News Releases

May , 2005

Expansion of hydraulic equipment business for compact excavators

NACHI-FUJIKOSHI CORP. will start improvement of productivity and increase of production capacity in a plant for hydraulic pumps and motors in the Higashi Toyama Plant. It is to meet active demand for hydraulic equipment for compact excavators-piston pumps, wheel motors, and swing motors-, and to expand business.

1.The outline of hydraulic equipment business
(1) Trends and needs of market
  • In 1958, we started manufacture of hydraulic equipment as a source of power for machine tools in the company. Then, we sold it to other companies, and we made a hydraulic equipment division.
  • Then, we entered into a hydraulic equipment field for construction machines, utilizing the features of energy saving, compact, high precision and high power that we had nurtured for machine tools. We specialized in compact excavators less than 6 tons. We have global market share of over 40% in the field of wheel motors and piston pumps for compact excavators.
(2) A trend of demand
  • After 2003, demand for our hydraulic equipment has been rapidly recovering, supported by favorable sales in the industrial machine field centering on construction machines and machine tools.
  • Especially for the hydraulic equipment for compact excavators, active orders have continued because Japanese market and European market have been steady, and U.S. market and Asian market have been expanding.
  • Moreover, expansion of urban-type construction mainly for Beijing Olympics is expected in China. The market is expected to expand in future.
2.Features of our hydraulic equipment for compact excavators
  • Demand for the wheel motors, which we introduced into market in 2003, with automatic shift function that do not need speed change operation is expanding.
  • We made a series of compact type swing motors that enabled low floors of compact excavators. We added the function to reduce shocks at start and stop, and workability was substantially improved.
  • Moreover, we developed a double flow piston pump ahead of the industry. Switch from conventional gear pumps is advancing due to the increasing demand for energy saving in the world.
3.Drastic enhancement of production capacity and productivity
  • To meet active demand for hydraulic pumps and motors for small-size construction machines, we will actively invest in plant and equipment. We will rebuild and extend factories, drastically review and change line layouts (total optimization, automation, and introduction of a cell system), reinforce machining equipment and promote robotization, to increase productivity and production capacity.
< The outline of investment in plant and equipment>
Investment amount 1.5 billion yen, to be completed in November, 2005
  • Expansion of the factory from 14,000m² to 15,400m² (+1,400m²)
  • We will introduce about 20 units of new machines including machining centers, NC lathes, broaching machines, and grinding machines. We will install other incidental equipment such as automatic measuring devices and inspection equipment, washers, coolants and automatic guided vehicles.
  • We will introduce and update in-house robots. Increase from current 20 units to 50 units, and sequential updating to intelligent robots.
Effects of investment in plant and equipment
  • Increase of 30% for production capacity and productivity.
< Point of investment>
  • By the expansion of a factory and drastic review of layouts in the process of machining, assembly and inspection, we will adjust the flow of parts, shorten lead time and reduce stock.
  • Like a hydraulic valve factory completed in April of last year, we will expand a self-contained-type machining cell system, by combining in-house robots and machining centers. Moreover, we will utilize robots with visual sensors for collateral works that have been done by manpower, and promote around-the-clock operation and automation of production lines.
  • For every line, we will create a one-by-one line to smoothly connect the processes of assembly, inspection and painting, in order to promote efficiency of works.