Company Database

OKADA AIYON CORPORATION

about this company

Vision/Mission

We, Okada Aiyon Corporation, promise to be a valuable company through providing our demolition equipment and recycling machines that help preserve our environment.
We keep advancing to give outstanding satisfaction to our customers by developing and producing machines and equipment that give solutions to various problem or needs of customers.

Business Description

We are a construction machine manufacturer with 78 years experience in Japan. Our main products are attachments to be mounted on excavators, for example, hydraulic breakers and concrete crushers. In addition, we also provide recycling machines, such as wood grinders, chippers, and so on. Those are machines and equipment that are essential tools in demolition work and infrastructure rebuilding.

Background

Tatsuo Okada had founded “Okada Rock Drill Co.”, predecessor of our company, in 1938. During World War II and the following years we temporarily had to close the business.
In 1960, we reopened the business of OKADA Rock Drill, Co., which produced, distributed and provided after-sales service on pneumatic rock drills and their equipment.
In 1977, we started selling hydraulic breakers. After that, our product lines have been expanding to give solutions for various customer needs, from attachments for excavators, such as concrete crushers and hydraulic grapples, to recycling machines, such as wood grinders and wood waste processing machines.
In September 1983 the company was renamed “Okada Aiyon Corporation”. 
We had been listed on the Second Section of the Osaka Stock Exchange since August 1992, and subsequently upgraded to the First Section of the Tokyo Stock Exchange in March 2016.
We develop, manufacture and distribute products, which give solutions to our customer needs; in addition we provide after-sales service. So, we are standing close to our customers that help us catch questions and their needs. Thus, we have been growing our business.
We are named Okada Aiyon, which comes from our best-selling pneumatic breaker, the IPH400. Aiyon in Japanese means I 4, that is an initial of the model number of the IPH400. People then call different brands of pneumatic breakers Aiyon.

Products/Services
 

Markets

(Japan)
We have 11 sales branches that cover the entire Japanese market and each branch has an after-service team with parts stocked for immediate customer needs.
Our core product, the TS crusher, features the strongest crushing force in its class. 
So, both high quality products and service are our advantages.
Consequently, our market share of demolition crushers is 40% and the market share of all attachments is about 30%.

(Overseas)
We have organized our sales and after-services network with three sales branches, at OR, OH and TX, in the US market.
For other markets than the US, our overseas department located in Japan distributes our products through authorized dealers for their territories. Each authorized dealer is given training in sales, products and service by specialists.
The total export business accounts for 20% of sales of the entire company. 
The US accounts for 70% and Asian countries account for 20% of our exports sales.

Industry

The attachments business and recycling machine business are supposed to be relatively small industries, and known as so-called “niche” businesses, and there are a few competing companies.
We have 30% shares in our markets and are known as a leading company in our industry.

Location

Our headquarters are located in Osaka, Japan. There are 11 sales facilities (Tokyo, Kansai, Hokkaido, Morioka, Sendai, Yokohama, Chubu, Hokuriku, Shikoku, Hiroshima and Kyushu) that cover the entire Japanese market.

We have about 50% of the market share in Tokyo area, which is strategically important, and where there is the demand of demolition works for infrastructure improvement. 
In the US, we have three locations and this market is a strategically important territory for our business.

Competitive Advantages

As mentioned above, we have about 50% of the market share in the capital territory (Tokyo) of Japan – our strategically important area. As such, we have more direct business with end customers compared to other territories, and this results in approximately 50% market share of our concrete demolition crushers, as well as its strongest crushing force.

In the overseas market, the USA is our strategically important area. We have three facilities in the USA, which give unmatched customer support among Japanese brand competitors.

Financial Projection
(JPY million)

Company Goals & Objectives

We made our mid to long-term business plan, named “Arch 2020”, which is our business strategy toward 2020, the year of the Tokyo Olympic and Paralympic Games.

Our mid to long-term strategy “Arch 2020” guideline:

Management

Our board of directors is composed of 9 directors (including two outside directors). The 6 inside directors are experts in each field: sales, production, and management. The others, except the president, are outside directors, an executive in a public company and a professor of civil engineering.

Employees

Japan: 199
USA: 20
Total: 219 (in March 2016)

Highlights

1938                    Founded Okada Rock Drill, Co. 
Sept 1, 1960        Established and incorporated under the name Okada Rock Drill, Co.
April, 1977           Began to sell hydraulic breakers.
Sept 1983           Changed our name to Ookada Aiyon Corporation.
Oct 1987             Began to sell hydraulic crushers.
Aug 11, 1992       Listed in the Second Section of the Osaka Stock Exchange.
Sept 1996            Established Okada America, Inc. in Portland, Oregon.
March 18, 2016   Listed in the First Section of the Tokyo Stock Exchange.

Website
http://okada-aiyon.com