[Company analysis] Okuma Holdings, Inc. (オークマ)

「Okuma Holdings, Inc. (オークマ)」is headquartered in Aichi Prefecture, and developed numerically controlled machine tools for the first time in machine tool industry. Besides, this company is one of the Japan's four largest machine tool manufacturing companies(「Okuma Holdings, Inc. (オークマ)」,「Yamazaki Mazak Corporation(ヤマザキマザック)」,「DMG Mori Seiki Co.(DMG森精機)」,「JTEKT Corporation(ジェイテクト)」). In the field of 5-axis processing machines, they are the largest sales in Japan. The number of consolidated employees is approximately 3,594.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Okuma Holdings, Inc.
Company name (Japanese)	オークマ
Date of establishment	January 1898
Headquarters location	〒480-0193 愛知県丹羽郡大口町下小口五丁目25番地の1
Capital	18,000
Consolidated sales	211,732
Consolidated operating profit	27,575
Consolidated total assets	237,720
Consolidated capital	168,580
Capital adequacy ratio	70.9%
Consolidated number of employees	3,594

 

 

 

2. Summary and Features

 
Basically, machine tool means a device that cuts and polishes a material such as metal and make it into the required shape. It is also called "Mother Machine" in the sense of a machine that produces machines. Nowadays, Japan has 3rd market share in the world, because of China and Germany, but from 1982 to 2008, Japan continued to maintain the world's top share in machine tool production. And「Okuma」is one of the representative Japanese machine tool manufacturer.

「Okuma」was founded in 1898 by a former police officer, Okuma Eiichi(大隈栄一), who was greatly influenced by the noodle-making machine made by his father-in-law. Right after the time of its founding, they were manufacturing and selling noodle making machines. But six years later, in 1904, they started to produce machine tools, which is now their mainstream business. The reason why they suddenly started making machine tools was necessity for noodle making machine. At that time, they used a lathe to cut the noodles, but the precision was not so good.  In order to improve it, Okuma Eiichi decided to make a machine tool with precision. 

From 1916, when the company name was changed to「Okuma Iron Works Ltd.」, they began full-scale production of machine tools. In 1963, they developed the first numerical control type processing machine in the industry and their market share was dramatically increased. Even now, this company is still producing CNC machine tools such as CNC lathes and machining centers, and they have the very high maket share in the world. And as for 5-axis machines, they are the No. 1 in Japan. In addition, they can also handle products for FA and serve motors.

Especially,「Okuma」has great influence in Thailand market. In 2000, Japanese automobile companies started to build factories in Thailand. In order to support this Japanese automobile manufacturer, electrical and electronic parts, molds are became necessary in local level. So the demands for high-precision "Okuma" lathes, machining centers, and multi-tasking machines in Thailand was increased and naturally they got the largest market share in Thailand.

Different from other companies,「Okuma」has the philosophy of "Single Source for Machine & Control" in which all part units shuould be developed in-house level. Actually, this company develops not only the machine itself, but also the control device (NC device), serve motor, sensor, and software in-house. For this reason, they also have very high level of mechanical technology and precision control technology.

 

 

 

3. Major Business

 

■ Processing machine business
CNC machine tools, CNC grinders, machining centers, multi-task machines, numerical control devices, serve motors, sensors, software (control / processing)

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		162,679	182,130	211,732
Consolidated operating profit		15,560	22,493	27,575
Consolidated total assets		211,117	234,558	237,720
Consolidated net assets		145,153	160,902	168,580
Breakdown of sales	Japan	89,930	94,252	110,776
	America	41,546	47,889	56,035
	Europe	21,989	26,918	29,893
	Asia and Pacific	9,213	13,071	15,027