Okuma

Basic Information

Stock Code
6103
Industry
Machinery
Category Detail
Manufacturing Machinery & Electrical Equipment
Prefecture
Aichi Prefecture
Establishment Year
March 1937
Listing Year
May 1949
Official Website
https://www.okuma.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Japan Steel Works, Tsugami, Amada, Okamoto Machine Tool, FUJI, Makino, DMG MORI, Sodick, Nishiu Electric, Micron Precision, Howa, SMC, Hitachi Construction Machinery, Kikukawa Enterprise, Brother Industries, Makita, Yokogawa Electric, Star Precision

Overview

Okuma is a leading machine tool manufacturer founded in 1918, renowned for its technological prowess and in-house production of integrated mechatronic NC devices, representing one of Japan's premier machinery makers.

Current Situation

Okuma recorded consolidated net sales of approximately 227.9 billion yen, operating profit of about 25.3 billion yen, and net profit of around 19.5 billion yen for the fiscal year ending March 2024, maintaining a solid financial foundation. In its core machine tool business, it holds a position as one of Japan's four major manufacturers, excelling in the development and sales of high-precision machining equipment such as lathes and machining centers. In recent years, the company has focused on developing machine tools equipped with 3D printers and advancing smart factories, progressing with IT collaboration with Hitachi to improve production efficiency. It also considers sustainability, aiming to reduce environmental impact through smart production processes. Moving forward, it plans to address manufacturing needs domestically and internationally through DX initiatives and enhanced advanced machining technologies, aiming to expand global operations and improve profitability. While market conditions face challenges such as slowdowns in capital investment in the US and Europe, the demand for advanced industrial machinery is expected to support medium- to long-term growth.

Trivia

Interesting Facts

  • History of development from noodle machines to machine tools by founder who was a police officer.
  • Japan's only manufacturer in-house producing NC devices.
  • Industry pioneer in 3D printer-equipped machine tools.
  • Developed embedded language EBIFRY to strengthen proprietary control technology.
  • Completed smart factory 'Dream Site 2' in Oguchi Town, Aichi Prefecture.
  • Naming rights for local sports facilities using company name.
  • Leads machinery sector as a Nikkei 225 constituent.
  • Strengthens global competitiveness through numerous overseas subsidiaries.
  • Produced top leaders for Japan Machine Tool Builders' Association.
  • Contributes to aerospace field with high-precision machining machines.
  • Established in 1918 with over 100 years of history.
  • Continued diversified technology development starting from noodle machines.
  • High-reliability CNC systems through in-house design and manufacturing.
  • Achieves labor-saving in parts manufacturing with 3D printer technology.
  • Flexibility to meet multi-variety, small-lot production needs.

Hidden Connections

  • Conducting joint research with Hitachi on smartization of manufacturing sites.
  • One of Japan's four major machine tool manufacturers alongside peers.
  • Technology from noodle machine founder forms the foundation of machine tool business.
  • Pioneered proprietary field in embedded machine control through EBIFRY language development.
  • Local contributions via naming rights contracts as a feature.
  • Holds 86.6% of Japan Seiki Shokai shares, strengthening collaboration.
  • Global customer network through numerous overseas entities.
  • Gained trust in automotive and aerospace industries with advanced NC technology.

Future Outlook

Growth Drivers

  • Ongoing expansion of demand for higher-precision machine tools.
  • Increased demand from smart factory initiatives in domestic and international manufacturing.
  • Differentiation through innovation in integrated mechatronic NC control technology.
  • Market expansion of 3D printer-equipped complex machining machines.
  • Growing demand for parts machining in automotive and aircraft industries.
  • Strengthened proposals for production process efficiency via DX.
  • Rising interest in environmentally performant and energy-saving machines.
  • Enhanced sales in Southeast Asia and European emerging markets.
  • Increasing needs for multi-variety, small-lot parts machining.
  • Expansion of local production through supply chain reforms.

Strategic Goals

  • Raise global sales ratio to over 60%.
  • Cultivate smart factory support business as new growth pillar.
  • Expand domestic and international share in 3D printing complex machining.
  • Develop products contributing to carbon neutrality.
  • Strengthen services to enhance customer experience value.
  • Develop next-generation machining machines incorporating AI/IoT.
  • Promote skills inheritance and diversity among employees.
  • Maintain and expand R&D expenses to over 8% of sales.
  • Strengthen international standards in quality management systems.
  • Continuous contributions to regional society and sustainable management.

Business Segments

Automotive Industry Machining Solutions

Overview
Provides machines to meet diverse and precise parts machining needs in the automotive industry.
Competitiveness
High-precision machining through advanced integrated mechatronic control technology
Customers
  • Automobile manufacturers
  • Automotive parts manufacturers
  • Motorcycle manufacturers
  • Suppliers
Products
  • High-precision lathes
  • Complex machining machines
  • OSP NC controls
  • Parts machining systems

Aerospace Precision Machining Machines

Overview
Develops high-precision machining machines for aerospace parts, including difficult-to-machine materials.
Competitiveness
High-rigidity design and cutting-edge control technology as strengths
Customers
  • Aircraft manufacturers
  • Aerospace parts suppliers
  • Space development companies
Products
  • 5-axis machining centers
  • Complex machining machines
  • High-rigidity lathes

Steel and Industrial Machinery Machining Solutions

Overview
Provides machine tools and control systems supporting large parts machining.
Competitiveness
High reliability and long life of large machines
Customers
  • Steel manufacturers
  • Industrial machinery manufacturers
  • Heavy industry companies
Products
  • Large lathes
  • Grinding machines
  • OSP control devices

