We will contribute to building a sustainable society through surface modification technologies.

Kazuichi Satomi
Chairman President & CEO

We started business in 1928 by taking over the patent rights for manufacturing a rust-proofing chemical for steel and a rust-proofing process from Parker Rust-Proof Company in the US. For nearly 100 years since then, we have continued to refine our surface modification technologies and contribute to the development of society as a leading company in this field. Surface modification technologies significantly extend the service life of things by preventing strength deterioration and wear of metals, thereby improving their durability. With these and other benefits, they save resources and are environmentally friendly. They are essential technologies for building a sustainable society.

Since its founding, the Nihon Parkerizing Group has been growing with two core industries: the automotive and steel industries. However, the automotive industry is witnessing an accelerating shift to EVs as part of the move toward a carbon-free society. In the steel industry, an industry shakeout is in progress in and outside Japan, along with the rise of China, India, and other countries. It also faces a growing demand for environmentally friendly technologies. In addition to these moves in customer industries, soaring raw materials and, energy prices, and other ongoing events have made the current business environment even more challenging. Among them, the reduction in the number of automotive parts resulting from the acceleration of the shift to Evs is a significant threat to the Nihon Parkerizing Group. To address these rapid changes in the business environment, the Group must respond promptly to new needs by considering customers' perspectives more than ever.

At the Nihon Parkerizing Group, we formulated Vision2030 in 2021, describing what we wanted to be like in ten years. There, we set five fundamental strategies for "developing new businesses," "cultivating existing markets," "accelerating global rollout," "enhancing Group governance," and "diversifying human resources," with sustainability-oriented management at the base. As our FY2030 targets, we set consolidated net sales at 200 billion yen, an operating income to net sales ratio of 15%, and ROE of 10% or higher. To achieve these targets, we need to take on challenges bravely and aggressively in new business domains instead of existing ones. We are making Group-wide efforts to achieve them.

As part of the efforts, we have already begun constructing new Central Research Laboratories to complete them in 2025. After their completion, the facility will be a world-leading R&D base for surface modification technologies. In addition, we are revitalizing the domestic and international exchange of human resources to develop globally competitive human resources and strengthen the recruitment and development of local staff. We have also established technology hubs in Thailand and China to provide technological support close to customers and facilitate the timely development of technologies matching local needs. We have taken these initiatives under the policy: "Think Globally & Act Locally."

Sustainability initiatives are also essential for enhancing corporate value and identifying and addressing critical social issues. In July 2023, we established a Sustainability Committee. We also checked the progress regarding carbon neutrality targets and the six key issues (materiality) we have identified. We discussed future action policies, among other agendas, in an attempt to integrate business activities with sustainability-oriented management and drive them.

At the Nihon Parkerizing Group, we will strive to ensure highly transparent information disclosure so that our shareholders, investors, and other stakeholders will better understand our medium- to long-term value creation.

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