Shima Seiki Mfg., Ltd.

Basic Information

Stock Code
6222
Industry
Machinery
Category Detail
Manufacturing Machinery & Electrical Equipment
Prefecture
Wakayama Prefecture
Establishment Year
February 1962
Listing Year
December 1990
Official Website
https://www.shimaseiki.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Hirakawa Hutech, Tsudakoma Industrial, Pegasus, JUKI, Janome, Tsubaki Nakashima

Overview

Shima Seiki Mfg., Ltd., founded in 1962, is the world's leading manufacturer of flat knitting machines in the machinery industry, developing diverse and highly precise computer-controlled machines as a comprehensive mechatronics company with unique design and manufacturing technologies.

Current Situation

Shima Seiki Mfg., Ltd. has consolidated sales of approximately ¥37.9 billion (fiscal year ended March 2023) and specializes in high-profit flat knitting machine operations. Leveraging its world-leading market share and technological prowess, it maintains competitive advantages in the fashion industry and industrial machinery sectors. In recent years, it has focused on developing electronic control and digital design systems, launching innovative products such as fully seamless flat knitting machines. Although it recorded temporary losses due to the COVID-19 pandemic and other factors, it achieved a return to profitability in the fiscal year ended March 2024, indicating a recovery trend. Amid external challenges like subdued capital investment in China, waning demand, and political instability in Bangladesh, it is advancing mid- to long-term growth strategies utilizing strengths in electronic control technology and small-lot multi-variety production. It also emphasizes sustainability, reducing environmental impact and improving production efficiency. It plans to expand into diverse industries and sustain technological innovation toward 2030.

Trivia

Interesting Facts

  • Developed the mass-production model of fully automatic glove knitting machines in 1964, revolutionizing the industry.
  • Fully seamless flat knitting machine technology adopted by luxury brands, earning international acclaim.
  • Known as the only comprehensive mechatronics company in the textile machinery industry.
  • Received Gold Medal Award at the 1975 Leipzig Fair.
  • Founder Masahiro Shima was a technician and manager who greatly contributed to industry development.
  • Pioneered electronic control technology, establishing industry standards in the 1980s.
  • Specializes in multi-variety small-lot production via digital design systems.
  • Addressing supply chain impacts from anti-government protests in Bangladesh.
  • Internal technological accumulation leads in patent applications.
  • Top company holding over 40% world share in flat knitting machines.
  • Contributing to regional economy as a mid-sized manufacturer with over 1,800 employees.
  • Realizes precise stitch control through numerous patented technologies.
  • Specializes in niche markets of the textile industry with global expansion.
  • One of Japan's leading intellectual property-utilizing manufacturing companies.
  • Actively promoting overseas expansion by applying patented technologies.

Hidden Connections

  • Collaborates with multi-company networks as a member of the Sanwa Group and Midori-kai.
  • Supplies seamless products to luxury fashion brands, maintaining a unique position in the industry.
  • Maintains long-term transactions with domestic and international apparel manufacturers, strengthening supply chains.
  • Integrates electronic control and digitalization technology with broad industrial machinery technologies.
  • R&D department collaborates with universities and educational institutions for ongoing technological innovation.
  • Closely linked with Wakayama Prefecture's local industries, contributing to the regional economy.
  • Deep ties to Chinese market, with performance sensitive to local capital investment trends.
  • Showcases high-value-added products utilizing fully seamless technology at numerous international trade shows.

Future Outlook

Growth Drivers

  • Growing global demand for digitalization in textile and fashion markets.
  • Expanding worldwide demand for sustainable and environmentally friendly manufacturing.
  • Increasing demand for advanced machinery due to accelerated shift to multi-variety small-lot production.
  • Expansion of infrastructure and capital investment in emerging markets centered on Asia.
  • Enhanced competitiveness through advanced digital design integrated solutions.
  • Expansion of seamless knit products for luxury brands.
  • Promotion of efficiency through automation and AI in manufacturing processes.
  • Product differentiation via development of knitting machines compatible with new materials.
  • Revenue growth from launching products compliant with stricter environmental regulations.
  • 対応 to strengthening global supply chain resilience.
  • Promotion of expansion into medical and industrial knit product fields.
  • Production optimization using digital twin technology

Strategic Goals

  • Achieve over 50% world market share in flat knitting machines.
  • Further advancement of fully seamless knit product compatible technology.
  • Expand digital system sales to over 50% of total revenue.
  • Develop environmentally friendly products targeting 30% CO2 emission reduction.
  • Diversify sales through product expansion into diverse markets and industries.
  • Strengthen sales networks and expand bases in emerging markets.
  • Maximize customer value through innovative knitting machines and manufacturing solutions.
  • Enhance profitability through improved production efficiency and quality.
  • Build global R&D partnerships.
  • Fully implement sustainable management toward achieving SDGs goals.

