Date: 2013-08-01

How to survive in the environment of high material cost

The Kitanippon Press

How to survive in the environment of high material cost

"Prices of materials such as crude oil, iron, and casting have been rising. It is a factor in causing the pressure on profits in the amount of annually 2 to 3 billion yen. Although we have launched the price increase, we have to absorb over 50% by cost reduction. We are going to make steady efforts including rebuilding of factories to modernize distribution and transport, and improvement of layouts to shorten travel distance of workers. As materials are coming short, it has a profound effect that we have a material division to handle tool steel and other special steels. There is large room to absorb cost in company, and we are going to utilize the strength as a machine manufacturer who has its own material division."

(Mr. Kensuke Imura, the president of Nachi-Fujikoshi Corp.)

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