Tsubaki Nakashima

Basic Information

Stock Code
6464
Industry
Machinery
Category Detail
Iron, Steel & Metal Products
Prefecture
Nara Prefecture
Establishment Year
April 2000
Listing Year
December 2015
Official Website
https://www.tsubaki-nakashima.com/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Komai Haltac, San-Ake Stand, Shima Seiki, Oiles Industry, Hi-Hiist, NSK, JTEKT, Nachi Fujikoshi, MinebeaMitsumi, Nippon Thompson, THK, Daido Metal

Overview

Tsubaki Nakashima is a machinery and automotive parts manufacturer founded in 1936, a leading industry player with precision ball technology boasting about 30% of the global market share and industrial blowers as its mainstays.

Current Situation

As of the end of 2023, Tsubaki Nakashima has capital of 17.1 billion yen and approximately 3,066 employees, with its head office in Katsuragi City, Nara Prefecture, as a precision machinery manufacturer. Its main product, precision balls, holds about 30% of the world market share and is highly regarded for high-precision iron balls. The blower business also has over 100 years of history, securing stable demand in the industrial machinery field. In recent years, it has strengthened its global expansion through the acquisition of the PBC division of U.S.-based NN Inc. and the expansion of overseas group companies. In 2023, it disclosed an issue with deficiencies in inspection values and is working on improvements. While promoting technological innovation and strengthened quality control, it is advancing the reduction of environmental impact and the introduction of sustainable manufacturing processes, aiming for further market expansion and the establishment of a high-profit structure by 2030. In the increasingly competitive precision machinery industry, it leverages its high technological capabilities and brand power to maintain transactions with domestic and international automotive and industrial machinery manufacturers. It is also focusing on strengthening corporate governance to build a stable growth foundation.

Trivia

Interesting Facts

  • Leading company holding about 30% of the global precision ball market share.
  • Has continued the blower business for over 100 years, successfully inheriting technology.
  • Supplies 100% of the steel balls for the tip of the erasable ballpoint pen 'Fricion'.
  • Positioned in an industry crowded with strong competitors like MinebeaMitsumi and THK.
  • Operates the Sekihara Plant in Sasebo City, Nagasaki Prefecture, producing industrial blowers.
  • Global expansion company with numerous subsidiaries in the U.S., Europe, and Asia.
  • Fact of early reporting on karoshi (death from overwork) issue by overseas media in 1988.
  • Officially published external investigation report on inspection data falsification.
  • History starting from manufacturing steel balls for bicycles at founding.
  • Sister company relationships with major companies in the Hanshin region, strengthening collaboration.
  • Listed on the Luxembourg Stock Exchange in 1980.
  • Nagasaki's Sekihara Plant operates as a dedicated industrial blower factory.
  • Has track record of technical exchanges with major industrial manufacturers in Hyogo Prefecture.
  • Installed Japan's largest ball screw dedicated factory in Yamatokoriyama City, Nara.
  • Strengthening entry into ceramic and glass products for precision balls.

Hidden Connections

  • The steel balls in the tip of the erasable ballpoint pen 'Fricion' are 100% supplied by Tsubaki Nakashima's Tsubaki steel balls.
  • The industrial blower business originating from the former Nakashima Seisakusho in Nagasaki has over 100 years of history and high trust in the industry.
  • The company's precision ball business dates back to 1934 when Toyo Steel Ball Mfg. was founded.
  • Major financial institutions such as Nomura Securities and Mizuho Bank are listed in the shareholder composition.
  • In 1988, the Chicago Tribune reported on Japan's corporate karoshi issue using the company name.
  • Has listing experience on the Luxembourg Stock Exchange, forming a global funding base.
  • Industrial blowers are key products in the heavy electrical equipment industry, deployed across diverse sectors.
  • Acquisition of U.S. NN Inc.'s PBC division accelerates expansion in the Americas market.

