News Releases
NACHI-Fujikoshi
Expansion of Production System for HSS Drill Bits
in ASEAN Nations and Japan (Report Memo)
Nachi-Fujikoshi is strengthening its production system for HSS (high speed steel) drill bits. We are basing production and supply of standard drill bits, demand for which is mainly increasing in developing nations, at factories in Singapore and the Philippines to strengthen production capacity. At drill bit factories in Japan, we will specialize in the production of high precision and high efficiency drill bits and expand our supply system in Japan, Europe, America, and eastern Asia.
1. Demand Trends for HSS Drill Bits
(1) Increase in demand for standard drill bits in markets of developing nations
In the markets of developing nations such as China and ASEAN nations, demand for standard straight drill bits and tapered drill bits is growing due to the expansion of industrial production in the fields of automobiles, general industrial machines, and electronics. In Japan, demand for standard drill bits is increasing in hardware stores.
Increase in orders of standard drill bits (2008 to 2011)
- Worldwide increase of 25% (60% increase in China, 45% increase in Indonesia)
(2) Market formation for high precision and high efficiency drill bits
While cutting conditions continue to differentiate the use of HSS drill bits and carbide drill bits in Japan, Europe, and America, demand for cost-effective, high speed and high precision CS (carbide) drill bits that cover carbide applications is also growing. Moreover, uptake in eastern Asia and ASEAN nations is advancing at a rapid pace.
(CS drill bit: cylindrical shank drill bit, mainly installed on NC machine tools)
Increase in orders of CS drill bits (2008 to 2011)
- Twofold increase worldwide (2.5-fold increase in Japan, 70% increase overseas)
Both standard drill bits and CS drill bits are essential tools for machining in the fields of automobiles, two-wheeled vehicles, general industrial machines, and electronics. Further increase in demand is likely in both Japan and overseas for the foreseeable future.
2. Expansion of Production System in Japan and Overseas
(1) Our Company's Position
We recognize that we are the world's top manufacturer of HSS drill bits and intend to establish an unparalleled production system in Japan and overseas in the medium to long term. As the first step, we intend to predict worldwide demand until 2012 (final year of our midterm plan) and strengthen production equipment at existing factories in Singapore, the Philippines, and Japan accordingly.
(2) Overview of Equipment Investment
(a) Expand production lines at factories in Singapore and the Philippines
(b) Expand production capacity at round tool factories in Japan
Combination of (a) and (b)
- Equipment investment value: About 1 billion yen
- Effect of equipment investment: Total worldwide production of HSS drill bits to increase by about 30% or more (from February 2012)
Worldwide production of drill bits: 3,000,000 units in 2011 → 4,000,000 units per month system in 2012
NACHI-FUJIKOSHI CORP.