Nakamura Chokko

Basic Information

Stock Code
6166
Industry
Machinery
Category Detail
Manufacturing Machinery & Electrical Equipment
Prefecture
Osaka Prefecture
Establishment Year
December 1970
Listing Year
June 2015
Official Website
http://www.nakamura-gp.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Aprixx, Toami, OSG, Daijet Industrial, Asahi Diamond Industrial, Fuji Seiko, A-One Precision, Nissin Tool, Estic, Fuji Dice, Union Tool, Makita, TB Group

Overview

Nakamura Chokko is a machinery manufacturer based in Sakai City, Osaka Prefecture, established in 1970, and a major industry player with strengths in the development and manufacturing of diamond tools and special precision parts.

Current Situation

Nakamura Chokko recorded net sales of approximately ¥1.38 billion in the fiscal year ended March 2021, but operating and net profits were in the red. Its core businesses are the manufacture of diamond wires and special precision parts, maintaining a certain competitiveness in the machine tools and cemented carbide tools markets. In recent technological developments, it produces manufacturing equipment for high-precision cutting wires and designs and manufactures special nozzles, enhancing product precision and wear resistance. It also addresses sustainability by maintaining ISO 9001 and 14001 certifications. In the medium to long term, it is strengthening overseas manufacturing bases (especially in Shanghai, China) and expanding high-value-added products. Despite a harsh market environment, it is developing proprietary technologies to differentiate from competitors, aiming for future performance recovery and sustainable growth.

Trivia

Interesting Facts

  • Veteran company that started with small screws for sewing machines before founding.
  • Boasts high-precision technology in manufacturing inner diameter measurement gauges with 1μm dimensional difference.
  • Early entry into production of silicon wafers for solar cells.
  • Early acquisition of both ISO 9001 and 14001 for quality management system.
  • Has a local subsidiary in Shanghai, China, and actively expanding in the Asian market.
  • In-house brand diamond wire manufacturing equipment is well-received.
  • Obtained medical device manufacturing license and tackling new fields.
  • Focusing on advanced technology development such as microreactors.
  • Headquarters and R&D facility located in Nishi-ku, Sakai City.
  • Deploying proprietary products with special brazing and heat treatment technology.
  • Multiple large D-Next factories installed in Izumi City, Osaka Prefecture.
  • Evaluated as an advanced company in environmental response with ISO 14001.
  • Product lineup expansion through collaboration with subsidiary Japan Nozzle.
  • Grown from a joint venture in China to a local subsidiary.
  • Founder's Shigeru Nakamura's technological spirit rooted in corporate culture.

Hidden Connections

  • Leverages medical device parts manufacturing license for close collaboration with the medical industry.
  • Serves as a bridge to industries across Asia through its local subsidiary in Shanghai, China.
  • Active technical exchanges with historic tool manufacturers based in Sakai City.
  • Special nozzle manufacturing technology tied to traditional strengths in the textile industry.
  • Collaboration with cutting-edge customers in the chemical field through the establishment of Flow Synthesis Laboratory.
  • Strengthened market competitiveness through product synergy from integration with Japan Nozzle.
  • Fusion of artisan techniques and latest precision machinery technology is a company characteristic.
  • Participates in industry-academia collaboration projects with industrial clusters in Osaka Prefecture.

Future Outlook

Growth Drivers

  • Increased demand for high-precision tools due to semiconductor industry growth
  • Expansion of renewable energy-related equipment market
  • Technological innovation in high-performance diamond tools
  • Strengthening of manufacturing bases for Asian markets
  • Business expansion into medical devices
  • Development of resource-saving products amid stricter environmental regulations
  • Expansion of industrial applications for microreactor technology
  • Productivity improvement through IoT and AI introduction in manufacturing sites
  • Diversification of special nozzle business and acquisition of new customers
  • Industry differentiation through improved product durability
  • Strengthening of overseas partnerships
  • Popularization of sustainability-compliant products

