Growth strategies

Strategy by Business Segment

What’s Next
Life science businessSpin-off of surface modification technologies
for improving people’s QOL*
*QOL: Quality of life

CHIDORI®

RAIKIRI®

Surface treatment for medical devices

By coating specific areas of the blade tip of an electrocautery scalpel,
we have added two new functions: the ability to suppress carbide
adhesion and to control temperature increase.

We shaped an electrocautery scalpel to alleviate hand fatigue even in
long-duration surgery, and this scalpel is treated with a nonslip coating
to promote ease of grip during surgery.

A coating is formed on the surface of medical devices byapplying and drying chemical agents.
Our coatings can be applied to various materials, including
metals, glass, ceramics, and resins.

In 2018, Nihon Parkerizing launched its life science business, which was spun off from traditional business field. We

We manufacture and sell our medical devices and under-

ablation catheters, and many other medical devices. Moving

believe that our technologies nurtured in the steel and automotive industries would enable the “creation of new

take surface treatment processing of medical devices manu-

forward, we will contribute to people’s lives and healthvalue” in surface modification technologies in other business areas. Our life science business initially created thera-

factured by other companies. For example, we have started

through surface modification of our products and those frompeutic medical device products by utilizing non-stick functions. However, we have expanded market domains, andsurface modification for bipolar electrocautery scalpels

other companies.

medical devices and functional chemicals are the pillars. As a leader in surface modification, we will continue toinstead of monopolar ones and for catheter guidewires,

explore new horizons through the growth of our life science business.

Medical devices

Functional materials

In the medical device field, we aim to apply the surface modi-

performance earns high marks among medical profession-

In the area of functional materials, we deal with functional coat-

This product is not a temporary disinfectant but a product that

fication technologies we have developed to maintain publicals, and it has already been adopted by more than 150 hos-ing chemicals. By “making daily life more comfortable,” we aim

lasts for two months, taking advantage of our surface modifi-

health based on “contributing to people’s lives and health.” A

pitals in this market, which European and US manufacturers

to apply the surface modification technologies we have devel-

cation technology. We have started field surveys in the medical

single-use (disposable) electrocautery scalpel that we manu-

have dominated. We will continue striving to gain the top

oped to everyday life as we do with medical devices. The

and nursing care industry and hotels and have begun collect-

facture and sell received the Health and Welfare, Biotechnol-market share in this product category by having more hospi-

antiviral and antibacterial formulation, which has a longer-last-ing data on antiviral and antimicrobial effects and deodorantogy, and Medical Equipment Component Award at the 2020

tals adopt the product. Meanwhile, we continue to expanding effect than ordinary disinfectants, has been commercial-

and mold prevention effects. We are promoting product devel-

Cho-Monozukuri Buhin Taisho (super-manufacturing compo-

our product lineup by developing implantable medicalized and is marketed as Palten Coat 688 (TC-688) for

opment through industry-academia collaboration and aim tonent grand prize) organized by Monozukuri Seimei Bunmei

devices through industry-academia collaboration.

corporate customers and as Pal-Feel for general consumers.

enter the cosmetics field in the future.

Kiko, an NPO, and Nikkan Kogyo Shimbun, Ltd. Today, its

Ablation catheter
Purpose: Providing insulation
Exposed metal parts are insulated toprevent thermal damage when they
touch areas other than the affected
area.
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Guidewire
Purpose: Providing sliding
performance
The guidewire slides smoothly inside
the catheter, making it easier to pass
the catheter into the affected area.

Nihon Parkerizing Co., Ltd. Integrated Report 2023

Electrocautery scalpel (monopolar)

Electrocautery scalpel (bipolar)

Purpose: Preventing sticking
Our coating on the tip of the scalpel
prevents sticking and improveswipeability.

Purpose: Providing insulation
The insulating coating prevents burninjuries when the part other than the
exposed metal of tweezers (scalpeltip) touches the affected area.

Pal-Feel
Objective: Providing long-acting antiviral and antimicrobial effects
Applying our surface modification technologies cultivated in the industrial
field provides a long-lasting antimicrobial effect on material surfaces.

