Rheon Automatic Machinery

Basic Information

Stock Code: 6272
Industry: Machinery
Category Detail: Manufacturing Machinery & Electrical Equipment
Prefecture: Tochigi Prefecture
Establishment Year: March 1963
Listing Year: November 1985
Official Website: https://www.rheon.com/
TSE Information: TSE Information
Yahoo! Finance: Yahoo! Finance
Other Companies: Ikkoyaku, Noil, Meiji Machinery, Nikkiso, Suzumo Kiki

Overview

Rheon Automatic Machinery is a food machinery manufacturer founded in 1963, holding high market shares both domestically and internationally and leading the industry with its proprietary encrusting machine technology.

Current Situation

Rheon Automatic Machinery recorded consolidated sales of approximately 26.9 billion yen and net assets of approximately 24.8 billion yen in the fiscal year ended March 2020, maintaining a stable financial base. Its flagship encrusting machines hold the top domestic market share and are actively expanding into overseas markets. Based on the proprietary rheology-applied technology established by founder Torahiko Hayashi, its self-developed encrusting machines combine high production efficiency and hygiene. The latest models feature IoT functions to promote digitalization in manufacturing sites. For sustainability, it has obtained ISO9001 certification and focuses on reducing environmental impact through production efficiency improvements. It aims for further growth through investments in new technologies and strengthened global expansion. Although there are challenges such as the postponement of operations at its new U.S. factory since 2021, it strives to secure competitive advantages through continuous innovation.

Trivia

Interesting Facts

The Kaseijin® series of encrusting machines holds the top domestic market share.
Founder Torahiko Hayashi has an unusual background transitioning from Japanese confectioner to machinery engineer.
Rheon Automatic Machinery developed the world's first full-fledged automatic encrusting machine.
Revolutionized the world market with croissant mass production technology.
Encrusting technology is based on proprietary rheology theory.
Rheon Automatic Machinery's encrusting machines set industry standards for hygiene.
Veteran company over 60 years since founding, focusing on technology development.
Early adoption of IoT technology to promote smart factory transformation.
Technology and history featured on TV programs, gaining wide recognition.
Only Japanese company with technology inducted into the U.S. Bread Bakers Guild hall of fame.
Product lineup compatible with wide range of confectionery and bread fields.
Deploys research institutes and sales bases in countries worldwide.
Excels in proposing integrated lines with packaging and filling equipment.
Stable supply of high-quality cast parts through in-house manufacturing.
Recent new models feature efficiency improvements via IoT integration.

Hidden Connections

Founder Torahiko Hayashi transitioned from Japanese confectioner to machinery inventor, serving as the source of corporate spirit.
Rheon's encrusting machine technology is highly regarded and well-known among overseas bread industry engineers.
Has built long-term technical cooperation relationships with food manufacturers domestically and overseas.
Proprietary rheology theory application technology serves as a difficult-to-imitate differentiation factor.
Rheon Automatic Machinery's production line systems are adopted in bread factories in both Europe/America and Asia.
Has networks for parts supply and technical exchanges with multiple major domestic food machinery manufacturers.
Founder's story featured on TV programs, contributing to improved corporate image.
Multiple R&D bases located in advanced food technology regions like Germany and the U.S.

Future Outlook

Growth Drivers

Expansion of global food processing machinery market
Advancement of automation and labor-saving needs
Promotion of smart factory transformation through IoT and AI technologies
Increased demand from strengthened food safety and hygiene standards
Growth in multi-variety small-batch production market and corresponding technology development
Market penetration and channel expansion in Asia and Europe/America
Product development emphasizing sustainability and environmental regulation compliance
Service enhancement for existing customers and new customer acquisition
Product customization and solution proposal capabilities
Enhanced R&D capabilities and competitive strengthening through technological innovation
Talent development and expansion of engineer community
Flexible management strategies adapting to industrial environment changes

Strategic Goals

Achieve over 70% global sales ratio
IoT-linked products sales ratio over 50%
Full普及 of energy-saving and environmentally friendly products
Expansion of product portfolio corresponding to diverse food fields
Increase in sales ratio of high-value-added models
Strategic expansion of overseas R&D bases
Strengthening of service networks in regions worldwide
Establishment of sustainable resource procurement and manufacturing processes
Systematic establishment of talent development and technology succession
Fostering of corporate culture coexisting with local communities

Business Segments

Bread Making Machinery Manufacturing and Sales

Overview

Provides design, sales, and after-sales service for automation machinery equipped with the latest technology for the bread industry.

