Taihei Machinery Works,Limited

Business Details

The core business manufacturing and selling plywood production machinery such as knife grinders, dryers, and hot presses. In addition to domestic plywood manufacturers, the segment has expanded into overseas markets centered on the United States, focusing on expanding its North American sales network through TAIHEI MACHINERY US Inc., newly established in the current consolidated fiscal year (FY2026, ending March 2026). The segment is also engaged in technology development for machinery targeting new building materials such as CLP and LVL. Both sales and profit declined sharply due to the drop-off effect following a large order recorded in the prior period.

Recent Overview

Net sales and profit declined sharply due to the drop-off effect from the prior period's large order, but orders received recovered sharply, up 137.8% year on year.

In FY2026 (ending March 2026), the Plywood Machinery Business was directly impacted by the drop-off effect following the large overseas order and large-scale maintenance of existing domestic machinery recorded in the prior period, resulting in a significant decline in both sales and profit: net sales of ¥3,212 million (down 36.2% year on year) and operating profit of ¥369 million (down 52.6% year on year). On the other hand, orders received recovered sharply to ¥4,006 million (up 137.8% year on year), reflecting the success of exhibiting at LIGNA Hannover (Germany) and the APA-sponsored trade show (United States), as well as PR and order-taking activities in the North American region conducted through the newly established TAIHEI MACHINERY US Inc. The foundation for a sales recovery from the next period onward is gradually taking shape.

Key Products

Growth Drivers

• Expansion of sales channels and brand recognition in the North American region based on TAIHEI MACHINERY US Inc. (newly established in the current period)
• Strengthened PR and order-taking activities through exhibiting at large-scale trade shows such as LIGNA Hannover (Germany) and the APA-sponsored exhibition (United States)
• Technology development of machinery for new building materials such as CLP and LVL, and capturing demand from non-residential wooden construction
• A sharp recovery in orders received, up 137.8% year on year (¥4,006 million), which is expected to translate into sales in the next period
• Synergies with the Woodworking Machinery Business driven by steady demand related to laminated lumber

Risks

• Sluggish domestic demand due to a decline in plywood and veneer production volume amid the continued decrease in new housing starts
• Risk of year-on-year performance fluctuations due to timing gaps between order receipt and sales recognition for large orders
• Impact of changes in U.S. trade policy (tariffs, etc.) on exports and North American expansion
• Cost increase pressure from persistently high raw material and energy prices
• Dependence on sales to a major customer (Hayashi Veneer Sangyo Co., Ltd. accounted for ¥1,422 million as a major customer in the current consolidated fiscal year)
• Risks related to the launch and operating costs of TAIHEI MACHINERY US Inc. and the management of overseas subsidiaries