Nikko

Basic Information

Stock Code
6306
Industry
Machinery
Category Detail
Construction & Civil Engineering
Prefecture
Hyogo Prefecture
Establishment Year
August 1919
Listing Year
May 1949
Official Website
https://www.nikko-net.co.jp/
TSE Information
TSE Information
Yahoo! Finance
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Overview

Nikko is a construction machinery manufacturer founded in 1919 and holds a top-class position in the asphalt plant sector as a long-established company.

Current Situation

Nikko achieved consolidated sales of approximately 39.7 billion yen and ordinary income of approximately 1.25 billion yen in the fiscal year ended March 2023. It possesses strong competitiveness in its core business of manufacturing and selling construction machinery and ready-mixed concrete plants, and has established the top market share in asphalt plants. It is also advancing the development of environmentally friendly equipment and waste heat energy utilization devices through the establishment of a research and development center. By obtaining ISO9001 and ISO14001 certifications, it thoroughly manages quality and the environment, and conducts business with an emphasis on sustainability. It is expanding globally, including local subsidiaries in China and Thailand, with overseas market growth in view. It has achieved efficient business operations through the consolidation of the concrete pump business and the integration of related companies. In the future, it will focus on strengthening environmental equipment and overseas strategies to aim for sustainable growth.

Trivia

Interesting Facts

  • Long-established company founded in 1919 with over 100 years of history.
  • Tonbo Mark Shovel has high recognition in Japan.
  • Boasts top domestic share in asphalt plants.
  • Early acquisition of ISO9001 and 14001 certifications, focusing on quality and environment.
  • Global company with local subsidiaries in China and Thailand.
  • Handles crushers and transport machinery with diversified manufacturing structure.
  • Manufactures and sells a wide range of industrial waste treatment equipment.
  • Diversified operations including construction machinery manufacturing and real estate.
  • Consolidated employees exceed 1,000, contributing to regional employment.
  • Latest technology development center established in Akashi.

Hidden Connections

  • At the time of founding, a former executive of Suzuki Shoten was involved in management and provided technical and financial support.
  • Has a history of acquiring Mitsubishi Heavy Industries' concrete pump-related division to expand business.
  • Symbolic company with close ties to the local economy in Hyogo Prefecture.
  • Strengthening partnerships with local companies through expansion into the Asian market.
  • Some subsidiaries specialize in manufacturing industrial products, enhancing overall group manufacturing efficiency.
  • Also operates worker dispatching business to address labor shortages at construction sites.
  • Advanced initiatives in ISO compliance and quality management are highly evaluated in the industry.
  • Self-branded Tonbo products have high recognition and trust in the construction industry.

Future Outlook

Growth Drivers

  • Increasing demand for construction machinery due to infrastructure redevelopment
  • Expansion of environmental equipment market due to strengthened environmental regulations
  • Acceleration of recovery investments in domestic and international civil engineering and construction markets
  • Advancement of emerging market development through overseas subsidiaries
  • Ongoing technological innovation and energy-saving product development

Strategic Goals

  • Maintain top domestic share in asphalt plants
  • Double sales in environmental equipment business
  • Aim for overseas sales ratio of over 30%
  • Actively introduce and expand decarbonization technology
  • Further enhance quality management and achieve international standards

Business Segments

Construction Machinery Manufacturing

Overview
Manufactures and sells large machinery and plant equipment for construction sites.
Competitiveness
Top-class asphalt plant technology
Customers
  • Construction companies
  • Civil engineering contractors
  • Public entities
  • General contractors
  • Manufacturers
Products
  • Asphalt plants
  • Ready-mixed concrete plants
  • Crushers
  • Conveyor equipment
  • Pipe scaffolding

Environmental Treatment Equipment

Overview
Provides purification and treatment equipment aimed at reducing environmental impact.
Competitiveness
Wide lineup of environmentally compatible products
Customers
  • Waste treatment companies
  • Local governments
  • Environmental consultants
  • Recycling companies
Products
  • Soil purification equipment
  • Waste plastic processing equipment
  • Recycling equipment

Electronic and Communication Equipment Manufacturing

Overview
Develops and manufactures electronic and communication equipment for construction-related machinery.
Competitiveness
High-quality control technology through in-house development
Customers
  • Construction machinery manufacturers
  • Telecommunications providers
  • Factory equipment management
Products
  • Communication equipment
  • Electronic control equipment
  • Monitoring equipment

Construction-Related Services

Overview
Provides related services including equipment leasing and worker dispatching.
Competitiveness
One-stop support system
Customers
  • Construction site managers
  • Construction equipment rental companies
  • Contracting companies
Products
  • Equipment leasing
  • Labor dispatching
  • Maintenance services

Real Estate Rental and Management

Overview
Handles rental management and operations for machinery equipment and land.
Competitiveness
Extensive local network
Customers
  • Individual and corporate owners
  • Tenants
  • Real estate investors
Products
  • Rental management services
  • Real estate operations

Competitive Advantage

Strengths

  • Top industry share in asphalt plants
  • Over 90 years of history and trust
  • Diverse construction machinery product lineup
  • Technological strength focused on environmental compatibility
  • Sales network expanding domestically and internationally
  • Quality assurance through ISO9001 and 14001 certifications
  • Business diversification through group structure
  • Strong production base in Hyogo Prefecture
  • Solid financial base and stable capital
  • Long-term customer relationship management

Competitive Advantages

  • Top-class domestic asphalt plant technology and track record
  • Comprehensive strength in a wide variety of construction-related machinery products
  • Active development and expansion of environmental purification equipment
  • Extensive sales and service network domestically and internationally
  • Synergy effects through collaboration with group companies
  • Product reliability and durability from years of technological accumulation
  • Acquisition of international standard certifications for quality and environmental management
  • Customization capabilities tailored to customer needs
  • New product innovation through technology development center
  • Ensuring sustainable growth through stable management base

Threats

  • Unstable demand due to fluctuations in the construction industry
  • Intensifying price competition with overseas companies
  • Cost increases due to rising raw material prices
  • Burden of compliance costs from strengthened environmental regulations
  • Decreasing demand due to population decline in the domestic market
  • Risk of failing to keep up with the pace of technological innovation
  • Impact of natural disasters on production bases
  • Rising labor costs due to labor shortages
  • Risk of fluctuations in overseas sales due to exchange rate changes
  • Increasing political and economic uncertainties

Innovations

2024: Development of Energy-Saving Asphalt Plant with Environmental Compatibility

Overview
Developed next-generation asphalt plant achieving 30% energy savings compared to conventional models.
Impact
Succeeded in reducing environmental impact and costs.

2023: Advanced Soil Purification Technology

Overview
Introduced new technology enabling efficient purification of contaminated soil.
Impact
Purification speed improved by 20%, strengthening market competitiveness.

2022: Technological Improvements to Concrete Pump Trucks

Overview
Began manufacturing high-performance pump trucks equipped with automatic control systems.
Impact
Significantly improved work efficiency and safety.

2021: Introduction of IoT-Based Transport Machinery Management System

Overview
Developed a system for real-time monitoring of machinery operation status.
Impact
Improved maintenance efficiency by 25%.

2020: High-Efficiency Recycling Equipment

Overview
Developed equipment significantly improving processing efficiency for waste plastics and waste.
Impact
Contributes to reducing environmental impact.

Sustainability

  • Maintenance and expansion of ISO14001 certification
  • Promotion of developing low-environmental-impact machinery
  • Strengthening soil and water purification business
  • Advancing waste plastic recycling
  • Participation in local environmental conservation activities