RESEARCH AND DEVELOPMENT

Leveraging its advanced technology capabilities in specialty steel, the Daido SteelGroup has declared its management philosophy of “pursuing the potential ofmaterials to support our future,” and conducts a proactive program of research anddevelopment (R&D) to expand new products and businesses and strengthen thefoundations for existing businesses.
We are pursuing R&D for new products, materials and technologies, primarily
through the Daido Corporate Research & Development Center. We employ a totalof 303 researchers throughout the Daido Steel Group.
R&D expenses for the Daido Steel Group during the fiscal year under review
amounted to ¥5,638 million. An explanation of our R&D efforts by segment, including
purpose, major achievements, and expenditures follows.

(1) Specialty SteelRESEARCH AND DEVELOPMENT

In this segment, R&D includes basic material development,

R&D EXPENSES
Years ended March 31(millions of yen)

8,000
6,000
4,000
2,00002016 2017 2018 2019(2) High Performance Materials andMagnetic Materials

such as automotive structural materials and tool steel, andIn this segment, the Daido Steel Group conducts R&D focusing

process innovations ranging from steelmaking, refining andon developing materials that resist corrosion and heat, high-solidification to quality assurance.

grade strip steel, welding materials, magnetic materials andR&D costs for the fiscal year under review in this segment
totaled ¥1,593 million. The following is one of our major

electronic devices.
R&D costs for the fiscal year under review in this segment

achievements in this area.

totaled ¥2,660 million. The following are some of our major• DHA-HS1 steel for hot stamping diesachievements in this area.

Hot stamping is a process that enables parts with ultra-high• DNM140-HCR, a high-strength stainless steel withtensile strength exceeding 1 GPa to be manufactured by forming a steel sheet while it is extremely hot and then rapidly cooling

outstanding corrosion resistance for non-magnetic
drill collars

it in the die. As the use of ultra-high tensile materials is increas-

In recent years, the environment for materials used in oil drillinging to make vehicles lighter, there has been a need for dies withhas become more severe due to developments such as a shift

wear resistance suitable for the cooling capacity and high tem-from onshore to offshore drilling or drilling at increasing depths.

perature of the hot stamping process. Optimizing the composi-This has resulted in a need for non-magnetic drill collars withtion of the steel enhances thermal conductivity and softening

higher corrosion resistance. DNM140-HCR stainless steel hasresistance and the cooling capacity and wear resistance of thereceived praise from North American oil service companies fordie can be expected to improve. We aim to expand the adop-

providing outstanding corrosion resistance while maintaining ation of DHA-HS1 by pressed parts manufacturers.

high strength. We have begun selling it as a high-strength andhighly corrosion-resistant material for drill collars used in severe
environments.

10• NCT, a sputtering target material for interconnection(3) Parts for Automobile and Industrial Equipmentwith protective layers for in-vehicle touch panels

R&D in this segment concentrates on development of turbo-

We developed NCT, an alloy target material for wire protection

chargers, engine valves and other automotive parts, as well as

film that offers outstanding environmental resistance, which isparts for various types of industrial machinery.
R&D costs for the fiscal year under review in this segmentwith an eye to touch panel displays, which are being increasingly

totaled ¥1,253 million. The following is one of our major

used in automobile center consoles and navigation systems.

achievements in this area.

Since NCT has superior corrosion resistance enabling wet• DSA760 certified for use in marine engine exhaust­etching and is non-magnetic, it offers high levels of productivity

valves by world’s largest manufacturer

and suitability for our customers’ deposition processes.

In July 2018, DSA760 obtained certification for use as a material• Neodymium magnet, free of heavy rare earth

for marine engine exhaust valves from the world’s largest manu-elements, also adopted for use in high-output,

facturer of two-stroke diesel engines for marine use, which has

high-torque motors for mid-sized hybrid vehicles

a market share of just over 70%. This is the second certification

This plate magnet that Daido Electronics Co., Ltd., a memberfor use, following that received in April 2016 from the biggestof the Daido Steel Group, manufactures using its proprietary hot

domestic marine engine manufacturer.

deformation method has been adopted for use in a Japanese
automaker’s dual motor hybrid system for new hybrid vehicle(4) Engineeringmodels. This type of magnet has been used in compact hybrid

Engineering R&D focuses on the development of environmental

vehicles since 2016. As a result of manufacturing processconservation and recycling equipment, and a variety of energy­improvements, it has also been adopted for use in motors forsaving industrial furnaces.

mid-sized hybrid vehicles that require even higher levels ofoutput and torque.

R&D costs for the fiscal year under review in this segment
totaled ¥130 million.

RESEARCH AND DEVELOPMENT

required at high levels for in-vehicle applications. We designed it11