IHI

Basic Information

Stock Code
7013
Industry
Machinery
Category Detail
Industrial Equipment & Heavy Electrical Apparatus
Prefecture
Tokyo
Establishment Year
January 1889
Listing Year
May 1949
Official Website
https://www.ihi.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Fujikura, Sumitomo Heavy Industries, Mitsui E&S, Kanadebia, Mitsubishi Heavy, Kawasaki Heavy

Overview

IHI is a major heavy industry company founded in 1889, with top domestic technology in the aero-engine sector and listed on the Tokyo Stock Exchange Prime Market.

Current Situation

IHI achieved consolidated sales of approximately 1.1729 trillion yen in the fiscal year ended March 2022. Centered on aero engines, it has established a strong position in heavy machinery businesses such as space, defense, and plants. It diversifies risks through product variety, focuses on R&D to develop advanced technologies, and actively pursues product development that considers environmental compliance and energy efficiency. In the long term, international expansion in defense and market growth in space transport equipment are expected as growth drivers. In 2021, it made Meisei Electric a wholly-owned subsidiary to create new businesses. It also focuses on strengthening corporate governance and improving internal controls to aim for sustainable growth.

Trivia

Interesting Facts

  • Holds over 60% of Japan's jet engine market.
  • Founded in 1853 by Edo Shogunate order during the late Edo period.
  • Involved in steel fabrication for Tokyo Station Marunouchi Building.
  • Formerly Ishikawajima-Harima Heavy Industries, renamed in 2007.
  • Renowned for high technology in special ships for Ministry of Defense.
  • IHI products used in turbine parts of F1 Honda engines.
  • Space business handled by subsidiary IHI Aerospace.
  • Restructured in 2019 by spinning off plant business, etc.
  • Long-established heavy industry with close ties to Toshiba.
  • Multiple major domestic banks listed as major shareholders.
  • Participates in domestic and international large wind power projects.
  • History of steam locomotive production in the 1930s.
  • Active in regional contributions with business sites nationwide.
  • Holds international environmental certifications like ISO14001.
  • Participates in multiple joint development projects to advance international technology collaboration.

Hidden Connections

  • Strong ties with Toshiba and Mitsui Group, leveraging a broad corporate network.
  • Belonged to former First Bank Group, with deep collaboration with Mizuho Bank as main bank.
  • Numerous collaborative projects with government agencies in defense and space.
  • Ishikawajima Shipyard in its founding laid the foundation for modern Japanese shipbuilding.
  • Has enhanced technology through long-term joint development with leading international aircraft manufacturers.
  • Expands into diverse industries domestically and internationally through various business subsidiaries.
  • One of Japan's representative companies as a Nikkei 225 constituent.
  • Attracting high attention as a defense-related stock amid geopolitical risks.

Future Outlook

Growth Drivers

  • Revenue expansion from increased defense demand
  • Space industry market growth and technological evolution
  • Introduction of new technologies in renewable energy
  • Aggressive business expansion in global markets
  • Promotion of smart manufacturing using digital technology
  • New demand creation from increased environmentally compliant products
  • Strengthened manufacturing protection through government industrial policies
  • Long-term supply chain resilience enhancement
  • New infrastructure demand responding to aging society
  • Improved funding environment due to ESG investment growth
  • Enhanced competitiveness through strengthened domestic and international technology partnerships
  • Organizational strengthening through talent development and diversity promotion

Strategic Goals

  • Global market share expansion in aero engines
  • Achieve annual sales of 2 trillion yen scale
  • 50% CO2 emission reduction environmental target
  • Increase revenue ratio from renewable energy business
  • Promote international deployment of defense and space technologies
  • 30% productivity improvement through digital transformation
  • Promotion of diversity and inclusion
  • Obtain international certifications for sustainability management
  • Expansion of domestic and international R&D networks
  • Strengthening of social contribution activities in collaboration with local communities

Business Segments

Aerospace Engine Manufacturing

Overview
Designs and manufactures engines and related equipment for aircraft and spacecraft.
Competitiveness
Largest domestic jet engine market share and high technological capabilities
Customers
  • Ministry of Defense
  • Aircraft Manufacturers
  • Space Agencies
Products
  • Turbojet Engines
  • Turbofan Engines
  • Rocket Turbopumps

Plant Equipment

Overview
Designs, manufactures, and constructs equipment for energy and industrial plants.
Competitiveness
Development capabilities in high-efficiency, environmentally friendly plant equipment
Customers
  • Oil Refining Companies
  • Power Companies
  • Chemical Manufacturers
Products
  • Boilers
  • Heat Exchangers
  • Desulfurization Equipment
  • Water Treatment Equipment

Construction and Civil Engineering Machinery

Overview
Manufactures machinery and infrastructure-related equipment for construction sites.
Competitiveness
Diverse construction machinery lineup and technical support
Customers
  • Construction Companies
  • Civil Engineering Contractors
  • Local Governments
Products
  • Hydraulic Excavators
  • Shield Tunneling Machines
  • Mechanical Parking Equipment

Transport Machinery and Parts

Overview
Provides industrial transport machinery and parts.
Competitiveness
High-quality engine technology for defense applications
Customers
  • Railway Operators
  • Automotive Manufacturers
  • Defense-Related Companies
Products
  • Railway Vehicle Parts
  • Superchargers
  • Diesel Engines

Logistics and Conveyance Equipment

Overview
Provides equipment and systems to improve logistics efficiency.
Competitiveness
Customizable solutions and maintenance service network
Customers
  • Warehouse Operators
  • Logistics Companies
  • Manufacturing Companies
Products
  • Crane Equipment
  • Conveyor Systems
  • Automated Warehouse Systems