Cosmetics industry
Objective: Providing functionality
Surface modification technologies are applied to raw materials to provide
new performance to cosmetics.

Nihon Parkerizing Co., Ltd. Integrated Report 2023

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Growth strategies

Strategy by Business Segment

Chemicals
Chemicals business

Providing surface treatment chemicals, the latest knowhow, andtechnical support in a variety of industrial fields

Business overview

Descriptions of main businesses

In FY2022, sales increased 13.5% annually to 52,911 million
Paint base

Rolling oil

yen, and operating income rose 0.2% annually to 7,672

Metal corrosion
prevention

Rust prevention oil

million yen.

Lubricating
coating

Electroless nickel platingThis segment manufactures and sells surface treatment

Other functional coatingchemicals

chemicals for cleaning materials, rust prevention, paint base,¥

52,911 million
7,672 million¥

Strengths and risks

Metal/Processing/Rust prevention

Steel (sheet)/Coilcoating

Growth strategies to achieve “Vision2030”

1 Strengths• A wide variety of products that add various functions tosurfaces

We aim for the No.1 share of the global
market in sales of surface treatment
chemicals.

• A customer-focused service system that enables us torespond rapidly to customer demands and issues
development utilizing in-house technologies

facturing, and commercializing chemicals that contribute tothese areas.

•Stable supply of high-quality products demanded bydecarbonizing society and reducing the environmental load,customerssuch as chromium-free chemicals. Develop new businesses

sluggish in the first half of the year, due in part to production• Supporting our customers’ overseas expansion with a

globally in various fields such as automobiles, steel, electri-

cutbacks by major customers, but showed a gradualbroad global network

cals/electronics, non-ferrous metals, and life sciences.

recovery in the second half. Further, overall sales of the

2 Risks

Indonesia, and other parts of Asia, in addition to higher sales• Structural changes in the automotive and steel industries

prices in Japan and overseas. However, profitability declined

attributed to the shift to EVs

as the impact of raw material price hikes continued
throughout the year, resulting in only a modest increase in

We foresee raw material prices to remain high. We will work

• Intensifying

pricecompetitionreflecting

product

commoditization• Rising prices of phosphoric acid and other raw materials• Tightening of chemical and environmental regulations• Supply chain disruptions resulting from natural disasters
and international conflicts.

to secure appropriate margins, for instance, by shifting costs

3 Remedies

to selling prices, reducing costs, and improving productivity.

• Developing products for EVs, such as ones with improved
sliding properties and insulation%

Construction
materials

also provide the latest know-how and technical support in

Future outlook

45

Transport/Machinery

Find solutions for environmental issues by developing, manu-

operating income.

Ratio to net sales

Non-ferrous metals• R&D system with state-of-the-art facilities and uniquechemicals business increased due to sales recovery in India,
Operating income

Aerospacelubrication, and aesthetic design in all industrial fields. We

In Japan, sales of metal surface treatment chemicals were

Net sales of chemicals businessElectronics• Developing new markets• Developing high-value-added products by strengthening
research and development• Developing environmentally friendly products that do notcontain hazardous substances• Securing appropriate margins by shifting on higher raw
material prices to selling prices and reducing costs

Points of focus
Product development for electric vehicles
Improving energy efficiency and functionality withdurability, sliding property, and improved
insulation.
Developing new markets
 lectricals/electronics, non-ferrous metals, lifeE
sciences, and more xpanding sales of environmentally friendlyE
products
 hromium-free, phosphorous-free, reducing CO2
Cemissions, reducing sludge, reducing load ofwaste liquid treatment, and more evelopment, manufacturing, and sales ofDdiverse functional coatings other than metal
surface treatment chemicals
Expanding business in overseas countries• Collecting information on country risks and developing and33

Nihon Parkerizing Co., Ltd. Integrated Report 2023

strengthening BCPs

Nihon Parkerizing Co., Ltd. Integrated Report 2023

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Growth strategies

Strategy by Business Segment

Toll processing
Toll processing businessSliding

Providing processing services for adding diverse functions
that contribute to reducing environmental impact

