Main customers both in Japan and overseas are Japanese automobile manufacturers. Focused on overseas facilities, we aim to expand transactions with US and European manufacturers. Currently, main customers are Japanese automobile makers and parts makers. In order of size of transactions, they are the Nissan Group, Honda, Fuji Heavy Industries, Suzuki, and the Toyota Group.
There are around 700 companies in Japan specializing in die casting, but the majority are relatively small-scale businesses with fewer than 100 employees, and only a few are listed companies. There are few die cast makers worldwide who have expanded overseas and are capable of supplying products internationally. Ahresty is a top-class die cast specialist with scale and technical strength also on the international level.
In the sense of die cast specialists, there are few corporations that compete with us on scale and technology, but from the perspective of die cast suppliers, our competitors are not only die cast specialist makers, but also automobile makers with self-manufacturing units, group companies, and conglomerates with self-manufacturing units.
With regard to overall domestic demand for die casting, the quantity of supply from self-manufacturing units at manufacturers is about 30% on a weight basis. The supply quantity for our company is forecast at about 10%.
Overseas, on the other hand, it is not necessarily the case that self-manufacturing conglomerate makers have expanded to the surrounding area as the environment differs from Japan where the conglomerates prefer to place orders within it. However, there is potential for local makers to turn competitive in the future.
Engine mount bracket
Our strong point is that we are able to streamline the process from mold design to mold manufacturing, die casting and processing. In addition, our Group incorporated a machining specialist maker in 2008 to reinforce processing technologies.
Aluminum die cast products are indispensable for building lightweight automobiles, but internal quality control is difficult due to their special characteristics. Therefore, it is important to possess technical strength and know-how of mold design to produce constant product quality. The larger the product, the more technical strength is important.
Few die cast makers are able to supply products internationally. We also have production facilities in important areas including the US, Mexico, China and India, which is a point of strong appeal these days when worldwide simultaneous startups are commonplace.
HEV are growing their market share rapidly, but as they are equipped with an engine, they are not a threat. EV, on the other hand, which do not have an internal combustion engine and feature very few die-cast products, do represent a threat to our company. There are various prognoses for the penetration of EV in ten years time, but the majority of forecasts are for less than a 10% share of the global market. It is also thought that popularity will remain low in the emerging economies where the infrastructure environment is not ready. Growth in the automobile market will focus on the emerging economies in the future, and it is expected that global demand for die casting will continue to grow worldwide for the next 10 to 15 years. However, assuming that the popularity of EV will increase after that, we are turning our attention to developing die casts for other parts than the internal combustion engine, such as parts for the body and chassis.