Shimadzu Corporation has established Shimadzu Aerotech Manufacturing, Inc., a subsidiary specializing in the manufacture of equipment for commercial aircraft, which includes strategic products in our aircraft equipment business.
The company aims to raise production efficiency by specializing in the manufacture of commercial aircraft equipment positioned as strategic products to increase competitiveness and expand business performance. Emphasis is placed particularly on the gear products used in flight control systems and on the high-speed rotating gears that are incorporated in engine accessories gearboxes, so in order to support this, a dedicated manufacturing line will be established and new machining equipment capable of handling complex machining operations introduced.
We are producing aircraft gears in house requiring dozens of manufacturing steps and their manufacture demands extremely precise dimensions and quality control management. In addition, because our main customers for commercial aircraft equipment are mostly located in the United States, we aim to promote supply chain optimization across the group, shorten lead time, and improve quality by procuring materials and performing complex machining operations at Shimadzu Aerotech Manufacturing, Inc. in Japan, with procuring parts and performing assembly work at Shimadzu Aircraft Equipment USA, a Shimadzu subsidiary in the United States.
The commercial aircraft market is expected to remain robust in the future. We intend to strengthen profitability by focusing on commercial aircraft equipment as a key measure to expand our aircraft equipment business.