home centers to form a wide distribution network.
  • Brand name derived from river name, incorporating regionality and trust into brand image.
  • Focuses on infrastructure investments like logistics warehouses to strengthen production system.
  • Specialized in bolt fastening equipment field, recognized as expert group in the industry.
  • Products recognized in both domestic pro and DIY markets.
  • Main product torque wrench highly evaluated both domestically and internationally.

Future Outlook

Growth Drivers

  • Increasing demand for high-precision tools due to advancement in bolt fastening market
  • Stable growth in domestic home center market
  • Improved customer service through logistics efficiency
  • Enhanced product value and new product development through technological innovation
  • Increasing demand from recovery in equipment investments in construction and manufacturing industries
  • Strengthened response to green manufacturing
  • Expansion of e-commerce channels

Strategic Goals

  • Achieve annual sales target of 10 billion yen
  • Digitize product lines and develop smart tools
  • Achieve 50% adoption rate of sustainable materials
  • Improve brand recognition domestically and internationally
  • Establish efficient logistics and production systems
  • Develop diverse sales channels
  • Maintain industry-leading technology development leadership
  • Strengthen CSR activities emphasizing coexistence with local communities

Business Segments

Tools for Industrial Machinery

Overview
Provides high-precision and durable tools for industrial machinery manufacturing and maintenance.
Competitiveness
Tool lineup compatible with advanced machinery integration
Customers
  • Factory maintenance departments of manufacturing companies
  • Automotive assembly plants
  • Heavy machinery manufacturers
  • Construction machinery manufacturers
Products
  • Torque Wrenches
  • Ratchet Wrenches
  • Impact Sockets
  • Air Tools

Equipment Maintenance Services

Overview
Stably supplies a wide variety of tools needed for equipment maintenance and supports worker safety.
Competitiveness
Extensive product lineup and after-sales service
Customers
  • Manufacturing line maintenance companies
  • Plant maintenance companies
  • Public infrastructure managers
Products
  • General Work Tools
  • Measuring Tools
  • Safety Equipment
  • Auxiliary Equipment

Wholesale to Retail Stores

Overview
Wholesales diverse products and supports retail store sales.
Competitiveness
Abundant inventory and rapid logistics response
Customers
  • Home Centers
  • Tool Specialty Stores
  • DIY Shops
Products
  • Various Manual Tools
  • Power Tools
  • Related Accessories

Competitive Advantage

Strengths

  • Accumulated years of tool manufacturing technology
  • Strong sales network with major domestic home centers
  • High-precision and durable torque wrench technology
  • Efficient management with a lean organization
  • Proprietary satin finish processing technology

Competitive Advantages

  • Reliable product lineup based on the TONE brand name
  • High specialization in bolt fastening field
  • Established sales channels in the domestic market
  • Versatile customer coverage through broad product lineup
  • Cost competitiveness from efficient integration of manufacturing and logistics
  • Extensive sales track record in home center market
  • Ongoing efforts in product quality management
  • Long history and stable financial base

Threats

  • Intensifying price competition from new entrants
  • Risk of fluctuating raw material prices
  • Market share pressure from intensifying international competition
  • Risk of declining competitiveness due to delays in technological innovation
  • Demand reduction due to economic fluctuations
  • Shrinking domestic market and delays in overseas expansion
  • Rising logistics costs

Innovations

2024: Development and Launch of New Torque Wrench

Overview
Introduced the latest torque wrench achieving high precision and weight reduction, improving work efficiency.
Impact
Contributes to expanded support from pro users and sales growth

2023: Opening of Logistics Warehouse TONE SQUARE

Overview
Built an efficient logistics system, shortening delivery times and improving inventory management accuracy.
Impact
Contributes to improved customer satisfaction and cost reduction

2022: Enhanced Tool Durability with New Materials

Overview
Introduced proprietary developed materials, significantly extending tool lifespan.
Impact
Achieves improved product quality and reduced maintenance costs

2024: Strengthening Online Sales Channels

Overview
Promotes diversification of sales routes by leveraging own EC site and major EC platforms.
Impact
Contributes to acquiring younger users and sales expansion

Sustainability

  • Setting targets to reduce CO2 emissions in manufacturing processes
  • Research and adoption of low-environmental-impact materials
  • Building internal systems to improve recycling rates
  • Promoting introduction of energy-saving equipment
  • Strengthening sustainable raw material procurement