Taiho Kogyo
Basic Information
- Stock Code
- 6470
- Industry
- Machinery
- Category Detail
- Auto Parts
- Prefecture
- Aichi Prefecture
- Establishment Year
- December 1944
- Listing Year
- March 1999
- Official Website
- http://www.taihonet.co.jp/
- TSE Information
- TSE Information
- Yahoo! Finance
- Yahoo! Finance
- Other Companies
- Dainic, Nichi Chuzo, Toami, Moritex Steel, Trinity Kogyo, Nichidai, Tokai Rika, Futaba, Carmate, Nozaki Paper
Overview
Taiho Kogyo is a major automotive parts manufacturer in the Toyota Group, established in 1944, that manufactures a wide variety of mechanical parts centered on plain bearings with high domestic market share.
Current Situation
Taiho Kogyo recorded consolidated sales of approximately 105.1 billion yen and operating profit of 600 million yen for the fiscal year ended March 2023, with supplies to Toyota Group companies accounting for 70% of its business. Its main product, plain bearings, holds about 90% share in Toyota Motor's engine bearings, establishing a stable supply system to domestic automakers. In technology development, it handles aluminum die-casting and mold manufacturing, while advancing global expansion with subsidiaries in Asia and Europe/North America. On the sustainability front, it focuses on reducing environmental impact through manufacturing process efficiency and resource recycling. Moving forward, its strategy centers on introducing new materials and improving quality, while strengthening development of EV-related parts for growth. It emphasizes human resource development and technology succession to maintain competitiveness in the global market. Financially, it leverages a stable asset base for appropriate capital investments.
Trivia
Interesting Facts
- Established in 1944, a veteran parts manufacturer in the Toyota Group.
- Holds approximately 90% market share in Toyota Motor's engine bearings.
- Multinational company with multiple factories and R&D bases domestically and internationally.
- Diversified business including aluminum die-cast products and molds.
- One of Japan's leading bearing manufacturers supplying many domestic automakers.
- Group bases in 6 countries including the US, Thailand, and Hungary.
- Diversified operations including assembled products and welding machine parts manufacturing.
- Major shareholders: Toyota Motor 33.1%, Toyota Industries 4.8%.
- Constituent stock in Sumitomo Mitsui Asset Management's Toyota Group Stock Fund.
- Absorbed and merged with Taiho Gifu Co., Ltd. in Gifu Prefecture's Kani District for business expansion.
- Formed long-term partnerships through exceptional precision processing technology.
- Also handles proprietary conveyor systems for logistics efficiency.
- Originally started as Nishio Seiki Co., Ltd.
- Technology Development Center located in Toyota City, Aichi Prefecture.
- Approximately 1,960 domestic employees, 4,212 on a consolidated basis
Hidden Connections
- Close parts supply network with Toyota Group companies serves as the source of competitiveness.
- Attracting funds as a constituent stock in Sumitomo Mitsui Asset Management's Toyota Group Stock Fund.
- Supplies products to the global automotive market through group companies in the US, Southeast Asia, and Europe.
- Core technologies significantly contribute to improving engine durability, linked to automotive fuel efficiency measures.
- Focusing on R&D for new materials and product designs compatible with automotive electrification.
- Taiho Parts Center in Toki City, Gifu Prefecture, serves as a hub for parts supply.
- Competes with peers like Nippon Chuzo and Nozaki Printing Paper Industries while supporting the supply chain together.
- Implements measures to advance manufacturing equipment through shareholder alliance with Toyota Industries.
Future Outlook
Growth Drivers
- Demand response to strengthening environmental regulations in the automotive industry
- Acceleration of high-function bearings and parts development for electric vehicles
- Stable orders through deepened transactions with Toyota Group
- Expansion in overseas markets, especially emerging Asian countries
- Digital transformation of manufacturing processes
- Growing demand for energy-saving and environmentally compatible products
- Value enhancement through advanced assembly technology
- Competitiveness strengthening via R&D on new materials and technologies
- Development and efficiency improvement of global supply networks
- Technology succession and innovation promotion through human resource development
- Expansion strategies for industrial machinery markets
- Gaining trust through strengthened quality management systems
Strategic Goals
- Achieve over 50% ratio of green mobility compatible products
- Expand overseas sales ratio to over 40%
- Improve production efficiency by 30% through digitalization
- Improve employee technical skills by 5% annually
- Reduce CO2 emissions by 30% compared to 2010
- 开拓 new markets through diverse product lineup
- Build sustainable procurement systems
- Maintain customer satisfaction above 90%
- Strengthen supply chain risk diversification
- Maintain domestic top position in high-function mold manufacturing technology
Business Segments
Automotive Engine Parts Supply
- Overview
- Continuously supplies engine-related parts to major domestic automakers, providing stable quality through high-precision manufacturing technology.
- Competitiveness
- Strong business ties with the Toyota Group and high-precision processing technology
- Customers
-
- Toyota
- Nissan
- Honda
- Mitsubishi Motors
- Suzuki
- Mazda
- Daihatsu
- Isuzu
- Subaru
- Various automotive parts suppliers
- Products
-
- Engine Plain Bearings
- Engine Bearings
- Aluminum Die-Cast Parts
- Engine Accessories
- Oil Seals
- Gaskets
- Metal Bearings
- Exhaust Parts
Bearings and Mold Manufacturing for Industrial Machinery
- Overview
- Supplies bearings and molds to the industrial machinery sector, providing high-durability products suited to diverse applications.