Business Segments

Textile Machinery Manufacturing

Overview
Manufacturing segment producing high-precision, multifunctional textile and sewing machines tailored to customer needs.
Competitiveness
High-value product lineup integrating electronic control and digital technology
Customers
  • Knit Manufacturers
  • Apparel Companies
  • Glove Manufacturers
  • Technical Research Institutions
  • Fashion Designers
Products
  • Computer-Controlled Flat Knitting Machines
  • Fully Automatic Glove Knitting Machines
  • WholeGarment System
  • Digital Design System
  • Peripheral Production Equipment

Apparel and Fashion Industry Support

Overview
Provides high-function knit manufacturing and efficient design support tools for the apparel industry.
Competitiveness
Comprehensive production support solutions tailored to industry needs
Customers
  • Major Apparel Brands
  • Small and Medium Garment Manufacturers
  • Design Offices
  • OEM Manufacturers
  • Fashion Retailers
Products
  • WholeGarment Flat Knitting Machine
  • CAD/CAM Total Design System
  • 3D Design Presentation System
  • Inkjet Print Device

Industrial Textile Machinery Sales

Overview
Market segment providing dedicated machinery and ancillary services for industrial specialty textile products.
Competitiveness
Product development capabilities closely aligned with on-site needs and technological strength
Customers
  • Industrial Glove Manufacturers
  • Medical Fabric Manufacturers
  • Industrial Material Manufacturers
  • OEM Producers
  • International Traders
Products
  • Glove Knitting Machines
  • Pile Knitting Machines
  • Special-Purpose Flat Knitting Machines

Technology Development and Equipment Sales

Overview
Diverse supply of control and design support software and electronic equipment for industrial machinery.
Competitiveness
High-reliability control technology and proprietary software development
Customers
  • Research Institutions
  • Machinery Manufacturers
  • Universities and Technical Education Institutions
  • Software Development Companies
  • Related Industry Companies
Products
  • Design Software
  • Electronic Control Systems
  • Measurement and Inspection Devices

Machinery Sales for Overseas Markets

Overview
International business division deploying the latest knitting machines to overseas customers meeting global needs.
Competitiveness
Product lineup adapted to world markets
Customers
  • Major Asian Textile Manufacturers
  • European and American Fashion Companies
  • Export Processors
  • Local Agents and Sales Networks
Products
  • Fully Automatic Seamless Flat Knitting Machines
  • Multi-Pattern Flat Knitting Machines
  • Automatic Finishing Machines

Competitive Advantage

Strengths

  • Overwhelming technological leadership as the world's largest flat knitting machine manufacturer
  • Advanced integration of computer control technology
  • Comprehensive mechatronics company with diverse product lineup
  • Solid sales network and strong customer base
  • Quality assurance backed by long-accumulated expertise
  • Digital design system for the fashion industry
  • High-value fully seamless flat knitting machine technology
  • Strong brand recognition domestically and internationally
  • Production technology flexible for multi-variety small-lot production
  • Long-term stable financial foundation
  • Robust research and development organization
  • Specialized support for customer productivity improvement
  • Rich patent portfolio
  • Environmentally considerate product development
  • Proven sales track record in global markets

Competitive Advantages

  • Long-standing top market share in knit manufacturing with superior product lineup
  • Productivity gains from advanced digitalization and electronic control technology
  • High-quality fully seamless flat knitting machine technology inimitable by competitors
  • Robust global sales and service network
  • Product design capabilities balancing fashion and functionality
  • High market entry barriers across diverse product categories
  • Proprietary software handling complex design control
  • Continuous product evolution through technological innovation and market responsiveness
  • High customer satisfaction from integrated products and services
  • Sustainable product development compliant with environmental standards
  • Superior repair and maintenance systems over competitors
  • Strong business partnerships in Asian markets
  • Maintaining exclusive position based on patented technologies
  • Strong foreign exchange risk management capabilities
  • Flexible customization for multinational customers

Threats

  • Global production and demand decline due to COVID-19 and other infectious diseases
  • Sluggish capital investment in China amid economic slowdown
  • Political instability in Asia, particularly anti-government protests in Bangladesh
  • Profit pressure from rising material costs and logistics expenses
  • Increased product development and manufacturing costs from stricter environmental regulations
  • Intensified market share competition from competitors' technological innovations
  • Risk of declining production efficiency from increasing multi-variety small-lot production
  • Vulnerabilities in global supply chains
  • Revenue instability risk from exchange rate fluctuations
  • Competitive pressure from alternative technologies and new entrants
  • Ongoing customer requests for production restraint
  • Stagnant overseas sales due to deteriorating international situation

Innovations

2024: Advanced Electronically Controlled Yarn Feeding Device

Overview
Improved bi-directional yarn feeding control technology to achieve high-quality knit production.
Impact
Contributes to improved production stability and uniform fiber quality.

2023: Introduction of 3D Knit Product Prototyping System

Overview
Developed new system providing realistic prototype images using 3D visuals.
Impact
Achieved shortened design review time and improved customer satisfaction.

2022: Development of New Flat Knitting Machine Series for Multi-Variety Small-Lot Production

Overview
Launched new knitting machines supporting rapid production changeovers and efficient diverse production.
Impact
Enhanced flexible response to changing market needs.

2021: Enhanced Functionality of Industrial Automatic Glove Finishing Machine

Overview
Introduced model with added simultaneous inspection and finishing functions.
Impact
Contributes to automation and labor savings in production lines.

2020: Expanded Adoption of Inkjet Printing Technology

Overview
Enhanced multi-color high-resolution printing technology on knit fabrics to promote product diversification.
Impact
Realized greater design freedom and added value.

Sustainability

  • Efforts to improve energy efficiency in production processes and reduce CO2 emissions
  • Promotion of product development compatible with environmentally friendly materials
  • Machine design emphasizing extended product life and improved recyclability
  • Effective resource utilization through curbing overproduction and optimizing inventory
  • Active participation in environmental protection activities in collaboration with local communities
  • Optimized factory operations using energy management systems
  • Product quality management system compliant with environmental safety standards
  • Strengthened supply chain through sustainable partnerships
  • Introduction of waste reduction and recycling promotion programs
  • Implementation of environmental education programs for employees
  • Reduction in paper resource use through digitalization initiatives
  • Regular issuance of sustainability reports