Tsubakimoto Chain

Basic Information

Stock Code: 6371
Industry: Machinery
Category Detail: Industrial Equipment & Heavy Electrical Apparatus
Prefecture: Osaka Prefecture
Establishment Year: January 1941
Listing Year: May 1949
Official Website: https://www.tsubakimoto.jp/
TSE Information: TSE Information
Yahoo! Finance: Yahoo! Finance
Other Companies: ONE GROUP, Harmonic Drive Systems, Tsurumi Seisakusho, Nippon Gear Kogyo, Daido Kogyo, Oriental Chain Kogyo, Ogura Clutch, Tsubakimoto Kogyo

Overview

Tsubakimoto Chain is a leading machinery industry company established in 1941, boasting the world's top market share in industrial chains and automotive timing chains as a diversified corporation.

Current Situation

Tsubakimoto Chain achieved consolidated sales of approximately 266.8 billion yen and operating profit of 21.2 billion yen in the fiscal year ending March 2024, demonstrating high profitability within the industry. It maintains the No. 1 world share in industrial chains and serves as a major supplier of timing chains to leading domestic and international automakers. The company operates four business segments: motion control, mobility, material handling, and is actively investing in new areas such as electric assist bicycles and next-generation artificial light plant factories. It has multiple factories throughout Japan and conducts global operations across 26 countries and 79 locations. In 2021, it formulated its Long-Term Vision 2030, aiming to contribute to social challenges and accelerate new business development. It emphasizes sustainable management by promoting environmental certifications and sustainability policies. Strategic partnerships, such as the acquisition of Daido Kogyo, are advancing to strengthen market competitiveness.

Trivia

Interesting Facts

Founded in 1917, a venerable company with over 100 years of history.
Holds No. 1 world share in industrial chains.
Supplies timing chains to approx. 70% of Japanese cars.
Rare example of using founder's surname in company name.
Developed PCR test automation equipment during COVID-19, contributing to society.
Operates 79 manufacturing and sales bases in 26 countries worldwide.
Developed new electric assist three-wheeled bicycle, focusing on next-generation mobility.
Featured on TV Tokyo's 'Cambria Palace'.
Nationwide service centers for material handling division.
Early adopter of ISO9000 and ISO14001 certifications, focusing on quality and environmental management.
Many group companies also use Tsubaki brand.
Refreshed corporate philosophy and strengthened brand on 100th anniversary.
Has service centers specialized in maintenance services across Japan.
Head office located in Mitsui Building in Nakanoshima, Osaka.
High technological capabilities in chains for special environments.

Hidden Connections

Strengthens collaboration with sister companies Tsubakimoto Kogyo and Tsubaki-Nakajima due to founder brothers' relationship.
Holds major parts supply network to Japan's top three automakers (Toyota, Nissan, Suzuki).
North American bases operate manufacturing and sales through own subsidiaries, achieving localized management.
Led the industry as the first post-war exporter of roller chains to the U.S.
Central Conveyor, acquired in material handling field, is a leading U.S. company.
Pioneered ISO9000 certification at factories, advanced in quality management.
Company name 'Chain' reflects pre-war trend of avoiding kanji in names.
Entering agriculture technology field through artificial light plant factory construction.

Future Outlook

Growth Drivers

Increasing global demand for manufacturing automation and labor-saving.
New parts demand from expansion in electric vehicle sector.
Market expansion leveraging global network.
Deepening investments in next-generation mobility and environmental technologies.
Increasing demand for environmentally considerate products due to accelerated corporate sustainable management.
Innovation creation through New Business Development Center.
Growing automation needs in logistics industry.
Revival of manufacturing in Asia and Europe/North America.
Digital transformation promotion.
Clear mid- to long-term strategy through Long-Term Vision 2030.
Talent diversification and technology maintenance through senior utilization.
Business area expansion through M&A strategy.

Strategic Goals

Establish sustainable manufacturing system and reduce CO2 emissions by 30%.
Aim for 100 billion yen in new business sales.
Expand share in industrial and automotive chains in global market.
Business efficiency improvement and new technology introduction using DX/IT Center.
Strengthen environmental education and talent development in collaboration with local communities.
Expand product lineup in electric vehicle field.
Maintain and strengthen stable financial base.
Further expand global network.
Promote employee health and job satisfaction.
Active adoption of next-generation technologies and market adaptation.

Business Segments

Industrial Chain Manufacturing

Overview

Provides high-performance chains for industrial machinery, supporting power transmission in the industrial sector.

Competitiveness

World-leading technology and global production system

Customers

Construction machinery manufacturers
Food machinery manufacturers
Paper industry
Logistics companies
Automotive factories

Products

Roller Chain
Conveyor Chain
Special Chain Products
Power Transmission Equipment
Conveyance Equipment

Automotive Parts Supply

Overview

Stable supply of high-quality parts for engines and electric vehicles.