- Competitiveness
- Broad product lineup and customization capabilities
- Customers
-
- Factory Equipment Manufacturers
- Construction Machinery Manufacturers
- Agricultural Machinery Manufacturers
- Heavy Electrical Equipment Manufacturers
- Machine Tool Manufacturers
- Industrial Machinery Parts Trading Companies
- Products
-
- Oil-Impregnated Bearings
- Industrial Bearings
- Press Molds
- Welding Machine Parts
- Logistics Conveying Machinery Parts
Overseas Market Expansion Business
- Overview
- Expanding product supply to overseas markets through global subsidiaries.
- Competitiveness
- Established local production and sales networks with strong quality control
- Customers
-
- European and American Automakers
- Local Asian Automakers
- Local Parts Sales Companies
- Overseas Industrial Machinery Companies
- Products
-
- Export Plain Bearings
- Molds for Overseas Production
- Industrial Machinery Parts
Assembled Products Contract Services
- Overview
- Contributes to customer production efficiency by undertaking assembly of complex parts.
- Competitiveness
- Advanced assembly technology and quality assurance systems
- Customers
-
- Automakers
- Secondary Parts Manufacturers
- Logistics Companies
- Products
-
- Engine Accessory Assemblies
- Drive System Assembly Units
- Logistics Conveying Units
Custom Parts for R&D
- Overview
- Provides high-precision, short-lead-time parts for R&D applications.
- Competitiveness
- Flexible design response and rapid prototyping
- Customers
-
- Automotive Development Departments
- University Research Institutions
- Industrial Technology Research Institutes
- Products
-
- Prototype Bearing Parts
- Experimental Molds
- Custom Seal Materials
Competitive Advantage
Strengths
- Strong business relationship with Toyota Motor
- High-precision bearing manufacturing technology
- Extensive domestic and international production bases
- Diverse product lineup
- Robust technology development organization
- Stable financial foundation
- Efficient assembly service capabilities
- Global sales network
- Specialized mold manufacturing technology
- Long years of industry experience
- Environmentally considerate manufacturing processes
- Comprehensive customer support system
- Expansion into industrial machinery sector
- Multi-faceted product applications
- Sustainability initiatives
Competitive Advantages
- Approximately 90% domestic top share in engine bearings
- Equity-method affiliate relationship with Toyota Group
- Ability to provide high-quality, multifunctional products
- Global対応 with subsidiaries overseas
- Product range meeting diverse customer needs
- Cost competitiveness through advanced processing technology
- Proprietary aluminum die-casting technology
- Efficient logistics and sales channel network
- Strength in complex parts assembly technology
- Ongoing investments in quality improvement and technological innovation
- Pioneer in environmentally compatible product development
- Advancement of production equipment automation
- Continuous human resource development programs
- Rapid customer response and support systems
- Improved product development speed through modularization
Threats
- Slowdown in domestic automotive production and sales
- Intensifying competition from overseas automakers
- Risk of fluctuating raw material prices
- Cost increases from stricter environmental regulations
- Delays in market introduction of new technologies and materials
- Profit impact from exchange rate fluctuations
- International trade friction and tariff risks
- Rapid advancement of alternative technologies (EV and electrification fields)
- Risk of productivity decline due to labor shortages
- Instability in global supply chains
- Reputation damage risk from quality issues
- Rising cyber security threats
Innovations
2024: Successful Development of High Heat-Resistant Plain Bearings
- Overview
- Developed new bearings with 30% improved heat resistance over conventional products.
- Impact
- Contributes to longer engine life and improved environmental performance.
2023: Introduction of Weight Reduction Technology for Aluminum Die-Cast Products
- Overview
- Commercialized weight reduction technology for automotive parts using new materials.
- Impact
- Improves vehicle fuel efficiency and reduces CO2 emissions.
2022: Advancing Smart Manufacturing Lines with IoT
- Overview
- Optimized production efficiency by introducing IoT devices in factories.
- Impact
- Achieved 15% productivity improvement and reduced defects.
2021: Introduction of Environmentally Friendly Mold Manufacturing Processes
- Overview
- Developed and introduced energy-saving mold manufacturing processes in factories.
- Impact
- Reduced annual energy usage by 20%.
2020: Introduction of High-Precision Assembly Robot Systems
- Overview
- Introduced advanced robots in assembly processes to promote automation.
- Impact
- Improved work efficiency by 30% and stabilized quality.
Sustainability
- Reduction of waste and enhanced recycling in production processes
- Set target to reduce CO2 emissions by 30% by 2030
- Optimization of material selection to reduce environmental impact
- Promotion of renewable energy adoption
- Expansion of employee environmental education programs
- Collaborative environmental conservation activities with local communities
- Product longevity and improved maintainability
- Maintenance of ISO 14001 environmental management system
- Strengthened environmental responsibility in supply chains
- Active investments in energy-saving equipment