Technology for protecting the Earth
We would like to express our gratitude to our shareholders and investors for their continued support.
During the consolidated fiscal year under review, our country’s economy showed signs of partial recovery such as gradual resumption of economic activities and progress in economic measures, due to widespread vaccinations against COVID-19 and other actions. However, the outlook remained uncertain as a result of factors including the rapid spread of infections caused by new variant strains, the emergence of imbalances in the supply and demand of raw materials and other resources, the ongoing depreciation of the yen, and a rise in geopolitical risks caused by Russia’s invasion of Ukraine.
In the shipbuilding and shipping industries, which are major customers of our company, the worldwide volume of completed new shipbuilding projects in 2021 was 60 million gross tons, an increase of 2.9% from the previous year, and the volume of orders for new shipbuilding projects was 85.07 million gross tons, an increase of 106.5% from the previous year. This was mainly due to a greater willingness to make investments seen in ship owners, who had shown restraint in placing orders during the previous fiscal year due to sudden price rises in the shipping market and expectations for high ship prices, caused by increases in the movement of cargo and disorder in the marine transportation network. In addition, even in the shipbuilding and shipping industries, responses to global trends toward decarbonization and a growing awareness of environmental issues are leading to measures for replacing vessels equipped with conventional diesel engines powered by heavy oil, with vessels equipped with dual-fuel engines that can also use liquefied natural gas (LNG), which has a low level of CO2 emissions, as fuel.
In this corporate environment, our group has made efforts to respond to customer needs and realize sustainable growth by implementing the four priority initiatives outlined in the Medium-Term Management Plan, which runs from April 1, 2020 to March 31, 2023.
- Expanding sales areas and increasing market share by launching new products
- Technological development with a view to next-generation energy
- Improving production efficiency at production sites
- Establishing a solid earnings base and implementing ESG management
During the consolidated fiscal year under review, in order to further reduce our environmental impacts, we developed a dual-fuel engine that can operate by switching between liquid and gas fuels, and completed its lineup of four types. As a result, we have received orders for approximately 100 units, mainly for mega-containerships and car carriers, which are proceeding with conversion to dual fuels.
In addition, in order to respond to the shift to zero emissions for ships, which will be the next step after dual-fuel engines, we are focusing on the advanced development of engines that can support new fuels such as ammonia and hydrogen, and are also actively engaging in industry-academia-government collaborations to establish technology for internal combustion engines as next-generation fuels. These include the adoption of a project jointly proposed with Mitsui E&S Machinery Co., Ltd. entitled “Technological Development of Hydrogen Fuel Propulsion Plants for Ocean-going Vessels” as part of the Ministry of Land, Infrastructure, Transport and Tourism's Technology Development Support Program for Promoting Integration of the Maritime Industry.
In addition, the Himeji Factory, which was newly established in 2018 with the aim of increasing the size of vessels for the purpose of improving the efficiency of marine transportation, is responding to the boom in construction of large containerships by enhancing its operational capacity. The Moriyama Factory and the Himeji Factory, which are responsible for the production of small and medium-sized engines, will work to improve production efficiency from here on as well.
Under our corporate philosophy of “Enriching society with our technological capabilities,” our group has made efforts to contribute to the realization of a sustainable society by providing reliable products and services. However, the unprecedented pandemic caused by COVID-19 has already brought us into an age where the outlook is highly uncertain and it is extremely difficult to predict what the future will hold. In this highly changeable and uncertain business environment, we have decided to develop a new long-term vision and five-year plan to operate our management cycle so that we can enhance our corporate value.
In order to remain a sustainable company in the future, we will strive to conduct business operations with ESG at the core of our management. We look forward to the continued understanding and support of our shareholders and investors.
总经理 堀田 佳伸
We shall strive unstintingly for the betterment
of society and symbiosis with our neighbours,
drawing on the bold spirit of creativity
and yearning for technological achievement
we nurture within ourselves.
To provide new products and services by
anticipating market needs and pursuing
a true form of Customer Satisfaction.
To develop new areas of business which
are gentle on the global environment and
viewed from a widening global perspective.
To build an energetic and positive-minded
corporate environment, on a strong but
flexible management structure which enable
us to swiftly respond to changes in the
business world and secure necessary profits.