YKK AP

Industrial Products Business

Supporting industrial sector with aluminum profiles

We provide high-quality extruded aluminum based on our knowledge of materials, profile designs, extrusion molding and surface treatment, processing, etc., and our advanced technology capabilities we have fostered in the manufacturing of aluminum building materials

Line of business

 Components of machinery and equipments

 Architectural components

 Auto parts

Sustainable products

Business strengths

  • Integrated production from casting, extrusion, and to surface treatment at 4 manufacturing locations in Japan
  • Own large-scale extruders including 14-inch (6,500 ton) and 10-inch (4,000 ton)
  • Stable quality and delivery

Challenges

  • Differentiate to compete in a sluggish and highly competitive market
  • Added-value proposals via win-win relationships with business partners in a business environment of soaring personnel and materials costs
  • Engage in the transportation sector which is another mass market as the construction sector

Focus themes

  • Expand sales by making the fullest use of YKK AP's facilities and alloys acquired in architectural products manufacturing
  • Proposals to meet market needs for processing and surface treatments, etc.
  • Expand sales in non-architectural products sectors, with a focus on passenger vehicles

FY 2020 Summary

Market conditions were harsh due to the COVID-19 pandemic. In the industrial products business, we had some high-performing products due to overseas demand related to ventilation, and due to factors such as economic recovery in China, products for foreign markets, and recovery in demand for domestic production due to the global shipping container shortage. However, recovery was slow, particularly for domestic demand, and the market declined year-on-year overall. Sales fell to 85% of the sales recorded the previous year due to a lower volume of aluminum profiles shipped and declining market prices for unprocessed aluminum, in addition to sales prices per unit falling year-on-year. At the same time, we were able to initiate new efforts toward increasing sales, which have built a stronger base for business going forward.

Mid-term priority measures

Given the market environment for the industrial products business, we cannot expect a large increase in domestic demand and we will face increasing competition from domestic and international manufacturers. With lifestyles and work styles changing as a result of the COVID-19 pandemic, we will work even more closely with our business partners and the manufacturing, technical, and sales teams will work together as one to grow the business in the 6th Mid-term Management Plan. By leveraging the technology and knowledge acquired from the manufacturing process for aluminum architectural products, we will make investments in accordance with market needs to build on the equipment and alloys we currently have in order to respond to various needs and expand into new business areas. In the architectural products sector, we will expand sales of value-added products such as laminate profiles and processed items that are certified as non-combustible. In non-architectural sectors, we will work to expand sales in the automotive sector. As we work to continue satisfying our business partners with aluminum profiles, we will contribute to solving social issues through our business.

Corporate officer's commitment

The rise in popularity of highly recyclable aluminum profiles not only contributes to the creation of a recycling-based society, but also helps to reduce the weight of all types of products. Reducing the weight of materials will improve workability and reduce workload at worksites where the aging of workers is becoming more pronounced, and also leads to energy savings in the transport sectors for vehicles such as cars and trains. These activities are making significant contributions toward achieving the aims of the SDGs. Going forward, we will provide healthy and comfortable lifestyles to the customers who use products containing our aluminum profile materials, and thus play a role in solving social problems by delivering "safe and secure" materials and components that are optimal for the manufacturing of our business partners.

Vice President
Industrial Products

Atsuhito Baba