Neturen
Basic Information
- Stock Code
- 5976
- Industry
- Metal Products
- Category Detail
- Iron, Steel & Metal Products
- Prefecture
- Tokyo
- Establishment Year
- May 1946
- Listing Year
- April 1964
- Official Website
- https://www.k-neturen.co.jp/
- TSE Information
- TSE Information
- Yahoo! Finance
- Yahoo! Finance
- Other Companies
- Value Commerce, Alconics, Tokaro, Daikyo Nishikawa, Unipress, Moritex Steel, Onex, Fuji Dice, Shinto Industry, Tirado, Press Kogyo, Sanwa Technos, Inotec
Overview
Neturen is a metal heat treatment processing manufacturer founded in 1946. With induction heating technology at its core, it is the leading domestic producer of PC steel bars and holds strong competitiveness in the automotive and construction machinery parts sectors.
Current Situation
Neturen recorded consolidated net sales of approximately 48.8 billion yen and operating profit of approximately 2.1 billion yen for the fiscal year ended March 2020, maintaining a stable revenue base. Its core high-frequency heat treatment processing technology has solidified its position as the domestic leader in the PC steel bar market, with a focus on manufacturing and sales of automotive parts and construction machinery-related products. The company continues to develop technologies such as induction heating power supplies and launch new products, boasting strengths in quality and efficiency improvements. It operates multiple manufacturing sites and R&D departments across Japan, with affiliated companies globally expanding overseas operations. Its financial position is sound, with net assets of approximately 62.8 billion yen and total assets of approximately 76.3 billion yen forming a solid foundation. The company invests in equipment with sustainability in mind and pursues long-term growth strategies. Key priorities for sustainable growth include strengthening production systems, promoting DX, and expanding overseas bases. Moving forward, it plans to enhance competitive advantages and market development centered on advanced heat treatment technologies.
Trivia
Interesting Facts
- The first company in Japan to commercialize high-frequency induction heating technology.
- Boasts stable management with over 50 consecutive years of ordinary profit in the black.
- Industry-leading technology in heat treatment processing, topping the PC steel bar market.
- Contributes widely to construction machinery and automotive parts fields with proprietary technology.
- Operates numerous manufacturing sites in Japan and affiliated companies overseas.
- Long-established company with history of listing on the former Osaka Securities Exchange.
- Strengths in manufacturing and sales of induction heating equipment and high-frequency quenching technology.
- Founder Takao Ariga was an engineer from Kyushu Imperial University Faculty of Engineering.
- Listed on the Tokyo Stock Exchange Prime Market, recognized as a stable investment target.
- Actively promoting development of environmentally friendly products.
- Group has built manufacturing and sales networks in multiple countries worldwide.
- Focuses on technical education for employees to cultivate skilled technicians.
- Paid-in capital of approx. 6.4 billion yen, strong capital position in the industry.
- Sound financial position enables collaboration with numerous financial institutions.
- Diverse product lineup meets wide range of customer needs.
Hidden Connections
- Nippon Steel holds 7.6% as a major stable shareholder.
- Has subsidiaries and affiliates in South Korea, China, the US, Mexico, and elsewhere overseas.
- Directly supplies major companies in construction machinery and automotive industries, forming a strong transaction base.
- Holds numerous patents in induction heating technology within the industry, serving as a source of competitiveness.
- From inception, integrated development and manufacturing of induction heating equipment with heat treatment processing business.
- Long listing history on both Tokyo and Osaka Stock Exchanges.
- In-house R&D engages in joint projects with local universities and research institutions.
- Influential in industry associations as a leading PC steel bar producer in the construction market.
Future Outlook
Growth Drivers
- Expansion of PC steel bar demand due to increased domestic and overseas infrastructure investments
- Growing needs for lightweighting and higher strength in automotive parts
- Market expansion for energy-saving and environmentally friendly products
- New market acquisition through application of induction heating technology to diverse industries
- Production efficiency improvements via digital transformation
- Global share expansion through strengthening bases in promising overseas markets
- Technological innovation promotion through sustained R&D investment
- Enhanced customization capabilities in response to customer needs
- Advancement of high value-added products and differentiation strategies
- Increased related demand from government construction and industrial policies
- Automation investment strengthening to address declining working population
- Product and process innovations responding to stricter environmental regulations
Strategic Goals
- Expand domestic PC steel bar share to over 50%
- Promote higher efficiency and energy-saving in induction heating equipment
- Improve group overseas sales ratio to over 30%
- Achieve top-tier ESG ratings to enhance corporate value
- Accelerate production innovation and new product development using DX
- Strategically deploy high value-added product lineup for diverse applications
- Maintain R&D investment ratio at over 3% of sales
- Continuously enhance technological capabilities through talent development and skills succession
- Contribute to carbon neutrality at manufacturing sites
- Promote corporate activities emphasizing coexistence with local communities
Business Segments
Construction Materials and Civil Engineering Steel Processing
- Overview
- Processes and supplies high-strength steel materials and high-durability wire for construction and civil engineering fields.
- Competitiveness
- High-precision heat treatment using induction heating technology
- Customers
-
- Construction Companies
- Civil Engineering Contractors
- Rebar Contractors
- General Contractors
- Local Governments
- Products
-
- PC Steel Bars
- Pre-Hardened Wire
- Custom Heat-Treated Steel
Heat Treatment Processing for Automotive Parts Manufacturers
- Overview
- Heat treatment services aimed at improving strength and durability of automotive-related parts.
