Daido Metal Co., Ltd.
Basic Information
- Stock Code
- 7245
- Industry
- Transportation Equipment
- Category Detail
- Iron, Steel & Metal Products
- Prefecture
- Aichi Prefecture
- Establishment Year
- November 1939
- Listing Year
- October 1961
- Official Website
- https://www.daidometal.com/
- TSE Information
- TSE Information
- Yahoo! Finance
- Yahoo! Finance
- Other Companies
- Nippon Concrete, Alerest, Oiles Corporation, Hi-Hiist, Tsubaki Nakashima, NSK, JTEKT, Nachi Fujikoshi, MinebeaMitsumi, Nippon Thompson, THK, Futaba
Overview
Daido Metal Co., Ltd., founded in 1939, is the world's largest plain bearing manufacturer, holding approximately 30% global market share in automotive engine bearings, and operates as a comprehensive metal products manufacturer.
Current Situation
Daido Metal Co., Ltd. recorded consolidated net sales of 128.7 billion yen and net assets of 78.7 billion yen for the fiscal year ended March 2024, maintaining a stable financial base. Its flagship plain bearings for automotive engines hold over 30% of the world market share, with strengths also in bearings for industrial machinery and shipbuilding. In recent years, it has aggressively expanded overseas, centered on North America and Asia, focusing on local production and sales network development. In technology development, it is expanding into new material fields such as rotary pumps and electrode materials for electric double-layer capacitors, promoting product diversification. For sustainable growth, it is developing environmentally responsive products and expanding aluminum die-cast products, while working to improve manufacturing efficiency and quality control. Its medium- to long-term strategy targets a dividend payout ratio of over 40%, balancing shareholder returns with business growth. Leveraging regional partnerships and R&D bases, it aims to capture markets for high-performance bearings in next-generation vehicles and industrial machinery. The recent weak yen has served as a tailwind, contributing to earnings improvement. Moving forward, enhancing global competitiveness while balancing sustainability presents key challenges.
Trivia
Interesting Facts
- Founded in 1939, a pioneer in the metal bearing industry.
- Maintains approximately 30% global share in automotive engine bearings.
- Deep historical relationship with Toyota Motor Corporation.
- Independent company but shares place name with Daido Steel Co., Ltd.
- Also highly regarded for aluminum die-cast parts.
- Operates numerous global manufacturing sites and sales subsidiaries.
- New entrant in electric double-layer capacitor materials.
- Long-term supplier of bearings for industrial machinery both domestically and internationally.
- Promotes sustainable manufacturing to reduce environmental impact.
- Diversified operations supplying products to various industries.
- Its head office building named after Hirokoji is a landmark in Nagoya.
Hidden Connections
- Founder Yoichi Kawagoe was the first automotive department head at Toyoda Automatic Loom Works and deeply involved in the founding of Toyota.
- No capital ties with Daido Steel Co., Ltd., but name origins are related in the metalworking field.
- Long-term trusted major supplier to major domestic and international automakers.
- Achieves local production and community integration through factories in the US and other countries.
- Holds numerous patented technologies in special metal parts, leading the industry.
- In-house R&D center located in Inuyama City, Aichi Prefecture.
- Focuses on electrode materials for electric double-layer capacitors as environmental products.
- Trust banks form a large part of shareholder composition, creating a stable shareholder base.
Future Outlook
Growth Drivers
- Stable demand for internal combustion engines in the automotive sector
- Accelerated development of new materials compatible with electrification
- Expanding demand for bearings and parts in emerging markets
- Value enhancement through technological innovation for industrial machinery
- Product differentiation in response to stricter environmental regulations
- Strengthening of global production and supply networks
- Production efficiency improvements via digitalization
- Growing demand for lightweight die-cast parts
- Market expansion for high-performance capacitor materials
- Increasing demand for eco-friendly products amid rising sustainability requirements
Strategic Goals
- Achieve 40% share in the global bearing market
- 70% or more of products with reduced environmental impact
- Overseas sales ratio of 60% or higher
- Annual investment in next-generation materials development exceeding 5 billion yen
- Completion of smart factory transformation at manufacturing sites
- Promotion of decarbonization in supply chains
- Advancement of employee diversity and work-style reforms
- Continuous dividend payout ratio over 50%
- New business sales accounting for over 20% of total
- Sustainable business development in collaboration with local communities
Business Segments
Automotive Parts Supply
- Overview
- Stably supplies high-quality bearing parts to automakers.
- Competitiveness
- World-class technological strength and delivery responsiveness
- Customers
-
- Toyota Motor Corporation
- Nissan Motor Co., Ltd.
- Honda Motor Co., Ltd.