Descriptions of main businesses
Conversion coatings

Electroless nickel
plating

Salt bath nitriding

Solid lubrication

Gas carburizing,carbonitriding ther heat treatment
Oand surface treatment

Gas soft nitriding

Business overview

46,743 million¥

6,086 million

Heatdispersion

Hydrophobic

Bonding
Adhesion different Anti-glarematerials

High efficiency
Energy-saving
Resource conservation
Highly functional

Strengths and risks

yen, and operating income decreased 10.3% annually to• Various technologies such as conversion coatings, heat

6,086 million yen.
This segment provides surface treatment services such as
rust prevention processing, which includes lubrication, hightreatment (carburizing, nitriding), and electroless plating
respond in a timely way to customer demands and issues• Unique technologies and know-how cultivated over morethan 90 years of history since our founding• Timely suggestion and provision of surface modification
treatments that satisfy customers’ demands

and wear resistance by coating the surface of materials with• Supporting our customers’ overseas expansion with aa thin metal film.

broad global network

Overall sales in the toll processing business increased due
to relatively strong sales in some parts of Asia, such as Viet-

2 Risks• Structural changes in the automotive parts industry reflecting the shift to EVs

On the other hand, sales grew sluggishly in Japan, North• Intensifying price competition reflecting commoditization ofAmerica, China, and Thailand due to a slowdown in produc-

technologies

tion by auto parts manufacturers, our significant customers.

• In-house surface modification treatment by customers andBy rising raw material and utility costs, this trend resulted in a
decline in profitability and a decrease in operating income.
Ratio to net sales

overseas relocation of customers• Tightening of chemical and environmental regulations• Supply chain disruptions resulting from natural disasters,international conflicts.

Future outlook
Although global price hikes are putting pressure on earnings
in this business segment, we will promote a certain degree of39%

price pass-through and productivity improvement through3 Remedies• Developing new and differentiated technologies for EVs,
such as ones for improving heat resistance and wear resistance and ones for bonding different materials

automation, robotization, DX, and other initiatives. Although• Strengthening cooperation with mega-suppliers

we are forced to struggle in the US market, in overseas mar-

• Strengthening overseas business and exploring new local

kets generally we are producing results from customer development and improvement in profitability at unprofitablelocations.

customers• Developing new processing technologies that contribute to
the reduction of CO2 and hazardous substance emissions• Collecting information on country risks and developing andstrengthening BCPs

35

Nihon Parkerizing Co., Ltd. Integrated Report 2023

Growth strategies to achieve “Vision2030”

We aim to be recognized worldwide andthe most trusted partner for ourcustomers.

• A customer-focused service system that enables us tometals; and plating, which adds high corrosion resistancenam and India, as well as a weaker yen against the US dollar.

Operating income

Hardening

Lubrication

Insulation

1 Strengths

processing, which increases the strength and durability of¥Corrosion
resistanceWearresistance

In FY2022, sales increased 4.3% annually to 46,743 million

adhesion, and other functional properties; heat treatment

Net sales of toll processing business

Heat
resistanceStrengthen ties with mega-suppliers targeting critical components for electric vehicles (BEV, HEV, PHEV) as demand
will continue to increase in this area, and further strengthenbusiness ties in Japan and overseas to reactivate business inexisting fields and develop new fields globally to reinforce ourbusiness foundation.

Points of focus
Respond to requirements of next-generation
automobiles.
 ain orders for critical components for electricG
vehicles (BEV, HEV and PHEV)(Sliding property, insulation, wear resistance.)
 evelop applications for next-generation autoD
motive technologies(Anti-glare, heat dispersion, dissimilar material joint.)
 evelop new business other than the automoD
tive business(Construction machinery, construction, robots,aerospace) trengthen sales activities at key overseas
Sbases (Thailand, China, and North America) andgain non-Japanese customers
Expand services that reduce the environmental
load(Low-temperature treatments)
 eactivate existing fields through lateralR
deployment and gain in-house production atcustomers
Nihon Parkerizing Co., Ltd. Integrated Report 2023

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Growth strategies

Strategy by Business Segment

Engineering
Engineering businessWe provide full turnkey painting and surface modification solutions,regardless of equipment size and industrial field.

