[Company analysis] MinebeaMitsumi, Inc (ミネベアミツミ)

「MinebeaMitsumi, Inc (ミネベアミツミ)」is a major electric parts manufacturing company whose main products are bearing motors and it is headquartered in Nagano Prefecture. They have the world's top share in the small ball bearing market. Every year, about 60% of the annual shipment is produced in Thailand. The number of consolidated employees is approximately 78,957.

 

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	MinebeaMitsumi, Inc
Company name (Japanese)	ミネベアミツミ
Date of establishment	Monday, July 16, 1951
Headquarters location	〒389-0293 長野県北佐久郡御代田町大字御代田4106-73
Capital	68,258
Consolidated sales	884,723
Consolidated operating profit	72,033
Consolidated total assets	742,127
Consolidated capital	407,260
Capital adequacy ratio	54.9%
Consolidated number of employees	78,957

 

 

 

2. Summary and Features

 
「Minebea」was founded in 1951, and it was the first Japanese company who starts professionally produce small ball bearings. From then, they expanded their business area steadily. Now, they have not only machined parts such as bearings, which is their core business, but they also have electronic device parts business such as small motors, liquid lighting devices, sensors, analog semiconductors, so it is natural to call them a precision electronic parts manufacturer. On January 27, 2017, they made「Mitsumi Electric Co., Ltd.」as their wholly owned subsidiary and changed the company name to currnet「MinebeaMitsumi」. 

「Mitsumi Electric」was a company that has been developing and manufacturing electronic devices. Until the 1990s, like「Sony Corporation(ソニー)」and「Panasonic Corporation(パナソニック)」, this company manufactured external storage devices for PC / AT . In addition, they were also engaged in OEM production of AC adapters for Japanese mobile phone manufacturers. But with the begining of smartphones period, the demand was fallen sharply and the business itself became shrunk. After 2000s, sales in the home appliances business also have fallen sharply, so that is why they were bought by「Minebea」.

 

At present,「MinebeaMitsumi」not only has its core business of small ball bearings(about 60% world share), but also aircraft bearings(about 50% world share) and HDD dedicated bearing parts(about 80% world share). In addition, the Lithium-ion battery protection IC for smartphones(about 65% world share), and many other products with the world's top market share. And even they supply to the handguns and machine rifles for police and the Self-Defense Forces, since the merger with「Shin Chuo Kogyo Co., Ltd.(新中央工業)」in 1975. But in particular, they have the world's highest precision technology for small bearings. on August 28, 2015, they even received Guinness certification as the world's smallest mass-produced ball bearing. This is a steel ball bearing with an outer diameter of 1.5 mm, and it is installed in Japan's highest level mechanical watch. 

Overseas sales account for about 85% of the total, and overseas production rate is more than 95%. Mainly in Asia such as Thailand, Philippines and China, they have production sites over 17 countries and 64 locations in the world. In particular, they have 7 factories in Thailand, which are responsible for about 50% of the total production of 「MinebeaMitsumi」. In China, they have 7 factories. And research laboratories in Singapore, Malaysia, South Korea, Cambodia, India, etc. Regarding the aerospace market, they have 3 factories in the United States and about 10 factories and research laboratories in Europe.

One of the features of「MinebeaMitsumi」is, they produce not only their own products but also they fabricate  equipment for production and molds in-house. In other words, they have a "vertical integration system" on manufacturing for ultra-precision parts, maintenance jigs, tools. By this mass production technology,  「MinebeaMitsumi」was abled to achieve stronger competitiveness than other companies.

 

 

 

3. Major Business

 

■ Bearing
It has been a core business since its founding. They specialize in small bearings with an outer diameter of 30 mm or less, but they also manufacture relatively large bearings. 「MinebeaMitsumi」has the world's top share (about 60% or more) in small bearings, and based on their own ultra-precision processing technology.

■ Rotating equipment
It has become one of their main businesses since they started the motor business in the 1970s. They handle various types of motors, from small motors for HDDs, mobile phones and digital cameras to blower motors. In particular, they have the top share in Japan in the motors of railway branching circuits and circuit breakers.

■ Pivot assembly
It is one of the HDD components with built-in bearings, and has a global market share of 65%.

■ Resolver / vehicle equipment
They develop and manufacture applied equipment such as resolvers and electronic clutches by making use of our know-how in manufacturing bearings and rotating equipment.

■ Speaker
The speaker division of "MinebeaMitsumi" is the predecessor of「Hokutone(北斗音響)」and supplies various speakers on an OEM basis.

■ Measuring equipment
They handle small devices such as strain gauges and fork sensors, as well as load cells, pressure gauges, and talk meters.

■ Electric device
They manufacture backlights for liquid crystal panels and inverters, which are used in liquid TVs. In particular, they are supplying backlight modules for "iPhone".

■ Keyboard
In the past, it used to produce in-house, but now major OEM production such as「DELL」and「logicool」is the business.

■ Defense related equipment
This business has been incorporated into「MinebeaMitsumi」since the merger with「Shin-Chuo Kogyo(新中央工業)」. Manufactures military products such as M60, M360J SAKURA, 9mm automatic pistols and 9mm machine pistols.

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		638,926	879,139	884,723
Consolidated operating profit		49,015	79,162	72,033
Consolidated total assets		643,312	707,844	742,127
Consolidated net assets		326,218	373,253	407,260
Breakdown of sales	Machine processed products	156,310	176,391	188,324
	Electronics products	441,615	451,460	387,293
	Mitsui business	40,342	250,592	308,423
	Others	658	695	683