Competitiveness

Deploys world-renowned encrusting technology and multi-function lines.

Customers

Bakery factories
Bread manufacturers
Retailers
Large food processors
Overseas export destinations
OEM manufacturers
Bread research institutions
Bakery associations

Products

Automatic encrusting machines
Bread production line systems
Dividers and formers
Packaging machines
Monitoring systems
Maintenance services
IoT-linked devices
Quality control systems

Confectionery Machinery Supply

Overview

Proposes high-performance forming machines and processing lines for the confectionery manufacturing industry to support production efficiency improvements.

Competitiveness

Proprietary design technology that ensures high hygiene and product quality.

Customers

Japanese confectionery shops
Western confectionery manufacturers
Food processing factories
Confectionery wholesalers
Confectionery research institutions
Specialty stores
Local governments

Products

Encrusting machines
Croissant production machines
Cake forming machines
Baking equipment
Automatic injectors
Customized machines

Prepared Food Processing Machinery

Overview

Provides forming equipment and packaging lines that enable mass production of prepared foods.

Competitiveness

Superior equipment for high-speed mass production and multi-variety correspondence.

Customers

Meat processing factories
Prepared food manufacturers
Frozen food companies
Processed food exporters

Products

Incluster forming machines
Multi-row encrusting machines
Product transfer equipment

Food R&D and Consulting

Overview

Provides a variety of services from product prototyping to technology development support.

Competitiveness

Comprehensive technical support system by specialized engineers.

Customers

Universities and research institutions
Food manufacturer R&D departments
Public research institutions

Products

Prototype equipment
Technical support services
Product design consulting

Equipment Maintenance and Repair Services

Overview

Deploys maintenance services that support stable machine operation.

Competitiveness

Long-term trust relationships through prompt response and high technical capabilities.

Customers

Customer factories domestically and overseas
Food machinery users

Products

Maintenance services
Repair services
Parts supply

Overseas Business Expansion Support

Overview

Provides local deployment and technical support for global markets.

Competitiveness

Multi-country know-how and local responsiveness.

Customers

Overseas sales agents
Local factories
International customers

Products

Overseas base establishment
Local technical support
Export management

Manufacturing Parts Supply

Overview

Manages stable supply of high-quality parts in-house.

Competitiveness

Thorough quality control through integrated production system.

Customers

Machinery assembly factories
External partner factories
Parts suppliers

Products

Cast parts
Machine component parts

IT System Development

Overview

Develops integrated IT systems for manufacturing and sales support.

Competitiveness

High adaptability and stability through in-house development.

Customers

Internal departments
Customer operations support

Products

Information management system ARCOS
Production management software

Customer Training and Education Services

Overview

Deploys training services for optimal product operation.

Competitiveness

On-site, hands-on guidance by specialized teams.

Customers

Customer company employees
Technicians

Products

Product operation training
Production efficiency guidance

New Product Development Support

Overview

Provides support and equipment for products in new development stages.

Competitiveness

Support leveraging technology accumulation from the founder.

Customers

Emerging food companies
Technology development companies

Products

Technical consulting
Development equipment rental

Environmentally Friendly Technology Development

Overview

Continuously developing technologies aimed at reducing environmental impact.

Competitiveness

Advanced technology development using the latest technologies.

Customers

Internal
Industry associations

Products

Energy-saving equipment
Production efficiency improvement technology

Special Food Processing Machinery

Overview

Capable of customizing machinery for special applications.

Competitiveness

Custom対応 enabled by high technical capabilities.

