Oriental Chain Mfg.
Basic Information
- Stock Code
- 6380
- Industry
- Machinery
- Category Detail
- Industrial Equipment & Heavy Electrical Apparatus
- Prefecture
- Ishikawa Prefecture
- Establishment Year
- August 1947
- Listing Year
- October 1961
- Official Website
- https://www.ocm.co.jp/
- TSE Information
- TSE Information
- Yahoo! Finance
- Yahoo! Finance
- Other Companies
- Asaka Kogyo, ONE GROUP, Harmonic Drive Systems, Nippon Gear Kogyo, Tsubakimoto Chain, Daido Kogyo, Ogura Clutch, Oizumi, Morio Denki
Overview
Oriental Chain Mfg. is a veteran transmission roller chain manufacturer founded in 1947, with headquarters in Hakusan City, Ishikawa Prefecture, and a solid position in the industrial machinery field.
Current Situation
Oriental Chain Mfg. operates with net sales of approximately 3.3 billion yen and net assets of about 1.4 billion yen in the fiscal year ended March 2020, centered on transmission roller chains as its mainstay, with stable orders for products targeted at agricultural and office machinery. It maintains competitive advantages through high-quality mainstay products and proprietary design technologies. It is focusing on new technology development to improve durability and achieve labor savings. It is working on product designs and production process improvements aimed at reducing environmental impact. As a regionally rooted company, it contributes to the local economy while aiming for sustainable growth. Product lineup expansion and strengthened overseas development are positioned as key elements of its long-term strategy in the latter half of the 2020s. Its financial position is stable, with ongoing pursuit of profit margin improvements. In the competitive landscape, its high technological capabilities and customer base serve as strengths. Moving forward, it will pursue growth through advanced technology development and products tailored to market needs.
Trivia
Interesting Facts
- One of the few dedicated transmission roller chain manufacturers in Japan
- Regional company with over 70 years since founding, headquartered in Ishikawa Prefecture
- Holds about 70% share in chains for agricultural machinery
- Top-tier number of patents in the transmission equipment industry
- Major shareholders include local banks and employee stock ownership
- Heat-resistant chains are industry-first proprietary products
- Owns in-house durability testing facilities for transmission chains
- Maintains high quality through in-house integrated production
- Transitioned from TSE 2nd Section to Standard while maintaining trust
- Actively participates in local industry-academia collaboration projects
- Over 60 years of continuous listing
- Stable recognition in domestic and international industrial chain markets
- Exhibits annually at domestic transmission machinery trade shows
- Track record of technical education partnerships with local high schools
- Products adopted in numerous industrial machines
Hidden Connections
- Competes with peer Tsubakimoto Chain in product areas but collaborates on parts supply
- Collaborates with local government to contribute to industrial promotion and employment
- Major supplier to major agricultural machinery makers, with significant influence on product design
- Collaborates with Japanese and US bearing manufacturers to jointly develop high-performance chains
- Participates in water quality maintenance activities for rivers around the factory with local conservation groups
- Recycled chain manufacturing technology acquired and applied from other company licenses
- Hokuriku Bank as major shareholder provides stable financial support
- Part of domestic office machinery supply network closely linked to Hakusan City (formerly Matto City)
Future Outlook
Growth Drivers
- Stable growth in demand for transmission equipment in domestic agricultural machinery
- Development and expansion of products compliant with environmental regulations
- Market expansion for high-durability and special application chains
- Growth in overseas markets centered on Southeast Asia
- Enhanced competitiveness through labor-saving and automation of production technologies
- Technology innovation through industry-academia-government collaboration
- Expansion of maintenance services linked with IoT devices
- Increasing demand for environmentally friendly products
- Strong ties with local industries
- Stable revenue securing through long-term contracts
- Risk reduction through diversified supply chains
- Operational and production efficiency improvements via DX
Strategic Goals
- Maintain top share in domestic transmission equipment market
- Raise overseas sales ratio to over 20%
- Increase sales ratio of environmentally friendly products to over 50%
- Expand R&D investment to over 7% of net sales
- Full-scale rollout of smart maintenance services
- Promote full automation and labor reduction in production lines
- Strengthen contributions to sustainable local economy
- Expand industry-academia collaborations and create new technologies
- Skill enhancement for all employees and ensure diversity
- Nationwide rollout of digital sales system
Business Segments
Industrial Machinery Chain Supply
- Overview
- Focused on providing high-grade transmission equipment and parts suited to various industrial machinery, balancing durability and labor savings.
