NIRECO CORPORATION

Business Details

In the steel and non-ferrous metals field, the segment provides Process Control Equipment, Eddy Current Molten Steel Level Meters, and Edge Position Control devices for rolling and continuous casting processes. In the functional film and flexible packaging materials field, it offers Edge Position Control devices, Tension Control Equipment, registration control devices, and Print Quality Inspection Equipment for strip-shaped materials. Overseas subsidiaries in China, South Korea, and Taiwan also participate in sales. Global expansion is being promoted through collaboration with Germany's IMS Group and Erhardt+Leimer Group. This is the largest segment, accounting for approximately 52% of consolidated net sales.

Recent Overview

Decreased sales and profit, but order backlog expanded significantly by 18.8% year-on-year, and sales activities to India also commenced

In FY2026 (ending March 2026), the Control Equipment Business recorded net sales of ¥5,758 million (down 0.8% year on year) and segment profit of ¥1,398 million (down 10.1% year on year), representing both decreased sales and profit. The steel and non-ferrous metals field remained solid with net sales up 6.3% year on year, but profit declined 6.2% year on year due to the reactionary decline from the prior period's high proportion of high-margin product sales and rising cost of sales. In the functional film and flexible packaging materials field, both net sales and profit declined year on year due to the continued slowdown in orders from the secondary battery industry. Meanwhile, order backlog increased substantially to ¥3,214 million (up 18.8% year on year). Globalization was also advanced, including the launch of CPC sales activities for the steel and non-ferrous metals industry in India in cooperation with IMS Group's Indian subsidiary.

Key Products

Growth Drivers

• Continued expansion of capital investment by steel makers for high-grade steel, environmental applications, and facility consolidation
• Global expansion through strengthened collaboration with Germany's IMS Group (including new entry into the Indian market)
• Recovery trend in orders for Edge Position Control devices and Tension Control Equipment, and a substantial order for Print Quality Inspection Equipment
• Development of applications for meandering control devices for new power generation methods, including manufacturing equipment for perovskite solar cells
• Strengthening of domestic and overseas businesses, including control equipment and inspection equipment, through enhanced collaboration with Germany's Erhardt+Leimer Group
• Accumulation of future sales from an order backlog of ¥3,214 million (up 18.8% year on year)

Risks

• Continued slowdown in orders from the secondary battery industry to manufacturing equipment makers (pressuring sales and profit in the functional film/flexible packaging materials field)
• Rising cost of sales and declining profit margin due to ongoing inflation
• Fluctuations in profitability due to changes in the proportion of high-margin product sales
• Risk of oversupply of steel demand due to changes in the Chinese economic environment, and capital investment restraint by steel makers
• Impact on exports and overseas business due to fluctuations in U.S. trade policy and heightened tensions in the Middle East
• Declining trend in paper demand due to progress in digitalization in the paper manufacturing and printing markets