OSG

Basic Information

Stock Code
6136
Industry
Machinery
Category Detail
Manufacturing Machinery & Electrical Equipment
Prefecture
Aichi Prefecture
Establishment Year
March 1938
Listing Year
December 1964
Official Website
https://www.osg.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
FUJI, Di-Jet Industrial, Asahi Diamond Industrial, Fuji Seiko, A-One Precision, Nissin Tool, Estic, Nakamura Chokodo, Fuji Dais, Union Tool, Makita, Taiheiyo Kogyo, Daiseki

Overview

OSG is a major machinery industry player founded in 1938, conducting business on a global scale centered on cutting tools, and possesses high technological capabilities and a global network.

Current Situation

OSG recorded consolidated net sales of approximately 155.5 billion yen, operating profit of approximately 18.8 billion yen, and net profit of approximately 13.4 billion yen for the fiscal year ending November 2024, establishing a stable revenue base. Its head office is located in Toyokawa City, Aichi Prefecture, with production and sales bases around the world. Its main business is the manufacturing and sales of cutting tools, thread rolling tools, and machine tools, and it demonstrates strengths in the cemented carbide tool field. It differentiates itself from competitors through technological innovation and advanced processing technology, and promotes efficient business operations through integrated manufacturing and sales. It is actively utilizing overseas subsidiaries to strengthen its global competitiveness. It is also focusing on environmentally friendly product development and sustainability activities, advocating a strategy for sustainable growth. In the future, it aims to expand its business through the development of high value-added products and entry into new markets, with active investments in state-of-the-art equipment. Recently, it has been expanding into new fields such as products for aircraft, with medium- to long-term growth expected.

Trivia

Interesting Facts

  • Company name derives from the founder's name and thread grinding
  • One of the world's largest cutting tool manufacturers in scale
  • Supports regional economy as a representative company of the Higashimikawa region
  • Once installed a large digital clock in central Nagoya
  • Has over 100 consolidated subsidiaries globally

Hidden Connections

  • Once had a capital alliance with Tangalloy and later dissolved the business capital alliance
  • Has built long-term trading relationships with automakers and aircraft manufacturers worldwide
  • Plays an important role in Aichi Prefecture's manufacturing network
  • Contributed to improving Japan's machining technology through cemented carbide cutting tool technology provision
  • Has production bases in multiple countries, strengthening local production and sales

Future Outlook

Growth Drivers

  • Increasing demand for advanced processing in aircraft and automotive industries
  • Product value enhancement through new materials and technologies
  • Expansion of sales channels in global markets
  • Acceleration of digitalization and smart factory introduction
  • Environmentally friendly products responding to sustainability demands

Strategic Goals

  • Achieve 70% global sales ratio
  • Increase high value-added product ratio to 50%
  • Achieve over 50% reduction in CO2 emissions
  • Improve production efficiency by 20% through digitalization
  • Expand share in emerging markets and strengthen customer base

Business Segments

Cutting Tool Manufacturing and Sales

Overview
Manufactures and sells high-precision cutting tools and machine tools tailored to customer machining needs.
Competitiveness
World-leading cutting technology and global sales network
Customers
  • Automotive manufacturers
  • Aircraft manufacturers
  • Precision machinery manufacturers
  • Die manufacturers
  • Machine tool manufacturers
Products
  • Carbide End Mills
  • High-Speed Taps
  • Drills
  • Thread Rolling Tools
  • Machine Tools

Tool Coating Services

Overview
Provides high-quality coating services to improve cutting tool performance.
Competitiveness
High-precision proprietary coating technology
Customers
  • Tool manufacturers
  • Precision processors
  • Machine tool manufacturers
Products
  • Wear-Resistant Coating
  • Hard Film Treatment

Thread Products and Related Goods Development

Overview
Develops and provides high-quality, durable thread products.
Competitiveness
Accumulated expertise in grinding and thread rolling technology
Customers
  • Machining contractors
  • Building materials suppliers
  • Automotive parts manufacturers
Products
  • Thread Rolling Screws
  • High-Precision Thread-Related Products

Competitive Advantage

Strengths

  • Advanced cemented carbide cutting tool technology
  • Global-scale production and sales network
  • High efficiency through integrated manufacturing and sales
  • Diverse product lineup
  • Long history and credibility

Competitive Advantages

  • Position as one of the world's largest cutting tool manufacturers
  • Customer-focused services through global deployment
  • Numerous proprietary patented technologies
  • Overseas market対応 with multilingual sales organization
  • Production management balancing high quality and short delivery times

Threats

  • Risk of fluctuations in global material prices
  • Impact of exchange rate fluctuations on earnings
  • Accelerating technological innovation by competitors
  • Risk of cost increases due to stricter environmental regulations
  • Risk of demand fluctuations due to automation and labor reduction

Innovations

2024: New Cemented Carbide End Mill Development

Overview
Developed a new material end mill with 20% improved wear resistance compared to conventional products.
Impact
Achieved extended tool life and improved machining efficiency.

2023: Mass Production of High-Precision Cutting Tools for Aircraft Begins

Overview
Established mass production system for special processing tools for aircraft parts.
Impact
Successfully entered new markets and contributed to sales expansion.

2022: Coating Technology Optimization

Overview
Successfully commercialized new coating technology to enhance tool durability.
Impact
Improved customer satisfaction and repeat business rate.

2021: Promotion of Smart Factory Transformation

Overview
Promoted automation and efficiency of production lines using IoT and AI.
Impact
Achieved 10% reduction in production costs and stabilized quality.

Sustainability

  • Introduction of factory wastewater reuse system
  • Active introduction of energy-saving equipment
  • Employee environmental education and strengthened safety measures
  • Improved product recyclability
  • Material development considering reduced environmental impact