Future Outlook

Growth Drivers

  • Expansion of demand due to EV-ization and lightweighting of the global automotive industry
  • Increasing needs for automation and efficiency in global industrial machinery
  • Market growth in ceramic and special material precision balls
  • Growth in machinery and automotive parts demand in overseas emerging markets
  • Productivity improvements through digitalization of manufacturing technology and AI utilization
  • Increasing demand for energy-saving equipment amid strengthened environmental regulations
  • Promotion of product smartization and servitization via IoT
  • Value addition through shift to high-durability products
  • Spread of environmentally friendly products and expansion of sustainability investments
  • Business efficiency improvements through accelerated digital transformation
  • Development of new applications for industrial blowers and deployment of custom technologies
  • New field development through high-precision processing technology

Strategic Goals

  • Expand precision ball market share to over 40%
  • Maintain top domestic market share in energy-saving blowers
  • Achieve overseas sales ratio of over 60%
  • Sustainable product sales ratio of over 70%
  • Establish manufacturing processes with 30% reduced environmental impact
  • Raise high value-added product ratio to over 50%
  • Business expansion into new markets and product diversification
  • Achieve 100% digital automation of product inspections
  • Expansion and strengthening of global R&D bases
  • Build sustainable business system in collaboration with local communities

Business Segments

Automotive Parts Manufacturing

Overview
Provides high-quality precision parts to the automotive industry, contributing to improved vehicle performance.
Competitiveness
Precision ball technology with about 30% global market share.
Customers
  • Automobile manufacturers
  • Automotive parts suppliers
  • EV manufacturers
  • Automotive maintenance industry
Products
  • High-precision steel balls
  • Bearing parts
  • Ball screw components
  • Precision rollers

Industrial Machinery Parts

Overview
Supplies highly durable machinery parts for manufacturing plants and heavy industry.
Competitiveness
High reliability and over 100 years of blower technology.
Customers
  • Industrial machinery manufacturers
  • Manufacturing plant operators
  • Heavy industry companies
  • Machinery maintenance providers
Products
  • Industrial blowers
  • Large ball screws
  • Precision rollers
  • Special metal parts

Electrical and Electronic Equipment Parts

Overview
Provides high-precision precision balls for high-speed and miniature parts.
Competitiveness
High-precision polishing technology.
Customers
  • Electronic equipment manufacturers
  • Precision equipment suppliers
  • Telecommunications equipment manufacturers
Products
  • Precision balls for electronic parts applications
  • Bearing parts for electronic equipment

Medical Equipment Parts

Overview
Offers parts meeting high sanitation and precision requirements for medical equipment.
Competitiveness
Technology compliant with strict sanitation standards.
Customers
  • Medical equipment manufacturers
  • Sanitary goods manufacturers
Products
  • Special precision balls for medical equipment
  • Sanitary standard-compliant parts

Construction and Civil Engineering Machinery Parts

Overview
Provides parts contributing to improved durability of construction machinery.
Competitiveness
Utilization of high wear-resistant materials.
Customers
  • Construction machinery manufacturers
  • Civil engineering machinery rental companies
Products
  • Highly durable precision balls
  • Large bearing parts

Environmental and Energy Equipment Parts

Overview
Supplies high-efficiency, low-energy parts suited for environmental equipment.
Competitiveness
Energy-saving design technology.
Customers
  • Environmental equipment manufacturers
  • Renewable energy operators
Products
  • Energy-saving blowers
  • Special environment-compatible parts

Precision Machining Parts Supply

Overview
Stably supplies high-quality parts for diverse industries.
Competitiveness
Combination of diverse manufacturing technologies.
Customers
  • Various industrial equipment manufacturers
  • Parts secondary processors
Products
  • Hardware and springs
  • Precision machined parts

Logistics and Maintenance Services

Overview
Provides rapid supply of maintenance parts and high-quality services.
Competitiveness
Nationwide support network.
Customers
  • Factory equipment maintenance providers
  • Manufacturing maintenance providers
Products
  • Precision parts replacement services
  • Repair parts for maintenance

Overseas Sales Agents and OEM Supply

Overview
Promotes sales expansion using a global sales network.
Competitiveness
Local production and sales systems in each country.
Customers
  • Overseas machinery manufacturers
  • Overseas parts distributors
Products
  • OEM precision parts
  • Industrial machinery parts for export

Parts for R&D Equipment

Overview
Provides high-precision custom parts for research equipment.
Competitiveness
High customization capabilities.
Customers
  • Research institutions
  • Test equipment manufacturers
Products
  • High-precision test balls
  • Custom precision parts manufacturing