Electronics and Precision Equipment Machining Machines

Overview
Provides precision machine tools enabling fine machining.
Competitiveness
Control technology and rigid design specialized for fine machining
Customers
  • Electronics manufacturers
  • Precision parts manufacturers
Products
  • Compact machining centers
  • High-precision grinding machines

Smart Factory Solutions for Machine Tools

Overview
Provides software and services to advance factory smartization.
Competitiveness
IT technology enabling integration with diverse machines
Customers
  • General manufacturing
  • Machine tool sales agents
Products
  • Factory IoT systems
  • Production management systems
  • Remote operation services

Parts Machining Contract Services

Overview
Undertakes diverse parts machining with quality assurance.
Competitiveness
High-precision machining and short delivery capabilities
Customers
  • SMEs in manufacturing
  • Prototype development companies
Products
  • Lathe machining
  • Machining center machining
  • Grinding machining

Industrial Machinery Peripheral Equipment Manufacturing and Sales

Overview
Supplies equipment to support efficiency in industrial machinery.
Competitiveness
Optimal design integrated with machining machines
Customers
  • Machine tool manufacturers
  • Parts manufacturers
Products
  • Control panels
  • Dedicated tools
  • Auxiliary devices

Overseas Market Expansion Division

Overview
Builds sales and maintenance networks worldwide.
Competitiveness
Local-close support and technology provision
Customers
  • Global manufacturing companies
  • Local sales agents
Products
  • Full product lineup
  • Local customization services

Education and Training Services

Overview
Supports user operation training and technician development.
Competitiveness
Practical curriculum aligned with real-world operations
Customers
  • Manufacturing companies
  • Technical training institutions
Products
  • CNC programming courses
  • Machine operation training

Maintenance and After-Sales Service

Overview
Provides total support for improving machine uptime and maintenance.
Competitiveness
Nationwide rapid response system
Customers
  • Machine tool users
  • Manufacturing companies
Products
  • Maintenance contracts
  • Spare parts supply
  • Remote monitoring

R&D Test Equipment

Overview
Provides various test equipment supporting cutting-edge technology development.
Competitiveness
Advanced measurement technology and reliability
Customers
  • Universities and research institutions
  • National Institute of Advanced Industrial Science and Technology
Products
  • Machining accuracy evaluation devices
  • Manufacturing process inspection equipment

Renewable Energy Related Machinery

Overview
Deploys technologies and products supporting green growth.
Competitiveness
Energy-saving design and high-precision machining technology
Customers
  • Environmental companies
  • Energy-saving equipment manufacturers
Products
  • High-efficiency machining machines
  • Energy control devices

Competitive Advantage

Strengths

  • Advanced technological capabilities and integrated mechatronic NC control technology
  • Diverse machine tool product lineup
  • Robust sales network spanning Japan and overseas
  • Substantial R&D investment and innovation strength
  • Solid financial base and stable profitability
  • Proven track record in smart factory construction
  • Brand reliability for high-precision machining machines
  • Development of proprietary embedded programming language
  • Multi-site manufacturing and service base system
  • Long industry experience and historical trust

Competitive Advantages

  • Only major manufacturer in-house producing NC devices, with integrated mechatronics strength
  • Advanced multi-axis complex machining and 3D printer-equipped machines
  • Customization capabilities tailored to customer needs
  • Success in improving production efficiency using IT technologies
  • Extensive domestic and international sales and support network
  • High-speed, high-rigidity machine tools meeting high-value market demands
  • Product designs considering safety and environmental concerns
  • Long-life designs reducing maintenance costs
  • Integrated product development for global markets
  • Technological innovation through joint development with partner companies

Threats

  • Declining demand due to slowdown in capital investment centered on US and Europe
  • Price competition pressures from intensifying global competition
  • Supply chain risks such as semiconductor shortages
  • Increased product design costs from stricter environmental regulations
  • Profit volatility from exchange rate fluctuations
  • Emergence of new alternative machining technologies
  • Geopolitical risks and international trade restrictions
  • Shortages of successors and skilled technicians

Innovations

2024: Enhanced Operation of Smart Factory 'Dream Site 2'

Overview
Advances smartization of manufacturing sites using AI and IoT, extending unmanned operation times.
Impact
Production efficiency improved by over 20%, achieving high-quality process management

2023: Expansion of 3D Printer-Equipped Complex Machining Machines

Overview
Added new models to DMP series, improving metal additive machining accuracy.
Impact
Increased capability for diverse complex parts, expanding orders

2022: Development of High-Speed Technology for Next-Generation NC Control OSP Suite

Overview
Achieved machining time reduction and enhanced automation through high-speed data processing.
Impact
Contributes to workload reduction while maintaining machining accuracy

2021: Introduction of AI-Based Failure Prediction System

Overview
Established early anomaly detection system by analyzing machine operation data.
Impact
Reduced downtime and efficient maintenance planning

2020: Development and Mass Production Start of Energy-Saving Machine Tools

Overview
Equipped with high power-efficiency motors and control technology to reduce environmental load.
Impact
Successfully reduced energy consumption by 15%

Sustainability

  • Development and promotion of energy-saving machines
  • Balancing production efficiency and environmental considerations through smart factories
  • Expansion of recycled material use
  • Environmental conservation activities in collaboration with local communities
  • Strengthened safety and health management and employee wellness promotion
  • Promotion of green procurement
  • Formulation of plans toward carbon neutrality
  • Efforts to improve waste recycling rate
  • Support for reducing environmental impact in supply chains
  • Introduction of environmentally friendly materials and product designs