- Competitiveness
- Localized quenching using high-frequency technology
- Customers
-
- Automotive OEM Manufacturers
- Parts Suppliers
- Two-Wheel and Four-Wheel Manufacturers
- Products
-
- Spring Steel Wire
- High-Frequency Quenched Parts
- Machine Structural Parts
Machinery and Industrial Equipment Parts Processing
- Overview
- Processes and supplies wear-resistant parts for various industrial machinery.
- Competitiveness
- Ability to meet diverse heat treatment needs
- Customers
-
- Construction Machinery Manufacturers
- Industrial Machinery Manufacturers
- Machine Parts Processors
- Products
-
- Pre-Hardened Wire
- Heat-Treated Parts
- Surface Hardening Processing
Induction Heating Equipment Manufacturing and Sales
- Overview
- Develops, manufactures, and sells high-performance induction heating equipment.
- Competitiveness
- Pioneering technological expertise in the industry
- Customers
-
- Manufacturing Industry
- Metal Processing Industry
- Research and Development Institutions
- Products
-
- High-Frequency Quenching Equipment
- Induction Heating Power Supplies
- Heat Treatment Line Equipment
Leasing Business
- Overview
- Diversifies revenue base through leasing of factory equipment and real estate.
- Competitiveness
- Solid asset management capabilities
- Customers
-
- General Companies
- Individuals
- Real Estate Management Companies
- Products
-
- Movable Property Leasing
- Real Estate Leasing
R&D Support
- Overview
- Supports research and development of cutting-edge heat treatment technologies.
- Competitiveness
- Abundant technical know-how
- Customers
-
- Universities
- Research Institutions
- Manufacturing R&D Departments
- Products
-
- Heat Treatment Technology Consulting
- New Processing Technology Development Support
Competitive Advantage
Strengths
- Industry-leading PC steel bar processing capacity
- Advanced proprietary know-how in induction heating technology
- Efficient production system with multiple sites
- Stable supply of high-quality heat-treated products
- Group of affiliated companies expanding globally
- Long history of consistent profitability
- Strong trusted relationships with major customers
- R&D division with strong technological capabilities
- Diverse product lineup responding to market needs
- Solid financial base and asset management capabilities
- Competitive edge through expansion of environmentally friendly products
- Advanced employee skills and training system
- Management stability and social credibility
- Efficient logistics and supply chain construction
- Management strategies adapted to industry characteristics
Competitive Advantages
- Dominant share of PC steel bars in Japan
- Long-term technological accumulation and patents in induction heating
- Strong transaction base through direct dealings with major automakers
- Integrated production system across multiple domestic and overseas factories
- Product reliability backed by comprehensive quality control
- Pioneering commercialization of high-frequency heat treatment technology
- Market diversification through multi-country group expansion
- Continuous R&D investment maintaining technological innovation
- Custom product response capabilities to customer needs
- Stable finances supporting new investments
- Adoption of sustainable manufacturing processes
- Corporate culture focused on talent development and technology succession
- Flexible management strategies adapting to market fluctuations
- Superior delivery management and customer service systems
Threats
- Rising global steel prices leading to cost increases
- Changes in parts demand due to electrification of automotive industry
- Intensified price competition from new entrants
- Political and economic risks at overseas production sites
- Increased production costs from stricter environmental regulations
- Revenue instability from exchange rate fluctuations
- Supply chain disruption risks
- Decline in competitiveness from stagnant technological innovation
- Intensified competition in global markets
- Labor shortages and aging of skilled technicians
- Damage to production sites from natural disasters
- Decreased demand from adoption of new materials
Innovations
2024: Development of Next-Generation High-Efficiency Induction Heating Equipment
- Overview
- Commercialized a new induction heating device that improves energy efficiency by 20%.
- Impact
- Contributes to production cost reduction and lower environmental impact
2023: Introduction of Manufacturing Technology for Environmentally Friendly PC Steel Bars
- Overview
- Established a manufacturing process using corrosion-resistant, low-environmental-impact materials.
- Impact
- Significantly strengthens competitiveness in the construction market
2022: Promotion of Production Line Digitalization Using IoT
- Overview
- Achieved real-time production data collection and analysis, enhancing quality control.
- Impact
- 10% improvement in yield, 15% increase in production efficiency
2021: Development of New Alloy for High-Strength Spring Steel Wire
- Overview
- Expanded product lineup with a new alloy balancing fatigue resistance and lightweight properties.
- Impact
- Contributes to automotive lightweighting needs
2020: Introduction of Energy-Saving Heat Treatment Equipment Applying Induction Heating Technology
- Overview
- Introduced and began operation of equipment reducing power consumption by 30% compared to conventional.
- Impact
- Achieves reduction in environmental impact and costs
Sustainability
- Formulation of CO2 emission reduction plans at production sites
- Promotion of active adoption of environmentally considerate materials
- Setting targets to improve waste recycling rate
- Expansion of energy-saving equipment introductions
- Implementation of environmental conservation activities in collaboration with local communities
- Employee environmental awareness training
- Promotion of sustainable supply chain construction
- Environmental consideration through product lifecycle assessment
- Operation and improvement of environmental management systems
- Strengthening environmental information sharing and collaboration with suppliers
- Formulation of ESG goals across the group
- Environmental impact assessment in new technology development