Daido Steel Co., Ltd. (President: Tetsuya Shimizu) has announced its 2026 Mid-term Management Plan in June 2024, covering a three-year period until fiscal year 2026.

This 2026 Mid-term Plan is positioned as a period of transformation, or "transition management," to achieve our "Vision for 2030": "We will pursue high performance materials, create benefits for customers and contribute to the realization of a sustainable society." And we also set various management targets for fiscal year 2026.

However, demand in automotive related sectors, our primary demand source, has decreased more than initially anticipated, largely due to the sharp decline in market share of Japanese automakers, particularly in China and ASEAN. Furthermore, in the industrial machinery sector, the production activity levels of Japanese manufacturers remain sluggish due to deteriorating domestic and international demand and the rise of Chinese manufacturers. This has resulted in a continued severe business environment, putting downward pressure on our performance.

At the time of formulating the Mid-term Management Plan, we assumed that demand for our existing business products, special ty steel and stainless steel, would grow steadily until 2026, and then gradually decrease towards 2030 due to the impact of electrification. However, a downward trend emerged from the first year of the Mid-term Plan, and changes in the demand structure surrounding our company proceeded at a faster pace than anticipated.

Moreover, various factors are impacting the global economy, including the effects of various policies, such as the Trump administration's tariff policies in the United States; slowing domestic economic growth in China alongside advancing export expansion measures and a shift towards local production; the fragile political and economic situation within Japan; and increasing geopolitical risks in various regions, along with the destabilization of international trade. As a result, uncertainty remains elevated.

Considering these changes in the external business environment, we have judged that a review of our management targets and redesign of the Mid-term Management Plan are necessary at this time.

Redesign of Daido Steel Group 2026 Mid Term Management Plan(PDF:882KB)