Agricultural Machinery Parts

Overview
Offers robust parts suited for agricultural machinery.
Competitiveness
Enhanced environmental resistance.
Customers
  • Agricultural machinery manufacturers
  • Agricultural production corporations
Products
  • Durable precision balls
  • Metal parts for machinery

Building Materials Parts

Overview
Stably supplies precision metal parts for construction.
Competitiveness
High-precision mass production system.
Customers
  • Building materials manufacturers
  • Construction companies
Products
  • Metal hardware
  • Precision parts for construction

Competitive Advantage

Strengths

  • About 30% global market share in precision balls
  • Technological strength in high-precision iron balls
  • Over 100 years of blower technology
  • Strong global sales network
  • Diverse product lineup
  • Robust quality control system
  • Significant equipment investment and R&D
  • High brand recognition domestically and internationally
  • 対応 to diverse industrial sectors
  • Competitive pricing
  • Stable financial base
  • Numerous technology patents held
  • Team of excellent engineers
  • Product customization capabilities
  • Stable customer base

Competitive Advantages

  • Industry-leading position in high-precision processing of iron balls
  • Multi-purpose applications enabled by long-cultivated blower technology
  • Global production and sales system via multinational group companies
  • High evaluation from customers for high-quality, high-reliability products
  • Broad coverage of customer needs through diverse product configurations
  • Ongoing technological innovation through strong R&D system
  • Technological superiority from numerous patents domestically and internationally
  • Reduced defect rates and improved customer satisfaction via quality management system
  • Long-term transaction relationships with various industrial machinery manufacturers
  • Cost competitiveness through efficient production equipment and process management
  • Product design and technical support based on extensive experience
  • Numerous achievements in custom orders through flexible customization services
  • Stable supply system via robust supply chain
  • Development of environmentally friendly and energy-saving products
  • Implementation of stable management base and sustainable growth strategies

Threats

  • Intense price competition with overseas peers
  • Risk of rising raw material prices
  • Potential product substitution by emerging technologies
  • Strengthened environmental regulations centered on Europe and North America
  • Impact of exchange rate fluctuations on earnings
  • Political and economic instability in global markets
  • Challenges in securing talent due to declining domestic labor population
  • Delays in production automation via IT/AI
  • Risk of trust decline due to inspection deficiencies
  • Potential damage to production sites from natural disasters
  • Increasing cybersecurity risks
  • Growing societal demands regarding environmental issues

Innovations

2024: Introduction of new manufacturing technology for high-precision iron balls

Overview
Adopted the latest polishing and inspection technologies to achieve improved precision and production efficiency.
Impact
Succeeded in improving product quality and reducing costs

2023: Completion of acquisition of U.S. NN Inc. PBC division

Overview
Strengthened business expansion in the U.S. market and expanded product lineup through the acquisition.
Impact
Enhanced global competitiveness

2024: Development of energy-saving blowers

Overview
Launched energy-saving blowers reducing power consumption by 20% compared to conventional models.
Impact
Reduced environmental impact and strengthened market competitiveness

2022: Introduction of AI-based quality inspection system

Overview
Improved inspection precision and speed using AI image analysis, reducing defect rates.
Impact
Contributed to improved product reliability

2023: Development of new material ceramic precision balls

Overview
Precision balls using new ceramic materials with superior heat and corrosion resistance.
Impact
Achieved 3 times the durability of conventional products

2021: Renewal of online ordering system

Overview
Established online management from ordering to delivery to improve customer convenience.
Impact
Shortened order processing time by 30%

Sustainability

  • Implementation of CO2 emission reduction plans in manufacturing processes
  • Improvement of waste recycling rate and promotion of zero emissions
  • Environmental contribution through commercialization of energy-saving blowers
  • Strengthened sustainability evaluation of global supply chain
  • Improvement of working environment and enhanced employee health management
  • Compliance with environmental regulations and establishment of corporate governance system
  • Promotion of environmental protection activities in collaboration with local communities
  • Expansion of low-environmental-impact materials adoption
  • Promotion of obtaining international environmental certifications
  • Implementation of employee-participatory environmental awareness programs