SHIBAURA MACHINE CO., LTD.

Business Details

The core segment of Shibaura Machine, which manufactures and sells injection molding machines, extrusion molding machines, die casting machines, and other products. In addition to domestic operations, manufacturing is conducted at overseas locations in China, Thailand, and India, supporting a global business footprint. In FY2026 (ending March 2026), sales of lithium-ion battery separator film manufacturing equipment for China declined sharply, causing the segment's share of consolidated net sales to fall from 81.5% in the prior period to 74.4%. The overseas sales ratio stood at 80.0%.

Recent Overview

Net sales fell 27.9% and operating profit fell 80.6% due to the drop-off in special demand for separator film equipment for China

In the Molding Machine Business in FY2026 (ending March 2026), sales of lithium-ion battery separator film manufacturing equipment (extrusion molding machines) for China, which had driven sales in the prior period, declined sharply, resulting in a rapid deterioration with net sales of ¥98,854 million (down 27.9% YoY) and operating profit of ¥2,739 million (down 80.6% YoY). On the other hand, orders received of ¥75,353 million (up 0.2% YoY) remained essentially flat. In Europe, the company acquired SHIBAURA MACHINE LWB GmbH but recorded a goodwill impairment loss of ¥2,067 million as an extraordinary loss. The order backlog stood at ¥61,528 million (down 26.9% YoY), leaving limited room for sales recovery in the following period.

Key Products

Growth Drivers

• Capturing demand through the establishment of an increased production system for injection molding machines in the Indian market (new plant, start of electric-type production, opening of a technical center) and expanding exports to the Middle East, Africa, Europe, the US, and Southeast Asia
• Re-entry into the European injection molding machine market leveraging the acquisition of SHIBAURA MACHINE LWB GmbH (Germany) (cross-selling centered on the packaging and medical domains)
• Expanding orders for ultra-large die casting machines (6,000 to 12,000-ton class) in response to gigacasting demand, and adding a 4,500-ton class to the lineup
• Development of extrusion molding machine technology for next-generation batteries (all-solid-state batteries, dry electrodes) and entry into the dry electrode market through investment in AM Batteries Inc.
• Orders for extrusion molding machines for China have turned upward, capturing demand for energy storage system batteries for renewable energy and data center applications

Risks

• The segment has not yet completed its shift away from dependence on sales of lithium-ion battery separator film manufacturing equipment for China, and its performance remains structurally susceptible to capital expenditure trends in the Chinese market
• The slowdown in the EV market and continued wait-and-see capital expenditure stance in the automotive market due to US trade policy (tariffs) are hindering the recovery of orders for injection molding machines and die casting machines
• The order backlog stands at a low level of ¥61,528 million (down 26.9% from the end of the prior period), risking a limited scope of sales recovery in FY2027 (ending March 2027)
• Following the acquisition of SHIBAURA MACHINE LWB GmbH, a divergence from the business plan occurred, leading to a full impairment of ¥2,067 million in goodwill; uncertainty remains regarding the profitability of the European business
• The overseas sales ratio is high at 80.0%, creating a risk of profit pressure from exchange rate fluctuations (particularly yen appreciation)
• Business restructuring costs associated with the closure of the existing manufacturing subsidiary in China (Shanghai) and the establishment of a new subsidiary in Anhui Province, along with quality and supply management risks associated with the shift to OEM outsourcing