Competitiveness

Reliability installed in approx. 70% of Japanese vehicles and local production network

Customers

Toyota Motor Corporation
Nissan Motor Corporation
Suzuki Motor Corporation
Overseas automakers

Products

Timing Chain System
Drive Parts
EV Parts

Motion Control Components

Overview

Precisely controls machine motion, contributing to improved production efficiency.

Competitiveness

Precision technology and diverse product lineup

Customers

Industrial machinery manufacturers
Labor-saving equipment manufacturers
Robot manufacturers

Products

Speed Reducers
Linear Actuators
Cam Clutches
Control Equipment

Material Handling Systems

Overview

Supports business efficiency with conveyance and sorting systems.

Competitiveness

Track record in large logistics facilities domestically and internationally, and maintenance system

Customers

Logistics industry
Automotive factories
Manufacturing industry

Products

Automatic Sorting Systems
Conveyor Systems
Maintenance Services

New Mobility Products

Overview

Proposes environmentally friendly products in the new mobility field.

Competitiveness

Development capabilities and pioneering multi-purpose e-Cargo

Customers

Electric assist bicycle manufacturers
Logistics equipment manufacturers

Products

Electric Assist Drive Parts
e-Cargo Bicycle System

Competitive Advantage

Strengths

World's top share in industrial chains
Overwhelming share in domestic automotive timing chains
Strong manufacturing and sales network domestically and internationally
Revenue base from four diversified business segments
Advanced technological development capabilities and patents
Promotion of environmentally compatible product development
Strong brand image and reliability
Cost competitiveness from global production bases
Stable financial base
Extensive product lineup
Comprehensive customer support system
Strategic management based on long-term vision
Growth enhancement through active M&A
Market responsiveness across diverse business areas
Business operations rooted in local communities

Competitive Advantages

World-renowned manufacturing technology for high-quality chains and parts
Dominant position in timing chain systems installed in approx. 70% of Japanese cars
Extensive global network with 79 locations in 26 countries across the group
Revenue risk diversification through diversified businesses from automotive to industrial machinery and logistics equipment
Product innovation capabilities through strong R&D system and technology succession
Diversity in product lineup responding to wide market needs
Trust-based relationships and long-term partnerships with customers
High compliance with environmental regulations and sustainability initiatives
Customer proximity and lead time reduction through geographically dispersed bases
Organizational strengthening through senior active promotion and reforms
Business enhancement and expansion through active M&A
High financial safety and stability providing investor reassurance
Durability and performance backed by proprietary manufacturing technology
Industry-leading quality assurance system
Customization proposal capabilities responding to customer needs

Threats

Production delays due to global semiconductor and parts shortages
Market share pressure from low-price offensives by emerging country manufacturers
Concerns over lagging response to rapid electrification and autonomous driving technology changes
Revenue instability due to exchange rate fluctuations
Disruptions in global supply chains from geopolitical risks
Increased product development costs due to stricter environmental regulations
Labor shortages and difficulties in talent acquisition
Intensified market competition from technological innovations by new entrants
Demand decline due to global economic stagnation
Risk of damage to production bases from natural disasters
Information leakage risks from cybersecurity threats
Restrictions on overseas business expansion due to regulatory strengthening

Innovations

2023: Development of Electric Assist Three-Wheeled Bicycle 'Multi-Purpose e-Cargo'

Overview: Developed drive system for electric assist three-wheeled bicycles as an environmentally considerate new product.
Impact: Contributes to new market development and entry into environmental mobility field

2023: Establishment of New Business Development Center and DX/IT Center

Overview: Implemented organizational enhancements for new business creation and digital transformation.
Impact: Accelerates internal innovation and improves efficiency

2022: Made North American Flexible Coupling Manufacturer a Wholly Owned Subsidiary

Overview: Acquired to strengthen North American market and expand product lineup.
Impact: Strengthens competitiveness in North America and increases sales

2021: Formulation of Long-Term Vision 2030

Overview: Raised contributions to solving social issues, accelerating new product development and business expansion.
Impact: Enhances corporate value and strengthens sustainable growth foundation

2020: Formulation of Sustainability Basic Policy

Overview: Strengthened initiatives on environment and social responsibility, transitioning to sustainable management.
Impact: Improves ESG ratings and corporate image

2020: Development of PCR Test Automation Equipment

Overview: Commercialized by applying inspection automation technology in response to COVID-19.
Impact: Rapid response to social needs, acquiring diverse market customers

2024: Construction Starts on Artificial Light Plant Factory in Mihama, Fukui

Overview: Construction of next-generation plant factory facility, scheduled for completion in 2025.
Impact: Develops new business fields and supports sustainable agriculture

Sustainability

Completed ISO14001 certification at all domestic sites
Promotes CO2 emission reductions in manufacturing processes and resource recycling
Promotes diverse talent utilization through introduction of age 65 retirement system
Strengthens development of environmentally considerate products
Collaborative activities with local communities to preserve store culture
Regular issuance of CSR reports to ensure transparency
Strengthens global governance
Advances environmental and social risk management in supply chain
Active initiatives on occupational safety and health
Promotes women's active roles and diversity
Ongoing investments in global warming countermeasures
Implements environmental education and awareness activities