- Competitiveness
- Long years of transmission equipment design expertise and quality management
- Customers
-
- Industrial machinery manufacturers
- Agricultural machinery manufacturers
- Construction machinery manufacturers
- Material handling equipment manufacturers
- Industrial robot manufacturers
- Material processors
- Logistics equipment manufacturers
- Machine tool manufacturers
- Press machine manufacturers
- Office machinery manufacturers
- Products
-
- Transmission roller chains
- Clutch connecting parts
- Sprockets
- Chain tensioners
- Special heat-resistant chains
- Precision machined parts
- Environmentally friendly chains
- Agricultural machinery dedicated chains
- High-precision chains for office machinery
- Industrial speed reducer parts
Maintenance & Support Services
- Overview
- Supports machinery maintenance for customer companies, extending product life and reducing failures.
- Competitiveness
- Prompt response by specialized engineers and long-term trust relationships
- Customers
-
- Manufacturing maintenance departments
- Machinery maintenance companies
- Facility management companies
- Industrial plant operators
- Facility managers
- Products
-
- Chain maintenance supplies
- Technical support
- Repair services
- Replacement parts supply
- Life diagnostic services
OEM Supply
- Overview
- Provides high-quality chain products via OEM to other brands, focusing on customization.
- Competitiveness
- Flexible design capabilities and stable supply system
- Customers
-
- Major machinery manufacturers
- Agricultural implement brands
- Construction machinery brands
- Transportation equipment manufacturers
- Office equipment manufacturers
- Products
-
- Transmission parts outside Oriental brand
- Custom-designed chains
- Special application chains
- High-precision machined parts
- Environmentally friendly products
R&D Collaboration
- Overview
- Promotes research and development of new materials and technologies through industry-academia-government collaboration, contributing to industrial innovation.
- Competitiveness
- Abundant technological accumulation and collaboration track record
- Customers
-
- Universities & research institutions
- Machinery design consulting
- Industrial technology development organizations
- Public research institutions
- Products
-
- Prototype chains
- Material technology development
- Special processing technology
- Durability testing services
- Next-generation transmission technology
Export Business
- Overview
- Expanding exports mainly to Southeast Asia to strengthen international competitiveness.
- Competitiveness
- Robust quality and local support system
- Customers
-
- Overseas machinery manufacturers
- Imported machinery sales companies
- Overseas industrial equipment companies
- Agents
- Products
-
- Transmission roller chain series
- Special specification chains
- Maintenance parts
- Custom chains
- Support services
Competitive Advantage
Strengths
- Advanced transmission chain manufacturing technology
- Long industry experience and trust
- High-quality product management
- Flexible response to customer needs
- Strong regional business foundation
- Stable financial position
- High product durability
- Extensive product lineup
- Capability to address segmented markets
- Continuous investment in technology development
- Strength in products for dedicated agricultural machinery
- High on-time delivery rate
- Thorough quality assurance system
- Comprehensive support for SMEs
- Established sales channels
Competitive Advantages
- One of the few roller chain specialists in Japan
- Specialized product design for agricultural and office machinery
- Customer-centric technical support system
- Provision of highly durable products over long periods
- Capability to meet diverse industry needs
- Product development linked strongly with local industries
- Integrated system from product design to manufacturing
- Proprietary procurement of high-quality materials
- Customer satisfaction through on-time delivery and stable inventory
- Competitive edge from expanding eco-friendly products
- High brand recognition in the industry
- Differentiation through custom design capabilities
- Synergistic effects from regional technological concentration
- Precision machining by skilled engineers
- Competitive pricing through rational cost structure
Threats
- Declining demand due to overseas relocation of domestic manufacturing
- Competition from low-price products by overseas manufacturers
- Risk of raw material price fluctuations
- Profit pressure from exchange rate fluctuations
- Market disadvantage from lagging technological innovation
- Impact of economic fluctuations in customer industries
- Decline in production capacity due to labor shortages
- Cost increases from stricter international environmental regulations
- Increase in new entrants
- Supply chain disruption risks
- Reputation damage from product accidents or quality complaints
- Long-term shrinking of domestic market
Innovations
2022: High-Durability Roller Chain Material Development
- Overview
- Introduced special alloys and surface treatment technology to significantly improve wear resistance.
- Impact
- 20% extension of product life and reduced maintenance frequency
2023: Launch of Environmentally Friendly Recycled Chain Production
- Overview
- Contributes to CO2 reduction by newly establishing product line using recycled materials.
- Impact
- Achieved 30% reduction in environmental impact
2021: Development of Chain Tensioner Auto-Adjustment Mechanism
- Overview
- Practicalized products that automate tension adjustment to reduce maintenance costs.
- Impact
- 50% reduction in maintenance work time
2020: Reinforcement of Micro Chains for Precision Office Machinery
- Overview
- Improved performance stability and durability through advanced high-precision machining technology.
- Impact
- Increased orders from office machinery manufacturers
Sustainability
- Energy-saving initiatives in manufacturing processes and CO2 emission reductions
- Strengthened management to suppress hazardous substance emissions
- Waste recycling rate improvement programs
- Ongoing participation in local environmental conservation activities
- Active adoption of environmentally friendly materials