- Suzuki Motor Corporation
- Export-oriented automakers
- Parts trading companies
- Products
-
- Engine Bearings
- Transmission Bearings
- Shaft Metals
- Race Rings
Industrial Machinery Parts
- Overview
- Provides highly durable parts to various industrial machinery manufacturers.
- Competitiveness
- Product development capabilities tailored to diverse industries
- Customers
-
- Machine tool manufacturers
- Construction machinery manufacturers
- Logistics equipment manufacturers
- Steel plants
- Shipbuilders
- Products
-
- Thin-wall bearings for industrial machinery
- Rotary pumps
- Centralized lubrication systems
Electronic Materials Supply
- Overview
- Supplies innovative materials to the electronics sector to create new markets.
- Competitiveness
- Integration of precision processing technology and eco-friendly materials
- Customers
-
- Capacitor manufacturers
- Electronic component manufacturers
- Environment-related companies
- Products
-
- Electrode sheets for electric double-layer capacitors
Aluminum Die-Cast Products
- Overview
- Provides high-quality, lightweight aluminum parts to support related industries.
- Competitiveness
- High-precision casting technology and quality control systems
- Customers
-
- Automotive parts manufacturers
- Industrial machinery manufacturers
- Aircraft parts manufacturers
- Products
-
- Aluminum die-cast parts
- Engine covers
- Transmission housings
Logistics and Sales Services
- Overview
- Establishes efficient logistics systems and sales channels.
- Competitiveness
- Integrated group operations and local responsiveness
- Customers
-
- Daido Metal Sales
- Daido Logitec
- Dealers
- Products
-
- Logistics management
- Product sales
- Delivery network
Competitive Advantage
Strengths
- World's largest bearing manufacturer
- High technological capabilities and R&D strength
- Broad product lineup
- Stable financial base
- Strong customer network
- Global production and sales bases
- Long-standing trust and brand power
- Precision processing expertise
- Environmentally responsive product development capabilities
- Advanced quality control systems
- Adaptability to diverse industrial needs
- Prompt delivery response
- Management stability
- Focus on sustainability
- Proprietary aluminum die-casting technology
Competitive Advantages
- Industry-leading share in automotive engine bearings
- Flexible response via multinational production and sales networks
- Comprehensive coverage of customer needs through diverse applications
- Competitive edge from advanced materials and processing technologies
- Technology innovation driven by R&D investments
- Trust earned through high-precision, high-quality production lines
- Incorporation of sustainability into products
- Strong transaction relationships with major automakers
- Cost competitiveness from improved production efficiency
- Risk diversification through regionally dispersed production sites
- Ownership of proprietary patented technologies
- Revenue stability through diversification strategy
- Sales efficiency via group logistics
- Balance of standard and custom products
- Proven track record of long-term stable supply
Threats
- Structural changes in the global automotive industry
- Fluctuations in bearing demand due to electrification
- Raw material price volatility risks
- Foreign exchange rate impacts
- Intensifying technological competition from new entrants
- Strengthened environmental regulations and compliance costs
- Global economic uncertainty
- Supply chain risks
- Rise of alternative technologies like lithium-ion batteries
- Political instability in overseas markets
- Technology leakage risks
- Product quality issue risks
Innovations
2024: Development of New High-Durability Engine Bearings
- Overview
- Launched engine bearings with significantly improved wear resistance using new materials.
- Impact
- Product lifespan extended by 20%, enhancing customer satisfaction.
2023: Commercialization of Energy-Saving Rotary Pumps
- Overview
- Developed pumps that reduce energy consumption through improved efficiency.
- Impact
- Contributes to lower running costs for customers.
2022: Mass Production Start of High-Function Electrode Sheet Materials
- Overview
- Mass-produced high-performance electrode materials for electric double-layer capacitors at a new factory.
- Impact
- Contributes to sales growth through new market development.
2021: Advanced Aluminum Die-Casting Technology
- Overview
- Introduced fine-structure control technology to improve product strength.
- Impact
- Contributes to vehicle lightweighting and transaction expansion.
2020: Introduction of IoT-Based Production Management System
- Overview
- Advanced automation of factory production efficiency and quality control.
- Impact
- Achieved 10% productivity improvement and better yields.
Sustainability
- CO2 reduction through introduction of energy-saving manufacturing processes
- Target of over 90% waste recycling rate
- Active adoption of environmentally friendly materials
- Promotion of industrial waste reduction programs
- Environmental awareness activities in collaboration with local communities
- Equipment upgrades for improved energy efficiency
- Enhanced water resource management in manufacturing processes
- Environmental audits of supply chains
- Formulation of sustainable procurement policies
- Continuous improvement of safety and health activities
- Thorough environmental education for employees
- Stricter green procurement standards