Strategic Goals

  • Achieve top domestic market share in diamond tool manufacturing
  • Increase overseas sales ratio to over 30%
  • Achieve carbon neutrality in manufacturing processes
  • Double sales in medical device-related business
  • Commercialize and develop markets for cutting-edge microreactors
  • Apply low-environmental-impact technology to entire product lineup
  • Enhance employee technical skills and strengthen young talent acquisition
  • Realize smart factory through IoT introduction
  • Ensure sustainability of supply chain
  • Set annual targets for new patents and technology developments

Business Segments

Semiconductor Manufacturing Equipment Related

Overview
Design and supply of high-precision processing machines and parts for semiconductor manufacturing.
Competitiveness
Superior product development capabilities in high precision and wear resistance
Customers
  • Semiconductor manufacturers
  • Electronics manufacturers
  • Industrial equipment manufacturers
Products
  • Diamond wire
  • Suction nozzles
  • Special tools

Solar Cell Manufacturing Equipment

Overview
Provides cutting and polishing equipment necessary for solar cell manufacturing processes.
Competitiveness
Proven high-quality silicon wafer supply system
Customers
  • Solar cell manufacturers
  • Environmental companies
Products
  • Silicon wafers
  • Diamond wire
  • Polishing parts

Chemical Fiber Manufacturing Lines

Overview
Design and manufacture of high-precision nozzles and parts for chemical fiber production.
Competitiveness
Improved production efficiency through custom design
Customers
  • Chemical fiber manufacturers
  • Textile machinery manufacturers
Products
  • Spinning nozzles
  • Special nozzle parts

Medical Device Parts Supply

Overview
High reliability in development and supply of precision parts for medical use.
Competitiveness
Manufacturing system compliant with medical standards
Customers
  • Medical device manufacturers
  • Medical institutions
Products
  • Precision nozzles
  • Medical parts

Machine Tool Related Parts

Overview
Provides high-durability industrial machinery parts to secure competitiveness in the machining market.
Competitiveness
Superior wear-resistant material technology
Customers
  • Machine tool manufacturers
  • Tool manufacturers
Products
  • Hard alloy parts
  • EDM parts

Environment and Energy Related

Overview
Supply of special tools for environmental and renewable energy fields.
Competitiveness
Environmental compatibility in cutting technology
Customers
  • Environmental equipment manufacturers
  • Energy companies
Products
  • Diamond wire
  • Special cutting tools

Precision Machinery Parts Manufacturing

Overview
Manufactures and sells mechanical parts utilizing ultra-precision polishing technology.
Competitiveness
High machining accuracy and stable supply capability
Customers
  • Precision machinery manufacturers
  • Industrial machinery users
Products
  • High-precision measurement gauges
  • Machinery mechanism parts

Tool Cleaning Equipment Sales

Overview
Provides cleaning equipment for machine tools, contributing to productivity improvement.
Competitiveness
Proprietary efficient cleaning technology
Customers
  • Tool manufacturers
  • Industrial machinery maintenance companies
Products
  • Nozzle cleaning machine MAC series

Automotive Parts Manufacturing

Overview
Produces and provides high-durability parts for the automotive industry.
Competitiveness
Use of materials with superior wear and heat resistance
Customers
  • Automotive parts manufacturers
  • Automotive manufacturing companies
Products
  • Wear-resistant parts
  • Special alloy parts

Electronic Parts Manufacturing Equipment

Overview
Sells precision equipment parts essential for electronic parts manufacturing.
Competitiveness
High-quality parts through fine machining technology
Customers
  • Electronics manufacturers
  • Electronic parts manufacturing companies
Products
  • Parts suction nozzles
  • Precision transport equipment parts

Food Machinery Parts

Overview
Provides mechanical parts for the food industry, considering hygiene.
Competitiveness
Design combining corrosion resistance and durability
Customers
  • Food processing machine manufacturers
  • Food factories
Products
  • Cleaning equipment parts
  • Corrosion-resistant parts

