As for the Machinery Segment, its domestic demand has subsided, therefore we will work to expand its overseas business. The construction and mining machinery (rock drills) business in particular is expected to see a stronger overseas demand. In Japan, construction of infrastructures such as roads and railways has been completed but there are still many countries in the world which need greater infrastructure development, and in such countries, demands for our specialties, such as hydraulic breakers and hydraulic crawler drills are still high. In addition, due to high global demand for mineral resources, mine development is booming in countries with abundant natural resources, and it is expected that demands for our large machinery products, such as large-diameter crawler drills and down-the-hole drills used at large open pit mining will significantly increase.
Regarding the situation described above, in the fields of infrastructure and resource development, we will further expand the markets that we have already entered, namely the stable European and U.S. market and the rapidly growing markets in the Middle and Near East and China, etc. as well as developing new markets in India, Russia, and more. As an immediate goal, we aim to expand the global share of hydraulic breakers and hydraulic crawler drills from the current 30% to 40%.

In regards to the UNIC machinery business, as its domestic market has already been saturated, we will place importance on the expansion of overseas business and enhance the sales by focusing on the five major districts in the world, namely North America, Europe, Russia and CIS countries, Asia and Oceania, and the Middle and Near East. We will raise recognition and expand market share of lightweight UNIC cranes that offer superior operability in overseas countries, where swing-boom cranes are the mainstream.

In the industrial machinery business, we will develop overseas markets starting in Asia, focusing on slurry pumps, grinding mills and briquetting machines by utilizing the Group’s overseas development capabilities.

In the electronic materials business of the Electronic Materials and Chemicals Segment, we have been working on commercializing gallium nitride substrates.

Gallium nitride substrates are the next-generation semiconductor material expected to be used in blue-violet laser diodes, in blu-ray discs, high-intensity white LEDs (light-emitting diodes) expected to be the next-generation lighting and power devices for electric cars, and their demand is predicted to rapidly increase in the near future. We will make efforts to launch the gallium nitride business at an early stage and take initiatives in this field.

Furthermore, we will continue to develop and commercialize LuAG (lutetium aluminum garnet) crystals expected to be applied to breast cancer screening equipment and thermoelectric materials to convert wasted heat into electricity and other products.

The Furukawa Company Group has over 130 years of monozukuri* tradition. We have inherited this tradition and are working on further technological and product development using the keyword, “Full-Fledged Monozukuri and Full-Scale Structural Development,” in order to beat the competition with an overwhelming presence. Every employee of the Group shares in the same understanding – Our products must sell because of their superior quality, not due to fads or environmental changes. Based on this recognition we have a policy of developing core technologies by the Group companies. Although M&A is one option for expediting technological development, we believe that products must be self-developed as a rule.

In addition, we are proactively working to implement structural development to manage monozukuri. We will utilize the synergy effect generated among the Group companies and improve production efficiency by establishing an optimal, Group-wide production structure, producing and procuring components and related products within the Group, and effectively utilizing overseas subsidiaries and affiliate companies within the Group.

*Monozukuri
Monozukuri is a Japanese word consisting of “mono” which means “products,” and “zukuri” which means “process of making or creation.” However, the word means more than simply making something; it has overtones of excellence, skill, spirit, zest, and pride in the ability to make things very well. Monozukuri is not mindless repetition; it requires creative minds and is often related to craftsmanship, which can be learned through lengthy apprenticeships rather than the structured course curricula taught at traditional schools.