The NSK Group has been implementing its Fifth Mid-Term Management plan, which covers the three-year period from the fiscal year ended March 2017 to the fiscal year ending March 2019. Positioning the Fifth MTP period as the first three years for embarking on a new chapter in the evolution toward the next 100 years, the Company has been advancing initiatives supported by two main policy pillars: operational excellence as well as innovate and challenge. With these two policies, NSK targets the three management tasks of “achieving sustainable growth,” “reconstructing its profit base” and“expanding into new growth fields.” Under the banner of Operational Excellence, we are striving to build robust frontline capabilities and strengthen our manufacturing, sales, technology, and administrative functions in order to further boost the competitiveness of our core business. At the same time we are also striving to Innovate and Challenge by developing new technologies and products, as well as smart factories. Although these efforts are gradually beginning to produce results, we will further accelerate initiatives in these areas.
Although many changes have been predicted to occur in the world around us, the speed and impact of these developments has been even greater than initially anticipated. NSK must respond to those changes more quickly than ever in order to achieve sustainable growth.
The Industrial Machinery Business is largely influenced by the broader economic environment. However we are recently seeing the emergence of a dynamic supply and demand structure that differs from our past experiences and assumptions, as well as changes in the economic cycle. Smart technology is being incorporated in automobiles, home appliances, industrial machinery, infrastructure, and other applications, while technological innovations are taking place in the fields of IoT, AI, and robotics. These trends are beginning to generate large-scale demand for new electronic devices and functional components. We will aim to achieve sustainable growth by looking at which fields will grow in line with this demand and identifying the areas where NSK can expand its sales through its differentiated technology. Meanwhile, in the Automotive Business, we aim to seize new opportunities in what is being dubbed a “once-in-a-century” technological evolution including electric vehicles (EVs), electrification, autonomous driving, and by-wire systems. It is essential that we develop a mid- to long-term strategic approach which allows us to link the dramatic evolution to growth in our business. There is a possibility that the number of bearings incorporated in a pure EV with no internal combustion engine may decline. However, there are some areas in which bearing specifications and applications will become even more sophisticated. I believe that NSK will be able to attain a dominant position in this field in terms of value and quality by utilizing the technological prowess we have developed over the years. Furthermore, outside the field of bearings we are working to develop new products that incorporate NSK's element technology. Specific examples include Parallel Link type Active Suspension*, Wheel Hub Motor Fit*, Traction Reducer* and Force Feedback Actuator* designed for use with steer-by-wire systems. Going forward, we aim to release products that incorporate NSK’s proprietary technology, such as the above, or composite products. We hope our investors will share our enthusiasm for the potential such products hold.
The NSK Mission Statement avows that NSK will contribute to a safer, smoother society and protect the global environment through its innovative technology integrating Motion & Control™, as well as work across national boundaries to improve relationships between people throughout the world. As challenges facing societies become increasingly complex, the responsibilities of and expectations placed on companies are becoming more diverse. Although the 17 sustainable development goals established by the United Nations are not directly linked to NSK’s business activities, several are deeply related to our operations and are areas in which we can contribute proactively.
The foundation of our efforts will remain our core products and services — namely their ability to reduce the burden on the environment. Bearings reduce friction, while EPS products help improve fuel efficiency. Reducing friction and improving control is NSK’s field of expertise. Accordingly, we will work to minimize environmental impact through our core business as well as to communicate these efforts.
In order for NSK to contribute to sustainable global growth together with our stakeholders, we must continue to be a company that is needed by society. NSK will strive to continue growing as a company while contributing to society by generating value that not only meets the needs of the times but constantly exceeds expectations.
President & CEO
*For further information on Parallel Link type Active Suspension, Wheel Hub Motor Fit, Traction Reducer and Force Feedback Actuator designed for use with steer-by-wire systems, please access the link below.
Feature：SETTING THE FUTURE IN MOTION—1. NSK Value Creation for Technological Innovation in Automobiles [PDF: 848KB]