Tsugami

Basic Information

Stock Code
6101
Industry
Machinery
Category Detail
Manufacturing Machinery & Electrical Equipment
Prefecture
Tokyo
Establishment Year
March 1937
Listing Year
June 1949
Official Website
https://www.tsugami.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Okuma, Okamoto Machine Tool Works, Makino Milling Machine, DMG Mori Seiki, Sodick, Seibu Electric, Micron Precision, Howa Industry, Kikukawa Enterprise, Star Precision, CEC, Senzoku Electric

Overview

Tsugami is a precision machine tool manufacturer founded in 1937, primarily producing automatic lathes and grinding machines, and possesses high technological capabilities both domestically and internationally.

Current Situation

Tsugami recorded consolidated net sales of 107.4 billion yen and operating profit of 23.3 billion yen for the fiscal year ending March 2025, maintaining a stable revenue base. Its main products are CNC automatic lathes, turning centers, and grinding machines, expanding into the global market with high-precision machining technology as its strength. In recent years, it has established local subsidiaries in India and China for aggressive overseas expansion. It focuses on research and development, achieving high machining accuracy in the Swiss-type automatic lathe sector and forming partnership ties with global competitors. Emphasizing product quality improvement and response to customer needs, it sustains its competitiveness. Prioritizing sustainability, it continues investing in technologies to improve production efficiency and reduce environmental impact. In the future, it will promote digitalization and globalization, aiming for medium- to long-term business growth. Under the leadership of Representative Director and CEO Naohiro Nishijima, it is accelerating organizational reforms and overseas market development. It flexibly responds to market fluctuations and international situation changes, working to maintain and expand profitability.

Trivia

Interesting Facts

  • In 1923, founder Taesuke Tsugami began research on gauge blocks.
  • Possesses technology called 'Peterman type' in Swiss-type automatic lathes.
  • Main factory in Nagaoka City, Niigata Prefecture, maintains high technological quality.
  • In 2000, formed sales partnership with DMG Mori in Europe.
  • Once domestically produced printing Benton master engraving machines.
  • In 1960, manufactured Kyoto University's 60cm reflecting telescope.
  • Has diverse overseas subsidiaries and promotes global expansion.
  • Major shareholders include Mizuho Trust Bank and Dai-ichi Life Insurance.
  • Holds many patents with glamorous machine tool technology.
  • Long history of machining technology, earning trust over years.

Hidden Connections

  • Shifted from competitor to collaborator with Mori Seiki through European market sales partnership.
  • Maintains close ties with Niigata region's manufacturing network.
  • Trusted by major customers in automotive and medical device manufacturing.
  • Long-time contributor to the development of Japan's machine tool industry.
  • Some manufacturing processes protected by proprietary international patents.
  • Founder's Taesuke Tsugami's engineering spirit inherited as company culture.
  • Former name was 'Tsugami'; changed to current name in 1982.
  • Business expansion in India, China, and Thailand contributes to local industries.

Future Outlook

Growth Drivers

  • Growth from increasing demand for high-precision machine tools
  • Business expansion in Asian emerging markets
  • Manufacturing process innovation using IoT and AI
  • Development of high-value-added products for medical and aerospace
  • Expansion of demand for energy-saving machines complying with environmental regulations
  • Strengthening of global customer base
  • Production efficiency improvement through DX promotion
  • Improvement in sales power of overseas subsidiaries
  • Expanding precision parts market
  • Sustained technological innovation through engineer training

Strategic Goals

  • Achieve over 50% global sales ratio
  • Expand ratio of energy-saving and environmentally considerate products
  • Expand share in emerging markets
  • Establish leadership in advanced machining technology development
  • Improve production efficiency by 30% through DX
  • Establish sustainable procurement and operations
  • Obtain international certifications for sustainability management
  • Achieve 30 billion yen in sales from new business areas
  • Deepen symbiosis with local communities and strengthen CSR
  • Enhance corporate value through diverse talent recruitment and development

