News Releases

May, 2009

New engineering company established: NACHI TOOL ENGINEERING
Added strength for cutting tool regrinding and recoating business

1.  Outline of new company


Capital: JPY 20,000,000 (wholly owned subsidiary of NACHI FUJIKOSHI Corp.

Place of business: (Head Office) 1-1-1 Fujikoshi Honmachi,
Toyama, Japan 930-8511 (at Toyama Fujikoshi Plant)
(Operations) Toyama Technical Center
at Toyama Fujikoshi Plant
East Japan Service Center
2696-15 Hayakawa, Ayase-shi, Kanagawa

Established: May 14, 2009

Employees: Initially, about 30.

Line of business: Regrinding and recoating of cutting tools (round tools, precision tools)
Commissioned coating work, test production, test machining, etc.
2.  Market needs regarding cutting tools
(1) These days, greater priority is given to factors such as effective utilization of resources and cost reduction. When cutting tools become worn, however, it is not possible to guarantee precision. Consequently, greater demand has arisen for regrinding and recoating the edges of cutting tools so they can be reused. With this demand, the service market for round tools (drills, end mills, etc.) and precision tools (broaches, gear hobs, etc.) has been increasing in scale.
(2) To achieve highly precise and highly efficient cutting work and ensure uniform process conditions and tool changeover times, even after regrinding and recoating, reconditioned tools should provide the same quality and performance as new tools. Consequently, it has become necessary to apply comprehensive and expert competence in edge-grinding, coating, and other technologies, and to assure quality points such as precision and service life.
(3) In this situation, users have been asking reputable tool makers to regrind and recoat cutting tools, and this trend has been steeply rising.
3.  NACHI TOOL ENGINEERING set up to deal with cutting tools business
(1) Using the synergy generated by the varied expertise possessed by NACHI FUJIKOSHI Corp. in machine tool, materials and heat treatment, and machinery components technology, we have built a firm foundation to consolidate the cutting tools business. In particular, as well as possessing core technology for cutting tools, because we are the only company in the world to make all its own equipment for dealing with materials, coating, and edge-shaping, other companies cannot match our exclusive technology and accumulated know-how.
(2) Bringing these strengths into play, we have been working to expand our scope of operations. From our base in the business of manufacturing and selling precision tools and round tools, we have gone on to make proposals for machine tools together with process technology and, using the manufacturing expertise and facilities that we possess, to provide services such as regrinding and recoating.
(3) Intending to solidify the revenue potential of the cutting tool business, regrinding and recoating functions, which had been dealt with in-house, were recently expanded and spun off to newly established company NACHI TOOL ENGINEERING. As well as going forward with newly installed, dedicated facilities that increase processing capacity and reduce lead times, following this promotion into a discrete business unit, organizational strength and other advantages have put the new company in a better position to deal with the extension of service beyond our own-brand products to tools made by other companies.
(4) By aggressive promotion of regrinding and recoating we can provide more finely tuned information and service for high-quality products throughout the tool life cycle.
Furthermore, by examining used cutting tools, we can check the suitability of working conditions and evaluate product performance and characteristics. Application of this feedback is useful for proposing improved process methods and conditions and for product development.
4.  Business targets

Positioned with its core competency in the regrinding and recoating business, as well as vigorously pursuing service business opportunities in Japan and abroad, NACHI TOOL ENGINEERING will oversee the deployment of overseas bases in places such as China, Thailand, and India, and North, Central, and South America.

Aiming to grow the cutting tool business into a center of profitability, the Group-wide target for the regrinding and recoating business is set to raise the results in FY 2012 to triple the figure for FY 2008.

Consolidated annual income from regrinding and recoating business

2008 (actual)    Approx. JPY 1 billion/year
2012 (target)    JPY 3 billion