Mr. Kengo Fukaya, executive vice president of Daido Steel, gave a vision of the firm’s sales management in the next fiscal year starting in April 2012 at an interview with Japan Metal Bulletin. Mr. Fukuya told the firm carries out reorganization of the sales items along with optimization of steel making process in Chita iron works in fiscal 2012. He said the firm tries to strengthen existent businesses while to develop new growing fields and to build up management basement by establishment of new business model for potentially world no.1 products.
Mr. Fukaya suggested the firm tries to realize “account-style” sales, providing steel products matched with the customers’ needs as well as solutions for the customers’ various problems. He referred to integration of the group sales companies scheduled in July 2012. He explained domestic shipment of tool steels has shrunk to two thirds compared with the pre-Lehman Shock level. He emphasized rationalization is necessary for domestic tool steel wholesalers under the severe situation. Meanwhile, Daido Steel has strengthened partnership with TIMKEN, American major special steel maker. Mr. Fukuya said Daido Steel could gain much insight from TIMKEN’s wide-range businesses covering infrastructure and energy. He told Daido Steel aims to enhance the good and mutually respectable partnership. As for special steel market, Mr. Fukaya overviewed world automobile sales totaled 74 million units in CY2010 and is forecasted at 101 million units in CY2020. Japanese vehicles seem to represent 25-30% in the global sales and the ratio is expected not to change toward CY2020. Special steel output could gradually increase along the car market growth worldwide, he said. Mr. Fukaya adduced several negative factors on special steel demand, that are local material procurement by Japanese automakers at overseas, downsizing of automobiles and shifting to hybrid vehicle (HV) and electric vehicle (EV). He explained a quarter of Japanese car sales was replaced with 1,300cc-class or smaller cars in recent 4-5 years and the small car sales might increase by 5-6% until CY2020. Sales of HV and EV hybrid are increasing even more rapidly. Mr. Fukuya indicated HV and EV might represent 25% in the total car sales until CY2020. He explained special steel usage decreases by about 20% for HV and by about 50% for EV compared with conventional engine vehicles.