Business Segments

Precision Machine Tool Manufacturing

Overview
Provides high-precision machine tools to diverse industries, contributing to manufacturing process efficiency and quality improvement.
Competitiveness
Reliability from high-precision machining technology and long track record
Customers
  • Automotive parts manufacturers
  • Medical device manufacturers
  • Electronics manufacturers
  • Aerospace industry
Products
  • CNC automatic lathes
  • Turning centers
  • Machining centers
  • Grinding machines
  • Thread rolling machines

Overseas Sales and Service

Overview
Builds sales and support systems leveraging global networks.
Competitiveness
Rapid response from local subsidiaries in each country
Customers
  • Overseas machine tool distributors
  • Global manufacturing companies
Products
  • Machine tools
  • Maintenance services
  • Technical support

R&D Support

Overview
Designs and manufactures dedicated machines tailored to research institutions' needs.
Competitiveness
High flexibility and technological capability
Customers
  • University research institutions
  • Industrial technology research institutes
Products
  • Custom precision machine tools
  • Prototype development equipment

Competitive Advantage

Strengths

  • High-level machining accuracy
  • Long track record in machine tool manufacturing
  • Sales network spanning Japan and overseas
  • Diverse product lineup
  • Solid financial base
  • Continuous investment in R&D
  • Global local subsidiary structure
  • High responsiveness to customer specifications
  • Advanced Swiss-type lathe technology
  • Enhanced sales power through system partnerships

Competitive Advantages

  • Technological strength in Swiss-type automatic lathes is top-class in the industry
  • Comprehensive OEM and custom equipment対応 boosts customer satisfaction
  • Extensive overseas subsidiaries strengthen sales and after-sales service
  • Secures stable profit margins to form long-term growth base
  • Unique machining technologies enable対応 to niche markets
  • Partnership with Mori Seiki expands sales in European market
  • In-house production system for diverse machine tools
  • High brand power and reliability lead to many repeat customers
  • Strength in machining high-difficulty materials
  • Expansion into high-end industries like aerospace and medical devices

Threats

  • Intense price competition with global rivals
  • Impact of exchange rate fluctuations on earnings
  • Decline in demand due to semiconductor and electronics market volatility
  • Rising global resource and logistics costs
  • Rise of emerging country manufacturing machine companies
  • Increasing trade barriers from international protectionism
  • Risk of production efficiency decline due to labor shortages
  • Cost increases from stricter environmental regulations
  • Risk of failing to keep up with pace of technological innovation
  • Uncertain factors like novel coronaviruses

Innovations

2024: Advanced CNC cutting program development

Overview
Improved productivity through AI-supported cutting process optimization.
Impact
Achieved 20% reduction in machining time and uniform quality

2023: Introduction of digital twin technology

Overview
Built real-time monitoring and operation prediction system for machine tools.
Impact
15% reduction in maintenance costs and improved utilization rate

2022: Development of low-environmental-impact manufacturing processes

Overview
Launched new energy-saving machine tools.
Impact
Reduced power consumption by 25% compared to conventional

2021: Strengthening overseas subsidiary sales

Overview
Aggressively expanded sales bases in India, China, and Thailand.
Impact
Overseas sales ratio expanded from 30% to 40%

2020: Promotion of smart factory transformation

Overview
Introduced IoT-linked automatic manufacturing process management system.
Impact
10% improvement in production efficiency, enhanced traceability

Sustainability

  • Enhancement of energy-saving and resource-saving technologies in production processes
  • Promotion of low-environmental-impact materials usage
  • Waste reduction and recycling rate improvement activities
  • Environmental conservation activities in collaboration with local communities
  • Thorough employee environmental awareness education
  • Operation of ISO14001 environmental management system
  • Introduction of green procurement standards
  • Expansion of renewable energy usage
  • Improvement of work environment and diversity promotion
  • Formulation and disclosure of CO2 emission reduction targets