Our Business

Industrial Machinery Business

Overview of segments

The Industrial Machinery segment handles the sales and maintenance of production and logistics equipment for a wide range of industrial domains, such as textiles, films, food, and beverages. Reducing the environmental impact has become an important management issue for all companies, and in the industrial machinery domain, while assuming an energy-saving shift, we face various issues and topics depending on the industry, such as promoting resource conservation and reducing disposable plastics. In such a business environment, this segment offers the best solutions tailored to customer needs from the machinery and equipment of domestic and foreign partner manufacturers, with a sales force well-versed in each industry.

Main products and services

  • Plant process automation and labor-saving equipment
  • Automated multi-story warehouses in plants
  • Remote monitoring equipment utilizing AI, robots, etc.
  • Freezer and air conditioning equipment for next-generation refrigerant (CO2, ammonia)
  • Development devices for food and pharmaceutical lab plants
  • Recycling fiber and other circular economy-related products

Recognizing the external environment

Strengths

  • Information capabilities that utilize a network of over 100 business locations in Japan and overseas, and the speed of business development
  • Proposal capabilities and on-site response capabilities to solve customer issues comprehensively, from general to specialized equipment, based on business transactions with about 1,000 manufacturers (in this segment)

Risks

  • Loss of business opportunities if responses to stricter environmental regulations are delayed
  • Decline in domestic investment sentiment within the business domain due to changes in economic conditions, etc.

Opportunities

  • Increased sales opportunities for environmentally-friendly products to business partners that require SDGs compliance
  • Proposals for optimization from parts to the entire line through DX enhancement

Segment Highlights

Bar graph of Transaction value, Net sales, and Segment profit

Focused business topics and main actions

The Industrial Machinery segment’s efforts significantly relate to the priority business domains of “decarbonization,” “energy saving and automation,” “circular economy,” and “DX,” listed in the Long-Term Management Vision. While deepening the development of commercial products and promotion of businesses specialized in the trends and needs of each industry, we broadly propose automation equipment, which we excel at, without limiting to specific industries or areas, thereby contributing to green innovation across the entire industry. In addition, as a strategy for business domain and market expansion, we focus on creating new businesses in Southeast Asia and dynamically promote business investments, including M&As.

Segment TOPIC

Paying attention to changes in the trading environment. Leveraging the coordinating capabilities unique to trading companies and expanding business in Southeast Asia through co-creation with customers.

Overseas locations are expected to independently formulate and implement strategies suited to their local business environment, while the head office provides not only human and financial resources but also effective monitoring and support to ensure that each project promoted by the overseas locations can be flexibly executed, with the basic policy of expanding business, especially in fast-growing Southeast Asia.

Initiatives of Seika Sangyo Thailand (SST)

Due to soaring labor costs and other factors, the need for automation is increasing in Thailand, where industrial reform is underway. In addition to the established machinery and equipment import/export business for Japanese companies, SST has leveraged the networks unique to trading companies to form partnerships with a large number of competent local system integrators specializing in automation equipment. SST selects system integrators that match the customer’s issues and requests in order to provide integrated services from design and manufacturing to after-sales support, thereby offering inimitable one-of-a-kind solutions completely contained within Thailand.

Initiatives of Seika Sangyo Vietnam (SSV)

Vietnam is rich in natural resources and has a large working population with low wages. Against this backdrop, many companies, including non-Japanese companies, are expected to expand into Vietnam as a “second China.” When building a factory locally, some Japanese customers place a package order with a Japanese engineering company they can trust, but there is a demand for reducing total construction costs by using also an inexpensive local manufacturers. However, customers are sometimes forced to forego hiring local manufacturers because of concerns about managing local manufacturers and handling after-sales maintenance of equipment with limited staff. SSV will contribute to the success of customers’ businesses by co-creating with customers and providing services that meet their needs in partnership with both local companies and locally based Japanese general contractors.