Basic Policy for the Medium Term
Realizing green innovation, or technological innovation to create and expand alternative energy, reduce CO2 emissions and transition to a low-carbon society, has been a policy priority for nations in Europe, North America and Asia in recent years. They are working to accelerate development in this area. Furthermore, we perceive the development of new technology and increase in capital investment in green innovation as a prime mover that will lead to higher demand for our products. ESPEC’s executive management has resolved to aggressively seize this outstanding business opportunity.
Medium-term Management Policies
Policy 1: Accelerate growth in the green technology market
Policy 2: Expand overseas business operations primarily in China and Asia
Policy 3: Cultivate Japanese markets in more depth to enhance profitability
Policy 4: Speed up management and business activities with function and process reforms
Policy 5: Nurture professional talent and empower employees with a sense of purpose and achievement by conducting management in step with the times and carrying out systemic reforms
Main Business Schemes Under the Medium-term Plan
Policy 1: Accelerate growth in the green technology market
The first growth strategy under the plan is to expand business in the green technology market.
For ESPEC, the green technology market is comprised of the technology markets relating to rechargeable batteries, solar batteries and power semiconductors. This green technology market is at the growth and development stage, with solutions gradually being found for technological bottlenecks. This process will generate various needs and expanding business opportunities for ESPEC. Specific measures include the following.
1) ESPEC will bring together its core technologies effectively for the commercialization of highly original and unique industrial equipment and systems.
2) ESPEC will introduce evaluation equipment addressing advanced needs in the development and evaluation of green technology. The Company will also propose products that preempt customer needs in the manufacturing process and inspection field.
3) In these ways, ESPEC will raise its name recognition, invest in R&D and expand its business in the green technology market.
Policy 2: Expand overseas business operations primarily in China and Asia
The second growth strategy under the plan is to expand overseas business operations, with China and Asia as the key markets. ESPEC will also take initiatives to strengthen manufacturing overseas as a measure for countering the yen’s abrupt appreciation. Specific initiatives include the following.
1) ESPEC will implement a new round of technology transfers to its overseas Group companies with manufacturing bases in China, the U.S. and South Korea. At the same time, the Company will integrate strategies and strengthen its R&D and manufacturing capabilities as a group.
2) Products addressing the needs of customers overseas will basically be developed in Japan for deployment at overseas Group companies.
3) ESPEC will establish a multidimensional product line combining cost-competitive products from overseas Group companies with high-quality products from Japan that address new needs for reliability, precision performance and environmental specifications*1. In parallel, the Company will also strengthen its sales capability and capture demand for the various industrial and testing needs that exist in the Asian market.
4) ESPEC will enhance the collaboration in sales and service among its Group companies in support of the global development of its customers.
Policy 3: Cultivate Japanese markets in more depth to enhance profitability
Although the market for environmental testing in Japan has matured, it can nevertheless be capitalized as the bedrock to the Company’s earnings base in supporting growth strategies over the next 10 years. Specific actions in this area include the following.
1) ESPEC will apply “high performance with high environmental specifications"*2 as a shared concept in promoting model changes for its major products. In this way, the Company will strengthen its product competitiveness and stimulate replacement demand among customers.
2) ESPEC will apply the concept of “external customization and internal standardization" to enhance its capabilities for customizing products. In this way, the Company will capture new needs in fields such as green technology.
The Group will build a product design and manufacturing structure that will enable it to meet customers' custom specification needs by combining standardized modules. In this way, the Company will respond more quickly to the needs of its customers and at a lower cost.
3) ESPEC will develop a new menu for commissioned testing and after-sales services to enhance its capability as a solutions provider. The Company will combine this with its product hardware to raise its value to customers. Furthermore, the Group will build a lineup of network-capable instruments and equipment to promote the systemization of its products.
4) ESPEC will take advantage of the benefit of having merged three Group companies into one in substantially improving its sales and service efficiencies. At the same time, the Group will strengthen its customer contacts with the aim of bolstering its capabilities for gathering information on customer needs. These competencies will be fed back to substantially raise sales productivity and enhance flexibility for responding to customers to stimulate replacement demand.
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