GK had the pleasure of chatting with Mr. Yoshiaki Mori, President of Shimomura Tokushu Seiko Co., Ltd., which is part of the Daido Steel Group. We discussed Japan’s reputation for quality, the company’s role in specialized steel manufacturing, and future opportunities in automation and medical components. . Read an excerpt of the interview below.
What is it that gives Japan a competitive advantage against other regional competitors?
Japan’s strength lies in stable quality and client trust, which is key to sustainable management. While often outpaced by APAC economies of scale, more companies are returning to Japan for quality. However, pursuing quality increases costs, so considering ways to improve our cost competitiveness is paramount.
As companies seek higher levels of automation and efficiency, how have you been adapting your processes to fulfill this need?
Our niche products require specialized, not multi-purpose, equipment. Some devices are still in development, but digitalization is helping us maintain top quality. Eventually, we aim to apply this to logistics. Group-wide, Japan handles high-spec client needs, while other locations focus on standard products, balancing quality and efficiency globally.
What drives your company’s success and advantage?
Starting with drill rods, we’ve expanded to stainless/free-cutting steels across diverse sectors like HDDs and cassette components. This evolution, based on client demand, led to our expertise, stable production, and consistent management.
Which sector is seeing the most demand?
Our top four are HDDs, automotive, stationery, and industrial tools. Demand is steady across all, though automotive has grown slightly since moving HDD production to Thailand.
Are there any plans to diversify further and which industries do you identify as having the highest potential?
Yes, I think IT-driven automation components, labor-saving components, or components for the medical industry have a lot of potential for us moving forward. We’re already supplying the medical field and will build on our quality expertise, as such sectors demand the highest assurance levels.
