Pacific Industrial

Basic Information

Stock Code: 7250
Industry: Transportation Equipment
Category Detail: Auto Parts
Prefecture: Gifu Prefecture
Establishment Year: August 1930
Listing Year: November 1962
Official Website: https://www.pacific-ind.co.jp/
TSE Information: TSE Information
Yahoo! Finance: Yahoo! Finance
Other Companies: Toyota Boshoku, Seiren, Habix, Nishikawa Rubber, Nippon Kogyo, Metal Art, JTEKT, Toyo Seisakusho, Nippon Hatsujo, Sanyo Denki, Teikoku Tsushin Kogyo, Tanaka Seimitsu Kogyo, Tachies, Futaba Sangyo, Univance, Muro Corporation, Toyoda Gosei, Murakami Kaimeido, Tey Estec, Ohashi Technica

Overview

Pacific Industrial is a major automotive parts company founded in 1930, holding approximately 95% share of the domestic tire valve market and serving as a high-quality parts manufacturer with Toyota as its primary customer.

Current Situation

Pacific Industrial recorded consolidated net sales of approximately 206.1 billion yen, operating profit of approximately 13.7 billion yen, and net profit of approximately 13.2 billion yen for the fiscal year ending March 2025. It boasts a 95% domestic share in automotive tire valves and valve cores, with sales to Toyota Motor accounting for about 50%. It operates multiple production bases in Japan and is expanding into overseas markets centered on North America. It possesses competitive strength as the sole domestic manufacturer of TPMS (Tire Pressure Monitoring Systems) and is proactive in new technology development. In recent years, it has focused on technological innovation, including the development of environmentally friendly parts and winning the Manufacturing Grand Prize for friction stir welding technology. Amid globalization and strengthening environmental regulations, it aims to pioneer new markets and diversify products to bolster its growth foundation. Its financial position is solid, and it is pursuing management strategies to address future risks such as exchange rate fluctuations. It is also committed to regional industrial promotion through social contributions.

Trivia

Interesting Facts

Approximately 95% domestic share in tire valves and valve cores.
Japan's only manufacturer of tire pressure monitoring systems (TPMS).
Technological strength with three Manufacturing Grand Prizes.
Over 70 years of history as a Toyota cooperative factory.
Numerous global production bases in Europe, America, and Asia.
SCHRADER brand originates from the inventor of the American-style valve.
Mid-sized major automotive parts company with 4,760 employees.
Head office and West Ogaki Factory located in Ogaki City, Gifu Prefecture.
Recognized as a recipient of the Shibusawa Eiichi Prize.
Diversified company actively responding to changes in domestic and international markets.
Develops and supplies fuel cell parts for environmental adaptation.
Parent company is US subsidiary PACIFIC INDUSTRIES.
Contributes to revitalizing local industrial parks as regional contributions.
Supplies products to a wide range of vehicle types from large to small cars.
Maintains long-term transaction record with Toyota Group.

Hidden Connections

The SCHRADER brand derives from August Schrader, inventor of the American-style valve.
Long-term collaboration with Toyota Motor, winning multiple quality management awards.
Shares technology and brands with subsidiary French and American companies.
Collaborates with local sports club Ogaki Minamo Softball Club.
Strengthens ties with environmental companies through fuel cell vehicle parts development.
Global supply network serving North American and Asian automakers.
Established proprietary friction stir welding technology through years of technological accumulation.
Secures market competitiveness as Japan's only domestic TPMS manufacturer.

Future Outlook

Growth Drivers

Increasing parts demand due to stricter vehicle safety regulations domestically and internationally
Advancement in development of environmentally friendly parts for electric and fuel cell vehicles
Sales expansion and local production strengthening in North America and Asia
Practical application and rollout of new technologies like friction stir welding
Expansion of global brand SCHRADER PACIFIC

Strategic Goals

Achieve over 40% overseas sales ratio and market diversification
Strengthen environmental parts sales ratio to over 30%
Promote digitalization and labor-saving in manufacturing processes
Expansion into new business areas (fuel cells, electric vehicle parts, etc.)
Sustainable management centered on coexistence with local communities

Business Segments

Automotive Parts Manufacturing

Overview

Business of manufacturing and supplying high-quality parts primarily to automakers.

Competitiveness

High-share product lineup in Japan and global technical responsiveness

Customers

Toyota Motor
North American Automakers
European Automakers
Parts Suppliers

Products

Tire Valves
Valve Cores
TPMS
Pressed Metal Parts

Overseas Business Expansion

Overview

Local production and sales in the US, China, Thailand, and Europe.

Competitiveness

Global bases and local product development capabilities

Customers

North American Auto Parts Market
Asian Automotive Industry

Products

Locally Produced Tire Valves
TPMS
Metal Processed Parts

Environmental and Special Parts Development

Overview

Provides special parts utilizing environmental technologies and advanced joining techniques.

Competitiveness

Product commercialization capabilities for cutting-edge technologies

Customers

Automakers
Defense and Industrial Machinery Manufacturers

Products

Relief Valves for Fuel Cells
Friction Stir Welded Parts
Spline Plates for PHVs

Competitive Advantage

Strengths

Overwhelming approximately 95% share in the domestic tire valve market
Stable customer base with Toyota sales accounting for about 50% of revenue
Global production and sales network
High technological capabilities and accumulated manufacturing expertise
Product lineup featuring proprietary advanced technologies like TPMS

Competitive Advantages

Exclusive position as Japan's only TPMS manufacturer
High-quality, trusted tire valve manufacturing technology
Long-term business relationship with Toyota and high quality evaluations
Rapid response to local needs through overseas bases
Technological innovation prowess with awards in environmental products

Threats

Revenue impact risks from exchange rate fluctuations
Political and economic risks at overseas bases
Technological innovation and price competition from rivals
Burden of adapting to product specification changes due to stricter environmental regulations
Adaptation to electrification and autonomous driving in the automotive market

Innovations

2023: Aluminum Joining Technology Using Friction Stir Welding (FSW)

Overview: Achieves lightweight, high-strength parts through new joining technology.
Impact: Contributes to lighter weight and improved durability of automotive parts.

2023: Development of Relief Valves for Fuel Cell Vehicles

Overview: Environmentally friendly parts that won the Super Manufacturing Parts Grand Prize.
Impact: Contributes to improved safety and performance of fuel cell vehicles.

2022: Commercialization of Spline Plates for PHVs

Overview: New parts for electric vehicles with award history.
Impact: Contributes to enhanced drive performance in electric vehicles.

2021: Integration and Expansion of US SCHRADER Brand Products

Overview: Subsidiary acquisition as part of global brand strategy.
Impact: Achieved market share expansion in the US.

2024: Launch of New TPMS Sensors

Overview: High-precision, low-cost new sensors scheduled for market launch.
Impact: Contributes to improved vehicle safety and market expansion domestically and internationally.

Sustainability

Active development and commercialization of environmentally related parts
Expansion of resource-saving and recycled material use
Energy management and CO2 reduction activities at factories
Promotion of occupational health and safety and improvement of working environments domestically and internationally
Ongoing contributions to regional communities and industrial promotion