Aircraft Parts Manufacturing

Overview
Manufactures and supplies high-quality parts for the aerospace industry.
Competitiveness
Strict quality control and high-precision product lineup
Customers
  • Aircraft manufacturers
  • Aircraft parts suppliers
Products
  • Cemented carbide parts
  • Special precision tools

Competitive Advantage

Strengths

  • High-precision diamond tool manufacturing technology
  • Proprietary know-how in wear-resistant parts manufacturing
  • Possesses manufacturing bases in China and domestically
  • Quality and environmental management system with ISO certification
  • Product lineup capable of meeting diverse industrial needs
  • Reliability based on rich history and track record
  • Competitiveness in special nozzle field
  • Geographical advantage centered on Sakai City
  • Synergy from integration of subsidiary technologies
  • In-house development capability for latest equipment
  • Obtained approvals in medical parts field
  • Uniqueness of microreactor technology
  • Product lineup for niche markets
  • Long-term product stable supply system
  • Specialized knowledge as a dedicated manufacturer

Competitive Advantages

  • Possesses top-class diamond wire technology in the industry
  • Leads competitors in machining accuracy of special precision tools
  • In-house development of manufacturing equipment enables customization
  • Medical device manufacturing license allows entry into new markets
  • Strengthened cost competitiveness through local Chinese subsidiary
  • Demonstrates high quality and environmental consideration with ISO 9001 and 14001 certifications
  • Risk diversification by providing products to multiple industrial fields
  • Reliable customer base backed by long history
  • Improved durability with proprietary brazing and heat treatment technology
  • Development of microreactors incorporating latest technology
  • Rapid customer response through regionally integrated production bases
  • Strength in fine product machining with advanced polishing technology
  • Enhanced market recognition leveraging brand power
  • Comprehensive after-sales service system
  • Flexibility in creating tools for special applications

Threats

  • Risk of fluctuations in industrial machinery demand due to economic changes
  • Intensifying price competition with major overseas manufacturers
  • Possibility of profit squeeze from rising raw material prices
  • Risk of product obsolescence due to technological advancements
  • Political and economic risks at overseas production bases
  • Risk of productivity decline due to labor shortages
  • Increased manufacturing costs from stricter environmental regulations
  • Decreased market share from new entrants
  • Impact of exchange rate fluctuations on import/export costs
  • Increased development burden from customer specification changes
  • Prolonged recovery period for R&D investments
  • Supply chain issues due to novel infectious diseases and similar factors

Innovations

2024: High-Precision Diamond Wire Manufacturing Technology Development

Overview
Established new diamond wire manufacturing technology with higher durability and improved cutting accuracy.
Impact
20% improvement in product lifespan, 10% improvement in cutting accuracy

2023: Launch of Next-Generation Microreactor System

Overview
Commercialized microreactor system capable of automatic exploration of optimal chemical reaction conditions.
Impact
30% improvement in R&D efficiency compared to conventional methods

2022: Development of Low-Environmental-Impact Diamond Wire

Overview
Developed wire using new materials that reduce environmental impact in the manufacturing process.
Impact
25% reduction in CO2 emissions during manufacturing

2021: Improvement of Special Brazing and Heat Treatment Technology

Overview
Revolutionized brazing and heat treatment processes to enhance wear resistance.
Impact
15% extension of product service life

2020: Strengthening of Medical Precision Nozzle Manufacturing System

Overview
Introduced mass production equipment for precision nozzles compliant with medical standards.
Impact
20% increase in medical field sales

Sustainability

  • Environmental conservation through maintaining ISO 14001 certification
  • Energy-saving and waste reduction activities in manufacturing processes
  • Thorough management and reduction of hazardous substances emissions
  • Strengthened safety and health management
  • Collaboration with local communities on environmental conservation activities
  • Promotion of recyclable materials adoption
  • Promotion of environmental consideration in the supply chain
  • Thorough environmental education for employees
  • Expansion of resource-saving equipment introduction
  • Implementation of factory wastewater purification measures
  • Energy efficiency improvement through waste heat utilization
  • Grasping and reduction of carbon footprint