Customers

Seafood processors
Regional specialty product manufacturers

Products

Custom encrusting machines
Multi-function forming equipment

Competitive Advantage

Strengths

Proprietary rheology-applied technology
Domestic top share in encrusting machines
Advanced hygienic design technology
Expansion of global sales network
Diverse product lineup
Advanced IoT technology adoption
In-house integrated production system
High production efficiency and quality control
Comprehensive after-sales service
High expertise of technical staff
Active investment in R&D
Long-term trust in the food machinery industry
Versatility across diverse food categories
High-quality parts supply system
Customer-oriented support system

Competitive Advantages

Encrusting machine manufacturing strength based on proprietary patented technology
Maintains market share with high technological standards and reliability
Versatility in food processing fields due to diverse product range
Establishes competitive edge through advanced IoT and AI technology introduction
Strength of domestic and international sales and service networks
Balance of R&D capabilities and adaptation to customer needs
High-quality assurance through consistent quality control system
Machine design technology enabling high production efficiency
Market adaptation through customizable product deployment
Corporate culture inheriting the founder's technological philosophy
Comprehensive customer support and training services
Advanced environmental対応 and safety/hygiene features
Strength through sustained new product development and technological innovation
Systems adaptable to diverse regional markets
Strengthened collaboration with industry associations and research institutions

Threats

Speed of technological innovation by global competitors
Political and economic fluctuation risks in overseas markets
Rising raw material prices and supply chain disruptions
Intensified price competition from new entrants
Increased costs from stricter environmental regulations
Revenue uncertainty from exchange rate fluctuations
Demand fluctuations in bread and confectionery industries
Risk of lagging in technological innovation
Domestic market shrinkage due to population decline
Impact of natural disasters on production and logistics
Increasing cybersecurity risks
Risk of rising operational costs for overseas bases

Innovations

2023: Launch of new IoT-compatible encrusting machine model

Overview: Equipped encrusting machines with IoT functions to enable real-time management in manufacturing sites.
Impact: Achieved production efficiency improvements and faster maintenance.

2022: Development of new croissant production machine with high hygiene design

Overview: Developed next-generation bread production equipment with significantly improved cleanability and hygiene.
Impact: Contributes to food safety standards compliance and work efficiency improvements.

2024: Introduction of AI-controlled multi-variety automated production line

Overview: Launched automatic forming line system utilizing AI.
Impact: Succeeded in improving multi-variety small-batch production capabilities and quality uniformity.

2023: Development and introduction of energy-saving encrusting machine

Overview: Introduced new encrusting machine achieving 20% energy savings compared to conventional models.
Impact: Succeeded in reducing environmental impact and costs.

2021: Enhancement of smart manufacturing management system ARCOS

Overview: Updated system for integrated management of entire production lines.
Impact: Achieved operational management efficiency and improved traceability.

2020: Development of multi-row encrusting machine Multi Confectioner

Overview: Developed compact multi-row encrusting machine capable of high-speed mass production.
Impact: Greatly contributes to productivity improvements and line flexibility.

2024: Equipped with automatic cleaning mechanism for improved hygiene

Overview: Standard-equipped new models with automatic cleaning functions to strengthen hygiene management.
Impact: Achieved reduction in cleaning time and operator burden.

2022: Adoption of new materials for food contact parts

Overview: Introduced new hygienic materials in parts design to strengthen food safety.
Impact: Achieved reduction in microbial risks and extended lifespan.

2023: Introduction of AI for global support system

Overview: Implemented AI chatbots for overseas customer support.
Impact: Achieved prompt technical support and improved customer satisfaction.

2021: Launch of new space-saving bread forming line

Overview: Developed lines for small-scale stores that are space-saving and support multi-variety.
Impact: Meets needs of retail bakeries and expands market.

Sustainability

Established quality assurance system through ISO9001 certification
Introduction of energy-saving technologies and improved energy efficiency of products
Waste reduction through production line automation
Strengthened product design for safety and hygiene
Compliance with global environmental regulations
Support programs for environmental education in local communities
Promotion of recyclable parts adoption
Ongoing R&D of technologies to reduce environmental impact
Machine design aimed at reducing operator burden
Establishment of sustainable resource procurement standards
Implementation of environmental awareness training for employees
Strict compliance with environmental laws and regulations and audits