On behalf of NTN, I would like to send you our warmest greetings on this New Year’s Day.
Over the past year, the global economy continued to recover, but the international situation remained volatile, with tensions in Ukraine and the Middle East continuing to rise. At the same time, the new regimes in Japan, the US and South Korea have also attracted global attention in the areas of economic policy, diplomacy and security, adding further uncertainty to the business environment. In Japan, the earthquake that hit the Noto Peninsula six years from now (2024) has further raised awareness of the importance of disaster preparedness and business continuity planning (BCP). In addition, labour shortages, rising prices, social security (especially childcare support) and environmental conservation remain major issues that need to be addressed. In the face of the social trend toward sustainable development, NTN, as a member of the bearing manufacturing industry, will continue to ensure the stable operation of our customers’ machinery and contribute to the development of society. We will endeavour to develop low-friction and high energy-saving bearing technologies to create environmentally friendly, long-life products. At the same time, we will help our customers achieve optimisation of machinery maintenance and promote the development of sustainable equipment through intelligent service solutions such as condition monitoring using artificial intelligence (AI) and sensors. Since last year, NTN has launched a new medium-term management plan, ‘DRIVE NTN100’ Final, which aims to achieve the ambitious goal of ‘Regeneration of NTN’ over a three-year period. During this period, we will shift our management focus from business to products, accelerate structural reforms, and improve profitability. To strengthen our business activities and management foundation, we will focus on the following areas.
Expansion of aftermarket business
Last April, we made organisational changes and restructured our bearing business. By integrating OEM and aftermarket, we will optimise the allocation of production capacity and continue to expand our best-selling inventory and product lines to enhance our commodity supply capability. At the same time, as an expert in the bearing field, we will rely on our rich technical and practical experience to build a comprehensive support system from commodity supply to condition monitoring, diagnosis and analysis, maintenance proposals, technical training and spare parts, helping customers achieve efficient management of the entire life cycle of bearings. We will pay close attention to customer needs, provide diversified bearing solutions, and enhance product reliability and brand influence.
Strengthen the competitiveness of OEM business
We will combine cash flow management and market demand to enhance business competitiveness. In response to the trend of electrification of automobiles, we have developed high-performance bearing products with high-speed, galvanic corrosion- and creep-resistant functions, as well as high-efficiency, low-vibration drive shafts with excellent performance. In addition, we have innovated grease-lubricated bearings for work machine spindles by introducing ‘high-speed and long-life grease,’ which makes high-speed rotation possible and is being promoted in the market. The HA-C technology announced last year is a high-level load capacity improvement technology that can be applied not only to automotive drives (e.g., e-Axle), but also contributes to miniaturisation, lightweighting, and energy conservation in various industrial machinery. In the future, we will continue to expand the fields of application for this technology. At the same time, we will promote value chain reforms to reduce costs and improve productivity, starting with both engineering design chain management (ECM) and supply chain management (SCM).
Promoting ESG Management Development
To achieve sustainable growth, we will continue to promote ESG management. In terms of our human resources strategy, we will focus on recruiting talent and fostering an organisational culture based on the principle of ‘fostering diverse human resources’. Last year, we introduced a management personnel system based on work standards to enhance the professional competencies required by our management strategy, and we are expanding our employee career development support measures to attract and cultivate diverse human resources. In addition, we will increase employee participation and create an organisational culture of challenge and excellence through workplace improvement activities and ongoing town hall meetings held by management. As the second year of the Medium-Term Management Plan, we will accelerate changes in our business structure and management foundation to move toward our ultimate goal of a three-year period. At the same time, we will work to foster an organisational culture in which all employees work together to enhance corporate value. In closing, I sincerely wish you good health and all the best. With this as my New Year’s message, I would like to extend my best wishes to you once again.
Eiichi Ugai, President and CEO, Representative Executive Officer of NTN Corporation
HAPPY NEW YEAR