Business overview

Descriptions of main businesses
Pretreatment equipment

Ovens

This segment designs, manufactures and sells pretreatment, oating equipment andCrobotsIoT systems

coating, and powder coating equipment, mainly for the

Plate coils

transportation machinery industry.

an operating income of 151 million yen in the previous year).

In the previous fiscal year, the construction of large-scaleequipment projects in Japan and overseas progressed andcontributed to our business performance. In the fiscal year
under review, however, profits decreased significantly, forcing
us to post an operating loss due to the reduced effect of theabove projects and factors such as the postponement ofconstruction periods reflecting the lockdown in China andthe steep rise in steel prices.

Operating loss¥

8 million

Future outlook
Although various cost increases have put pressure on profits
under the global price hikes, we have sufficient backorders
and have begun to see positive signs amid the slow
recovery.

Ratio to net sales

In the global automotive market, in particular, new investment is expected to increase in China and India, making it
essential to strengthen relationships with Japanese auto-

14%

makers and local manufacturers. We will also continue todevelop emerging markets such as Vietnam, Cambodia, andMyanmar.

37

Nihon Parkerizing Co., Ltd. Integrated Report 2023

Powdercoatingequipment

Strengths and risks• Supporting customers with all sizes of facilities and from allindustrial fields• Extensive track record of deliveries in a wide range of industrial fields, from the automotive and steel industries to cutting-edge industries• A one-stop service from design to maintenance services for
all lines related to surface treatment and coating• Developing and proposing new surface treatments andcutting-edge coating processes that are critical to coating
quality• Supporting our customers’ global strategies with a proventrack record

Conveyor systems

16,790 million

Painting booths
Air conditioning
units

lion yen, with an operating loss of 8 million yen (compared toWastewater treatment
system¥Painting
robots1 Strengths

E-coat equipment

Net sales of Engineering businessE-coatIn FY2022, sales decreased 29.8% annually, to 16,790 milPowder coating
equipment

Paint booths, Air
conditioning units

Pretreatment

2 Risks• Significant decrease in demand for capital investment
reflecting an economic downturn.
• Additional costs associated with material price hikes andthe reworking of design and installation works.
• Loss of opportunities to receive orders resulting from delays
in engineering development• Occurrence of severe accidents and disasters involving
people and construction
3 Remedies•S tabilizing profits by expanding after-sales services such as
maintenance and inspections and sales of consumables•E nsuring thorough construction cost management fromdesign to construction management•S trengthening overseas business development• Developing facilities with a low environmental impact that
leads to a reduction in CO2 emissions .
• Developing and selling highly productive facilities incorporating IoT equipment management systems•Ensuring thorough safety and health management toachieve zero accidents and disasters

Conveyorsystems

Ovens

Prefabricatedbooths andfilters

IoT systems

Plate coils

Growth strategies to achieve “Vision2030”

As a comprehensive engineering
company, we contribute to solving issues
for various customers, from theautomotive industry to the generalindustry, through collaboration with our
chemicals business.
We will promote business expansion in overseas markets,
which continue to grow, and will work to create a foundation
for sustainable growth by increasing earnings strength anddifferentiating ourselves from our competitors by developing
IoT facility management systems and environmentally friendly
products, and through other measures.

Points of focus
Increase added value through joint selling ofequipment and chemicals(Zirconium conversion coating, CHEMICON) evelop and commercialize IoT equipment
D
management systems and environmentallyfriendly products(PARKER LEAPS, DRYCUBE) xpand sales of high-value-added products
E(Ionics powder coating equipment)Enhance equipment maintenance businessExpand business in growing markets overseas

Nihon Parkerizing Co., Ltd. Integrated Report 2023

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