Okuma celebrates 110th year with double-digit growth

The Japanese manufacturer of CNC lathes, machining centres and grinders, Okuma Corporation, has announced an increase in turnover to ¥213.8 billion in its fiscal year to 31 March 2008, 13.3 per cent up on last time. This achievement makes the 2,674-employee company, which includes the former Okuma & Howa subsidiary that is now wholly integrated, one of the largest machine tool manufacturers in the world. Shortly before the figures were announced, in what is Okuma’s 110th anniversary year, Yoshimaro Hanaki (pictured), president and CEO, gave an insight into how these impressive figures were achieved and described the company’s latest developments. One reason for the record turnover and after-tax profit, up 14.5 per cent, was sales growth in Asia, which 10 years ago stood at ¥4 billion and last year was ¥30 billion. Growth in China has been remarkable, helped by production of simple turning machines and machining centres in Okuma’s Beijing factory. India is set to become a huge market, as are Russia and South America, particularly Brazil. These countries are driving growth, with Japan, the US and Canadian markets flat. Interestingly, Europe overtook the USA in sales volume for the first time last year and continues to grow. Around 8,000 machines were built by Okuma last year at its Oguchi, Kani and Konan plants near Nagoya. Exports accounted for half of turnover, which equated to 10.5 per cent of Japan’s total machine tool exports by value. The remaining half – domestic sales – represented approximately 12 per cent of the Japanese market. Okuma’s export target is 60 per cent of sales.