Steelmaking Plants

Overview
Designs and manufactures large-scale production equipment for steel mills.
Competitiveness
Advanced technology and global delivery track record
Customers
  • Steel Manufacturers
  • Steel Plate Processors
Products
  • Blast Furnace Equipment
  • Steelmaking Furnaces
  • Rolling Mills

Environmental Equipment

Overview
Develops and manufactures equipment aimed at reducing environmental impact.
Competitiveness
Proprietary technology lineup for environmental equipment
Customers
  • Power Plants
  • Factories
  • Local Governments
Products
  • Flue Gas Desulfurization Equipment
  • Water Treatment Equipment
  • Incinerators

Prime Mover Manufacturing

Overview
Designs and manufactures multipurpose industrial prime movers.
Competitiveness
Superior durability and energy-saving performance
Customers
  • Power Generation Companies
  • Industrial Machinery Manufacturers
Products
  • Gas Turbines
  • Diesel Engines
  • Turbopumps

Construction Materials and Steel Fabrication

Overview
Provides manufacturing to construction services for large structures.
Competitiveness
High-quality products and long track record in construction
Customers
  • Construction Companies
  • Infrastructure Operators
Products
  • Steel Structures
  • Bridge Components
  • Sluice Gate Equipment

Pharmaceutical and Chemical Plants

Overview
Provides precise plant equipment for pharmaceutical and chemical industries.
Competitiveness
Advanced technology and safety management systems
Customers
  • Pharmaceutical Companies
  • Chemical Manufacturers
Products
  • Pharmaceutical Plant Equipment
  • Purification and Finishing Equipment

Mechanical Presses and Cast/Forged Products

Overview
Supplies high-quality mechanical parts for various industries.
Competitiveness
Precision processing technology and stable supply capabilities
Customers
  • Automotive Parts Manufacturers
  • Machinery Industry
Products
  • Press Machinery
  • Cast Parts

Agricultural Machinery

Overview
Manufactures farm equipment that contributes to improved agricultural productivity.
Competitiveness
Products tailored to diverse customer needs
Customers
  • Agricultural Corporations
  • Farm Machinery Dealers
Products
  • Tractors
  • Pesticide Sprayers
  • Rice Transplanters

Competitive Advantage

Strengths

  • Overwhelming share in the domestic aero engine market
  • Diversified heavy industry product lineup
  • Space and defense products leveraging advanced technology
  • Numerous patents and R&D structure
  • Long history and stable management base
  • Comprehensive supply chain management
  • High recognition and trust domestically and internationally
  • Strong customer base and diverse sales channels
  • Technology enhancement through international joint development
  • Strong capital base and financial stability
  • Large number of employees and specialized engineers
  • Customers across diverse industries and broad markets
  • Track record of government transactions in defense
  • Collaboration with group companies
  • Progress in environmental technologies

Competitive Advantages

  • Maintains top domestic technology and market share in aero engines
  • Deploys diversified product lineup for various industries
  • Creates advanced technologies through continuous R&D investment
  • Secures stable revenue through strong ties with government and defense
  • Advances technology and international expansion via global joint projects
  • Enhances market competitiveness with sustainability-focused products
  • Maintains customer trust with high quality control standards
  • Possesses a robust global supply chain network
  • Supports technological innovation through long-term capital investment plans
  • Expands customer touchpoints using diverse sales channels
  • Achieves efficient management through internal departmental integration
  • Technological superiority from specialized engineers across fields
  • Risk diversification through strengthened overseas subsidiary management
  • Broad collaboration and partnerships with leading domestic companies
  • Leads industry standards with safety-focused product development

Threats

  • Geopolitical risks destabilizing defense demand
  • Intensifying competition in emerging markets
  • Increasing R&D costs due to rapid technological progress
  • Rising compliance costs from stricter environmental regulations
  • Revenue impacts from exchange rate fluctuations
  • Rising raw material prices
  • Export restrictions due to international political changes
  • Challenges in talent acquisition and aging workforce
  • Supply chain disruption risks
  • Business constraints from legal regulatory changes
  • Cybersecurity threats
  • Threats from competitors' technological innovations

Innovations

2024: Development of High-Efficiency Gas Turbines

Overview
Successfully commercialized new gas turbines that reduce environmental impact.
Impact
Achieves improved power generation efficiency and CO2 emission reductions.

2023: Launch of Satellite Data Sales Business

Overview
Began selling satellite image data in the space segment.
Impact
Diversifies revenue through new market development.

2022: Development of Smart Logistics Equipment

Overview
Developed next-generation cranes and warehouse management equipment using IoT.
Impact
Realizes logistics efficiency and safety improvements.

2021: Expansion of Hydrogen Energy Plant Technology

Overview
Focused on developing sustainable hydrogen plant technology.
Impact
Strengthens competitiveness in renewable energy business.

2020: Technological Innovation in Low-Emission Aero Engines

Overview
Commercialized new technology that balances fuel efficiency and exhaust gas reduction.
Impact
Gained high evaluation from aircraft manufacturers.

Sustainability

  • Promotion of CO2 emission reduction plans in manufacturing processes
  • Expansion of renewable energy utilization
  • Improvement of waste recycling rates
  • Product design aimed at reducing environmental impact
  • Environmental conservation activities in collaboration with local communities
  • Building sustainable organizations through talent development
  • Strengthening safety and health activities and zero-accident initiatives
  • Thorough environmental ethics in the supply chain
  • Fostering corporate culture promoting diversity and inclusion
  • Maintenance and strengthening of ISO14001 certification
  • Planned implementation of environmental investments
  • Update to energy-efficient equipment